The Current Shortcomings, Challenges, and Planned Recruitment and Training Process at ABC - Case Study Example

Marketing The current shortcomings, challenges, and planned recruitment and training process ABC is a multinational corporation that manufactures and sells electronics globally. The company is one of the best performing firms in the electronic and mobile phone manufacturing industry. One of the main challenges the firm faces is the payment of import duty, which is very high or costly (Albaum & Duerr 2008, p. 42). This is a major challenge because it reduces the profit margins of the company, which may in the long run lead to losses that may not be recovered in future. The inputs or raw materials used are imported from different countries; hence, attracting an import duty (Kotler & Keller 2008, p. 31). The large quantities of materials needed include tedlar, silver paste, glass, aluminum, and various chemicals, which cannot be found locally. It is the hope of the company that the government will intervene soon because the effects are severe and may not be controlled in future if not addressed immediately (Allen & Helms 2002, p. 115). The shortage of skilled-ready human resources is a challenge or challenge that is facing the company. The unavailability of technical manpower is critical and has affected company’s performance (Ghauri & Cateora 2006, p. 20). Human resources or the work force determines the success or failure of the company. It has been a challenge or a shortcoming for the company to recruit high skilled and talented professionals (Catano 2009, p. 400). The company cannot afford to pay the salaries of the most qualified professionals because of low returns or profits, which has led to poor quality products. The high rate of employee turnover is a challenge because the company has been employing people, who are being chased from other companies; hence, they cannot perform. The company lacks the most experienced workers, who can utilize the new technology to improve the performance of the company (Allen & Helms 2002, p. 117). Finding and retaining skilled employees has been a persistent challenge facing ABC Company. It is costly for the company because recruiting and training new employees monthly is unrealistic (Hussmanns et al. 1990, p. 343). Having the right people ready at the right time to support the company in every organization is not easy. The brand and image of the company is build by the employees. The spread of the new technology and globalization is a factor to be considered because it may not bring the required playground in the industry in terms of information, availability of finance, and technology. Like other resources such as capital and land, human resource is vital for the success of the organization (Albaum & Duerr 2008, p. 43). Human resources will create a competitive advantage if they are well recruited but the company has not been in a position to meet these standards. Talented workforce has been scarce, which has been a challenge to train and build new professionals because it is time consuming and costly (Kotler & Keller 2008, p. 33). Devising new ways of hiring and retaining the right talent in the company has been a major challenge because of the increasing competitiveness in the industry. Hiring new employees is not easy as retaining existing talent, therefore, interventions is required to deal with this issue once and for all. The company’s management has not been able to improve working conditions, job enrichment, pay the fringe benefits, autonomy, and other custom-made compensation packages (Catano 2009, p. 402). Performance appraisal has been a major challenge to the company because it has not been able to conduct it. The company management especially the human resource management has not been able to carry out evaluation of personal skills and monitoring the tasks assigned to the employees; hence, detecting weaknesses that need to be improved is not easy (Kotler & Keller 2008, p. 35). Performance appraisal is important because it helps the human resource managers to know the quality of work carried out by all employees, business potential, peer satisfaction, timeliness, and carrying out the required measures. The human resource department has not been able to know whether they are satisfied or not (Ghauri & Cateora 2006, p. 22). The company cannot evaluate its employees leading to poor performance. The company’s management has failed to evaluate employees based on their analytical ability and change management. This is a challenge facing the organization that can be improved if the human resource managers understand their roles and responsibilities well (Allen & Helms 2002, p. 119). The company has failed to employ human resources or workforce with the required skills and trains them to gain the required skills, competencies, knowledge, and confidence. The other major challenge is how to ensure there is employee-employer fit in the organization (Kotler & Keller 2008, p. 36). This is a challenge because the human resource manager has not been able to select employees who have the ability to do the job but, they are based on their hiring on unfair means. They do not hire people who value teamwork and those who can interact and share ideas freely without fear or favor (Stuart 2000, p. 120). This challenge has been enhanced by hiring employees whose outlook and personal values do not match organizational culture, structure, and values. The company has not employed a hiring strategy of selecting and attracting qualified professionals, who can propel the company, forward economically (Albaum & Duerr 2008, p. 44). Sales and marketing department has been a great challenge to the company. The company has not been able to apply the 4p’s of marketing; hence, becoming a major challenge or shortcoming to them (Kotler & Keller 2008, p. 37). The 4p’s are the product/service, price, place, and promotion. The products of the company do not met the needs of the customers because some features are missing. This has been a challenge because the sales of the company have reduced significantly (Solomon 2009, p. 430). The products have not been branded as expected by the customers and do not specify how they are to be used making it difficult to market in the competitive electronic market globally. There is no differentiation of products to make them unique because the sales and marketing strategies did not incorporate the 4p’s, which are essential for the success of the company (Allen & Helms 2002, p. 120). The company have not specified where to the products (place). The stores or the buying centers are few; hence, inconveniencing customers who want to buy the products of the company. Travelling for long distances looking for the products is costly and time-consuming (Solomon 2009, p. 436). This is a shortcoming because customers will prefer to buy products from other companies whose locations are convenient to them. The stores should be near the customers or start online method of selling the products. The distribution channels should be easily accessible and there is need to use sales force, attend trade fairs, send samples to catalogue customers and companies, make online submission, and use sales persons to distribute the goods efficiently and effectively. The company has failed to carry out market research to understand the competitor’s product strategy (Hussmanns et al. 1990, p. 344). The prices of the products of company have been a shortcoming because the value of the products has been high compared to its competitors. Many customers have been shying away from the company’s products because they are expensive yet they are of poor quality (Stuart 2000, p. 121). There are no established price points for the products of the company like those of its competitors. Customers are sensitive to the prices of the company and sales and marketing department have not been able realize this; hence, making decisions that do not consider customers views and opinions concerning prices (Albaum & Duerr 2008, p. 47). The company’s products sell at a fixed price and do not offer discounts to its customers or other markets in the region (Solomon 2009, p. 439). The company should have compared the prices with those of competitors so that it can decide on the prices that the customers can afford and reasonable to them. The company wants to make abnormal profits, which is not possible because it is not realistic to go against the market demand and supply laws (Ghauri & Cateora 2006, p. 23). Promotion and advertising has been a shortcoming because the company has not been able get there message across the marketing message to the target customers at the right time. They have not planned when and where to deliver the message to customers and potential customers in the target markets (Solomon 2009, p. 447). The company lacks the appropriate media through which they can reach the customers. There is no agreement on whether to use billboards, TV, radio, press, public relations (PR), direct marketing mail shot, or internet. This has been a challenge the company has been facing because there is no appropriate promotion strategy adopted by the company to market the company’s products (Allen & Helms 2002, p. 122). The company has not decided on best time to promote the products of the company and the seasonality in the market making it difficult for the products of the company to be known in all target markets. The competitors do their promotions regularly but the company is not regular on how to advertised and promote the products. This is a shortcoming because the customers may not internalize the presence of the goods in the market (Catano 2009, p. 403). Planned recruitment and training Recruitment and training are important for the success of the company. The company is planning to recruit new employees who are qualified to run the organization when the New Year commences (Solomon 2009, p. 456). The human resource department has set rules, regulations, and procedures that will be used to recruit and train qualified professionals so that the New Year will get the company operations well planned and coordinated to improve the performance of the company (Hussmanns et al. 1990, p. 345). Recruitment will depend on the quality of employees; therefore, with proper recruitment and training process will overcome the shortcomings and challenges facing the company (Allen & Helms 2002, p. 125). Recruitment has been planned to target the new markets and to get employees with skills because they will understand the new technological advances. The recruitment and training process will give proper rules that will guide in dismissing, promoting, and firing employees in the organization fairly (Solomon 2009, p. 459). The company through the human resource department has conducted job analysis. This is important because it will help the human resource manager to decide on the skills, knowledge, and other qualities required to do the job effectively (Stuart 2000, p. 123). Job description will follow because the personnel department will produce job description where the nature of the job is described with all the details, which include roles and responsibilities for each employee. Job description will give all the requirements to all applicants detailing what the job entails and to give time people to decide whether they are ready to take up the roles and responsibilities. The company have set up ways of solving disputes and conflicts incase they arise (Albaum & Duerr 2008, p. 48). Job specification has been planned where it will state skills, previous experiences, qualifications, knowledge, and other requirements a person must have. The human resource management has decided to fill the vacancies by recruiting people from outside the organization who meet all qualifications (Solomon 2009, p. 460). The human resource manager and its team have decided to recruit people with experience and on merit in order to avoid biasness or favorism. Personal recommendation is a strategy used to eliminate those workers who have been under-performing in the organization. The company wants to have workers who are committed and dedicated. Employees who have been performing well will be recommended by someone who understands him or her (Catano 2009, p. 404). Any one who meets all the qualification should recommended without nepotism, fear or favor because the company to build a good image in order to gain competitive advantage at the start of the year (Ghauri & Cateora 2006, p. 24). The recruitment process will be transparent and fair because all vacancies will be advertised and the selection panel will be outsourced to do the selection and recruitment for it to free of manipulation and corruption from those who are able and influential financially in the society. The advertisement has been planned by the human resource department to reach all the people through the popular magazines and newspaper. The salary should be stated and other personal details specified for it to be formal and void of manipulation (Cbse 2009, p. 232). For the company to start the New Year with change, education and training have been organized for all employees who will qualify through the selection and interview panel. The human resource manager and all his team are planning to train and develop all employees through an induction program where all workers meet and are taught new skills and competences (Allen & Helms 2002, p. 125). The induction program will be conducted for the employees to understand the all the organization’s structures, culture, communication, management, and to know each other because they are still new in organization. There is a detailed training scheme, which will be conducted to enhance employee performance and productivity in the organization. All training programs and sessions will be conducted on the job where skills are gained and learnt through experience (Catano 2009, p. 405). To solve the past challenges and shortcomings, training will be stressed as an investment. It will boost employee’s performance because it is a long-term growth and development in all fields and departments (Ken 2007, p. 74). Training has been organized so that the needs of the employees are identified in time. This is important because it will harmonize the organizational goals and objectives with those of an individual person. The focus of the training has been identified so that pertinent skills and challenges facing employees are addressed before the start of the year. Training will be beneficial to the employees and the company because the objectives and goals will be achieved (Cbse 2009, p. 233). Training will promote a culture of learning because it will be conducted on weekly basis before the New Year commences when employees are expected to work in the organization. It is important because it will promote all efforts towards the accomplishment of all the goals and objectives of the organization (Solomon 2009, p. 462). After orientation, those who will have shown seriousness and willingness to work in the organization are given time and chance to work in the organization. The efforts of improving the performance of the organization will be achieved by choosing the quality instructors and trainers who will be responsible for regular training of employees for them to be effective and efficient in service delivery (Allen & Helms 2002, p. 127). The training process will be followed fully so that it can create a pool of ready and prepared for the replacement of employees who are not effective (Stuart 2000, p. 125). It will enhance the company’s ability to adopt and use the advanced technology because they will be having sufficient and knowledgeable employees who are ready and willing to work towards the achievement of organization’s goals and objectives. The training program will ensure adequate human resources have the morale to ensure the company gains competitive advantage. Training will reduce employee turnover, decrease the need for supervision, increase productivity, and increase efficiency due to improved profit margins (Albaum & Duerr 2008, p. 49). There are four steps involved in training process. These include establishing a need analysis, developing training programs and manuals, deliver the training program, and evaluate training program (Ken 2007, p. 75). The first step is to establish a need analysis through customer comment cards, interviews, observations, and surveys. The dissatisfaction of employees is understood, low morale, high turnover, and low productivity. This is where training needs are identified, who will conduct training, and how it will be evaluated. Developing training programs is essential because all procedures will be established where responsibilities will be assigned for each employee (Cbse 2009, p. 234). Evaluation is the last step where the human resource manager with his team will determine whether the profitability and effectiveness of the training will have achieved its objectives (Stuart 2000, p. 126). These are steps prepared by the department before the year commences because change is required in the organization. Feedback is essential in this stage because it will give a chance to employees to correct the areas they did not perform as expected. A procedure for evaluation has been established to be used before and after a new dawn in the organization starts in the New Year (Allen & Helms 2002, p. 133). The reward and sales incentive plan that that will ensure a both ethical and motivated sales environment, aligned with the values of the organization The rewards for those who will achieve the goals and objectives must be compensated for them to maintain or improve their performance (Ken 2007, p. 77). Financial reward is appropriate to compensate employees because it will directly relate to their effort. Compensation rewards include material and non-material rewards. Monetary rewards are the best because it will show direct relationship between employees and the employer. Monetary rewards are the best ways to appreciate the best performing employees. It will recognize good performance and encourage those who may be inefficient and ineffective in service delivery (Catano 2009, p. 406). Those in sales and marketing will be rewarded depending on the volume of sales for whole year or quarterly depending on what they deem important and rewarding to them. Sales people and agents will determine whether the company will gain competitive advantage or not. If the firm will lead in the global market, all the sales people will be promoted to head all regional offices and their salaries increased by 20%. Employees can choose between monetary and non-monetary rewards depending on their needs. Sometimes the top management can use simple words such as thanks because they can go a long way due to its sincerity (Ghauri & Cateora 2006, p. 26). The important that the human resource department and the rewarding team have agreed is that, it should be fair and just to all employees and given in appropriate and timely place especially after achievement (Hussmanns et al. 1990, p. 346). The reward policy has been drafted to be clear and specific so that it creates a clear picture of what is happening in the organization. Rewards will be base on the outstanding performance, quality achievement, meeting sales goals and targets and delivering certain performance. Other typical rewards identified by the organization are trips paid for the outstanding employees by the company as a way of appreciation, offering gifts such as mobile phones, suits, bonuses, and TVs. Allowances and bonuses can be increased for those who meet their targets and exceed (Allen & Helms 2002, p. 136). To ensure ethical standards are maintained, employees should be motivated all the time. Rules and regulation are set to ensure employees behave well by adhering to the values of the organization. For those who will act against the code of conduct and ethics should be punished according to the specification. To motivate employees, the human manager should introduce job enrichment in the organization. This is where the employees are given more challenging, complex, and interesting duties and tasks to perform. They should be allowed to work as a team to accomplish the task as a team not individually (Cbse 2009, p. 235). The workers will be consulting and sharing ideas making the work easier to be accomplished. This is an opportunity for the employees to use their full effort and ability to test their capability. In addition, job enrichment is more motivating and inspiring than job rotation or enlargement (Stuart 2000, p. 128). This is because employees are given tasks that are related to their qualifications and are ethically acceptable. Workers will achieve greater sense and recognition of their achievement if they successfully accomplish the tough tasks. This is essential in upholding the values of the organization as well as motivating and inspiring them. The human resource manager and the marketing manager should work hand in hand in order to come up with a strategy that will that will be appropriate for the task (Catano 2009, p. 407). Job enlargement will give workers an opportunity with similar tasks that will reduce monotony boredom because it will increase their satisfaction. Increasing their sense of achievement will motivate them to perform even better. Teamwork ensures employees work as a team and perform all the tasks and duties immediately (Ken 2007, p. 79). Employees who feel sense of belonging as a unit will perform and achieve organizational and individual goals without straining very much. Empowering employees will motivate them to work extremely very hard because they have the authority to make decisions regarding their life at work place because they will have control over how to prioritize their tasks and time on what they are supposed to do. They are encouraged and given hope to consider the challenges and problems, they face but they should come up with solutions. As they solve the problems facing the organization either directly or indirectly, they will receive their reward as a group (Allen & Helms 2002, p. 137). Designing a reward program that will motivate all employees has been considered by both sales and marketing and human resource department. The main challenge that was facing the organization was the low volumes of sales (Hussmanns et al. 1990, p. 348). The company has identified the group goals and the reward program that will support all the employees to achieve the sales targets by improving the quality of the products. Determinations of the key measures and behaviors that will help identify and reward exceptional employees. Increased sales and identifying new markets will attract a reward, which will be attracting a reward of 10% increase in salary (Ghauri & Cateora 2006, p. 27). Profit sharing is a reward strategy that ABC Company has adopted because it is ethical and it will motivate employees to do their best. This strategy is where 20% of the total profit is set aside to be shared among employees when there is an increase in profit margins and sales in general. It will be disbursed at the end of the year and the main aim of this reward strategy is to appreciate employees for their contribution to the company’s increased profits (Cbse 2009, p. 238). This is ethical and it adheres to the organizational values and standards. The company has been getting little profits and sometimes losses and profit sharing strategy is an entitlement to employees and it will motivate them to work tirelessly towards improving profitability of the company (Allen & Helms 2002, p. 139). Stock options reward strategy has been considered important in motivating employees. This is where employees are allowed to buy the shares of the company when they sell certain volume of goods and get increased profits. This is a long-term motivator and it is used to reward those employees who will stick with the company for a long period. All the rewarding strategies are ethical and meet all the organizational values in the sales environment (Catano 2009, p. 408). References: Albaum, G. & Duerr, E. 2008. International Marketing and Export Management. London: Pearson. Pp. 42-49 Allen, R. & Helms, M. 2002. Employee perceptions of relationships between strategy rewards and organizational performance. Journal of Business Strategies. Pp. 115-139. Catano, V, M. 2009. Recruitment and Selection in Canada. New York: Cengage Learning. Pp. 400-408. Cbse, O. 2009. Finding, Training, and Keeping Great Service Employees 101. New York: AuthorHouse. Pp. 232-238. Ghauri, P. & Cateora, P. 2006. International Marketing. New York: McGraw Hill. Pp. 20-27. Hussmanns, R; Farhad, M; Vijaya, V. & International Labor Office. 1990. Surveys of economically active population, employment, unemployment, and underemployment: an ILO manual on concepts and methods. New York: International Labor Organization. Pp. 343-348. Ken, L. 2007. 151 Quick Ideas to Recognize and Reward Employees. New York: Career Press. Pp. 74-79 Kotler, P. and Keller, K. 2008. Chapter 14 in Marketing Management. New York: Prentice Hall. Pp. 31-37 Solomon, M.R., 2009. Consumer Behavior (8e). New Jersey: Pearson International. Pp. 430-462. Stuart, S. N. 2000. Training public administrators around the world. Mexico: Greenwood Publishing Group. Pp. 120-128 Read More