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Bandag Auto To Reorganize The HRM

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Question:

Critically discuss and analyse a range of employee management skills for example performance appraisal, staff training and conflict management?

 

 

Answer:

Five factors that support the need for Bandag Auto to reorganize the HRM function:

If we discuss history of the Bandag Automotive we will find that, while Jim’s father monitoring the company, they would never face the human resource related issues as the company is facing in past few year. Though it is true that the company’s sales and profit is increased tremendously under Jim’s supervision but he fails in managing the human resource. Human resources are important assets of the company and if they are managed well company would face many legitimacy and crises in near future. Hence it is strongly needed to reorganize the human resource management function and the factors supports this needs are given below:

1. First factor which will support the need for reorganization of HRM function is Jim’s strategy. The strategy adopted by Jim to handle the employees in the company is quite unfair and it is creating unsatisfied and de-motivated environment in the firm, which was automatically affecting the employee’s performance. Jim mostly focuses on improving the financial performance of the company, which is good but for this he get strict towards his all decision included the human resource related decisions. He just focused and every decision followed by aiming to cutting down the cost and increasing profit. He usually offer less day off rather than more and he very particular about that, also give fewer benefits to their employees rather than more, shows less flexibility towards employees needs for example seeking few extra leaves because of illness of a child, or due to family emergencies and so on. This creates more frustration and irritation among employees.

2. Another factor is his decision related to Henry Jacques. He dismiss this employee by giving the reason that he is creating poisonous relationship and also just because his executive says that Henry does not argues with his co-worker and complaining about the workplace condition. To dismiss an employee the employer should have to adopt substantively and procedurally fair procedure, which Jim did not applied. Before taking the dismissal decision Jim did not cross check the facts, not ask Henry to give his explanation and neither given him one more chance due to good technical performance. Jim must have good reason behind the dismissal. In the performance appraisal it is stated that Henry is good in technical aspects of his job, and in this type of situation employer should talk first about what changes Henry would have to do in his behavior. Jim cannot fire Henry directly just because of arguing with the co-workers, and complaining nature. The dismissal carried out must have to adopt fair way and employer must have acted fairly and reasonably which Jim failed to do. The Employment Relations Act 2000 requires that employers have to act in good faith when undertaking a disciplinary action.

3. Due to Jims decisions related to terminate the employee create legitimacy for his company and it create more problematic situation for him and also for his company’s reputation. Jim behavior is also not justifiable as he work with his experienced and old employee name Gavin. He is on sick leave, because going through a hip surgery and during that period Jim given his job post to another employee, it is quite unfair for Gavin and illegal too. Though Jim offered him another post with same salary and benefit but is not as prestigious as his previous post was and also according to his experience. There is possibility that company can include in some legal affairs because as they treat Gavin, he can file a case under Employment Relations Act 2000 which requires that the company bring employee back in the same or equivalent position and Jim had refused to do so.

4. Another factor which shows the requirement of reorganization of human resource management is the behavior shown towards the Miriam an employee working from 6 years for the company. She was went on 12 weeks parental leave and extended 3 weeks leave under sick leave program. But she got fired after 2 months of joining, which she feels illegal and she can file a case under Parental Leave and Employment Protection Act 1987. Such litigations strongly affects company’s image and create barrier to maintain employer f choice. To achieve the employees’ belief Bandag Company needs to make commitment to change. It is objective and vision of every business to make their workplace on top priority. Company has to take it seriously and genuinely try for improvement.

5.Most important factor is due to all the problems and things happened in the company employees working in the company faces frustration and also going through certain stress, because they do not feel secure about their job and they may feel that they may also get fired as other due to any reasons. Such a thinking of human resources in the company is really vulnerable for Bandag Automotive.

 

Analysis of four opportunities for change or improvement in the company’s current HR practices:

In light of the issue I have seen in the Bandag Automotive Company, it is recognized that due to firing of old employees due to different reasons that are Gavin who had work for 10 years, Miriam who had been with the company for about 6 year is creating de-motivated environment in the company. Employees in Bandag Automotive may feel insecure about their job in such environment and it may lead towards employees less commitment towards the organization.

This environment really needs to change and it is possible by improving company’s current HR practices and the opportunities are given below:

Flexible working option:

Working condition issues are addresses in the esteemed Bandag Automotive and this is lead towards the problems such as working time, remuneration aspects and certain promotional and training schemes which are related to the employers and employees. Bandag Automotive is an esteemed company and having good sales and profits markedly and hence you have to review condition of employment in your company to make sure about competitiveness in targeted market and also to achieve competitive advantage over the competitors.

The Health and Safety in Employment Act 1992 requires that employers should take step towards providing safe and healthier workplace for their employees and employees also have to maintain them. Due to excessive working hour and company offer fewer days off rather than more and to be less flexible when an employee needs this legislation is getting violated.

One option is that, company can offer comprehensive benefits package in order to provide flexible working options which include range of rewards and then publish that on company’s website. Due to more working hours stress has been increasing on employees and which would lead towards unbalancing the healthy work life of employees. In the longer working hour industry, employees have to work for excessive hours and directly impact on workers health.

Employer of Choice targets:

Due to the dismissal of experienced employees, restrictions on employees’ flexibilities and leave related objection it seems difficult to retain the employees. There is possibility that company can include in some legal affairs because as they treat Gavin, he can file a case under Employment Relations Act 2000 which requires that the company bring employee back in the same or equivalent position and Jim had refused to do so. Same in the case of Miriam she can file a case under Parental Leave and Employment Protection Act 1987.

Such litigations strongly affects company’s image and create barrier to maintain employer f choice. To achieve the employees’ belief Bandag Company needs to make commitment to change. It is objective and vision of every business to make their workplace on top priority. Company has to take it seriously and genuinely try for improvement.

To become employer of choice company have to create a culture which can engage employees in the industry and to achieve this Jim has to spend time to recognize the current and potential requirement or expectation of employees from their company. Jim can do this by encouraging work life balance can provide flexible working hours, special policy for women balancing home and work with small child, rewarding deserving staff and investing towards staff’s training.

 

Remuneration in the company:

The company should follow the Equal Pay Act 1972 which requires that discrimination based on sex of employee should removed and prevented, in terms of remuneration paid to employees. Automotive industry has fairly negative observation in terms of remuneration and negative view held by numerous hospitality works. It is not always necessary that reward should get in terms of money but there is informal reward system which contains different aspect in terms of benefits that Bandag Automotive can use. The aspects are top management team can recognize excellent work of employee can address it into company meeting, so that employee feel privileged and get motivated for further works, can include employees in challenging task, guide them to boost their confidence and so on.

Motivation, Satisfaction and productivity:

This is the area on which Bandag Automotive should have to work on. While observing the current situation and inner environment of the company it is easily recognized that, the company is divided into the group first is group of motivators or satisfiers and another one is group of dissatisfies. Motivators or satisfiers’ group people’s continuously getting achievement in their work and because of it they get recognition from top board members, they get more responsibility to handle and due to this also get monetary benefits and rewards of their work.

In contrast to this dissatisfies group are bounded by the company’s policy, having complaint about supervision and working conditions, which is observed in the case of Henry Jacques, who is got fired due to making the place poisonous. It would affect the employees interpersonal relationships and could not gel themselves in working condition.

Such mentality of employees is not good for company’s performance and hence company HR department has to make sure that the employees in the company should be motivated and satisfied because only motivated and satisfied employees will stay committed towards the company and can contribute towards increasing productivity.

 

The legitimate reasons due to which Henry Jacques can claims against the company are, to dismiss an employee the employer should have to adopt substantively and procedurally fair procedure, which Jim did not applied. Jim must have good reason behind the dismissal. In the performance appraisal it is stated that Henry is good in technical aspects of his job, and in this type of situation employer should talk first about what changes Henry would have to do in his behavior. Jim cannot fire Henry directly just because of arguing with the co-workers, and complaining nature. The dismissal carried out must have to adopt fair way and employer must have acted fairly and reasonably which Jim failed to do. The Employment Relations Act 2000 requires that employers have to act in good faith when undertaking a disciplinary action.

Secondly, under Human Rights Act 1993 also prohibit any type of discrimination regarding to ethical, religious belief, sex, color, race and due to some disability. If Henry is suffering from some mental illness then he can also claim for violation of Human Right Act 1993 on the company. It is not right to take firing option for such sort of issues, good communication between employees and employers also will help to create a good employment relationship and it can also prevent from raising any serious issues.                                         

HR training areas that could have been useful for Jim to avoid occurrences of HR challenges:

The decision conducted to dismiss an employee can be lead towards possible legal challenges. Employee can claim on the company for breach of contract or breach of the specific act. Statute and common law are the two sources from where New Zealand’s labor law derives. In current situation of Bandag Automotive Company, the terminated employee has legitimate claim against the company. Henry Jacques can claim under Employment Relations Act 2000 and Human Rights Act 1993 as a result of his termination. Similarly Miriam could claim the violation of Parental Leave and Employment Protection Act 1987 and under the employee Relations Act 2000 Company have to bring back the employee taken a sick leave in the same or equivalent position but Jim does not did this.

Though under Jim’s ownership Bandag sales and profit increased markedly, but he has lack in handling HR issues which is most important factor and he needs training is certain areas and that are discussed below:

Communication:

 

It is vital skill for effective human resource management. In the context of HR management, sending clear message to the employees, listening their point of view which Jim refuses often and feedback taking is very essential. Building interpersonal relations, interviewing the candidate himself during recruitment, building good management team and employee rapport, conflict resolution skills, maintaining discipline is required in communication and essential skill Jim should have to avoid challenges related to HR.

Before making decision to dismiss an employee throughout investigation of events is very important and also essential to listen employee’s explanation. Also Jim can take neutral third person advice on plausibility of employee’s explanation.

Motivation:

Employee motivation is challenging and Jim should adopt strategy to employ this, because employee motivation not only helps the company to accomplish their targeted objectives but also employees can achieve their career goals. No motivation strategy can hundred percent guarantees about the employee motivation but Jim have to develop a work environment whether employees are consistently motivated. Instead of just cutting their leaves, cutting their benefits, providing less flexibility and few extra days off due to child’s illness; Jim should manage such a way that employee get satisfied the facilities provided to them and it also not lead loss for the company.

This can be done by using combination of understanding and satisfying the needs of employee, give them fair compensation, ensure that employee accomplish their jobs with minimum frustration and give equal treatment to all employees. It is essential for Jim to attribute the ability to motivate people and he has to work very hard to develop this skills.

Conflict Handling:

It is inevitable to handle conflict it may be between employees and team management or among the management team. It is the duty of HR managers to deal with conflict rather than avoiding it. Before taking any termination decision Jim should consider that is that decision premature? And he should try to identify more appropriate options instead of termination if possible like giving warning or last chance to employee or placing them on performance improvement plan.

It is important that Jim take training for conflict management strategies because it would provide positive steps for addressing the conflicts. It is essential to have effectiveness along with strategies. It is important to give feedback and training to employees in order to align their efforts along with the companies goal and they should meet company’s expectation. Though thus is the work of human resource department but as employer it is Jim’s responsibility to pay attention towards this department personally, and ensure whether new employees getting intensive feedback about their daily or weekly performance or not. Formal and informal feedback should have been provided to the employees throughout the year

 

Four reasons for usefulness of resource optimization plan for Bandag Automotive:

By considering the current situation of the organization like the old employees is either dismissed from the job or they are dissatisfied by the treatment they are receiving, this is making the company’s atmosphere more vulnerable. We also discussed previously that current situation in Bandag Automotive is making employees de-motivated and dissatisfied and such employees are less committed and productive for the company and hence if company want to improve their performance in future it have to adopt resource optimization plan.

In order to assess the technological changes and new jobs and new skills impacts different procedures are needed. Here we explain four reasons for resource optimization plan and that are:

1. The optimization plan will encourage employer to develop clear link between the business plan of the company and their human resource plans and both the plan can be effectively handled. Such a planning is very important to handle everyday activities of Bandag Automotive effectively such as the full-time controller and manager can effectively manage the five store and all the employee’s issues and complaints has been managed at store level first and due to this Jim can handle marketing and sales department more appropriately.

2. Optimization plan can help Bandag Automotive to control their staff costs and also the employee’s numbers more efficiently. Planning is very essential to handle day to day activities and it is difficult in Bandag Automotive case, as company may face some legitimacy’s in near future and hence someone is needed to come out with the program that would make Jim’s work easy.

3. Due to the resource optimization plan employer can be able to build up a skill profile for all their employees and this will make Jim’s work of assigning task to the employees easier. It will also develop the strategies for matching the size and skills of organization because strategies are developed by the planning process which would match the size and skills of the needed workforce for the company.

4. From the few years there employment complaints had increased and hence to optimization planning can include collecting of information, making objectives and applying decisions over it in order to get the aligned objectives. The objectives and strategies of the company also identify how many human resources company need in future to accomplish the objectives. It means number and mix of human resources are reaction to the overall organizational strategy. It is also helpful in assisting organizations to recruit, retain and optimize the employees’ development to achieve the business goal and also response towards the external environment.

If this resource optimization plan works effectively, it will create outcome such as employees full potential has been utilized which will benefit the Bandag Automotive, due to getting and doing challenging works employees get motivation and satisfaction by performing that work, reduce the need of overtime or excessive work. Other important facts are only the employees who are qualified for the job get that post.

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