Strategic Human Resouce Management - Essay Example

Strategic Human Resource Management Introduction A key component of any working and successful company is a fully established human resource department. This department has the sole responsibility to ensure the provision of the essential component of entrepreneurship, which is labour. The human resource department has the concern to establish organizational activity of bettering the overall performance of the personnel working in the organisation. Management in its broad terms entails a critical review of the developments in the company or firm to establish the sections that affect the company growth (Griffin, 2011, p 14). Thus, with respect to the current developments in Cop Motor Vehicle manufacturers the observable decline in sales, in addition to other internal factors reflecting in Cop Motor Vehicle manufacturers need agent redress from the management. The firm deals in production of vehicle brands and spare parts. The responsibility to make the key decisions regarding this firm rests on the position of CEO. However, the decisions that affect the human resources in the firm requires essential evaluation from the human resource department, to establish the measures to address the cause of the decline in sales and losses the firm is facing. Notably, the developments are forcing the CEO of Cop Motor Vehicle manufacturers to take drastic measures on the programs established by the human resource management department to develop the workforce for better performance of the firm. However, before taking such a measure, it is essential to evaluate the consequential impact of this decision on the firm and its eventual performance (Bohlander & Snell, 2013, p 21). This entails evaluating the advantages and disadvantages of the decision to cut on the expenditures of the company on employee training and development, as well as, the other elements associated with the decision. Managing training and development Cop Motor Vehicle manufacturers has over 40 hands –on employees, 4 supervisors and heads of the various departments, in addition to Chief Executive Officer. The stakes in the training program entail the various sponsors for the training, the development managers and the clients who are the employees. In this case, Cop Motor Vehicle manufacturers rely significantly on the role and input of the employees in the production process (Goldstein, 2009, p 18). Therefore, it is notable that sales decline are a result, which most likely emanate from the employees directly. Moreover, the question then arises regarding the influence of the training process on the competence of the employees, as well as, the expenditure the firm is incurring in facilitating the process of the employee training and development (Felstead, Green & Mayhew, 2000, p 109). The department of human resource is vital to establishing the core impact of measures taken against the employees in the endeavour to facilitate more effort and skills for the advantage of the firm. However, when the firm realizes the loopholes in the current employee turnover, spanning at 25%, as well as, additional behaviours of workers which constitute the increased expenses incurred in the training program, it is only reasonable to institute a measure that address these losses. Therefore, in this scenario, as the CEO sees, the measure to cut on expenses on training programs for the employees seems as if it will facilitate management of the declining sales the company is suffering. However, before making such a measure, it is notable that as the resource managers, we evaluate the case and the course it takes. In this evaluation, the factors determinant to the decision that the company should take, as the recommendations of this report will facilitate, will follow the outcome of the observations regarding the impact of the training program on the firm and its employees. Further, the report also features critical analysis of the various impacts of the measure to cut on training programs, and the alternatives available for such measure when deemed reasonable from the analysis process. Advantages of cutting on training The department of human resource managers is key in establishing the case where training is essential for the benefit of the company. However, in the process of training the employees, there are associated risks and expenditures, which the company ought to prepare to incur. The core factors in this case entail the consideration of the elements affecting the training and the facilitation of the decision to cut on training of the employees (Bruce, 2010, p 89). These considerations entail aspects such as the costs, the effectiveness of the training program and comparisons of the employees trained to that of the competitive ready skills in the market for hire. Thus, evaluating these considerations in addition to others is key in establishing the advantage associated with the measure to take as a firm regarding the measure suggested. Training at the work place entails the firm organising sessions for the procedural activity of the training. In this perspective, the process of the training entails gathering and acquiring the essential materials as well as the facilitators. Thus, in view of these considerations, it is eminent that training requires resources. The resources in use here constitute a waste of resources, which are valuable to the firm. For instance, the last two training programs organised for the employees cost 30% of the firm’s yearly budget and the company lost 10% of the employees who attended the training. These factors are contributing to the losses the company is experiences in the sales (Felstead, Green & Jewson, 2013, p 971). Therefore, approaching the subject of cutting down on training from this perspective, it is notable that it will help in reducing the expenditure incurred on costs of training. Further, the cost of the training as a factor for consideration also emanates from the observation that the company spends on developing the employees and once they gain the skills, they leave the company leading to increased employee turnover as observed reaching 20% in a span of two training programs. The employees as they leave the company means they leave with the expertise facilitated by the firm for the benefit of the firm. Therefore, such developments impact the costs of the training, as the firm has to plan another program for training and developing the new employees (Grensing-Pophal, 2010, p 90). These factors as affecting the costs incurred by the firm in developing the employees need a critical redress to ensure the company does not suffer such losses. Therefore, in view of these developments in the firm, it is notable that cutting on the expenditure incurred by the firm in training and developing the employees will help cover the losses incurred in the training processes. Secondly, it is notable that the current training program is producing little if any results. This is from the observation that the company is experiencing a remarkable employee turnover rate, which in return affects the current progress and success of the existing training in the firm (Albrecht, 2010, p 21). The employee face challenges in adopting with the training processes of the company as it affects the entire outcome of the training program. The programs of the training need to incorporate all the essential features that the company requires to be successful (Redman & Wilkinson, 2005, p 76). However, with training programs, which do not focus on the specialisation factor that the firm requires, and then it is notable, the firm will continue suffering losses. Notably, the company sales continued to drop by a margin of 6% within the last four years of operation despite the yearly training programs organised for Cop Motor Vehicle manufacturers. This establishment is key in determining the element of the training that it will fail the firm in achieving the expected production rates. These developments affect the core reasons for the training hence, the need to cut on the training programs for the firm. The training is not bearing the expected results for the benefit of the company. The current training system also does not impact the production of the firm in the prospects that the firm envisioned. Instead, the failures in the employees trained by the company in producing the expected results are forcing the firm to seek and recruit skilled labour. Skilled labour is useful in favour of the firm progress as the recruited workforce brings with it the skills necessary for the working hence reducing the costs in money and time that will be spend to train the employees. Therefore, observing from this development, it is notable that the measure as suggested from the CEO will constitute a key element to addressing the key challenges of declining sales that Cop Motor Vehicle manufacturers is experiencing. Therefore, it is essential to create a mode of recruiting employees that is convenient to the firm, in this case, that of recruiting skilled labour. Moreover, the current training system established by the firm contributes in the factor that the employees are failing to deliver results. The employees concentrate on the training, causing them to have stress. These stressing factors affect the employee morale as they fail to take the initiative to develop them and shape their careers. Therefore, observing from these factors that it is notable that cutting on the training programs established by the company will encourage the people to take personal initiative to train and develop themselves; hence, shaping their own careers (Lepak & Gowan, 2010, p 31). Therefore, stopping the training program will help the employees to grow in their careers; hence, establishing the necessary skills to factor and deliver success to the firm. These developments will facilitate the rise for the company to recover from the current situation whereby there are observable declining sales. Additionally, the company is experiencing challenges managing the employees as they develop the attitude that the company values them too much (Wong et al. 1997, 47). Such an attitude is affecting the progress of the firm in delivering results as the employees feel that the company fears to lose its investment in them. However, scrubbing the program for the training and development of the employees will give the employees the impression that the company is not dependent on them hence not valuing them as assets or helping them develop themselves. Thus, such establishment will assist the employees to grow independently hence delivering results. Further, it will give the firm the space to acquire skilled labour for the success of the firm (Birdi, Clegg, Patterson, Robinson, Stride, Wall & Wood, 2008, p 471). Therefore, approaching this decision from this angle it is clear that the decision to stop the program for employee training will remarkably assist the firm to recover and manage its human resources. Disadvantages of cutting on training Training of employees is an essential and considerable factor for success in many companies. The operations of such companies invest extensively in establishing workable training programs for their employees (Lepak & Gowan, 2010, p 23). Further, it is notable that such companies invest extensively on developing training on the job for the employees as well as, workshops, where the employees engage accordingly to develop their skills (Lepak & Gowan, 2010, p 47). Thus, in this perspective, the factor to consider is the enhancement that training facilitates to the employees. It facilitates personalised skills, which are specific to the job task. This enhancement entails a notable contribution in establishing workers with knowledge tailored specifically for the company, in return, enhancing the competitive advantage of the company in the market (Pepper, 2012, p 42). Notably, the organisation investing in training employees on in-house developed programs gain in that the employees specialize on the given tasks, which saves on time spend accomplishing the task. Thus, such saves on time used to produce the products; hence, speeding the production rates, as well as, facilitating quality in the products (Waldron & Kassing, 2011, p 87). Consequently, this increases the sales the company makes in the market. Further, the employees, through the programs for training, extent their skills from the single line skills gained in learning process to extensive hands-on-work skills learned at the working place. This development is key in establishing a formidable working relation for the employees and the firm. Thus, this realisation means the employees invest their in-house developed knowledge on the form to enhance its success in the industry (Redman & Wilkinson, 2005, p 56). Notably, stopping the training program for the firm will cause the company to lose the touch of specialised hands-on-skills for the company; hence, contributing further in the production of products that will fetch little sales in the market. These factors are essential for considering in making the decision regarding the position of the employees in the firm and the working progress they facilitate to the firm (Redman & Wilkinson, 2005, p 61). The firm stands to lose remarkably as such manufacturing processes require essential skills for the production team. Therefore, it is essential to note the key elements and make the meaningful decision regarding the employee’s development and training. Secondly, the training program is useful to the firm as it facilitates and reduces the unit labour costs incurred by the firm (Parry, 2013, p 27). The employees, through the regular and specialised training develop personalised skills to deliver the job as they engage in the firm (Parry, 2013, p 41). This establishment is key in the participation of the employees in the working field. The factor of consideration in this point is that, the workers, having more adaptability to the tasks, will gain and establish workable ideas that will help improve the production process; hence, assisting the company to remain successful in the industry (Mathis & Jackson, 2013, p 67). The employees facilitate useful knowledge to the company as they get the experience and are able to detect areas that need improvement. Therefore, this establishment is useful to the success of the company. Therefore, the decision to remove the training program, although it will reduce the costs incurred in the processes of establishing the training programs, on the contrary, it will also increase the unit labour costs (Albrecht, 2010, p 46). The costs of hiring skilled labour in the market remains remarkably high, and the firm may require a large number of workers at a time. Thus, removing the in-house developed training programs in the firm will mean that the firm requires hiring of new employees each time the demand for production increases. Therefore, approaching the decision from this perspective, it is notable the company stands to suffer more losses from the production process. Therefore, this favours the firm to keep the current training program. The other factor for consideration is the realization that formal training increases yield and speed while on-the-job training (Wilton, 2013, p 36). The course of this observation entails that, the firm induces the essential skills that the worker requires to deliver the given task, without factoring other elements that are irrelevant to the company processes (Wilton, 2013, p 43). The worker develops the experience to manage the processes of the firm, increasing their proficiency and efficiency in delivering quality results for the company operations. Consequently, the company increases its yield in the production process (Albrecht, 2010, p 66). For instance, when Cop Motor Vehicle manufacturers began the training programs 15 years ago, it experienced increasing sales, growing steadily in sales at rate of 7% each business year. Therefore, the company should push forward and facilitate the training that is essential to the core elements of the entire team that is from the production to marketing and sales people, to grow the company to its success. Further training and employee development encourages employee motivation as they feel company cares for them and wills to develop them; hence, the motivation will decline (Wilton, 2013, p 72). Notably, training by the company is a sign that the company cares for the development of the employees (Felstead, et al. 2007, p 193). The employees feel appreciated that in return increases their morale in delivering quality to the firm. The employees need the motivation to propel the working of the firm in that the considerable skills instilled during the training facilitate their personal career developments (Noe, 2002, p 31). Therefore, with this realization, the company remains in position to utilise the employees accordingly, encouraging their development (Antonacopolou, 2001, p 335). The employee development also instils the confidence in the employees that the company values them as assets; hence, they work with the incentive of promotion in mind, delivering quality for the company to achieve success. Moreover, the training programs create the impression that the company has a good image as a good working place for the employees. The company also, through these training programs, facilitates the employee to grow and meet their given goals and aspirations; hence, gaining the motivation to further work properly in facilitating the company growth. Another element is that, training the employees in-house means that the company establishes a vast continuum of experienced and workable employees such that, replacing an employee who leaves will not be a problem (Martin, 2010, p 27). Notably, when the company needs to create promotions and transfers to other branches of the firm, it will be easer as the training program facilitates the employees in developing the necessary skills for the success of the company (Hyman & Mason, 2011, p 78). Additionally, such a training program will facilitate the firm in reducing the employee turnover and absenteeism as it will help equip the employees for specialisation. Therefore, observing these advantages of the training program, the decision to stop the training program may prove more costly to the company and its future operations. Additionally, training the employees creates proficient workers that will not require supervision to deliver quality results (Paauwe, Guest & Wright, 2013, p 61). Therefore, the training programs are essential to the management quality as it increases the quality of the training that the employees receive in the working environment. These factors are essential for consideration in taking a stance towards the development to cut on the training programs that the firm offers to the employees (Lloyd, 2005, p 21). Further, the training the employees receive is notable that enables them to adapt better to any changes in the organisation. In this case, where the firm needs to introduce changes, the training program will prove useful to the success of the implementation of the changes in the firm. The trained workers will provide better reception to the changes introduced in the company; hence, minimising the resistance from the company towards change as observed in other firms (Noe, 2010, p 52). Therefore, factoring these considerations is key in making the reliable decision towards the initiative to take to address the increasingly dwindling sales from the firm. Recommendation and Conclusion Several factors require consideration in making the relevant decision regarding the case of the declining sales in the firm. The cause may be resulting from other external factors rather than the human resource department. However, since the decision of Cop Motor Vehicle manufacturers CEO entails reducing on the expenditure on employee training and development, the factors resulting from this development affect the human resource department. The employees as they come to the firm bring their professional skills to the firm. However, the training from the firm helps the employees to acquire the essential skills that they require to manage the specialised tasks of the firm (Keep, 1989, p 63). This establishment is key in developing the firm towards achieving its objectives. There are consequences for taking the measure to remove the training program as observed from the advantages and disadvantages of the training program. Therefore, in view of these establishments, as the human resource manager, I believe there are other better options for managing the case of the declining sales rather than removing the employee training and development program. The process of acquiring and maintaining skilled labour is equally high compared to that incurred in the training program. Therefore, it is only fair that the firm institutes other measures to address the case rather than removing the training program. References Albrecht, S. L. (2010). Handbook of employee engagement perspectives, issues, research and practice. Cheltenham, Glos, UK, Edward Elgar. Antonacopolou E. (2001). ‘The paradoxical nature of the relationship between training and learning’, Journal of Management Studies, 38, 3: 327–350. 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