Catastrophe Concepts - Current Global Economic Crisis and Great Challenges to the Human Resource Management - Assignment Example

Name: xxxxxxxxxxx Institution: xxxxxxxxxxx Title: Analytical Report Tutor: xxxxxxxxxxx @ 2009 Table of content Executive summary……………………………………………………………………………..3 Introduction………………………………………………………………………………………4 Case study………………………………………………………………………………………..6 Literature review…………………………………………………………………………………8 Problem Statement………………………………………………………………………………10 Recommendations………………………………………………………………………………..12 Conclusion………………………………………………………………………………………13 Bibliography…………………………………………………………………………………….14 Executive Summary The most valuable asset of any organization is the work force. This mainly because the work force determines the company’s productivity. The Human resource administration of a company plays a key function in developing and maintaining human resources in alignment with the specified job descriptions. The objective of this paper is to present an analytical report in reference to a case study of the Catastrophe concepts marketing team. The case study on Catastrophe concepts marketing team necessitates the intervention of human resource management strategies. The analytical report presented in this paper gives a critical and introspective outlook and solutions to the presented case study. In reference to the case study on Catastrophe concepts marketing team the problems identified revolve around the global economic crisis, absenteeism of a sick employee and excessive work load. This department is faced with solid competition in its line of practice. The staffs in that department are as well pressured to meet the market standards. As a senior human resource officer, I was requested by Mr. Chapel to address the issue in order to produce a lasting and amicable solution to address the situation facing the company at this particular time. My recommendations are that the company’s leadership should come up with different strategies of coping with the global economic crisis other than downsizing some of its staff. It is also important that the human resource management of the company should equip its staff by providing optimum training in their varied line of work as this will ensure that the remaining staff in the department will be able to cope and generate productivity in different tasks even in the absence of key role players. Moreover, the management should cut out unnecessary tasks and prioritize work or even solicit for temporary replacement. Analytical Report Introduction The work force or the human resource of an organization is the most valuable asset, this is mainly because the persons in the alleged organization work individually and collectively to achieve objectives that are essentially profitable to that organization. The Human resource management of an organization plays a paramount role in developing and maintaining human resources in tune with their specific job descriptions (Horner 1997). Furthermore, the human resource management works to ensure that the work force is motivated to achieve their work targets and enhance their performance. This task is in most cases actualized through trouble shooting and finding amicable solutions. Trouble shooting generally entails the human resource team identifying challenges or problems that face work force. Thereafter, the management team embarks on finding solutions and initiatives that could tackle and address the issues or challenges facing the work force (Cole 2004). The current global economic crisis has with time posed great challenges to a range of companies and organizations. It has brought about sudden fluctuations and irregularities in the prices of basic products. Additionally, the global economic crisis has greatly disoriented the market. Consequently, a number organization have been forced to down size their work force, cut costs or even change certain aspects of their strategies. As a result of the global economic crisis the work force has been in turn affected directly or indirectly. For instance, in organizations whereby down sizing has occurred with the aim of cutting off costs, the remaining employees are faced with the challenge of taking heavy work loads or handling tasks that are out of the scope of their job description. Apparently, as a result of these challenges the intervention of the human resource management is necessary since the continuation of these trends could be injurious to work force thus affecting the productivity of the alleged organization (Aghazadeh 1999). The human resource management function of organizations is by and large faced with different challenges. These challenges generally revolve around the well being and performance of the work force or the human resource. A major challenge that faces the human resource management takes place in the event that one or so member of the work force succumbs to illness. Given the fact that illnesses are inherently inevitable, the management has to come up with strategies of coping. These strategies include, giving the ailing individual time off work and delegating the responsibilities of the ailing individual to the remaining members of the work force. The human resource management of the alleged organization could face even greater challenges in cases whereby the illnesses of the alleged individual is prolonged or in a case whereby the alleged individual is a key role player in the organization. Consequently, the remaining members of the work force would succumb to excessive work loads that come as a result of taking over the responsibilities of the ailing individual. This could in turn bring about discontent and murmurings among the employees. In a case whereby the ailing individual is a key role player the organization is faced with the risk of stagnating in its operations. In the event of prolonged illnesses, the human resource management team is faced with the dilemma of either replacing the alleged individual or waiting for their uncertain recovery. This paper generally seeks to present an analytical report in reference to a case study of the Catastrophe concepts marketing team. The presented case study necessitates the intervention of human resource management strategies. This analytical report offers a critical and introspective outlook and solutions to the presented case study. Case Study The Catastrophe concept is among the companies that have been greatly affected by the global economic crisis. As a result, the company’s sales have witnessed a 30 per cent plunge. The company is also faced with stiff competition in its line of business. Due to the existing competition, business in the company has experienced a slight melt down. With the aim of lowering operations costs the company’s leadership has gradually downsized some of its staff members. Furthermore, each department in the company has been continuously pressured to cut costs. The downsizing of staff members has impounded the remaining employees with heavy work loads that push them off their limits. The marketing department of the company is particularly under pressure to enhance its performance ever since Caleb McGuire, a key member of the marketing team functioning as the customer care manager was taken ill. Caleb was habitually hardworking and competent. As a result of his illness, in the recent months Caleb has been taking more days off from work. At the start of Caleb’s illness his colleagues were generally sympathetic. However, his prolonged illness and absence from work has brought about discontent since his colleagues handle his duties as well as their own. The marketing manager, Lily Zheng has had considerable pressure from the CEO in reference to her department’s performance. Caleb’s absence from work has stretched her to the limit since she has to assume some his responsibilities. Some of the staff, who are Lilly’s subordinates have as well been stretched to the limit. They have in turn begun to question Caleb’s illness and why they have to cover for him by doing his work. On the other hand, Caleb has become elusive whenever he is questioned about his illness, he claims that he is ailing a severe form of shingles. Most of the employees in the marketing department have become resentful , rumors have as well begun to spread that Caleb is suffering form AIDS. The company’s senior customers service representative, Lucette Dubois in conjunction with several other associates have confided to Lilly that they will quit if something was not going to be done about the Caleb issue. Allegedly, Lucette Dubois is one of the marketing department top performers. Lilly in turn responded by talking to the Human resource officer, George Chapel. As a senior human resource officer, I was requested by Mr. Chapel to address the issue in order to produce a lasting and amicable solution to address the situation facing the company at this particular time. Basically my approach and recommendations aimed at solving the problem will be based on legal grounds of dealing with problems of Human resource in the event when one of the personnel falls ill and is always absent at the work place therefore adverse effects are felt by fellow staff members, such as increased workloads that are difficult to handle, not forgetting the fact that the company also is also affected by the workers absence from work especially during this global recession period. Furthermore, my report will also provide an ethical perspective that should be applied in solving this particular case, not forgetting the Human resource issues applied in solving the existing state of affairs. Literature Review The human resource discipline centers its application on the assumption that the work force is made up with individuals who have varying needs and goals. This discipline positively views the employees as assets that are bound to bring about productivity in the alleged company. Key obstacles facing this practice include, insufficient training, shortcomings of process and lack of knowledge. The current global economic crisis has presented great challenges to the human resource management in many organizations. In most organizations and companies, the global economic crisis has forced the leadership and management to downsize its work force and reduce its spending. This is many due to the irregularities in the prices of basic products, competition and the sudden changes in the market (Aghazadeh 1999). The research conducted on the effects of downsizing the work force has in most cases centered on levels such as the effects on the individual and the alleged company. Downsizing generally refers to the undertaken measures by the management of reducing the work force size in order to enhance competitiveness, productivity and reduce the running costs of the company. Theoretically, downsizing is largely presumed to have positive results of the company. However, in some instances downsizing could present a number of negative implications to the organization and the individuals in the work force. This is mainly due to the fact that ethical and legal issues are involved in the process of downsizing the workforce (Rowley 2003). In the human resource practice, managers are continually faced with ethical dilemmas in regard to equitable and fair treatment of the individuals in the work force (Cole 2004). Ethical choices are arise in areas such as recruitments and downsizing. A key ethical dilemma facing human resource managers entails the appropriate ways of downsizing the work force. Downsizing brings about conflicts in the organizational strategies, the lives of the affected employees and the Human resource practices and policies. Generally, decisions revolving around downsizing are complex. Ethical issues pertaining to the affected members in the work force that are bound to occur include the loss of livelihood and means of survival. This turn affects their immediate family members who largely depend in their financial input for survival. Moreover, downsizing can leave the affected individuals feeling disillusioned, depressed and unmotivated (Milne 2007). Down sizing the work force is fraught with considerable legal complications particularly with the looming statutory redundancy pay in the horizon. The law touches on certain issues revolving around downsizing of the work force. For instance, the law has stipulation on when downsizing is allowed, retrenchment notices and entitlements of redundancy pay. The breach of these stipulations can lead to outright prosecution or penalty of the company or the involved individuals (Nykodym, Simonetti, Nielsen & Welling 1994). The human resource management of an organization is as well faced with the challenge of addressing issues related to employee illness and absenteeism in the work place. Sick leaves can take a considerably heavy toll on the company’s productivity and finances. In addition, sick leaves impose heavy works loads to the rest of the organization’s as they have to cover for the individual under poor health. Current research shows that in 2000 workplaces, an absence average of 7.8 days per staff is witnessed at a cost of 10.7 billion (Aghazadeh 1999).Nevertheless, long term or prolonged illness poses dilemma to the human resource management. As a result of the excessive work load imposed to the rest of the staff, the human resource management is faced with dilemma of whether to execute temporary replacement or rearrangement. In dealing with these issues several legal and ethical issues are involved. In reference to the employment protection legislation, the human resource management needs to consider the well being of the sick employee by facilitating for their payable sick leaves. The application of appropriate measures can greatly aid the human resource management in handling issues of absenteeism as a result of sickness. Furthermore, these measures can aid in addressing issues of excessive work load as a result of the absent employee. Measure that should be taken include, sick employee validating and giving a report on their condition. The Human resource management in turn responds by informing the rest of the work force and coming up with strategies that will ensure that the work place runs smoothly even in the absence of the sick employee. Cutting out unnecessary tasks and prioritizing work can greatly aid the human resource management in addressing the issue of excessive workload in the work place. Moreover, soliciting for external assistance can aid the managers to help the affected department to reduce stress that comes as a result of heavy work loads (Milne 2007). Problem Statement As the assigned Human resource staff to handle the situation at the marketing department in the Catastrophe concepts I identified a number of challenges facing the department. Key challenges facing the marketing department revolve around the current global financial crisis. Consequently, the marketing team has witnessed a 30 per cent plunge in their general sales. This department is as well pressured to meet the market standards. It is also faced with solid competition in its line of practice. Additionally, the measures taken by the leadership of the Catastrophe concepts of downsizing some of its staff members in a bid to cut down costs has greatly affected the marketing department. A thorough analysis of the company’s performance and structuring clearly indicates that the previous size of the company’s work force was downsized to a large extent such as the non-attendance of one employee imposes a heavy work load to the rest of the employees. For instance the absenteeism of Caleb McGuire has caused a lot of obstacles to the marketing department in reference to work load and efficiency. It is evident that this department was inherently dependant on Caleb thus his absence from work reduces the productivity of this department (Milne 2007). Caleb McGuire’s illness is also another key problem facing the marketing department. His on and off presence from work has brought to the other marketing staff heavy work loads. Due to the heavy work loads the other employees have become discontent and disgruntled. Moreover, some of the employees have begun to question his illness and have come up with rumors that he is suffering form AIDS. His prolonged illness and absence from work has as well caused some employees to issue threats of resignation. Caleb’s condition is also not substantiated. Recommendations Subsequent to analyzing the situation at the Catastrophe concepts these are my recommendation geared towards improving the current situation in the marketing department of the company. Foremost, the company’s leadership needs to come up with different strategies of coping with the global economic crisis other than downsizing some of its staff. Strategies that could aid the company in dealing with the global economic crisis include, aligning its structure with the demands of the current market. By applying these strategies the company will minimize its downsizing practices thus lessening the work load of the staff in the marketing department. Productivity can be actualized when employees are not pressured or imposed with heavy work loads (Simatupang& Sridharan 2002). It is also vital that the human resource management of the company should equip its staff by providing optimum training in their varied line of work. This will in turn ensure that over dependence on one member of the work force is reduced. For instance, the human resource management of the Catastrophe concepts should organize trainings particularly in the marketing department. This will ensure that incase of absenteeism of key role players in the department, the remaining staff in the department will be able to cope and generate productivity in different tasks (Horner 1997). Issues revolving around Caleb McGuire’s illness can be tackled if the human resource management substantiates his condition by seeking verifications through his medical records (Hackett & Spurgeon 1998). This will help reduce the ongoing rumors and speculations. It will as well help the management to discern whether they should restructure the work force or solicit for temporal replacement. As they management endeavors to resolve issues revolving around Caleb McGuire’s illness they should consider both ethical and legal implications of the measures they are bound to carry out. When it comes to handling the excessive work load in the marketing department should cut out unnecessary tasks and prioritize work. Alternatively, the human resources could soliciting for external assistance or recruit a temporary replacement for Caleb McGuire’s position. Conclusion The individuals in the work force organization work individually and collectively to achieve objectives that are essentially profitable to the organization thus the work force or the human resource of an organization is the most valuable asset. The key objective of the human resource management is to ensure that the work force is motivated to achieve their work targets and enhance their performance. They achieve this objective by identifying challenges or problems that face work force. Thereafter, the management team embarks on finding solutions that could to address the challenges facing the work force (Horner 1997). The current global economic crisis has presented great challenges to the human resource management in many organizations this is mainly due to the fact that ethical and legal issues are involved in the process of downsizing the workforce. A key ethical dilemma facing human resource managers entails the appropriate ways of downsizing the work force. During this process the management needs to consider certain ethical and legal implications. Moreover, management of an organization is faced with the challenge of addressing issues related to employee illness and absenteeism in the work place. This challenge imposes heavy work load to other employees. In order to address this problem the management should cut out unnecessary tasks, prioritize work or even solicit for temporary replacement. 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Simatupang, W& Sridharan, K., 2002, The knowledge of coordination for supply chain integration, Business Process Management Journal, volume 8, number 3, pp 289-308. Read More