Human Resource Issues of MAJOR BANK PLC - Case Study Example

Supervisor Human Resource Issues for Business Individual Case Study Analysis - Assignment What can this organization do to maximise its perceived opportunities in the knowledge of the employee issues that prevail April, 2009 Table of Contents 1.0Introduction 1.1Overview of the Problem 1.2 Executive Summary. This report attempt to address evaluates and provides recommendations to some of the pertinent Human Resource Management problems (HRM) identified in MAJOR BANK PLC. Paul Iles model was selected based on the evidence in Major Bank Plc that supports the 'Best Fit' Approach. This model covers all aspects that directly or indirectly affect the Business Strategy, Human Resource strategy, and the corporate strategy. The model was chosen because it covers the SWOT analysis, a focus on the training on teams for fostering a more participatory organizational culture, Training programs for the HR group Promotion & recruitment within the company, Performance related pay (PRP) & Annual bonus which is related to company performance, Individual Development and feedback, and finally Performance Appraisals. These points were the recommendations made to address the HRM problems identified in the case. The recommendation was adapted from the work of existing scholars such as Kotter, and Gilbreath. 1.0Introduction The field of human resource (HR) management is one of the many interesting area of research that has witnessed a paradigm shift within the last few decades (Huselid., 1995). Within this area of research, an increasing body of literature contains the argument that, high performance work practices, including comprehensive employee's recruitment, selection procedures, incentives compensation and performance management systems, and extensive employee's involvement and training can improve the knowledge, skills and abilities of firms (Huselid, 1995, Jackson , Schuler., & Sparrow, 1994). . Today, with the increasing researchers desire to demonstrate the importance of an effective human resource policy on organization performance research has shifted from a micro level that previously dominated research interest to a more general, strategic macro level (Doty &Delery 1996). The term human resource management is not new. It has been widely used by scholars and managers to refer to the set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work (Poole 1999). HRM do not only create competitive advantage for the organisation but is the force underpinning organisation's success (Turner, Keegan & Hueman 2006:317). No wonder, the way HRM practices and policies take shape also affects the employee's experiences of work and the employment relationship (Turner, Keegan & Hueman 2006:317). Within the mainstream HRM literature, there is a long tradition of research arguing that in order to make an optimal contribution to firm performance, HRM policies and practices should be integrated both with firm strategy, so-called vertical strategic integration and with each other, so-called horizontal integration. Paul Ilsles best fit model attached in the appendix lay emphasis on this. Against this background, this paper addresses some of the pertinent human resource issues identified in the case Major Bank Plc. The second part of the paper provides an overview of the human resource problems in Major Bank Plc. The third part of the paper uses Paul Iles Best fit model to provide a recommendation. 1.1 Human Resource Issues Facing Major Bank Plc Major Bank Plc is one of the largest regional Banks in the UK. As one of the market leaders in the Banking industry, the company is highly reputed among customers and has established a high level of credibility and goodwill in the market. The bank is significantly less exposed to internationally banking market place problems than many of its competitors. One problem the bank presently faces now is at the level of the changing role of branch based staff (some 9,000 people) is changing considerably from a customer service (banking) ethos to one incorporating the need to prospect and sell the banks products. However, this has received considerable challenges from most of the staff as they clearly state; they never join the bank as a sales force. Thus, employees have been made to work more on rotating job functions from administration offices to both serve customers in traditional banking and generate new business. At the same time, employees are finding more of their reward being dependant upon sales results and a constant stance which to some employees is difficult to achieve. The particular moment provides a unique opportunity to the company to gain advantage over competitors through aggressive selling as they have both products and funds available. The staffs are highly competent in their respective profession and departments. From the case, certain issues pertaining to the human resource department to this organisation remains a puzzle. These problems include:- enabling employees to work out of their skills and competence, instituting a new compensation plan that is result dependent, Poor communication and lack of information flow between the various departments, Lack of job satisfaction, headhunting of key staff members by competitors, weak organisational structure, weak reward strategy and organisational culture and the absence of training and career development for staff. The company has neglected the soft sides of its business, that of the organisational culture. Today, culture is a core competence of an organisation. Culture being the taking for granted assumptions is absent in Major Bank PLC as routines, procedures, staff training and opportunities for individuals to take care of individual needs are absent. This has created a high level of distrust and lack of commitments amongst workers as they are being pushed to assume new roles in which they are not train. The entire business requires direct interaction with the customers, and it is through a strong culture that cost can be reduced. The absence of career advancement track for workers, performance reward systems, supportive work environment, and defined duties for workers has pushed the organisation not being able to take advantage of current market opportunities. Having said this, in the next section, I will provide useful recommendation following the best fit model of Paul Iles as attached in the appendix 2.0 Recommendations and the way forward According to Sveiby (1997) a key to retaining personnel in knowledge based-organisation is ensuring that employees had the opportunities to work on interesting projects with interesting careers challenges clearly defined. From the problems identified above, Major Bank Plc tends to be very goal oriented and one can deduce that the management believes that conducive workplaces are an argument against competitiveness. According to Sveiby (1997), organisations under such a situation should create and incorporate healthier psychological work environments. This was the same position echoed by Gilbreath (2008) when the researcher postulates that, healthy psychological environments contribute to career conduciveness. According to Gilbreath (2008), creating strong HRM policies requires creating a strong psychological environment in which employees can thrive. Such an environment requires conducting stress audit, monitoring the work of the environment, matching people and work environment and using teams of employees and researchers to study the work environment. Major Bank Plc Brokers should eliminate unnecessary stressors (e.g., poor job design, ineffective supervisor behaviour, poor communication, mismatches between employee's skills and job demands). The Human Resource department of Major Bank Plc can also facilitate this through greater involvement, employee's autonomy, physical comfort, organisational security and recognition. To be critically useful to management, Ellis et al(2007) argue that an overall HRM framework should capture and integrate various functions and also clarify how various aspect of HRM add value to an organisation. Gilbreath supported this argument when the researcher calls for organisation facing communication and job satisfaction problems to institutes good fit between employees and their work environment. Under good fit theory, demand ability fit, suppliers value fit, self concept jobs fit and person group fit should be primary for workers integration and commitments. One factor that affects the implementation of HRM practices that has received significant attention is culture. Culture can be defined at different levels that range from the group to the organization to the national level (Erez&Earley, 1994). Culture comprises values and norms that guide individuals' behavior. Many view organizational practices and theories as culturally bound (Adler, 1997; Hofstede, 1980) which would mean that the values of a country should be compatible with a management practice for it to result in employee motivation Kotter (1995), in his article "Why transformation efforts fail", argues that, the bad outcome of most change efforts is caused by the management's failure to take the company through a series of important change steps. According to the author, these failures are caused by generally under performing management rather the researcher postulates that, there is little experience out there when it comes to organisational change processes and as he states; "Even capable people often make at least one big error" (Kotter 1995). It is important to recall here that, one big problem identify with "The Major Bank Plc" was resistance to change. According to Kotter, successful organisation implementing change process needs to follow and adopt his eight-step model for transforming organisation. This model includes establishing a sense of urgency, forming a powerful guiding coalition, creating a vision, communicating the vision etc. Kotter (1995) in his eight-step change model argues that, establishing a sense of urgency requires rallying the rest of the company around this decision. Kotter recommends as a tool to reach this gaol could be a fabricated crisis. That is, by over exaggerating an existing problem, the whole process off communicating the urgency for change can be made easier. According to Kotter (1995) forming a powerful guiding coalition requires a strong group of people who can drive change, and without the group, the change process will never accumulate the momentum needed to evolve the organisation to where it is heading to, the vision. This vision must be succinctly communicated, planned for short term wins, and people empower to implement this change through removal of obstacles. In the situation of "Major Bank Plc" a void has been created through resistance to change. Management of Major Bank Plc thus, through removal of large obstacles of change will result into adequate change success. For failure in creating short-term wins will result in lowering motivation among previously committed employees. Thus, the management of "Major Bank Plc" should make compelling evidence visible for the employees to go on the long march. Kotter (1995) went further and stipulates that:, Most people won't go on the long match except they see compelling evidence or that the journey is producing expected result" (Kotter 1995:6). Another important recommendation worth mentioning here is commitment within team members of Major Bank Plc. Commitment within a relationship can be interpreted as the desire to continue and maintain a valued relationship. Therefore, the issue of headhunting of key personnel by competitors could be overcome through trust established within the team. Through definition of career track, greater opportunities for higher roles, job satisfaction, trust and commitment will be enhanced. If this recommendation is properly implemented by Major Bank Plc, a number of benefits could be achieved which include developing a set of shared values, reducing costs when the relationship finishes and increasing profitability as a greater number of end users customers are retain. Major Bank Plc should see employment relationship as a contractual one with the concept of good faith, and fair dealings in employment contracts and the applications of estopel to work relationship (Gilbreath 2008). Gilbreath (2008) further recommends that, through career development initiatives (e.g., providing career relevant training, implementing monitoring programs, assisting with succession planning), positive effects could be created on employees. The researcher further cautions that, a supportive work environment is primary for this to take effect. Conducive in this genre means contributive and work settings in which employees and their careers can thrive. Gilbreath (2008) went further and listed a number of characteristics organisation must follow to be work conducive (see appendix 1). Structure Figure 2 A multidivisional model that could be slightly adjusted and adopted to suit Major Bank operations and activities. Being a company in the banking industry and as a regional office such a structure will suit the activities. The various divisions can be called product A, to product E with different experts. The head office has to take care of the overall recruitment, training, orientation, career path and development. While a bottom up planning process should be in place. Since, individuals working at departmental level best know, market demands, customer's expectation, and market changes. A bottom up planning system should be adopted. By making divisional personnel responsible for their divisions. The head office can easily control and monitor the activities. The head office takes care of coordination, control and supervision. That is Major Bank should have a set of geographical sub region. All, the invoicing, vouchering, budget allocation, mission expenses, salaries and wages, sick leave and permission would be handled at the level of the head office, in terms of approval, and preparing the necessary accounting documents. The relationship between the division and the head office will be more of coaching and reporting. 3.0Conclusion This study was initiated to develop suitable recommendations for pertinent Human Resource Management issues identified in the case, "Major Bank Plc" in the first part of the course. From inspiration drawn from Paul Ilsles best fit model, and using the work of some researchers a number of recommendations were drawn calling on the management, to create conducive environment, more workers participation, career succession planning, career relevant training, greater opportunities for higher roles, job satisfaction, trust and commitment will be enhanced. If this recommendation is properly implemented by the management of Major Bank Plc, a number of benefits could be achieved which include developing a set of shared values, reducing costs when the relationship finishes and increasing profitability as a greater number of end users customers are retain Appendix Characteristic of a Psychological work environment as outlined by Gilbreath (2008). - Conflict, ambiguity, and uncertainty are minimal; - Job control is commensurate with job demands and employee self-efficacy; - Social support is available and provided when and as needed; - There are good fits between employees and their work environment; - Expectations between employers and employees are congruent and met; - The work environment allows employees to develop and move toward their ego ideal; - The organization balances and enhances its subsystems without losing sight of its ultimate purposes; - There is positive morale and job satisfaction; - Work provides reasonable amounts of challenge, variety, learning, recognition, and meaning; - The workplace is safe, is not unpleasant, and has good communication and feedback, respect, flexibility, equity, and consistency; - Supervision is competent, considerate, supportive, and not overly close; - Employees receive decent pay and benefits; - Work is no demeaning and interesting; References References Doty H. 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