Managing Human Resources - Essay Example

Managing Human Resources               Managing Human Resources What should the CHRO do? The Chief Human Resource Officer should advise the company to permit workers to reach a decision on whether to get the matching contributions in form of cash or the company’s stock. Nevertheless, that choice will eventually be made by the committee that oversees the 401k plan. It may be difficult to determine if the committee that oversees the 401k plan will modify the policy now that it has information on the imminent consequence from a federal regulatory unit, a consequence significant enough to make headings and to crash the stock prices of the company.

Also, it may be difficult to establish if the committee will reach its conclusion on the basis of the recommendations of the Chief Human Resource Officer, which is partly found on his knowledge. The most ideal course of action the Chief Human Resource Officer should take is to advice the company to delay and adjust to an elective contribution solely when the committee that oversees the 401k plan and the company as a whole does not contain material nonpublic details (Boudreau, & Ramstad, 2007).

In addition, it is not apparent how tasks are distributed between the executive committee of the company and the committee that oversees the 401k plan. Therefore, the most suitable route of action that the chief human resource officer could take would be to forward the concern to both the executive committee of the company and the committee that oversees the 401k plan, to have them cooperatively reach an agreement on how to address the issue. Would doing something about it constitute insider trading?

If the Chief Human Resource Officer does something about the situation, it will comprise insider trading. Insider trading refers to the act of selling and buying shares in the stocks of the company by the board of directors, management of the company, or by a holder of over 10% of the shares of the company. Company managers are permitted to trade the stocks of their company on condition that they reveal their pursuit before ten days to the end of the month within the duration the dealings take place.

Nevertheless, it is unlawful for company insiders to trade on the basis of their knowledge of material company developments which have not been publicly proclaimed. Developments, which would be perceived as material, include an impending penalty from a federal regulatory agency, imminent take over, a foremost executive appointment, or additional news which may have consequences, either negatively or positively, to the stocks of a company. In addition, the Chief Human Resource Officer should have sufficient information regarding the insider trading policy of the company (Boudreau, & Ramstad, 2007).

If the company does not contain an insider trading policy, it needs to establish one, enforce and distribute it to employees. Moreover, the workers should be trained on such issues. Insider trading policies are essential in dealing with the form of concerns which occur in publicly traded companies. If the Chief Human Resource Officer does not take action, there is the risk of placing himself or the company in a situation where there will be extra danger for breaching insider trading laws. Reference Boudreau, J. W., & Ramstad, P. M. (2007).

 Beyond HR: The new science of human capital. New York: Harvard Business School Publishing.