Human Resource Management of Rusnak Auto Group - Research Paper Example

Rusnak Auto Group Human Resource Management Company background Rusnak Auto Group is a 52 years old company. It is a family owned business organization. Paul Rusnak is the founder of the company. Victoria Rusnak is the CEO of the organization. The company has dealership of different famous automobile brands like BMW, Audi, Hyundai, Jaguar, Land Rover, Porsche, Rolls- Royce, Volvo, Bentley and Mercedes Benz. It is a very reputed Colorado based company. Rusnak Auto Group offers a large collection of finely crafted, top performance luxury cars. The organization also provides services for high performing luxury cars. The organization has a long history of good quality services. The organization has experienced company certified technicians offering general and critical repairs to different vehicles. The company has focused very well towards customer satisfaction. The organization offers services for both pre owned and new cars. The organization is very famous for all luxury brands and personalized services. The organization belongs to automobile industry. Over the years the company has offered one umbrella solutions to its customers. The organization has recorded $800 million revenue in 2013. The group was founded in 1961. The organization is selling 11 famous brands. The company is very closely related with different corporate social responsibilities. Rusnak Group maintains high quality and ethical behaviors. In USA there are many automobile dealers. The organization is one of the 100 top most dealers in the country. The organization is located into 15 different locations in the country. Over the years the organization has maintained very friendly relationship with its customers. Core competencies Providing good quality customer service is one of the most important core competencies of the organization. The company offers multi dimensional services to its customers. Rusnak sales 11 top brand cars. Cars can be pre owned or new car. Rusnak also offers services for those new and pre owned cars. The organization has designed their services according to different brands. The organization provides quick and real time services to its customers. The company has online system for scheduling different car services. Rusnak maintains certain standards. Highly skilled workers are strengths of the organization. Best professional sells personnel and technicians are very important part of the company. The organization cultivates good quality professionals into their company. Association with world’s famous automobile brands is also a core competency for the organization. The company has very close and mutually exclusive relationship with different famous brands. All those famous automobile brands have shown great trust on the company. Positive certificates from different world famous automobile brands are making the organization more famous in the industry. The company always looks for inclusive growth. It puts the organization in a great strategic position. Customer loyalty is an important competency for the organization. High quality services of the organization have made a very vast loyal customer base for the company. In modern world people are very busy with their day to daily activities. Rusnak has noticed this opportunity and transformed it into a core competency. The organization provides very fast services to its customers and saves precious of time for them. The company has state of the art facilities for selling and servicing vehicles. Modern facilities and systems are very important core competencies for the organization. Morality and ethics are very important part of any business. The company over the years has maintained very high level of morality and ethics into their business practices. Rusnak always has maintained transparency in their business practices. Transparent image of the organization has made this company very successful. Rusnak is very much dedicated and committed towards society. The organization is related with different philanthropic activities. All those activities are making the organization more and more famous among its large clienteles. In this way the company is managing an emotional relationship with its customers. The organization has a very clear cut core competency in case of customer’s expectation. The company always offers something more than their customer’s expectation. It is a very distinct competency for the organization. It helps Rusnak significantly in terms managing competitions in the market. Customers generally feel very happy and satisfied when they get something extra out of their spending. It is very clear that Rusnak has some serious core competencies. All those core competencies are making the company different from other organizations in the industry. Organizational culture The term organizational culture can be defined as the environment of the workplace that is formulated through employee’s interaction in the workplace. The major contributors towards organizational culture are the leaders who contribute through their leadership approaches but the employees also play a major role in forming the culture of an organization. The organizational culture has a great impact on the behaviours and attitudes of the employees. The culture that prevails in one organization differs from the other simply because of the differences in business strategies. Rusnak Auto Group has been able to create high standards of dealership in the automobile industry. The company guarantees to all the customers that the range of products that they offer is not witnessed by the customers in other dealerships. The major reason behind the success of the company is the organizational culture that is set forth by the top management of the company. The company aims at delivering the best quality vehicles as well as services to the consumer market and in doing so it focuses on enhancing the skills of the workforce so that they are able to deliver high work performance (Schein, 2010). The company not only encompasses a sense of quality in all its business operations but has been able to develop an atmosphere that is friendly as well as professional in nature. The culture that is prevalent in this organization is to synchronize the stylish prestige of the luxury brands with a team of knowledgeable sales staff who takes the responsibility to deliver the product as per the preference of the customers. The company states that they play a major role in the investment made by the customer to purchase the key for happiness. The company offers range of services which even includes car servicing, washing, etc., and the friendly approach that the company highlights is because of the set culture in the system. The company offers great opportunities to all its employees in terms of earnings but at the same time has set very high standards that needs to be met by the employees. The employees who are dedicated and hard working it is the best place for them to build their career but at the same time the company gives less of second chances to the employees and treats them harshly which even increases the turnover rate of the organization (Alvesson, 2012).The company follows more of profit oriented approach and there is no such relationship building that is done by the management with the employees. This kind of culture that is prevalent in the company affects the attitudes of the employees making them more competitive, hard working and at the same time their motivational and satisfaction level is low as their one mistake is not resolved by the management but they are strictly punished to the degree of leaving their job at Rusnak Auto Group. Hence the management of the group has established such a culture that has made them to set high standards in the industry and even create a tough competition for all the other players in the industry. HRM practices According to Sohrab and Khurram (2011), offering promotion to employees is a very good human resource management practice used by different managements around the world. According to them it’s a very effective practice to get best performance out the workforce. They also said that promotions make employee more and more motivated towards their jobs. Promotions in career increase sense of responsibility of every individual. Rusnak group over the years has followed this practice very well. The organization has promoted their performing employees after regular interval. In this way the organization has cultivated their employee very well. Due to promotions employees of the organization have become more and more dedicated and committed towards their jobs. It has helped the organization to create strong relationship between top level management and employees. Employees of the organization feel that their hard works are rewarded very well in the organization (Sohrab, and Khurram, 2011). According to Tewari (2012), employees in every organization love to get some extra benefits from their employers. Those extra benefits apart from stipulated salary are very highly regarded by employees. Employees around the world always search for something extra apart from their expected benefits. He also said that extra benefits inspire and motivate employees significantly. According to author benefits are important stimulators which increase performance levels of the employees. He also said that benefits are very important for get something extra out of the work force. Rusnak believes in this practice. The organization offers some extra benefits to its outstanding talents. Talents are retained in the organization with the help of different benefits. The organization offers different benefits to its performing employee to get hundred percent commitments towards their works. It is a very fruitful HRM practice for the organization (Tewary, 2012). According to Zeynep (2005), internal recruiting is a very safe Human resource management practice. This practice helps organizations to get proper and good talents. According to author it is very easy for all organizations to conduct back ground check of new talents. In this practice old employees of the organization will refer new names. Organization will recruit people from that referred list. He also said that it is a very time saving practice often used by different organizations. Chances of bad recruitments are very less with this practice. Rusnak Auto Group has used this practice very well. There is an employee referral system in the organization. Where existing employees of the organization refers different candidates. The company maintains a list of referred candidates and select candidates out of that list. In this way the organization saves great amount of time and money. This practice enables the company to do proper background check of new talents (Zeynep, 2005). According to Patterson, Rick, Wood, Carroll, Balain and Booth (2010), performance appraisal is a serious yardstick for measuring performances of work force. According to them top level managements of different organizations are consistently following this practice. They also added that in this way organizations can differentiate between performing and non performing employees. It helps organizations to get a clear picture about individual performances of each employee. According to them measuring performances of every individual is very important for every organization. Performance appraisal has significant contribution into this matter. Over the years the organization has maintained this human resource management practice. It helped organization immensely to identify performing and non performing employees. After identifications the company has rewarded its performing employees. In this way the organization has monitored its work force very well. This practice is very important for the organization to maintain their competitiveness in the industry (Patterson, Rick, Wood, Carroll, Balain, and Booth, 2010). According to Jie, Channda, Netto and Monga (‎2009), diversity in work force is a very important and effective practice for any organization. It is being noticed that employees in an organization comes from different back grounds like cast, culture, education, gender and race. According to them it is very important for each and every management to maintain all these diversities very effectively. They also said that managements must provide equal employment opportunity for their diverse workforce. Rusnak believes in work force diversity. The organization is focusing towards more and more female workers in the organization. The company has followed this HRM practice very sincerely (Jie, Channda, Netto and Monga, 2009). Strategic HRM problem The company through its business practices has been able to line up luxury brands for the customers so that it is not much of an exhausting journey for the customers to search for their preferred brand. However the company has created an excessive pressure on the employee base which has lowered down the motivational level of the employees. The management of the company is not at all supportive towards the new recruits or even towards the existing employees. The major strategic HRM issue that is being witnessed by the company is lack of proper training and development program in the organization. The employees need to be subjected to such programs as it helps not only on the overall development of the employees but also increases their potential to perform well so that the common goal of the organization can be achieved. Rusnak Auto Group over the years through its high performance has been able to acquire a large percentage of the market share in comparison to other dealerships in the market. The management of the company has only one demand that is to have high performers in its team so that the level of organizational performance can be maintained in the industry. Though the organization in midst of all its strategies has been avoiding the fact that the employees make an organization perform effectively and such harsh treatments would not enhance their potential but in turn lower down the confidence level that would have an impact on their work performance. The company has not been establishing relationships or even extending support to the new recruits. There is a major drawback in the HRM practices of the company as the management is taking effective measures to reward the personnel who is performing well and on the contrary through harsh behaviors are dampening those employees who may possess the potential to perform well but due to some challenges or issues that they are facing in the system they are not able to perform up to the required standard. The major area of concern for the company is designing effective training and development programs so that the skills of the employees are enhanced and on the same time such challenges that are faced by the employees can be efficiently mitigated. This problem in the strategic HRM practices has been affecting the overall performance of the team as they are unaware of the loopholes in the tasks that they perform and even are not aware of the possible solutions so as to enhance their work performance. The major reason behind such problem is that of the company being too much focused on the profits and performance rather than on the employees who requires support from the management so that they are able to perform well. The company over the years has been involved in developing strategies so as to facilitate their position in the market and involve high performance work practices in the system. The less of focus that is given by the company on the employees has made the workplace environment turn to be very professional in nature where the employees are not able to share their ideas as well as the problems that are being faced by them. However the major HRM problem of the company lies in the area of strategy formulation for proper training and development programs that needs to be incorporated in the system. Current academic literature According to Werner and DeSimone (2011), training and development is one of the most important practices of Human Resource Management. According to authors it is very important for each and every management to provide training and orientation at each level of the organization. When a new person joins in any organization it is very important for him or her to be trained properly. New talents should be handled very delicately. Training is very essential for that purpose. If new employees are not trained properly organizations will not get proper output from them. Authors also added that organizations must be very supportive towards their employees. They also added supportive organizations can easily bring best out of their employees. On the other hand if organizations are very much unsupportive then it can affect performances of employees very negatively. All successful organizations have provided good trainings and development programs to their employees. Trainings and developments are very much essential for managing workforces. Modern business is ever-changing in nature. It is very important for every organization to provide training to its existing employees also. There is no end of learning new things. Otherwise knowledge levels of existing employees will become stagnant. Proper training and development helps organizations to retain good talents. Training and development is very much important for maintaining organization performances. Modern business is highly competitive in nature. Problems are very complex and resources are very limited. In this adverse scenario proper training and developments are very important for all organizations. Trainings and developments are very effective tools for handling any complex situations. Training and development is directly related with organization performances. Well trained employees generally perform very well. Trainings and developments are very important for reducing attrition rate. It is often being noticed that employees often leaves a job because they are not finding any career development opportunities in their organizations. Employees feel scope of their personal development is very low. It is a serious problem for each and every organization. Over the years it is being noticed that top organizations across the world are spending lots of money for designing their training and development programs or activities. Every organization wants best performance out of their employees. But very often they neglect the most important matter of providing adequate trainings to their employees. It is a very serious issue. Employees feel very helpless and deprived. Organizations keep pressurizing their employees for continuous performances. This situation is very counterproductive for both organizations and employees. Impacts of this situation are very negative for organizations. According to authors it is very important for each and every organization to maintain good training and development atmosphere in their organizations. Without proper trainings and orientation programs it is impossible to sustain in competitive markets (Werner and DeSimone, 2011). Recommendation According to Terence (2002), task oriented training and development is a very effective solution for different problems related with training and development. Here in this study the organization is facing great problems regarding their training and development programs. Task oriented training will be a good choice for the company. The organization has different kinds of tasks. Every task is having different needs and requirements. To manage those tasks organization can come up with separate training and development programs. The organization has different tasks like sales of new car, Services and sales of pre owned cars. The company can create appropriate training programs for all those different tasks. It is very important for the organization to maintain a very close relationship with all their customers. The organization can design different development programs for managing customer relationship. The training and development programs will be divided in to two parts one part will be related with new talents in the organization. In this part the company will give task oriented training to its entire newly recruited personnel. In the second part where existing employees of the organization will be trained on the basis of their tasks. Level of training for entry level employees will be more basic and simpler. On other hand existing employees will be given more modern and complex trainings. In this way organization will be able to train its all level employees. This training will be time specific. The entire training process will be completed within stipulated time. This task oriented training program will be a combination of both theoretical and practical knowledge. The total training process will be very much contemporary. Contemporary training is very much important for the organization. To achieve this, organization must design this task oriented training system. Rusnak Auto Group can use some experts for their entire training process. Experts will provide appropriate knowledge to the employees of the company. This training should consider each and every individual according to their merits. The whole training process should be very supportive and cooperative in nature. There should a free and tension less atmosphere for the total training system. Conducive atmosphere is very much important for the total training period. The organization should be very serious about this whole training system. This training will play a decisive role for the company in near future (Terence, 2002). ` Advantages and disadvantages Task oriented training will be very effective for the organization. It will save lots of money for the company. Task oriented training program will save significant time for the organization. It will help Rusnak to manage competitive edge in the market. This kind of training and development strategy will help the organization to give focus towards each and every task. Employees related with different tasks will gain great expertise in their own domain of work. Expert employees will be difference makers for the organization in the case of industry competitions. Task oriented training and development will be very precise, crisp and simple in nature. It will be very advantageous for all employees. Employees of the organization will be very clear and focused about their jobs. Focused employees will help the company to gain a competitive up hand in the market. When an employee is very clear about his or her job he or she can convince customers very well. It is a significant advantage in terms sustainable growth in the industry. Employees of the organization will perform more decisively which will generate more profits for Rusnak Auto Group (Boxall and Purcell, 2003). The recommended strategy that needs to be incorporated by the company is training and development programs though there are certain disadvantages that is possessed by such programs. The major disadvantage of such programs is in the form of extra cost that the company needs to encounter as such training modules would require professionals as well as proper frameworks so that employees can be imparted proper knowledge about the tasks that they need to perform. The other form of disadvantages that such program encompass is that it would require sufficient time to be designed which can be utilized by the company on planning strategies and driving more sales. The training and development programs would even require hiring professionals who would train the employees and new recruits in the best professional way but at the same time would be an added cost component for the company. The other drawback of such programs is that employees become highly dependent on such training programs and do not take much of ownership which slows down the entire work process and even in certain situations creates workplace conflict between the high performers and the low performers in the system. References Alvesson, M. (2012). Understanding Organizational Culture. Thousand Oaks, California: SAGE. Print. Boxall, P., and Purcell, J. (2003). Strategy and Human Resource Management. Basingstoke: Plagrave. Print. Jie, S., Channda, A. Netto, B. and Monga, M. (2009). Managing diversity through human resource management:an international perspective and conceptual framework. The International Journal of Human Resource Management. Vol. 20. (2). Print. Patterson, M. Rick, J., Wood, S. Carroll, C., Balain, S. and Booth, A. (2010). Systematic review of the links between human resource management practices and performance. Health Technology Assessment. Vol. 14.(51). Print. Schein, E. H. (2010). Organizational Culture and Leadership. USA: John Wiley & Sons. Print. Sohrab, A. and Khurram, S. (2011). HRM and employee performance: African Journal of Business Management. Vol. 5(13). Print. Terence, J. (2002). International HRM: A Cross-Cultural Approach. London: SAGE. Print. Tewary, P. (2012). Human resource management practices: a comprehensive review. Pakistan business review. Vol. 1(1). Print. Werner, J. and DeSimone, R. (2011). Human Resource Development. London: Cengage Learning. Print. Zeynep, A. (2005). The interplay between cultural and institutional/structural contingenciesin human resource management practices. International journal of Human Resource Management. Vol. 16 (7). Print. Read More