The human relations management of Cirque Du Soleil club - Case Study Example

Case Study- Cirque Du Soleil Cirque Du Soleil Executive summary Formed in 1984, Cirque Du Soleil club started as a group of performing street artists. It expanded to 2,100 employees by 2001 compared to its initial 73 employees in 1984. Among the key challenges to the club’s management is its group of exceptional and talented human resource consisting of creative artists. There were instances during the club’s history, such as in 1987 and 1998, when it experienced artists’ rebellions. During rebellions, artists expressed discontent with the club management’s inconsistency to fulfill the spirit maintained by the group at its commencement. Artists’ experience at the club was impressive compared to other clubs including Broadway. The management of Cirque Du Soleil club adopted human relations theory of providing employees the best resources and, consequently, retaining them. Cirque’s strategy to apply the classical management theory to recognize employees’ ranks was a success, as well. The management offered training to perfect artists’ chosen skills. The staff experience at Cirque was superior and promoted artists’ skills. Cirque enhanced its working conditions to be supportive to artists through a boost of their morale. The various strategies adopted by the club’s management were a success in retaining artists. Problem statement The main problem faced by Cirque was to device the most preeminent strategy to attract exceptional and talented artists as a means of addressing the increasing necessity for human resource at the club. Introduction Human resource management refers to a sequence of organized administrative activities aimed at addressing all concerns of an organization’s employees. Human resource management has a central role in the attaining strategic objectives set by an organization. According to Armstrong, 2010 (p. 35), an organization’s objectives are achievable through the application of strategic perspective to the management of its employees. Armstrong, 2010 (p. 37), defines the strategic approach to employees management as a process involving integrated human resource policies and practical practices. Strategic perspective to management of human resource involves measured development and implementation of viable practices, procedures and systems to attain set objectives. Business environments are undergoing transformations from trends such as globalization, prompting the application of strategic perspectives to human resource management. Strategic application of appropriate human resource management theories is fundamental in achieving an organization’s goals as advocated by Sims, 2007, (p. 524). Theoretical foundations to managing an organization’s employees form the basis of practice. Martocchio, Joshi and Liao, 2012 (p. 2), emphasize the effectiveness of implementing the employee relations perspective in strategic human resource management. The classical theory explained by Rao and Krishna, 2009 (p. 91), is similarly imperative in ensuring strategic management of an organization’s employees. The systems theory applied in human resource management is important in realizing the organization’s goals (Krausert 2009, p. 3). Literature Analysis Human Resource Management Theories Human Relations Theory This theory gives an approach to human resource management basing on the knowledge that employee’s motivation is not only by financial incentive but also by a variety of social factors like praise, feeling of achievement. The theory borrows the idea that holding positive attitude at work place, good relationship and inclusive leadership amounts to self-motivation improving employees output. Classical Management Theories Classical theory involves creation of several ranks of workers to aid in improving their productivity. Workers at lowest ranks find their tasks supervised by superintendents who in turn are under managers. At every rank, the employees have the mandate of accomplishing their duties in accordance with procedures designed to maximize productivity. The classical theory focuses on detached side of business. Supervisors and managers as defined in this theory should not tolerate friendliness and private interactions to become part of their organization. This theory stipulates strict adherence to contract rules and regulations and all recruitments done on merit. Effective management makes use combination of classical and human relations theories, the two theories represents two outlooks of management. Human relation view focuses on workers solely as a means to get work done, while classical management theory focuses on developing good organization and provide for employee motivation. Management System Theory According to Likert system of management of an organization influences its efficiency. This theory describes the type of management in which the employees or subordinate staffs are only to abide by the decisions made by the company’s top management. This management system subordinate staff in the company does not participate in decision-making process. The organization, in some instances, threatens employees to have them meet their targets. Cirque’s Application of Human Resource Management Theories Cirque employs human relations theory in motivating their employees to work hard. Cantin, Cirque’s human resource manager, extends human relations theory to attract new artists to join the club. For most artists, their main motivation factor is what they get as an advantage. Oberacker is excited of joining Cirque club because of the employee advantage that the club offers. Cirque offers twelve hours of rehearsing with no payments (Daft & Marcic 2013, p. 36). Such offers are not possible with some of their competitors like Broadway union this lucrative offer is to allow employee motivation and attracting new employees to join the club. Company’s laxity in implementing human relations theory may see the company loose some of their good work force. Oberacker considered moving from Broadways non-regrettable because the management does not offer good rewards to their employees. Offering rewards is a practical strategy to retain employees (Ehnert, Harry & Zink 2014, p. 252). Broadway union requires their employees to incur the cost of food and housing privileges that they receive from the company which is contrary to deal given by Cirque. The management of Cirque offers high salaries to its employees; Oberacker estimates the salaries to be three hundred percent compared to that offered by the former employer. Cirque club makes combination of both classical management theory and human relation theory in there operations. Combination of the two theories helps the club’s management motivate its employees to be self-productive while incorporating employees in vital operations of the club after training. Offer language training to their employees to learn six languages to allow them communicate well with other colleagues all over the world (Jackson, Schuler & Werner 2012, p. 56). New employees undergo training to get familiar with club activities to incorporate them into the organization’s system when ready. During recruitment, Cantin is vigilant to identify artists with potential to develop and acquire more skill boosting their relevance. Cirque is not implementing Likert’s management system theory; the human resource department of Cirque trains new employees to allow them incorporates well in their system. The employees are happy with the operations in the company reporting positive comments about the company. The gap in communication between different levels of operations like gap between supervisor and the subordinate staff is not wide. After every recruitment process, training of the subordinate staffs enhances communication to execute their duties without necessity for much supervision. Conclusion Human resource management in any organization has an ultimate goal of helping maximize their output of an organization by optimizing the effectiveness of its employees while concurrently improving the work life of employees (Tsui & Lai 2009, p 6). The human resource managers have a fundamental mandate of ensuring efforts are in place to help in promoting employees personal development, satisfaction, and maintain their compliance with employer’s contract law. Theories in Human Resource Management explain on the best strategies that the company can adopt in motivating their employees to boost their productivity. Cirque Company implements human relations and classification management theory of human resource effectively. The employees working for the company or former employees after leaving Cirque company, comments positively on the working conditions. They are happy with the management systems and motivational rewards. Inclusive management system helps in enhancing easy coordination of duties allowing for faster operations. Management systems theory provides for different levels in operating, which may not work well in some systems as it extends the gap between management and subordinate. Bibliography Armstrong, M 2010, Armstrongs Essential Human Resource Management Practice: A Guide to People Management, Kogan Page, London. Daft, R 2011, Understanding Management, Cengage Learning, Mason, OH. Daft, R & Marcic, D 2013, Understanding Management, South-Western Cengage Learning, Australia. Ehnert, I., Harry, W., & Zink, K 2014, Sustainability And Human Resource Management Developing Sustainable Business Organizations, Berlin, Springer. Jackson, S., Schuler, R & Werner, S 2012, Managing Human Resources, South Western Cengage Learning, Mason, OH. Krausert, A 2009, Performance Management For Different Employee Groups A Contribution To Employment Systems Theory, Physica-Verlag, Berlin Martocchio, J., Joshi, A. & Liao, H 2012, Research in personnel and human resources management , Volume 31 Volume 31, Emerald Group Pub Ltd, Bingley, UK. Rao, V & Krishna,V 2009, Management: Text and Cases, Excel Books, New Delhi. Sims, R 2007, Human Resource Management: Contemporary Issues, Challenges and Opportunities, Information Age Publ, Greenwhich. Tsui, A. & Lai, K 2009, Professional Practices Of Human Resource Management In Hong Kong: Linking HRM To Organizational Success, Aberdeen, Hong Kong University Press. Read More