Human Resources in Organisation - Acme Industries - Case Study Example

HRMT11011 Human Resources in Organisations Assessment Item 1 Term 1, 2011 Student Name: Student Number: Campus: Lecturer: Assessment due date: 1pm Thursday 14 April 2011 Acme Industries Memo A To: The Marketing Director From: Human Resource Director Date: 12th April, 2011 Subject: The Intended Restructuring of the Office of National Marketing Manager This memo intends to address the job of Sam and your proposal that it ought to be split into two due to the increased scope of work that is getting unbearable for one individual, consequently raising the question of remuneration and bonus structure due to the decreased status of his position. Discussion The contract that exists between our firm and Sam should be reviewed as to consider carefully the terms of his employment. This is to caution you from conducting this process in contempt of the agreement. In the realization that any of the terms may be violated severely, then the firm may be entitled to negotiate a new contract otherwise we may have to face the consequences of contract breach. This is critical especially as it involves some of his financial benefits namely bonuses that may be reduced (Human Resource Management 2009). Besides, it is important to note that the restructuring have been sparked by an increased work load that is now proving to overwhelm Sam, which may be attributed to business expansion and more achievements in terms of customer base. To that effect, an evaluation of the new job portfolio that will be created will need to be assessed in order to fairly compare it with the job requirements at the time the first contract was officially signed. If it follows that the new portfolio is more demanding and involving than at the point Sam entered the firm, then a reduction of the agreed bonuses at first may not be changed. Also to balance is the fact that the new role for Sam should not be reducing his responsibilities or capacity to make decisions in relation to the job he signed for, as in this case, he may have grounds to sue the firm for infringing and undermining his rightful mandate as it pertains to decision making. Sufficient, proper communication should be made to Sam and in good time so that he is aware of the planned changes in his department. Instead of sidelining Sam from the process of restructuring, it will be more suitable to involve him by way of asking for his thoughts on the same since the proposed new structure is neither due to his misconduct nor his underperformance. The motivation here is to barely go beyond informing and into engaging the individual (Marcia 2009). Recommendation and Conclusion To avoid breach of contract, I recommend that a new employment agreement be redrafted taking into consideration the new scope of work, the new bonus structure, the new job title and that the consideration be made to involve and thoroughly inform Sam of the impending restructuring of his office. In conclusion, the restructuring is possible but the details that protect all employees and guarantees their rights cannot be ignored and should be complied with. It should be clearly established that in case of demotion, that Sam will have to commit himself to a new contract. Michael Johnson, Tel: +61 7 5555 4444 Email: mjohnson@acme-industries.com References University of Michigan, Graduate School of Business Administration, 2009, Human Resource Management, vol.48, no.3. Marcia, X 2009, Employee Communication: 6 Steps to Communicate Change, viewed on 12 April 2011 < http://www.hrmguide.net/australia/communication/communicate-change.htm>. Acme Industries Memo B To: The Chief Executive Officer From: Human Resource Director Date: 12th April, 2011 Subject: Legitimacy of Jeff Working for a Key Competitor As it regards Jeff, our former Research and Development Manager, this memo is meant to provide you with information of whether or not Jeff is permitted by the law and as stipulated in our contract with him, to work for any of our competitors before a period of one year (12 months) has passed. Discussion A contract is a binding and legally recognized piece of document. The lack of adherence to the laid down rules and regulations amount to violation of the document. Jeff has gone against our agreement which he has signed for in the contract document. It therefore gives us the room to contest over his decision and action to work for a competitor within one year of leaving our firm, in a court of law (Asia Pacific Journal of Human Resources 2010). It can be argued that Jeff, who before leaving our firm, facilitated the innovation and the development of the secret leading edge tap ware that is to be released next year, may disclose this confidential information to our competitor thereby undermining our business objectives. It is evident that Jeff already poses a big threat to the continuity and development of our business as planned, if at all we may end up being sabotaged ahead of our planned release of the tap ware by our competitor. It is more unfortunate that he knows even when our next major product will hit the market. Despite him being the key initiator in this realization, the law acknowledges that all innovations that an employee may create in the course of his employment belong to the employer. As you have cited our contract with Jeff, that restrains him from ‘working for a competitor anywhere in Australia for a period of 12 months from termination’ then this legally prohibits him to act as he has done. A copy of the contract that he signed may be issued to him to remind and make him aware of his legal obligation to observe and heed to the terms as elaborated to him in the contract signing. The competitor needs also to be notified of the breach of contract that Jeff has committed (Mark and Susan 1997). This way, Acme industries would have filled all the loop holes and by way of informing, hold all the parties responsible that are involved either directly or indirectly. Jeff may be provided with a time frame in which to reconsider his decision. Recommendation and Conclusion I therefore recommend that the company lawyer be directed to file a lawsuit after this grace period has expired in a court of law to reverse the decision of Jeff and hold him responsible to honor the contract that he has undersigned with us. Finally, I am convinced that we are within the jurisdiction of the laws of the country on this matter and that we have a strong case that we can present and justify in a court of law. Michael Johnson, Tel: +61 7 5555 4444 Email: mjohnson@acme-industries.com References Asia Pacific Journal of Human Resources, 2010, Asia Pacific Journal of Human Resources, vol. 48, No. 1. Mark, A. H. & Susan, E. J 1997, Technical and Strategic Human Resource management effectiveness as Determinants of Firm performance, Academy of management journal, vol. 40, no. 1, pp. 171 – 188. Memo C To: Warehouse Operations Manager, Sydney From: The Human Resource Director Date: 12th April, 2011 Subject: Retrenchment Following your concerns that the introduction of new logistics and supply-chain technology has necessitated redeployment and redundancy of some existing positions, you are hereby advised on methods and tools that you may adopt to facilitate the intended purpose and process. Discussion It is essential to note and maintain our mandate to all our workers with equity. Consequently, it is our duty to provide them on time with the appropriate information in writing citing reasons as regards to the intention to lay off some of them as is required in the law. Organizing a meeting between the management together with all the employees may be necessary for this situation in order to facilitate good understanding of the grounds that may be leading to the termination of their services. Failure to this may lead to the employees taking their grievances to a court of law that may oblige us to compensate them on the basis of wrongful dismissal. An insightful calculation of severance pay that each dismissed employee is entitled should be executed and determined. This is because the pay will vary due to different positions the employees held and the length of the period they have worked for Acme Industries. There are those who may, from their own resolution, think that it is the golden opportunity to retire. They may be allowed to indicate their interest. On the other hand, redeployment should portray our endeavours to indiscriminate or show unbiased position in hiring individuals. Therefore it is advisable to allow all the willing employees to make their applications for the new positions and the redeployment will only be considered for the most suitably fitting candidates based on merit. Individual performances, competence, behaviour and achievements during their tenure of work should be considered. Other factors such as age, race, marital status or sex must not be used to determine who is picked to continue in the new positions. Credibility in the process of rehiring should be strictly and meticulously adhered to since sometimes among those who are coming back there may be the feeling of breach of faith and trust (International Journal of Applied HRM 2004). To ensure our objective of acquiring, developing and maintaining the best and competent workforce, it is highly recommended that the recruitment exercise be made as competitive as possible. It may be necessary that where none of our employees may be able to meet the qualification and competence standards as may be required to ensure optimum performance of your new technological measures, that external applicants may be invited and considered (The International Journal of Human Resource Management 2010). Conclusion I recommend therefore proper communications be made to the employees and a swift analysis of compensation schemes be put in place observing their rights and privileges as enshrined in our contract agreement and the laws of the country. To conclude, the fact that the employees are laid off due to technological change and advancement that renders most of their routine work redundant, is reason enough not to invoke sanctions from courts of law or other law enactments as long as we commit to inform them adequately and on time on this matter . It is significant to observe that the employees are dismissed from none of their wrong doing. Michael Johnson, Tel: +61 7 5555 4444 Email: mjohnson@acme-industries.com References Deborah, S & Martyn, L 2004, How to Achieve Successful Downsizing: Human Resource Strategies to Prevent Organizational Disruption and Resistance to Change, International Journal of Applied HRM, vol. 2, no.1. The International Journal of Human Resource Management, 2010, The International Journal of Human Resource Management, vol. 22, no.11. Read More