Human Resource Management Issues at the Westbank Call Centre - Essay Example

A Report on Human Resource Management Issues Name: Course: Institution: Tutor: Westbank Call Centre: A Report on Human Resource Management Issues Executive Summary This report provides a comprehensive analysis of the most important human resource problems affecting Westbank Call Centre. The report starts with an analysis of the main issues and their effect on organizational performance. The report then provides a recommendation on how the issues can be addressed to help the organization improve its performance. The report finds that the most pressing challenges facing the Call Centre are poor employee compensation and reward policies, lack of proper employee training and development programs and lack of flexible work programs. These challenges are directly related to the facility’s poor performance, lack of job satisfaction among employees and inability to attend to customers effectively. The report recommends that the company should arrange flexible work programs for the employees such as flextime, compressed work week, expanded leave and job sharing. The report further recommends that the company’s management should reconsider the compensation and reward policies to reflect trends in the local market. The report also recommends that it is crucial for the company to have policies to implementing continuous training and development programs. Table of Contents A Report on Human Resource Management Issues 1 Name: 1 Course: 1 Institution: 1 Tutor: 1 Table of Contents 3 Introduction 4 Conclusion 12 References 13 Pfister, J 2009, Managing Organizational Culture for Effective Internal Control: From practice to theory, New York, Springer publishers. 14 Introduction Human resource management is a crucial function in any organization. This function is concerned with the management and development of an organization’s workforce. Specifically, human resource management deals with the attraction, hiring, training, and rewarding of employees. The following report has identified some of the most critical issues based on a case study analysis but which are also common to all other organizations. The main issues discussed are flexibility in workplace, compensation and reward and human resource training and development. Mullins (2010) has explained that it is important to address issues in human resource management for the purpose of employee retention. In the past, organizations focused on cost containment, structural change and market mechanisms as the core sources of competitive advantages and did little to address the issue of human resource management. In the recent years, it has been recognized that getting human resource management practices right has to be the central focus of sustainable managerial practices. This is partly in response the need to upscale capacity development and organizational performance. In fact, effective human resource management provides a way for companies to court an increased employee loyalty, which in turn translates to improved workplace performance. Human Resource Management Facing the Westbank Call Centre 1. Lack of Flexible Work Program Strategy It is evident that the Westbank Call Centre has not implemented flexible work programs for its employees. Flexible work programs are arrangements which give employees increased freedom to decide on how to fulfill the obligations of their positions (Konrad & Mangel, 2000). To ensure increased morale and job satisfaction, employees should be given the opportunity to choose work schedules which help them balance between career and personal commitments. Such arrangements not only give employees a sense of motivation but also entice them to work to optimum levels, which in turn improves organizational performance. Failure to implement flexible work strategies is one of the reasons why employees at the Westbank Call Centre Work overtime even though the nature of work (attending to customer calls) does not require employees to work overtime due to tiredness (Gray, 2002). Wellmaker (2001) has hailed flexible work arrangements as an important recognition of the difficulties that employees have. These difficulties may cause problems in balancing between personal commitments and job obligations. Implementing flexible work arrangements can make a company more attractive to potential and current employees. Moreover, flexible work programs can increase employee job satisfaction, creativity and ability to work under stress. In Westbank Call Centre, absenteeism is very high, with labour turnover running at only 35%. These programs are also a good mechanism for reducing work absenteeism and increasing a company’s ability to retain and motivate high performing and experienced employees. A number of factors have to be considered when implementing flexible work programs. These help to ensure that the outcomes are beneficial to both the employer and employees. Mullins (2010) has noted that no matter how many options are available or which flexible work program is executed the duties, deadlines and expectations must be clearly outlined and agreed upon by the employees and their supervisors. Clear communication, supportive organizational culture, reciprocal support between employees and the management and teamwork are necessary to ensure the success of flexible workplace initiatives. Other important issues that should be taken into consideration when implementing flexible work programs include: i. Initial start up cost and subsequent administrative expenses. ii. Ability to meet customer demands in a timely manner. iii. The impact of employee presence on team work and organization performance. iv. Impact of the program on terms and conditions of work (in most cases, leave benefits may be prorated). 2. Ineffective Employee Training and Development Employee training and development is the most critical human resource development issue affecting performance at the Westbank Call Centre. The case study has highlighted that majority of employees are poorly trained on their responsibilities and lack necessary skills to respond to customer cases with professionalism. Most of the training is offered by team leaders who also have other pressing duties to attend to. Because of the heavy work load that team leaders have, they have limited time to engage in meaningful evaluation of employee development and training needs. In fact, the call centre’s employee training and development program is very ineffective and cannot meet the organization’s customer service demands. To effectively respond to the needs of its customers, the Westbank Call Centre needs to re-evaluate its human resource development policies and align them with market needs (Judge, Thoresen, Bono & Patton, 2001). Basically, employee development is the continual process of imparting employees with skills and knowledge necessary for effective participation in the workplace. Employee development is achieved through personnel training and organizational development. Organizational development refers to the systematic process of implementing changes in an organization so as to improve performance and productivity of employees (Stredwick, 2005). Personnel training and development, on the other hand, is a systematic process of developing expertise in employees for the main purpose of improving performance. In order for employee development programs to be effective and of strategic importance to an organization, plans must be formulated which flow from and that can be integrated with strategic business plans and policies. While it is always acknowledged that human resource development plans can significantly influence business performance, it is important for organizations to consider that these plans can be hindered by lack of commitment. Therefore, setting plans and policies is a necessary aspect of human resource development programs (Mullins, 2010). It is important for an organization to develop methodologies for ensuring that employee training programs become successful and that they contribute desired values to organizations. However, the process of identifying determinants of effectiveness human resource training is not a simple task because of the complexity of the variables associated with personnel performance (Wellmaker, 2001). It is, therefore, important for the organization to develop training evaluation criterion, which should be used in analyzing, designing and developing effective human resource training programs. In accordance with organization behavior theory, the main task of the management should be to influence people to perform and be as productive as possible. Judge, Thoresen, Bono and Patton (2001) have noted in his book that employee training and development is the most important and vital factor that impacts on organizational performance. As such, it can be argued that humans are important agents of development. Some of the most important ways in which Westbank Call Centre can benefit by developing its human resources are: i. Increased productivity: improved skills, enhanced education and provision of a positive atmosphere can result in efficient use of the organization’s resources. This will result in proportional increases in the organization's productivity and performance. ii. Eradication of economic and social backwardness: human resource development has a positive effect on an organization and the economy at large. Provision of relevant education and skills to employees can result in skilled human resources. Bratton and Gold (2007) have explained that employee training and development encompasses activities and measures focused on both qualitative and quantitative changes of individuals. These measures and activities are manifested not only in mere changes in skills and knowledge, but also in increased motivation, attitudes, values, behavior and interests. For this reason, employee training and development should be undertaken as a well-designed and planned concept that requires timely harmonization of organization and individual goals. Development of employees’ skills may require more time than process and structural interventions. Therefore, organizations need to pay attention to the issue in a timely manner by making it continuous (Huczynski & Buchanan, 2010). 3. Employee Compensation and Reward Employees at the Westbank Call Centre are poorly paid compared to the standards in the local labor market. Although the company offers considerable fringe benefits, the benefits are based on criteria that majority of employees do not have. Employee compensation is a key human resource issue and has direct impact on an organization’s capability to develop a productive workforce. Huczynski and Buchanan (2010) have explained in his book that fair compensation, rewarding and recognition of employees motivate them to improve productivity and are one of the factors that enhance job satisfaction. Good compensation and financial incentives are an important component of any reward system and play a crucial role in enhancing employee motivation and job satisfaction. An important aspect of financial incentives is that they help link compensation to achievement (Foot & Hook, 2011). The incentives encourage talented but poorly motivated employees to increase their productivity. They also help create an atmosphere of healthy competition among employees, which in turn creates a self-perpetuating cycle of increased satisfaction and performance. Financial incentives also help create a sense of appreciation and recognition for employee’s efforts. This has the effect of reinforcing an organization’s commitment to promoting the welfare of its employees. To institute an ideal compensation and reward system, it is important for the management to establish clear links between the organization’s priorities and what employees are rewarded for. It is, therefore, necessary to involve employees in developing reward systems and this can be through opinion surveys and focus group recommendations. An effective compensation and reward system should reinforce behavior change and encourage employees to take action out of their own initiatives (Bratton & Gold, 2007). In fact, behavior change and improved performance are the main outcomes anticipated in any reward system. An effectively designed and managed reward system should be able to define the desired outcomes and encourage involved parties to work with a purpose. The system should encourage supervisors to work closely with employees and inform them of what is expected and how their contribution can result to organizational success. In addition, the system should encourage supervisors to criticize employees for under-achievement without necessarily constraining their compensation. Banfield and Kay (2008) have noted the utility of reward system change over time. It is, therefore, necessary for reward systems to be continuously revised and to take into account the changing nature of employee demands and market trends. Recommendation The issues identified above can have deleterious impacts on West Bank Call Centre’s ability to offer excellent services to its customers and meet both short-term and long-term objectives. It is important that the company’s management investigates each of these issues to identify causes and design mechanism for addressing them. In particular, the issue of lack of flexible work programs can be addressed by implementing relevant programs such as: i. Flextime: under this program, the company can allow employees to choose their starting and quitting times from a carefully drafted range of available hours. ii. Compressed work week: in this flexible work arrangement, the company can compress the standard week into fewer working days such as working for extra hours a day and getting a day off work during that week. iii. Job sharing: under this arrangement, two or more employees can voluntarily share the responsibilities of a single full time position, with the benefits of that position being pro-rated between the individuals sharing the responsibilities. Organizations frequently use this arrangement to avoid absenteeism and layoffs. iv. Expanded leave: this option gives employees freedom to request extended periods of time from work without losing their employment benefits. The call centre can grant this flexible work program on a variety of grounds such as education, medical care, family problems and community service (Arthur, 2003). Regarding the issue of inefficient compensation and reward system, the company can choose a combination of direct financial compensation, administrative salary supplements, merit increases, paid leaves and informal rewards. It is important for the company to offer its employees merit increases in recognition of meritorious performance and successful completion of tasks that have significant impact on the organizations (Tyson, 2006). It is equally imperative for the company to offer salary supplements to employees who assume new or additional responsibilities as a way of motivating them to adapt quickly to new job environments. Moreover, promotions and lateral moves opportunities should be made available to employees. These are important long term rewards, which recognize employee’s expertise, professional growth and capacity to contribute to organizational growth. Promotions are typically associated with salary increases and corresponding job satisfaction (Pfister, 2009). It is also important to offer informal rewards for completion of specific tasks such as voluntary participation in environmental programs. The issue of inefficient employee training and development can be addressed adequately by reducing the work load of team leaders so that they have ample time to identify employee development needs. It could, however, be important if the training s provided by different people apart from team leaders since these may not have the right skills and knowledge to train employees. In addition, it is crucial that the company implements policies to foster routine training of employees. These policies should among other things call on the company to organize annual workshops during which employees are trained on the best and emerging work practices. Conclusion The report has evaluated and addressed the most important human resource management challenges facing West Bank Call centre. The main issues are poor employee compensation and rewarding system, lack of proper employee training and development programs and lack of flexible work programs. These issues are the main cause of the call centre’s underperformance and inefficient customer relationship management. The report has recommended that the call centre should take initiatives to address the address the cause of these problems so as to avert their undesired effects on the company. In particular, the Call Centre should implement policies to address the problem of poor compensation and rewarding. This will help increase employees’ morale and job satisfaction. The customer care facility should also take measures to introduce training and development programs. There should be an efficient needs assessment program that will help identify areas that need to be developed. In addition, the facility should reschedule work programs to take into account the personal or family needs of employees. Failure to balance between job and personal commitments makes employees to work under stress, which in turn leads to poor concentration and reduced performance. 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