HR Challenges at Banksia - Case Study Example

Human Resource Management- Case study: Singing the same song: Multi level HRM Systems Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Human Resource Management- Case study: Singing the same song: Multi level HRM Systems Introduction The concept of HRM can basically be perceived as a strategic approach to management of the relations in work places. HRM reveals that leveraging the capabilities of the people is fundamental in the efforts of attaining competitive advantage (Bratton & Gold 2003, p. 6). Diverse researches which have been conducted in different organizations have for long supported the fact that human resource practices have a great effect on the outcomes of the organization based on the fact that they are vital in determining and shaping the attitude and behaviors of the employees as well as influencing both the short and the long-term performance of the institution. This fact is supported by different scholars, for instance, Ostroff and Bowen (2000) who determined that human resource practices are crucial in shaping the attitude of the workforce through molding the perceptions of the employees about the nature of the organization, what it is like and also informing their expectations of the magnitude and depth of their future relationship with the organization. In addition, there is usually a generic presumption that there is often an interaction between the human resource practices with perceptions of institutional support to impact on the commitment of the employee. Nonetheless, it is worth noting that market dynamics play a major role in defining the HRM practices in a firm. Technological change, increased competition from other firms in the industry and changes in consumer demands are just some of the issues which are directly linked to the practice of HRM and if not properly addressed can result in detrimental effects in a firm. It is an apparent fact that the case study institution, Banksia is confronted by diverse human resource challenges which pose extensive effects on its operations. Against this backdrop, this paper will critically analyze the sources of and HR challenges at Banksia as well as make profound recommendations to fix the HR system at Banksia. In addition, it will evaluate the impact of an effective communication channel on the change plan of the organization and lastly a job analysis will be prepared and conducted for the position of a human resource manager at Banksia. Sources of and HR challenges at Banksia As mentioned in the preceding section, Banksia faces a wide alley of challenges which will be analyzed in the subsequent discourse Lack of a human resource department The importance of a human resource department in diverse companies in influencing either the success or failure of performance in the healthcare systems has been overlooked in past decades. However, a contemporary paradigm shift has culminated to increased cognition of the fact that in order to get formidable human resource policy and management, the human resource department ought to be at the center of any sustainable remedies to the performance of the health systems (Buchan 2004, p. 1). This is founded on the fundamental undertakings which are mandated to the HR department in the overall operations of the firm. Among other activities, the HR department is at the core of training and recruitment operations in any organization. This ensures that the institution is properly focused in the acquisition of the most competent talent who are key in boosting the performance of an organization. It is thus paramount in the efforts to sustainable competitive advantage in the market. In addition, the human resource department plays a central role in motivating the employees towards better performance which is imperative in cultivating their commitment to the set objectives and goals. This is often through the development of a robust reward and recognition policy which motivates the employees and makes them feel appreciated in the overall operations of the institution. It is undoubted that comprehensive rewards and recognition of the employees in an institution is a chief tenet in the ideal HR practices under the docket of the human resource department. It is worth noting that this tenet can apply to both individual and collective levels whereby either an individual or a group of employees can attain recognition and subsequent reward for their efforts in a certain endeavor. Majority of the companies have become cognizant of the necessity of rewarding and recognizing their employees which has seen them initiate prudent formal and informal reward programs spearheaded by their respective human resource departments whose uses are gaining more prominence among different companies. Therefore, the basic fact that Banksia lacks a robust human resource can be attributed to the different human resource challenges in Banksia Health Service. This has resulted to little morale, non-commitment and limited motivation among the 500 personnel employed in this firm. In addition, this has also resulted to the overall elevated sense of unfairness and limited trust in the management structure of the organization as well as poor performance in the organization. Moreover, the generic reluctance of the top management to institute a clearly defined human resource department also provides major human resource impediments to the firm, both in the short and long-term. This can be attributed to the lack of transparency as well as perceived unfairness in the distribution of rewards among the human resource which has culminated in the lack of trust and limited commitment by the managers and the staff. Poor skills and knowledge Skills and knowledge are key aspects which ought to be possessed by the human resource management organ if at all the objectives of any organization are to be achieved. This is mostly in issues related to problem solving and promoting teamwork in the organization. The importance of robust skills and knowledge among the personnel responsible for the human resource issues which in turn promotes team work among the employees is best evidenced by Stevens and Campion (1994, p. 504) who determined that skills, knowledge and ability among the HR managers is key in fostering team work in an organization which in turn enhances the level of performance among the entire workforce. In addition, these skills and knowledge are central to problem solving efforts in by the management structure in any organization. These skills eventually disseminates to the specific group members mandated to undertake particular tasks through training which has an overall effects of minimizing conflicts and disputes in an organization. This importance of the ability to manage and resolve conflicts has been cited by diverse scholars, for instance, Gladstein (1984),Sundstrom et. al (1990) and Saavedra, Earley and Van Dyne (1993) as being an integral interpersonal attribute both by the managers and members in various work teams and departments which influences the performance of any organization. Nonetheless, these relational skills and knowledge have been deficient among the managers at Banksia Health Service which has in turn seen elevated industrial disputes mostly among the staff in this organization towards the perceived unfairness of the developed policies. The inadequacy of HR skills has tended to create discrepancies in the firm leading to poor performance. Poor communication This is the last major source of HR challenge which will be explored in this discourse. Clarity in communications from the top echelons of management, to the middle-level managers and departmental managers and eventually to the other employees in the organization is key in molding common goals and objectives in the organization. This is founded on the fact that clear channels of communication ensure that there is efficiency and effectiveness in the dissemination of information from the decision making organ to the entire organization which ensures that all the employees are working towards achieving similar objectives and ensuring that the HR practices are undertaken in accordance with the HRM policy of the firm. This requires extreme coordination from the top levels of management which is supposed to be in a strategic partnership with the line managers in the providing an effective communication channel (Sani 2012, p. 9). Nonetheless, this phenomenon is not evident at Banksia Health Service which is characterized by inconsistencies in the HR messages, non-existence of organizational or HRM strategies which evidently results in confused communications across the entire organization. The staff and the employees are bound to receive mixed and often contrasting communications from the management personnel which has an overall impact of creating discord and disharmony in the attainment of the organizational objectives. Recommendations to fix the HR system at Banksia There are some prudent interventions which can be implemented by Banksia Health Service aimed at fixing the HR system in this organization. Some of these strategic interventions are expounded in the subsequent analysis. Establishment of an autonomous HR department From the preceding discourse, it is apparent that the lack of an independent HR department with a clear mandate is one of the major challenges affecting the human resource functions in this organization. In this regard, the management structure at Banksia ought to make extensive efforts to institute a strong HR department which deals with all the issues affecting the human capital in this institution in matters related to recruitment and training, problem solving, reward and recognition, performance management and job rotation among other functions. On the other hand, this department ought to be endowed with enough powers to formulate and implement human resource policies in the firm which is integral in fostering compliance among all the departments in this organization. This will ensure that all the employees in this firm adhere to the set principles and requirements which will be effective in regaining the trust of the employees in the management of this institution. This ought to start with hiring a competent HR manager and his/her subordinates who will be central to undertaking these tasks. The financial, manpower and infrastructural support to this department will be necessary to ensure that there is efficiency in undertaking the designated tasks which will cultivate effectiveness in enforcing the agreed upon HR policies in the organization. Development of a positive organizational culture In a generic sense, organizational culture can be perceived as a set of norms, principles, beliefs and behavioral manner at the organizational level, a combination of which give an organization a distinct character (Willcoxson & Millet 2000, p. 93). Diverse researchers in business strategy have asserted that organizational culture is a robust source of competitive advantage in an organization as well as promoting the long-term performance of an organization with extensive evidence from both the private and public sector to support this inference being apparent. In this regard, the management structure at Banksia Health Service ought to institute a robust organizational culture in the firm which is founded on elevated transparency in the day to day operations of the organization, attractive reward and recognition programs which will enhance the motivation and commitment of the employees, respect of each personnel in the organization, facilitation of creativity and innovation of the employees in this particular institution and empowerment of the employees to be increasingly engaged influencing the operations in this organization. In addition, an organizational culture of profound employees’ development ought to be instituted in the operations of this organization whereby strong programs in recruitment and upgrading of the employees’ skills and knowledge must be given priority. In this case, employee development can be perceived as the overall efforts to enhance the skills and knowledge of the employees through initiating particular programs which aid the employees to elevate their competence in and out of the work place. This is not only vital in the future career growth of the employees but also culminates in increased short and long-term performance at the organizational level in terms of continued expansion, increased profit margins, elevated output among other performance indicators. Lastly, this organization ought to institute a culture of performance management aimed at assessing the performance of various individuals and teams in the institution and ensuring that all the operations are aligned to the wider objectives of Banksia Health Service. Performance management can be perceived as a process of structuring a work environment in which the personnel are empowered to perform at the optimum of their respective capacity and abilities. It is thus an overall work system that begins when a task is effectively defined as required and ends when the employee exits from the institution. Thus, the strategy of performance management according to Martinez (2000, p. 3) relates to every activity of an institution which is structured in the context of its human resource policies, communication mechanisms, style and culture. This is particularly fundamental in monitoring the day to day performance of individual employees as well as various teams, assessing whether this performance matches with the periodic output targets in the organizations and eventually initiating interventions to boost performance in the weak areas. Thus, the development of a positive organizational culture at Banksia Health Service ought to be prioritized not only to aid in overcoming present HR challenges by also for increasing cohesion in the organization and fostering long term growth and expansion of this organization. Development of clear communication channels As previously mentioned, deficiency in the communication framework of this institution has been perceived as a detrimental challenge to the HR practice in this institution. Against this background, Banksia ought to institute clear communication channels from the top management levels (CEO) to the lowest employees in the management structure which will be key in ensuring that timely information on various decisions is properly disseminated downwards and feedback from the lower echelons on the progress trends received by the management. In addition, clarity in the communication channels will ensure that there are no divergent signals from the management which have been central in creating confusion among the staff in this organization. Moreover, a clear communication channel will ensure that there is increased coordination and cooperation among various departments in this organization as well as minimization of roles duplication at Banksia Health Service. The ideal communication channel at Banksia will be explored in the subsequent section. Robust reporting mechanism This is whereby a clear demarcation of the ranks and responsibilities of various personnel in this organization ought to be aimed at ensuring that there is limited conflict of roles in the entire management structure. The reporting structure in terms of performance and targets realization ought to run from the employees in the lowest level of the management structure to the CEO of this organization. This will be key in fostering accountability of all the personnel in this institution which will promote the performance of Banksia Health Service in the long run. The ideal mix of the HR functions and practices at Banksia Health Service is detailed in the following conceptual framework. Figure 1.1: Conceptual framework detailing the human resource practices in an organization. Source: Ivo, AM, 2006. Impact of an effective communication channel on the organization’s change plan It has been noted by diverse scholars that communication is integral in an organization in the sense that it connects the workers and allows the effective functioning of an organization. Thus, communication is a core part of the processes in an organization based on the fact that the flow of communication up and down the institutional hierarchy has extensive impacts on decision making, efficiency and overall morale in the wider organization (Nordin et. al 2011, p. 617). In regard to decision making, a good communication channel ensures that the decisions which are arrived at by the management structure of an organization are effectively and timely communicated to all the members and stakeholders in the institution. This has an overall impact of making sure that all the employees are updated on the general direction of the organization and the role that they are expected to play in the realization of the agreed upon goals and objectives. In addition, it ensures that any unforeseen impediment which surfaces as a result of certain decisions is received in good time by the management and addressed by the responsible organs of management. This ensures that the all the issues in the organization are addressed in good time and averts probable losses and effects on the motivation and commitment of the employees when their concerns are not addressed in good time. In regard to efficiency, good and effective communication channels ensure limited duplication of roles by various departments in the organization. Thus, it makes sure that all the employees are fully aware of their respective roles and any decision affecting these roles is effectively communicated to the concerned parties. This is bound to create efficiency in service delivery as well as elevating the trust of the employees in the overall management of organization. Lastly, effective communication channel has the overall impact of fostering transparency and accountability in the organization. This is whereby all the operations in various departments are communicated to the management structure and changes, for instance, changes in procurement trends and prices of products are communicated in good time. This is central in cultivating a high level of transparency in any organization. An ideal organization’s plan to communicate the change decision to the employees, managers and to the other organizational levels ought to possess some rudimentary characteristics. Firstly, the communication plan ought to be swift and timely. This is whereby the change decision ought to reach every member of the organization within the shortest time possible. This is best epitomized whereby electronic messaging which is usually implemented in the context of the office automation systems, for instance, scheduling and electronic mail applications which have been used to disseminate both formal and informal communications in diverse organizations (Trauth, Kwan & Barber 1984, p. 124). This system ensures that formal information like reports and memos are disseminated to all the employees in good time. Secondly, the plan ought to take into consideration the clarity factor. This is whereby a good organizational plan to communicate change to the employees ought to put into utility a medium which is endowed with clarity which will ensure that the change message clearly received by the employees in various departments. This is founded on the fact that any distractions in the channel of communication might affect the understanding of the message by the recipients and probably make them respond contrary to the expected (Smith, Berry & Pulford 1999, p. 21). Lastly, this plan ought to entail a clear feedback mechanism. In this case, feedback can be perceived as the information which is related to the productivity of the groups or individuals in an organization amid the implemented changes (Guo & Sanchez 2005, p. 79). This ensures that the management echelon in the organization is effectively updated on the reception of the initiated by the employees and its applicability in attaining the desired impact. Job analysis for the position of an HR manager The HR manager at Banksia Health Service will be mandated with different responsibilities which range from recruitment of new employees in the organization, training of both the old and new employees aimed at enhancing their skills and knowledge level, solving the problems between the employees, participating in management meetings deliberating on human resource issues, formulating and implementing HR policies in the organization as well as recommending the reward and recognition framework to the management among other roles. In order for the HR manager to attain success in these operations, he/she ought to possess some basic attributes. Firstly, the manager ought to be open and having excellent communication skills. This will be key in communicating the management policies and decisions to the employees as well as well as conveying the employees’ feedback to the management. This will also empower the manager in acting as the link of employees in various departments and conveying information affecting employees across all these departments. Secondly, the HR manager ought to be having extensive problem solving skills. This is integral while solving the disputes between different employees and making profound and rational judgments. In addition, this personnel ought to have a confidentiality attribute whereby he/she preserves the personal information of various employees, for instance, medical records and financial status among others and does not disclose them to third parties. Thirdly, the HR manager ought to be honest and respectful while dealing with the employees. This is mostly when a particular issue is not favorable to the employee, for instance, retrenchment decision. In this case, the HR manager ought to be honest on the causes of retrenchment and the rights of the employee after this process. In addition, the HR manager ought to be respectful to all the employees in the organization in disregard of their status level in the management structure of the organization. Lastly, the HR manager ought to possess the transparency attribute, mostly in the recruitment process. This is whereby he/she ought to avoid favoritism while dealing with employees and avoiding the tendency of hiring his/her relatives and close friends. Conclusion From the preceding discourse, it is apparent that human resource practices are crucial in influencing the perception of the employees in regard to commitment and motivation as well as determining the overall performance of the organization, both in the short and long-terms. Nonetheless, it is evident that Banksia is confronted by a wide alley of human resource issues which emanate from lack of a HR department, poor skills and knowledge as well as poor communication among other sources. This can be fixed through interventions like establishment of an autonomous HR department, development of a positive organizational culture, development of clear communication channels and a robust reporting mechanism. In addition, an effective communication channel has been perceived to have extensive impacts on decision making, efficiency and overall morale in the wider organization, where an ideal communication plan in an organization ought to be swift and timely, take into consideration the clarity factor among other factors. Lastly, problem solving skills and transparency attributes are just some of the basic requirements for a HR manager at Banksia. References Bratton, J., and Gold, J., 2003, Human Resource Management: Theory and Practice, 3rd edn, Palgrave Macmillan, Hampshire. Buchan, J., 2004, ‘What difference does ("good") HRM make?’, Human Resources for Health, Vol. 2, No. 6, pp. 1-7. 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