Evaluation of Human Resource Management Problems at Coffee Time Company - Case Study Example

Executive summary

Human resource management (HRM) is the management of human resources in an organization. Employees are part of important resources that should be managed in the most effective way to maximize their performance as indicated by Bratton & Gold (2012, p. 6).Therefore, developing the best HR strategy is a key factor for continuous development of a firm. Strategic management of the workforce covers training and development, performance appraisal in addition to learning and development strategy (L&D strategy). In relation to the case study discussed in this report, human resource management experiences a number of problems, a situation that promotes low performance in Coffee Time Company. As a result, the company experiences high employee turnover in addition to poor customer service.

Therefore, it is important for the company’s leadership to change their strategy on the management of HR for proper performance. The company’s management needs to formulate a strategy that aims at developing employees who perform at their best. This involves, ensuring that the staff is equipped with relevant skills and competencies to perform their duties and obligations in an effective way. This also involves giving the staff an opportunity to make their views known to the management on issues affecting them. Through this, the company can develop a motivating environment that can guarantee the retention of its members of staff.Proper performance appraisals that are regularly done can also serve as a motivating factor as employees can develop a feeling of being appreciated for their contribution to the company. Lastly, any company needs to promote an L&D strategy that is relevant to its need. Discussed in this report are the problems associated in the management of human resource in Coffee Time Company and their possible solutions.

Introduction

There are problems with human resource management in the Coffee Time Company. This is reflected by high employee turnover and retention, performance appraisal strategies, learning and development in addition to employee’s voice. All this poses challenge to HR development in the company since they affect negatively on customer value and the quality of services offered. Therefore, the company has to make relevant changes on the management of its staff to develop a competitive advantage over its competitors. Human resource management problems are discussed throughout this report in addition to relevant strategies necessary for the improvement Company. The following is an evaluation of a number of human resource problems experienced by the company.

Employee turnover and retention

Employer turnover can refer to the proportion of employees who leave an organization over a set period, which is usually one year. Retention, on the other hand, relates to how the company or organization retains its employees with a specific length of service (usually one year). Companies with high annual turnover rates experience a number of problems (Salvendy, 2012, p. 484); this is because, when an employee with relevant skills and experience leaves the company, the company’s efficiency and productivity is lowered. High turnover rates in the Coffee Time Company are associated with the employment of students who work to supplement their income while undertaking their courses. This shows that, the company has not embarked on a strategy, which promotes selection of the right employees. Additionally, it is evident that Coffee Time Company fails to provide a motivating work environment making its staff to leave since it has a low payment rate and makes its employees to do extra work.

Additionally, the resignation of new employees can be as a result of the company’s training program. From the case, the company offers a short training to new employees; this can make employees to leave the company due to frustrations encountered when performing their roles. It is therefore necessary for the company to offer a long training session that gives employees all necessary skills to avoid frustrations related to duty performance. It is also important to note that, high employee turnover rates affect the performance of an organization as noted by Salvendy (2012, p. 484). This is due to its impact on the profit margin and customer service. Secondly, on employee’s retention, the company has to formulate a strategy to maintain the newly recruited employees by either offering a better pay or avoiding extra work.

Learning and development

Learning and development of employees is a challenge that faces the company. The company’s management needs to promote effective learning and development of staff members. Therefore, the company has to formulate an L&D strategy that properly articulates the capabilities of the workforce in addition to required skills and competencies as suggested by Wilson (2006, p. 4). CIPD, on the other hand, suggest that employee’s skills and competencies should be improved for a general organizational development. According to the case study, employees appear to lack knowledge of the product in addition to being harassed. This is due, offering a short period of barista training to new employees. The company also fails to offer specific programs other than job shadowing and basic health safety. The internal environment and learning practice highly affects the performance of an organization. The company needs to incorporate other approaches in their training, for instance, coaching and mentoring of new employees. Although the company offers barista training, it is evident that it has not worked effectively. The company needs to develop something new in their strategy such as promoting innovativeness in the delivery of skills and knowledge as asserted by Easterby-Smith (2001, p. 44). This should also involve, accounting for individual differences in their training program.

Performance appraisals

The Coffee Time Company has not developed enough performance appraisal strategies. Therefore, it should effect the right changes for appraising the performance of its HR. According to Bratton & Gold (2012, p. 6), this is the most important way in which the company can promote the management of performance of their employees. From the case, the high staff turnover hinders the management in undertaking formal appraisal procedures. Therefore, this suggests the connection of its HR problems. It is its goal to maintain a motivated and energetic workforce, which is totally engaged in their work. The company’s performance appraisal system should not only aim at its overall results but also employee’s development and performance.

It is also a requirement that the appraisal should be carried out at a maximum of a yearly basis, which has been implemented by the company. However, the company needs to undertake formal appraisal procedures before the end of one-year period. It can be a negative result if the managers do not carry out this appraisal. This is because they measure productivity and performance, an issue that makes employees to be motivated (Bratton & Gold, 2012, p. 249).The company’s appraisal systems should focus on proper competencies, which focus on whether individuals are performing below or above the requirements of the role. This can promote sales and quality customer service in the company showing that appraisals are important to both the organization and employees. The company should promote the use of a performance management circle. This involves more than just assigning ratings but rather a continuous circle that includes planning, monitoring, rating, developing and rewarding. This can promote intrinsic motivation of employees in the company as they work towards individual goals.

Employee Voice

According to Robin and Jawad (2012, p. 250), employee voice is the means by which employees channel and communicate their views on employment and organizational issues to their employers. This is important as it serves as a way for employees to influence matters affecting them. In addition, it is the process that promotes employees to have a say on what is going on in an organization. From the case study, it is evident that staff members have difficulties in communicating their suggestions and comments to their employer. Although, there is a dedicated page in the staff intranet for employees to give their views and suggestions, staff members find it difficult to get time during the working day for the access the intranet. This shows that, employees lack the voice of addressing their views either directly or indirectly to the management an issue that can be related to the high turnover rate experienced by the company since employees feel devalued and demotivated as they fail to communicate their views and interests.

If the company implements effective employee voice strategy, then it can be able to use employee’s skills, values and knowledge to attain its aims and objectives. This can promote high productivity and greater innovation in the company as a variety of values and suggestions are available (Robin & Jawad, 2012, p. 250). Although Coffee Time Company champions events such as the annual awards event where employees are rewarded as a mark for their contribution to the company, most of the awards go to the managers. This can make employees to feel devalued thus, promoting conflicts in the company. Additionally, allowing direct suggestions from employees can make them to have more influence over their work, more job satisfaction and more opportunity to develop skills in addition to high job security. In addition to this, employees are able to develop good relationship with the management building a collaborative environment that promotes performance.

Conclusions and Recommendations

In conclusion, the Coffee Time Company has experienced a number of problems associated with the management of its HR. this problems are related as they promote poor employee performance and lower the general performance of the company. There are “push” and “pull” factors that promote higher staff turnover in the company. First, the Coffee Time Company offers a demotivating environment due to overworking of employees and low payments making employees to leave. Therefore, it is important that the company offer better pay to its employees as it can serve as a motivating factor to promote retention of employees.

A proper L&D strategy is also important for the company. The company should promote other approaches in the training of employees. This includes training and coaching of employees as indicated in this paper. Additionally, the company’s learning and development strategy should include both employees and senior executive members of the company (Wilson, 2006, p. 4). This includes, giving them relevant skills, which enable them to meet their learning and development needs. The company should therefore design a flexible strategy that meets its needs as it can assist in driving change and business performance. Lastly, the company needs to develop proper performance appraisal strategy in addition to promoting the employee voice. Proper performance appraisals should be carried regularly to serve as a motivation factor for employees. It is important to decrease the general turnover of employees for their proper appraisal. The company should maintain a motivating environment where employees give their suggestions either directly or indirectly promotes human resource performance, as employees feel valued as it promotes collective sharing of a variety of ideas leading to job satisfaction and reduced conflicts in an organization.