Deciding to Act in Human Resource Management - Wallys Wonder Wash Company - Case Study Example

362966 - Deciding to Act in Human Resource management Executive Summary Deciding to Act in Human Resource management is a topical issue trying to bring to the fore the numerous challenges facing business enterprises in carrying out their day-to-day activities. The author in this essay attempts to identify such challenges facing Wally’s Wonder Wash Company in its daily operations. In the essay, the meaning of the concept of Human Resource Management as is used in the business world is explained at length. Possible solutions are also suggested for addressing the identified problems affecting Wally’s Wonder Wash Company. The essay further proposes a workable employee retention strategy that the Company could implement. In the introduction section of the essay, there is a working definition of the Human Resource management function in general. In the body of the essay on the other hand, the author highlights the pertinent HR problems afflicting Wally’s Wonder Wash and their mitigating measures. Next is an outline of the employee retention strategies that Wally’s could implement to mitigate the hurting employee turnover rate. At the end of the essay are the conclusions and recommendations that can be adopted in the future. Introduction The Human Resource management function is defined as the utilization of human resources to bring about production in a business enterprise. A more simplified definition of the term is proffered by Armstrong, (2006, 32) who states that “human resource management is the contracting of people, expanding their potentialities, while sustaining and reimbursing their services in line with the job and organizational requirement”. For the purposes of this essay, the author takes HRM to refer to “all the decisions and actions that are applied to cause employees at all levels in the business arena to successfully implement all the strategies directed towards creating and sustaining competitive advantage” (Budhwar and others 2009, 34). It is thus the techniques found in HRM that guide and direct the managers of a business enterprise to communicate the goals and objectives of the company to the workforce for eventual accomplishment of their mission and vision (Karen 2004, 51). From the foregoing, available published studies explain that HRM must play a more strategic role in the success of an organization (Armstrong 2006, 36). Similarly, those organizations that are relaxed as far as attracting and retaining talented employees are likely to suffer most when skilled labour becomes scarce. This argument is most relevant to Wally’s company that is not particular with its HRM function. This essay gives a highlight on how an organisation can address the challenges of employee turnover. Common HR problems identified in WWW Company The obvious HR problem identified from the Wally’s Company abides in its tight work schedule for the employees. Published research findings indicate that there must be some balance between work, life and family matters (Cooper and others 2010). This balance is necessary for employees to have effective time and stress management, thereby avoiding burnout (Cooper and others 2010, 43). More studies have indicated that employee recruitment is a crucial function for the success of an organization. The issue of proper sourcing and recruiting employees for Wally’s is lacking in implementation. Research work by Robinson and others (2007, 65) have underscored the importance of having succession planning for organizations to identify talented employees so as to provide training opportunities to develop them for succession purposes. Similarly, orientation of new employees effectively integrates them into the organization and assists them adapting to the workplace environment easily as claimed by Dickmann and others (2008, 328). In regards to Wally’s, this service is not offered effectively because the managers only give a brief training before starting work. As far as recruitment is concerned, it is reported that Wally’s has been promoting managers from within the company. This practice is in contravention of what experts recommend. Studies by Sparrow (2007, 149) concluded that “executive search must be highly competitive and rigorous to come up with the most talented individual”. Moreover, the motivational approaches practiced by Wally’s are not in line with succeeding organizations. The company’s reward system is oppressing to begin with. Additionally, gain-sharing programs practiced at Wally’s are lopsided and liable to breed mis-understandings amongst the employees. Robinson and others (2007, 76) recommend that “any resulting incremental economic gains should be shared among employees and the company through a predetermined formula”. Besides, it is evident that there are no performance reviews for the employees at Wally’s company. According to research work by Hesketh and Fleetwood (2007, 270) and Sparrow (2009, 518), it is demonstrated that regular employee performance reviews are more effective than those done traditionally every year. Performance appraisals are critical as they focus and concentrate on the entire field of HRM including employee training, development and feedback (Ulrich 1996, 86). Further, Vernon and others (2007, 323) recommend that it is necessary to have regular employee satisfaction surveys so as to avoid discontent and dissatisfaction from disgruntled individuals. The reason behind this is because the surveys help employers to “understand their employees’ attitudes, opinions, motivation, and satisfaction level” (Vernon and others 2007, 323). In addition to these surveys, studies show that employees’ performance feedback particularly from supervisors is a key contributor to successful management. This coupled with employee involvement in matters of the organization is a very critical tool in achieving teambuilding and employee empowerment that increases loyalty and fosters feelings of ownership from all stakeholders (Sparrow 2007, 164). On a lighter note, Wally’s company lacks an effective Human Resources Information System (HRIS) necessary to have a competitive edge against the other companies in the industry. It is the recommendations of the author for the company to develop a good HRIS that will ease the work of managers in their planning and decision-making (Armstrong 2006, 46). Workable retention strategies Wally could implement Employee retention is the most critical challenge facing corporate leaders as a result of scarce skilled labour, economic downturn and employee turnover (Phillips and Connell 2003, 275). For organizations to evaluate themselves, it becomes necessary for them to conduct exit interviews with departing employees. Research findings by Taylor (2002, 185) and Phillips and Connell (2003, 267) claim that employee retention involves being concerned with heartfelt needs of the workforce and be able to address concerns found environmental, relationship, support, growth and compensation domains (Phillips and Connell 2003, 277). Despite all the concerted efforts to address employee turnover, it is claimed by Taylor (2002, 188) that organizations are still loosing great employees to other companies. Wally’s Wonder Wash Company is not spared this onslaught and should therefore implement certain strategies to survive. From the outset, motivation has been claimed to be an encompassing feature of reducing staff turnover and minimising absenteeism at work (Ulrich 1996). In view of this, Wally’s is advised to improve its employee motivation not only in terms of monetary but largely through employee recognition (Phillips and Connell 2003, 277). The author suggests that Wally’s can increase employee motivation by empowering them where they are given the autonomy to get things done by themselves in line with research findings (Taylor 2002, 208). More studies show that great companies are recognizing their employees by involving them in major decision making. The approach is directed from the bottom line up as noted by Phillips and Connell (2003, 276). Secondly, Wally’s must make employees realize that they are the most valuable asset of the organization as directed by Taylor (2002). More research findings have further indicated that many firms have discovered that focusing on the individual is far much better for companies than anything else (Vernon and others 2007). Furthermore, studies advice that employees should not be taken for granted if any meaningful work has to be accomplished (Phillips and Connell 2003, 285). For this matter, it is prudent for the company to institute coaching, retreats and training forums for employee motivation. Apart from this gesture towards employee development career wise, it is further claimed that employee recognition and appreciation is critical. This is illustrated in the fact that some managers organize employee open-discussion meals in which the employees are given an opportunity to voice their concerns at a one-on-one forum (Taylor 2002, 192). In the views of Robinson and others (2007, 78), employees should be recognized and rewarded over and over again. Since money isn’t everything to top performers, it will be pointless to increase their salaries (Hesketh and Fleetwood 2007, 276) rather than keeping their morale high probably through allocating challenging works. In this regard, companies must hire the right people in the first place. Experts claim that “much of the responsibility for retention rests with individual managers and their ability to employ highly skilled people, management and motivational skills” (Taylor 2002, 259). In the same vein, it is advocated that “leaders who can enable meaningful and fulfilling work experiences for their teams are much more likely to win loyalty and retention from their employees” (Phillips and Connell 2003, 278). In regards to this explanation, talented employees are more likely to hang on to a company that treasures, values and is to reward them in many ways (Armstrong 2006). Studies have additionally shown that the manager is very crucial in influencing an employee’s decision to leave employment or not. Thus, a manager’s ability to match an employee’s capability with the requirement of a certain job is very fundamental (Cooper and others 2010). Information regarding an individual’s particular interests particularly the non-monetary ones can be determine through employee surveys and job analyses, after which appropriate action is taken (Karen 2004). Research has also found out that top talent wants to work for the top companies. For this reason, companies that are committed to superior practices are likely to attract exemplary employees (Sparrow 2009). Taylor (2002) states that “a focus on morale and retention isn’t just about maintaining a positive work atmosphere but about establishing a way of doing things that may well be essential to the survival of the organization in future”. Based on this, Wally’s will be forced to decide to act in human resources management appropriately once and for all. A further employee motivation strategy is for managers to access and avail crucial information about what their competitors are up to so that their employees are prepared for any eventuality. With this information, research indicates that the company will be on top of its competitor’s practices as far attraction and retention of top performers is concerned. Phillips and Connell (2003, 305) further agree that a satisfied employee knows clearly what is expected of him daily at the workplace. This position is further supported by the fact that the quality of supervision an employee receives is critical to retention level (Phillips and Connell 2003, 315). In view of this, Budhwar and others (2009) explains that anything negative the supervisor does may make an employee feel unvalued and unwanted and hence decide to leave. Likewise, employee retention is highly dependent on the ability of the employee to speak freely within the organization. It is therefore significant for an organization to create an enabling environment where all the employees can work and have fun to feel motivated. This strategy coupled with talent and skill utilization becomes a fundamental ingredient that employees seek in the workplace (Budhwar and others 2009, 37). Research has found out that a motivated employee wants to contribute to work areas outside of his specific job description (Sparrow 2007, 166). For this reason, managers just need to know their employee s’ “skills, talent and experience, and take the time to tap into it” (Budhwar and others 2009, 40). Finally, it is suggested that companies bend on succeeding must motivate their employees by trusting, respecting and having faith in them (Sparrow 2007, 166). This is critical in boosting employee satisfaction and retention in return for the company’s survival. Another survival technique for companies is found in building their image and culture with clear cut mission and vision statements. Experts hold that “top performers are often drivers who are turned on by challenge, change and results and get attracted to forward looking organizations” (Phillips and Connell 2003, 273). In a nutshell, employee retention can be achieved through setting clear expectations, employee involvement, effective supervision, and employee development (Phillips and Connell 2003, 274). It is the high time that managers at Wally’s decide to adopt these highlights to make a turnaround in profits and its expansion prospects. Conclusions and recommendations The role of the HR manager must parallel the needs of the changing organizational structure. According to the views of (Armstrong 2006, 187), successful organizations are currently becoming more adaptable, resilient, highly flexible and customer-centered. Operating in this kind of environment, the HR professional must become proactive and innovative (Armstrong 2006, 287). Studies recommend that HR managers must learn to handle the human resource more effectively by first acquainting themselves with the current emerging trends in employee training and development (Vernon and others 2007, 304). Due to the rapid development in information technology, the world has become a global village increasing diversity in the workplace. For this reason, organizations are advised to embrace workplace diversity and become all inclusive (Sparrow 2009, 493). Additionally, HR Managers are required to conduct regular organizational assessments on pertinent issues affecting the Human Resource Management to assess its progress over the long term (Dickmann and others 2008, 301). It is recommended that Wally’s Wonder Wash must develop appropriate measuring tools to assess the impact of diversity initiatives that need to be established in the organization through the use of wide-ranging feedback surveys (Sparrow 2007, 169). Similarly, the development of a viable teamwork is fundamental to minimizing the problems found at Wally’s. In fact, many businesses place an emphasis on the importance of teamwork that brings numerous skills, abilities and characters to the company (Sparrow 2009, 490). According to Robinson and others (2007, 90), a successful team is able to blend the differences found in workplace diversity together to enable the organisation to achieve its desired objectives (Karen 2004, 79). Safety is one of the most pressing concerns of employees in organizations and thus HR Managers must strive to satisfy this requirement. Additionally, establishment of a Human Resource Information System (HRIS) is an essential component used in the management of human resources. The term is used for an integrated collection of “computer hardware and software applications that track the essential data of a business’ daily performance” (Armstrong 2006, 297). This data is then accessed by the managers who use it as an aid to their planning and decision-making process (Armstrong 2006, 297). Bibliography Armstrong, Michael, 10th Edition. A Handbook of Human Resource Management Practice. London: Kogan Page, 2006. Budhwar, P. S and others, eds. Major works in international human resource management. International HRM: the MNE perspective. London: Sage Publications, 2009. Cooper, C and others, eds. Leading Human Resources. London: Palgrave Macmillan, 2010. Dickmann, M and others, eds. International human resource management: A European perspective. London: Routledge, 2008. 322pp. Hesketh, A and Fleetwood, S. Understanding the Performance of Human Resources, Cambridge: Cambridge University Press, 2009. 270pp. Karen, Legge. Human Resource Management: Rhetorics and Realities. Basingstoke: Palgrave Macmillan, 2004. Phillips, Jack and Connell, Adele. Managing employee retention: a strategic accountability approach. Butterworth-Heinemann, 2003. Robinson, M and others. Forecasting future competency requirements: a three phase methodology, Personnel Review, 2007. 36 (1): 65-90. Sparrow, P. R. Globalisation of HR at function level: Four case studies of the international recruitment, selection and assessment process, International Journal of Human Resource Management, 2007. 18 (5): 144-166. Sparrow, P. R, ed. Handbook of International Human resource Management: Integrating People, Process and Context. Chichester: Wiley, 2009. 518pp. Taylor, Stephen. The employee retention handbook. Great Britain, Trowbridge: The Cromwell press, 2002. Ulrich, Dave. Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press, 1996. Vernon, G and others, 2nd Edition. International human resource management. London: Chartered Institute of Personnel and Development, 2007. 323pp Read More