Adsteel - Problem Identification Analysis - Case Study Example

Name: Tutor: Title: Human Resource Management Course: Date: Table of Contents Company Background 3 Problem Identification Analysis 3 HR Problems 4 HR solutions 5 Attrition 5 Introduction of methods for Labor demand forecasting and determining the labor supply 5 Compensation/Reward 7 HR Processes 7 Implementation of HR solutions 7 Employee Educational Program 7 Training 9 Performance Improvement Workshops 9 Rewards 10 Leadership Practice 10 Conclusion 11 Bibliography 13 Human Resource Management Company Background Adsteel is an Australian company that was started in 1985 and was principally involved with steel “broking” within Australia. When the company was formed, it used to provide “sourcing” services to clients who had difficulties in getting steel and supplying steel to clients. Adsteel Company has developed and now strongly focuses on customer service. At present, the company is a diversified steel stocking and trading business. Adsteel imports steel from numerous countries and sells steel to clients all over Australia. The company has an excellent network of suppliers and steel manufacturers in Australia and abroad, that has developed over the previous 28 years. Adsteel Company represents numerous steel manufacturers within Asia and Europe on as their agency for importation of steel into Australian market. Problem identification analysis The organization got new supply projects and thus the HR department decided to increase its headcount. This involved recruiting a new HR manager for supporting the HR department. The current team needed leadership capabilities to manage the challenges the organization following the expansion. Therefore, an HR manager was hired from a larger company, for the purpose of delivering the role and team management. This role included all the tasks running parallel to the tasks practiced on the industry. The hiring program started and the initiatives was working well and indicating positive results. Suddenly, organizational employees started resigning and this included new workers joining the organization who left to join other companies. There was shortage of employees in the company because so many employees had left. Additionally, the mass resigning of the workers, as well as the expansion of the organization to be able to cater for additional project further worsened the employee shortage problem. HR Problems The HR problem that resulted can be categorized under two areas: 1. Attrition: The market has changed fast and other industries are offering higher pays for similar business roles that the organization recruits. This prompted attrition with the leading aspect as well as the lagging aspects in the organization. The organization got increased volume of work with lesser individuals on board. This elevated the stress and thus resulted to increased loss in headcount. Additionally, HR processes were greatly affected when the chief members with the HR team had an accidents and were forced to go for an undefined medical vacation 2. Compensation: the business unit had an audit and thus it was necessary for it to revamp the organizational pay structure cutting benefits and packages for the new recruitments. The main reason that the organization did this was for the maintenance of the profitability ratio. In addition, poor labor demand forecasting and determination of the labor supply resulting to recruitment of inappropriate employees (Leedy 2012). HR Solutions Attrition The current problem of attrition can be countered through maintenance of a talent pool, projecting attrite, as well as planning constant training programs for the workers. The HR should do an estimation of the loss of talent using early warning signs as well as landmark the worker strength. This will assist in planning the work volume during that period. For example, in case the standard duration for a talent spending in the organization is six months, the work volume would be necessary to manage in an alignment to the six months. Additionally, planning constant training program to ensure there is a balance regarding skill distribution within the team can reduce the effect of recurrent attrition (Wright 2012). Additionally, the HR needs to change its hiring attitude. This is because during recruitment, organizations do not always get the skills they want in a worker but if during interviewing the potential employees are also screened for good attitude, this can reduce attrition rate in the organization. Therefore, the interviewers need to look for workers with strong work ethic, the capacity to cope well with others, as well as their readiness to learn. Such workers can be trained and the organization can have crucial workers that have less likelihood of quitting and influencing others to quit (Chanda 2006). The HR department should also ensure that the organizational employees are given a platform for growth. Workers contributing to the company positively should be recognized by giving them more responsibilities. This does not imply always giving the employees a raise but it includes giving workers more say in organizational decisions, the work setting, as well as ways of improving productivity and quality, and engaging them more in their work. Such workers are likely to develop loyalty for the organization and decrease attrition significantly (Becker & Gerhart 2008). Additionally, the HR department should ensure that organizational managers are trained to show respect for workers, even in conflicts. This is because when workers feel that they are working within an environment where they are respected, they have a high likelihood of staying in that environment. It would also be important to ensure that employees are provided work/life balance. Workers in the current world look for employment that enables them to have a personal life. Therefore, it is important to ensure that the workers have time off for family emergencies, personal business, and such. This is because if the organizational employees feel that their job blends well with their lives, they have a higher likelihood of remaining in the organization (Mohanty & Mishra 2008). Compensation/ Reward The pay structures for recruiting new talent with the market will continually increase to attract new talent. To counter this situation, the HR should offer meaningful benefit if they are not ready to increase the current salary levels. The compensation schemes will need customization at various phases to ensure the organization is ahead of its competitors. The employees can also be offered non-monetary benefits such as trainings (Uddin 2006). Improving the pay packages of the employees can solve the current problem too. This is because one of the key reasons workers leave their job is to get a higher pay somewhere else. Therefore, it would necessary for the HR to conduct a survey of the job market occasionally to ensure that the wages the organization offers to its employees are competitive. Similarly, the value of the organizational benefits packages should be evaluated regularly to asses if the packages offer workers value. Thus, workers should be reminded of the value of their benefits, because they will always have this in mind when weighing employment offers from competitors (Nayak et.al 2012). Implementation of the HR solutions Attrition Programs to solve attrition problem will be implemented in three different ways and they include: Performance Management Tools Implementation of performance management tools will tackle attrition through allowing the HR and management to constantly monitor, measure, and improve business processes in the organization. Performance management tools will tackle attrition by turning operational data into undertakings that can measurably decrease attrition. Integrated views of supervisor performance Various performance metrics can be integrated into a single, balanced score for supervisor performance. Analytics will provide an important process insight indicating all management levels who is coaching and the managers getting improvement from workers that they coach. Accordingly, this will provide management visibility of supervising performance and their efficacy in retaining top talent. In this manner, the organization will be able to identify outstanding coaching illustrations and train other supervisors to be better coaches (Srinivas 2006). Increased supervisor/management time with team Performance management tools that provide management with dashboards and views to decrease the administrative desk time and increase the face time should be used by the management. Performance management will further deliver tools of managing follow-up task assignment, task completion tracking, as well as alerting overdue undertakings. Additionally, they add time available to management to spend time with their teams. Basically, workers value the time they spend with their coaches and have a higher likelihood of leaving an organization of they meet with management rarely or never meet (Srinivas 2006). Personalized dashboards and views Personalized dashboards and views enable engaged workers to see link between their behavior and their numbers. Performance management tools will link agents to their performance metrics and this will make the employees more engaged. The metrics will be personalized and distributed to front line managers and workers in regard to goals, rankings, as well as incentives. This will drive self-improvement and will foster higher worker linkages to the organization and the organization’s priorities (Argenti 2007). Career path tools Performance management providing tools for clear communication of career path expectations, skill development opportunities, as well as necessities for role change will be employed by the organization where skill proficiency scoring, performance feedback, in addition to performance against daily/weekly/monthly goals. The career path tools will promote worker engagement and motivation to stay within the organization and earn the benefits of additional career building stages (Merkle 2010). Attrition early warning tools The organization will employ performance management that will deliver an integrated view of attrition risk information from disparate sources revealing changes in productivity, or attendance to easily link the changes to attrition trends, establish sources of the change, and reveal potential correlations with recruitment representatives, managers etc. alerts and analytics will be driven from the integrated insights to ensure the leadership focuses on preventing desirable workers from leaving the organization (Srinivas 2006). Training The HR can make arrangements for training to facilitate the learning of jobs related knowledge, skills, as well as behavior of the workers. Therefore, on recruiting new employees, the HR should arrange for a training program. The first form of training for the new workers is induction training where after joining the organization the new workers should receive a specific training for duration of four months. During this period, the employees should be taught all activities allied to their jobs. Additionally, after induction training, the HR should make efforts to develop the employees. Developing employees refers to acquisition of knowledge, skills and behaviors that improve the capability of the workers to meet changes within job requirements and in clients, as well as consumer demands (Merkle 2010). The various methods that the HR can use to develop employees include formal education program, job enlargement, job enrichment, job rotation, transfer, promotions, and such. Giving such opportunities to employees will enable them to learn several things apart from their own job activities and thus develop their career which will not only increase the capability and skills of the employees but also motivate them (Argenti 2007). Implementation of compensation/rewards The HR will formulate a program of rewarding employees and employees giving them benefits for their services to the organizations in order to motivate them and this will include revising their salaries. Other rewards that the HR will consider giving to its employees include a gratuity from the organization following retirement, and the organization can also provide the profit sharing scheme for the workers. The workers will also be offered health care benefits as well as it can be arranged for the workers to take their food from the office canteen with subsidized costs. Such rewards will motivate and satisfy the workers and thus they will not be susceptible to other competitive organizations (Uddin 2006). Conclusion Basically, the organization is a medium one and in a medium organization, there should be end-to-end tasks managed by lesser individuals. The present knowledge within the team should be changed from tacit into explicit with the aim of bridging the skill-gap, as well as management of unexpected disappearance of the HR team members. As a result, performance areas for the head of HR ought to be based on the number of risks alleviated, along with failures that were avoided. Normally, the main function of Strategic Human Resource Management is reinforcement of an organization’s strategic plan through making sure that there is a consistent alignment between the functions of human resources and plans in the strategic goals. A company’s attainment of strategic goals is contingent on the performance and sustaining of the organizational employees. Accordingly, performance management is a critical aspect of strategic Human Resource Management since it aims at encouraging and rewarding work performance and behaviors that are consistent with the strategic objectives. A performance driven workforce in line with the objectives of the organization will give the organization a substantial competitive advantage over other competitors and thus the problems that the organization is currently experiencing could be countered. Bibliography Argenti, P, 2007, Strategic Corporate Communication, Tuck School of Business, Dartmouth. Becker, B, & Gerhart, B., 2008, The Impact of Human Resource Management on Organizational Performance: Progress and Prospects, The Academy of Management Journal. Vol. 39/4. Chanda P., 2006, Corporate turnaround: Strategies for renewal, McGraw-Hill: Singapore. Dave, U., 2006, Human Resource Champions. The next agenda for adding value and delivering results, Harvard Business School Press, Boston, Mass. Leedy, D., 2012, Practical Research: Planning and Design, Prentice Hall, New Jersey. Merkle, J., 2010, Management and Ideology. University of California Press, California. Mohanty M, & Mishra P.I., 2008, HR Interventions in Turnaround Strategy: A case study of Rourkela Steel Plant, Management and Labour Studies, Vol. 33/4. Nayak, P et.al. 2012, HR Strategies for Turnaround Management: A Case Study of Rourkela Steel Plant, International Journal of Business and Management Tomorrow ,Vol. 2/ 5. Srinivas A, 2006, SAIL restructuring: the other guy blinked, Business Today, Vol. 1/2. Uddin, A., 2006, Human Resource Management Practices: A Case Study of the Supply Chain Department of Square Pharmaceuticals Ltd., Sri Lankan Journal of Management, Vol. 11/2. Wright, P, 2012, The 2011 CHRO Challenge: Building Organizational, Functional, and Personal Talent, Cornell Center for Advanced Human Resource Studies (CAHRS), London. Read More