Minimization of Operational Cost - PAC Resources - Case Study Example

Human Resource Management

Introduction

PAC resources are a fictional organization which experiences many difficulties in the business climate. It is a manufacturing firm in the Midwest specialized in computer components production with around 800 full-time employees. .Due to the declining sales, PAC resources must transform to contain its cost and reduce its staff members (Gudsdorf 2011). The administration does not display a good example at the workplace and rot in ethics in exploitative business practices which must be wiped out if administrative and coordination policies are to be executed. The study of SWOT analysis also suggests reforms the companies need if they are to successfully face the challenges. The management also needs knowledge on human resource management and business management. The objectives of learning human resource management are to be able to identify the link between the human resources activities and business strategy. The human resource department requires being kept under good management to help identify the strong points and opportunities the department can use to improve the working skills of the employees. It as well requires checking on the threats that need to be dealt with before they hinder the performance of the employees who are the major contributors to any business development. In human resource management, there are areas that need to be identified as their ignorance will bring a problem to the business. They include the development of human resource, security and safety of the workers, the staffing, benefits and compensation and relations of the staff and employees. Designing a problem-solving strategy requires being planned to create a peaceful working environment which is a business success strategy. Thus, when the human resource is designed and managed carefully, it will lead to the success of the firm.

Challenges

From the previous presentation on the studies of PAC, the numerous difficulties encountered that hinder the fate of the association are confronted. An example of the challenges is deterioration of ethics in business practices. For a business to be successful such rotten behavior has to be done with, and it is the job of the administration to coordinate exertion and execute the administrative policies. To overcome these difficulties, the company requires having sufficient market information that will help to survive the changing market trends. To encourage the employees to avoid rotten ethics and encourage them to work to the success of the business, they have to be given incentives such as PTO, sick leaves, and vacations. Improving the skills of the workforce will as well encourage them and the business is ensured to have a competent staff (Chowdhary, 2013). Despite these strengths the company can use to improve their activities, there are some practices that are likely to cause the downfall of the business; these are such as unfair business practices, unethical business practices, poor management and leadership, poor board branding and lack of incentives to encourage the farmers. Human resource management is made strong by working as a team (Natalie, 2012). It ensures employees competence, engaged the workforce and the co-creation of strategic initiatives in order for PAC to sustain the success of the business. Improving human management is a merit to be business as the employees determine largely the growth and development of business. With effective communication being held, performance rewards, and regulatory policies to control the employees, performance is ensured to be good, and the overall result is a business success.

Evaluation plan

These studies will help in creating a plan for evaluation of organizations strength and weaknesses, opportunities and risks to initiate a goal of achievement both internally and externally. Develop policies and to manage workers problems identified in emails. To recognizing the links between organizations strategy and human resource activities, to conduct a SWOT analysis of the organization emphasizing on human resource department and to identify problems in the five areas of the human resource management that is the safety and security, staffing, compensation and benefits, human resource development and the relationship between employees (Griffin, 2013). The study also helps to design solutions identified in HR areas and to present their solutions and lead in discussions involved in HR. The recommended action plan includes:

1. To implement regulatory policies where effective rules improve the behavior of workers to perform ethically (Hayman J.T 2012). They also make a sequential system for company operations.

2. Boost communication skills between the workforce and management because of the diverse cultures to ensure successful business surroundings (Natalie E Hoffman 2012 article). These are ensured through statement and testimonials.

3. The introduction of performance rewards helps the workers become aggressive, uphold keyworkers and decrease employee resignations ensuring high performance (Adeosun, 2013). Rewarding workers, develop a positive relationship and building the morale of workers.

4. To hire appropriate upper managerial positions and institute programs of training their employees in order to provide quality services. 5. Pac requires responding to both internal and external issues in a proactive and dynamic manner by reducing its weaknesses and using its strengths.

After implementation of the recommended methods, the organization needs to evaluate the results of the transformation and can use the following method 1. Through documents review in the preexisting written materials like the meetings minute, budgets, articles, newspapers, etc. 2.Through observation of how the program works and any visual changes in the results. 3. Conducting interviews from individual experience and learn more about their answers to surveys. 4. The organization can also hold group discussions with their employees and get their views on the effects of programs or implementations. 5. The organization would make questionnaires help gather information about the best programs to be adopted, challenges, effects and related information with implementation of the recommendations made. 6. Case studying by describing the program and experiences (Stahl, 2012).

Evaluation methods

Different methods can be used to evaluate the results of the transformation which include human resource development, staffing, relations of employees, safety and security and benefits and compensations. Development of human resource is done through training the workers (Natalie,2012). Technology is dynamic and therefore it is important to keep the workers updated on the new development to improve their skills. With better-skilled employees, they will work efficiently leading to the growth of the business. These programs are established through seminars and availing tuition for college-level courses which will equip the workers with improved know-how. There is also in-house training programs offered to all employees regularly which does not only concern the working conditions but as well relations. The business should ensure safety and security of the workers. Training seminars on how to maintain safety conditions should be offered and any garments that offer safety should also be provided. In the case of an accident taking pace, it is the responsibility of the company to compensate the victims and ensure their work position is maintained till they recover. Staffing is importance in human management. There needs to be a high authority managing the functions of fellow staff. For efficiency, human resource requires management and control to ensure they are operating effectively with no minor mistake which may cost the company. It is a function of the staff to place the employees where each one has best skills to ensure better yield. Workers require being regularly motivated through compensations and benefits so that they can feel like part of the business. Benefits such as payment on leaves, vacations, and sharing bonuses will make workers put more dedication to ensuring more benefits will be found. When accidents occur within the company, they should be compensated till they get well to return to their jobs. All these metrics will lead to a transformation in the business (Adeosun, 2013).

Risks

In case the firm does not implement the changes, it is bound to meet some risks which can be external or internal. In external threats, the company has little or no control over them example problems associated with the supply chain like harmful terms and conditions where they are forced to meet the workers requirement by force which may cost the company and result to lose. Increased prices of some products where the business is forced to but some products which will cost them more than expected. Changes in the market and lack of efficient market information usually lead to lose of the market where they can sell their produce (Stahl, 2012). With no market, no business is being done. Unexpected changes in customer’s behaviors occur when the human resource is mismanaged. The business has no ways to attract customers or market their goods, and when consumers get any negative information towards business, they start consuming less and less of their produce. The business ends up losing the market. Internal risks would be many lawsuits and raise demands from the employees’ unions, the sour relationship between the managerial and employees. When there is no good relationship between the employer and the employees, work cannot be done efficiently. The fights and disagreements create an unpeaceful environment which leads to business failure. Lack of ensuring security and safety standards for the workers is a loss to the business. The reason is that an accident will cost the company, thus leading to minimized human capital as the profit is used to compensate the employees. Training the workers is an incentive, and if the business ignores such an opportunity, it will experience loss of practices as most of the workers will have less knowledge with changing technology.

Administrative benefits

Some of the benefits of administrative and strategic roles of humans include improving employer and employee wellness program and inventing new ways of educating the workers to improve their skill at work and dealing with the customers. There is paid time off for vacation, and sick leaves are given to the workers satisfying them. They also ensure that the employees’ health coverage is paid in full. The company is able to comply with the legal requirements placing policies in correct manner and preventing expensive incidents from happening again. They put strategies in place to ensure their firms on the correct side of laws of employment including place of work discrimination problems. Another advantage includes labor cost efficiency by dispensing pay rises and compensating their well-performing workers who contribute to the long-term company success (Adeosun, 2013). The strategies are able to create competition through companies workforce enabled by hiring dedicated, those with motivation and well-equiped employees to increase the level efficiency and rate of productivity in operations. For the transformation of the firm some resources like a. money are needed. By minimizing cost, labor to save employee jobs by reducing inventory and eliminating fitness plan. They should also review policies that reimburse or pay out employees as well. They should reduce monetary bonuses in the case in case of increased frozen salaries for workers who are competent, hardworking motivated and know teamwork are required for a company’s success. The need to employ goal oriented and can pursue sustainable measures to limit operational costs. They should also portray exceptional leadership skills. The firm should ensure employees enjoy vacations and leaves (Gusdorf, 2011) in order to motivate them.

Minimization of operational cost

The minimization of operational cost in PAC can be corrected by ensuring no incompetence cases by the employees; all the challenges have been addressed, and success will be witnessed. It can be done by several activities such as minimizing labor cost to save the jobs and eliminating fitness plan. It is the human resource department function to ensure efficiency of the workers for the PAC Company to rise again. The employees also have their duty to carry out, that is, teamwork, motivation, participation and hard work and it can the human resource department should make them aware. Moreover, PAC needs employees that are goal-oriented and can pursue sustainable measures to limit operational cost. The workers should deliver the delegated quality outcome on delegated tasks, and they should exhibit exceptional leadership skills. It is evident that PAC faces multiple challenges that threaten the future of the organization. However, the management bears the blame because it is not acting as a role model to the workforce. The decay in morals due to unethical business practices can only be eliminated if there are a concerted effort and determination by the leadership to implement the regulatory policies. Besides, communication between the workforce and the management should be encouraged to strengthen the relationship and cooperation between both parties. Thus, the overall success of the any business depends on the strategies used to manage the human resource to the success of the business.