Impact of Human Resource Policies in the Context of Servo Engineering Companys HR Management - Essay Example

Human resource is the ultimate source of labor and intellectual capital for a company or an organization. The development of a liberalized and strongly competitive market requires human resources with core competencies that can support the wealth generation and operation of business, operation and attain competitive leverage in the market. The organization’s finance, performance management, production, distribution, marketing, use of technology, and other related exchanges in trade flows or investment, require competent human resource management.

Servo Engineering was established in 1897 and within a half-century, the company became a leader in the manufacturing of vehicle components. In the late 1970s, the company was able to develop its subsidiary company dubbed the American Ensign (Bratton & Gold, 2007, p. 487). The multinational company expanded its manufacturing plants in the United Kingdom, the United States of America (USA), and Germany. Attune to technological advancement, the company also commenced production machinery driven and controlled by information technology.

To undertake the organization’s operations, the production department was organized into six ‘self-managed teams’ (SMT), with 12 and 50 workers that are working in three shifts and are believed to be product-centered and are respectably operating as a miniature within a larger factory (Bratton & Gold, 2007, p. 487). Each of the teams is endowed with sufficient machinery to complete the stages of manufacturing products. Those that are not delegated as tasks of SMT are subcontracted from outsourced services (Bratton & Gold, 2007, p. 487). Tasks were divided into teams with the SMT supervisor doing the managerial functions.

A product coordinator is also tasked to ensure the supply of raw materials and the production of demanded number of targeted products while the charge hand monitors the progress of their performances (Bratton & Gold, 2007, p. 487).