Case: Right Management Consultants Succeeds by Managing Change
Question 1: What are the challenges faced by Right when the downsizing effort no longer is a popular human resource strategy?
One of the main challenges that the Right company will have to face when downsizing effort is no longer a popular human resource strategy is quite simply finding a new strategy that will work. In finding a new strategy one must take the strategic approach to HRM. In the strategic approach to HRM there are six key elements that are essential for HR managers to consider:
- recognize the impact of the outside environment
- recognize the impact of competition and the dynamics of the labor market
- has a long range focus
- focuses on the issue of choice and decision making
- considers all personnel
- is integrated with overall corporate strategy and functional strategies
Taking these elements into consideration when formulating a new company strategy takes a lot of work and a lot of time, which will be a challenge.
Another challenge to consider when downsizing is no longer an option is bringing talent and innovation to the company. Human Resources’ main goal may have been to get employees to as low a number as possible, but bringing in talented and innovative workers can really bring a company’s freefall to a halt. Apple is an excellent example as to the good things that can come out of focusing on hiring talented individuals rather than simply dumping employees. Apple was struggling to keep afloat in mid-1980’s and consequently began to downsize. After a while Apple decided to bring some talent onto their team, and the decision brought new inventions to the table, which ultimately became extremely favorable for the company. “It wasn’t until Apple hired creative and innovative people who introduced the new Mac Notebooks, the iPod, and the iPhone that Apple was able to finally resurrect itself” (Human Resource Management pg 10)
Question 2: What conflicts do you see between a company of this type and a firm’s human resources department?
The main conflicts that would be present between the Right company and a firm’s human resource department are the of lack of teamwork and communication. The Right company is present to aid the company’s human resource division, but in actuality the consultants are there to accomplish what the HR division could not on their own. Naturally, a firm’s human resource department would be threatened by the intruding Right company and may also feel some job insecurity. In such a circumstance there would be a division between parties—each party working on their own projects—and this would cause the company to improve business a lot slower than desired. Getting both parties to co-operate is the best case scenario and would be the most productive in terms of the companies success.
Question 3: What do you recommend Right do at this time to prepare for the future?
I believe that the thing Right must do at this time to prepare for the future is the same thing every company must constantly do to prepare for their future. The way a business becomes accomplished is through successful planning and strategy and these elements are the things that must constantly be evaluated and altered to assure its compatibility with current times. “External and internal forces are constantly changing the rules of the game, and the organization must amend or adopt new strategies to remain competitive” (Human Resource Management pg. 4). I think whether a company is accomplishing its goals or not is an excellent way to determine the necessity of change or strategy, but it is monumentally important to be ready for change regardless of success. I think Right must evaluate current times and predict future conditions in order to strategize and be prepared for anything.
Another thing Right can do is provide training for their staff. On page 10 of the Human Resource Management textbook it states five roles...
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