Contemporary Issues in Hr

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EXECUTIVE SUMMARY
“To manage people well, companies should elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers.” (Jack Welch 2005: 98) Surviving in this era of globalization, organizations face varying degree of challenges to remain relevant and to obtain that ‘extra’ competitive edge. In doing so, HR managers play a vital role in ensuring that strategies adopted by the organization are fully supported. The challenges faced by HR managers in the current global trend, which includes the key issues pertinent to the company in question, Asiatic, are low morale and underperforming staff, high labor turnover, absenteeism and lack of training and development. The nature of these challenges and how Asiatic may address those situations are elaborated further in this report. Based on the external and internal analysis done, it recommended that Asiatic adopt several strategic HR initiatives to combat the above prevalent issues. These recommendations include having a clear HR policy in terms of career path and corporate culture as well as disciplinary procedures, to introduce a mix of a performance based compensation system with the existing remuneration system and to adopt a Learning and Development approach across Asiatic. Upon embarking on the recommendations provided, through empirical evidences provided, the challenges faced will be tackled gradually and boost Asiatic to a new level of competitiveness in its industry.

TABLE OF CONTENTS

EXECUTIVE SUMMARY……...……………………………………….…....…….…..2

1.INTRODUCTION …………………..……..………………………………...….4

2.ORGANISATIONAL BACKGROUND…………….…………………………5 2.1Asiatic SWOT Analysis………………………...…………………………5 2.2Other External Factors…………………………………………………….6

3.CURRENT HR CHALLENGES IN ASIATIC………………………………..9 3.1Low Morale and Underperforming Staff …..…...………...………………9 3.2High Labor Turnover, Particularly in Administration and Management..10 3.3Intermittent Short Term Absenteeism……...…………………………….11 3.4Lack of Training and Sudden Job Rotation…….………………………..12

4.RECOMMENDATIONS…………...……………………………………..……14 4.1Implement a Clear HR Policy……………..……………………………..14 4.2Introduce Performance Based Compensation System…………………...16 4.3Adopt a Learning and Development Approach….………………………18

5.CONCLUSION………………………………………………........…...……….21

LIST OF REFERENCES……………………..…………………………..……………22

1.INTRODUCTION
The recent emphasis among practitioners and academicians on human capital as a source of competitive advantage has focused increasing interest on the science and practice of Human Resource Management (HRM). It would appear that the field of HRM is reaching an advance stage of development in today’s increasingly competitive business world. It is also argued that the practice of strategic HRM has outpaced the academic work on this topic. Yet, data on how firms actually manage people to provide a source of competitive edge are scarce. While empirical literature linking better HRM with firm performance has consistently found that a more effective HRM is associated with superior financial performance, what is more of importance is understanding which HRM strategy to adopt that suits the different needs and challenges that’s arises in an organization. In the case study presented, Asiatic faces numerous issues in light of the prevailing and changing external and internal influences. Based on the information given, these issues will be elaborated and structured to clearly identify the root issues and its surrounding symptoms. Once the root cause is identified, only then it makes sense to prescribe a HRM strategy recommendation methods and ways to address the issues. The recommended HRM strategies will be based theoretical models as well as HR best practices that have been adopted and proven successful in similar situations. For ease of understanding, this report will be structured into...
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