Hancock Manufacturing: Leading in Difficult Situations

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Introduction Hancock Manufacturing is a manufacturing company that has three manufacturing plants and 4.000 employees. Furthermore, there is a sales force division and a corporate office. The problems that the organization faces are mostly related to the inadequate presence of the HR department across the whole company. As the new Vice President of Human Resources, this is an immediate need to transform the HR department in order to make the HR function a viable contributor to the organisational excellence and help achieve its goals. (5) Action Plan The company faces the following problems in particular:  Turnover among the 3.200 manufacturing employees is averaging 43%: Although, Hancock is a manufacturing company and layoffs have been especially common in the manufacturing sector, this high turnover is a red flag that indicates poor management issues. Turnover creates most recruitment pressures. Although the market conditions and the environment are not known, it is relatively safe to accept that the dominant reason for this high turnover is low job satisfaction (i.e. the employees dislike the job and they experience work overload and stress) and poor HR practices, like low compensation, little recognition, lack of fairness and low employment security and safety. (1) Turnover among the 125 sales representatives is approaching 50 percent: Further to the above, sales division turnover is unreasonably high. In order to reduce unwanted turnover, in order to increase workforce retention and decrease the need for recruiting, the management must understand the reasons for it. (5) This can be a cause of a lack or miscommunication of company’s culture, vision, values and mission. If the employees do not share the top management’s view of the kind of company that it is trying to create and they do not know what the company is trying to accomplish, then they are not inspired to do their best at work. However, it should also be examined, if the compensation benefits are attracting and motivating. (1) Among the manufacturing plants last year, there were 118 lost-time accidents, which is an increase of 28 percent over the prior year: Although the number of accidents is crucial, the Safety Manager has faced resistance from other managers throughout the company and those in the HR department to accomplish his safety goals. This behaviour must change and the safety manager must cooperate with the HR and the training manager in order to perform trainings on personnel and to provide a safe environment for the employees. (1) Attendance policies throughout the company have not been enforced: In addition to the high turnover of employees, there is clearly a problem in policies application. Attendance policies have not been established, so the absenteeism of employees creates many problems. An effective attendance policy ensures employee attendance to accomplish work. A fair and consistently administered attendance policy is critical for business success. (2) Last year, there were eight cases of sexual harassment within the manufacturing division, three among the sales force, and one in the corporate office: Further to the









above, there is also lack of a sexual harassment policy. The Company must be committed to provide a workplace that is free from sexual harassment. Sexual harassment in the workplace is against the law and must not be tolerated. If an allegation of sexual harassment is credible, prompt and appropriate corrective action must take place. (3) Sexual harassment may be a cause of the high turnover. Facing the threat of job loss and seeing others lose their jobs can be a traumatic and bitter experience.  For new-hires, a formal orientation program does not exist: An induction program is the process used to welcome new employees to the company and prepare them for their new role. The training should include development of theoretical and practical skills, but also meet interaction needs that exist among the...
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