Business Report - EEI Assignment
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The continuously evolving nature of the corporate arena has necessitated the inclusion of an effective HRM system into the corporate structure. Human resource management or HRM has become an integrated part of the company profile which assures the sustained success of a company (Galli, 2017). Organizations have identified the significance of employees and how the human resource has become a specific source of skills and knowledge that spurs company productivity and enhance competitive advantage in the market. Corporations have understood the importance of enabling a constant and strategic HRM system that will assure thorough sourcing of human intelligence and efforts which facilitate a company to acquire a better competitive grip in the relevant industry(Mayrhofer, Wooderhamand Brewster, 2019). But the incorporation of an HRM strategy itself is not enough to obtain specific goals, rather the people need to be managed specifically by considering their individual interests and aligning their goals to the collective objectives of the company to reach a definite result.
Though HRM consists of some of the basic practices yet these approaches are being mandated and obligatory to the organization through relevant policies and legal considerations(Zardasht, Omed and Taha, 2020). The present report will evaluate the importance of HRM in a company and how the advantages and disadvantages can be defined in relation to the selected company scenario. The present report will illustrate the case context of the hypothetical company Ecliptic Events International or EEI, an event organizing company that has been facing issues concerning its human resource management practices.
2. Company Overview
Ecliptic Events International is a UK based company operated by a family. The company was initially operating only in Leeds but in recent time the corporation has been growing rapidly. The company has expanded its operations outside the UK and has organised its events in the USA also. The company usually organises 25 events per year and approximately 10 events in Europe and others outside. EEI does not have formal HRM systems or HR strategy and staff management is often done on a provisional basis. This functioned well, while the firm was small, but issues arose due to the growing size of the business and the growth of the employees.But the biggest issue is that even though the company has been operating its business abroad yet they do not have any specific office and lack proper employee support. EEI’s staffing involves:
- CEO (Chief Executive Officer)
- 10 full-time permanent members of staff
- 8 part-time permanent members of staff
- Up to 50 members of staff on short-term, temporary agreements to cover specific events
- (Some based in Europe and the USA)
- A pool of 30 casual staff on zero-hourbonds (based in the UK)
- Up to 100 volunteers (based locally and overseas where the events are organised)
3. Rationalization of the Relevant Sources
Event management or organization is often seen as interchangeable aspects associated with event planning. Though the entire idea is a combination of both factors. The event organizer companies focus on delivering the highest standard of resources to the person or any other hosts who want to arrange a party, musical concert, seminar or any other entertainment, business-related or educational functions(Stankevi?i?t? and Savanevi?ien?, 2018). The key is to arrange all the se4quentional elements related to an event with the appropriate usage of resources. The company takes up the responsibility with a professional obligation to make sure that the event is organized according to the design expectations of the host. A corporation offering event management services offers a lot of vital aspects, among these several factors seem apparent. A competent event organizer company provides a variety of facilities, services and skilled staff who can assure the seamless execution of the pre-planned event, whether it is small or huge.
The effective conduct of an event may be a costly and difficult process, in which every aspect needs to be well-planed and achieved to ascertain the success, that alone is the rationale for hiring a professional agency. As per Saha, Gregar and Sáha (2017), in order to achieve the desired standard of an occasion organized by these professional firms, companies need proper resources. Other than monetary and other materialistic resources, human resource capacity empowers these organizations to expand their operations and assure quality and management of the functional factors. It becomes extremely important for companies to hire efficient and skilled employees to increase their capacity to take up challenging and crucial projects(Stokesetal.,2019). The entire planning and execution become a certain type of projected program which require creativity and human efforts.
Thus, these businesses remain ever reliant on proficient employees. hiring and allocation become an integrated part for these companies when they select the best people with professional credibility and work expertise(Emeagwal and Ogbonmwan, 2018). These companies tend to create a pool of talent while making sure that the employees are well treated and their interests are equally considered. Especially throughout the pandemic, event management companies have been facing extensive pressure as the global lockdowns and constant restrictions on social gatherings are mandated. It has impacted the profitability and hampered their operational procedures. According to Collins (2021), the 2020 pandemic brought about a change in the event sector that needed planers to retrieve and replicate all aspects of business strategies, marketing, event technologies and the distribution of content.
Management of human resources is a department in a recruiting organization, guarantees that rules are followed and that employment regulations are obeyed(Hayati, 2021). The HR Group finds candidates for vacant positions and helps in finding qualified people for suitable jobs. If an employee fails to fulfil disciplinary standards or demands, an HR professional typically intervenes to ensure that the process is properly documented and managed. The HR group must promote employment rights and also safeguard the corporation's interests as well. While there will be fundamental human resources functions in any industry and company, some particulars are applicable in the area of the event organizing sector (Getz, 2022). A few duties apply to HR including security, schedule, physical constraints etc. 30% of planners would under no conditions to attend meetings in person, while a further 32.7% would only attend meetings in small as well as local conditions.
Around 14% had no trouble at all. Most evidence suggests that events in individuals will return in the second half of 2021 - 30% bet on the third half, while 27.5% predict they will resume in the second half(Madray, 2020). For event planners, safety still remains the number one priority. 55% of safety issues were identified as the greatest barrier to organizing live events.In March 2020, 14.4 billion euros were lost to the exhibition and event business (16.5 billion USD). More than 50% of British event job postings highlighted compliance with regulatory regulations. 90 per cent of event organizers saw their company collapse as of March 2020. The unemployment remained 2.75 per cent and 5 per cent were minimally affected.
By November 2020, 52% of event professionals had lost their income because of the epidemic, while 11% were furloughed, and 10% had been laid off(Madray, 2020). Almost three thirds, or 73.6%, of planners, are more knowledgeable or technologically skilled due to the epidemic, which is crucial as the business transforms towards virtual, eventually hybrid technology.
4. Critical interpretation of the Findings
Event management has become one of the trendiest professions in the 21st century. Various companies have been launched in this sector which shows how huge the industry might turn into(Mayrhofer, Wooderhamand Brewster, 2019). The present report has been concerned with the most important aspect that is closely related to the performance of eventorganizing companies. The importance of human resource and their proper management is realized from the above-discussed information. It is an integral aspect for the event organizer companies to keep their human resources proficient and properly retained with appropriate policies and maintaining the obligations.From the previously discussed section, a range of factors emerged as the significant aspects(Stankevi?i?t? and Savanevi?ien?, 2018). Especially concerning the ongoing threat of the pandemic, it can be found that many businesses have lost their strategic integrity as their revenue collection got interrupted while many companies have lost their business due to the heavy expenses and lack of projects.
From the above-stated statistics, it can be found that numerous employees have lost their jobs which is a crucial factor that will hamper the event management organizations in the upcoming times, even after the pandemic ends the reparations will remain existent as many professionals might switch their professional careers or lack prominent skills to become equipped for the modified approaches(Stokesetal.,2019). This possibility remains at the core as most of the events are now being organized online via virtual platforms, which will require the employees to get adapted to the basic changes. In this scenario, incorporation of the modified strategies might require efficient and well aware people. Companies will have to focus on the hiring process and how they might obtain professionals to suit the determined job roles. If discussed in the present scenario, EEI has been operating their businesses in the UK and is rapidly growing which might get disrupted because of the pandemic.
In this context, EEI will have to consider the strategic planning for implementing strategic human resource management(Zardasht, Omed and Taha, 2020). Especially considering their low employee capacity, it is necessary to increase their capacity recruiting eligible employees through prominent recruitment procedures. It is mandatory for them to increase their expenses on establishing a qualified team of HRM professionals who will be undertaking certain approaches to properly identify and onboard efficient people. It is necessary for EEI to have a rational strategic frame in place to assure that no uncertainties can disrupt their human resource management process and appropriate professionals tackle the matters related to the conflicts and needs of employees(Stankevi?i?t? and Savanevi?ien?, 2018). As per the given scenario of the EEI, it is visible that despite having 9 years of operating in the professional field and expanding its business abroad, the company has not developed a proper strategic human resource management strategy that can reduce the competitive power of the company in the international market.
The company faces issues for recruiting talented people which shows that EEI might fall apart in the international market due to high competition. HRM is also important for EEI as it will help the company to attract people from various backgrounds without having any issues regarding their inclusion, integrity and amalgamation into the workspace. HRM department will create appropriate policies while complying with the national and international employability regulations which will assure employees their right to have their concerns addressed that will further increase their motivation to work within the company(Saha, Gregar and Sáha, 2017). Consequently, the company will also have to consider the employee issues which are currently existent such as moral issues, integrity concerns, workers feel that they are not properly valued or their interests are not understood, experience excessive work pressure etc. These issues are constantly rising and will need to be resolved with adequate HR approaches so that the company does not face any difficulties regarding their operations in the domestic and international market.
5. Pros and Cons of Developing and Investing in an HRM Strategy for Event Companies
The pros and cons of developing and investing in an HRM Strategy for Event Companies like EEI will be discussed below.
Assists in assessing HR policies
The concept of strategic HRM is that the company's personnel policy and procedures should be in keeping with the larger strategic strategy of the organisation. Developing these linkages between HR and strategy has the clear advantage of enabling the business assess its existing HR policies and replacing old or ineffective rules with policies promoting a better working environment and interactions with the employees (Ahammad, 2017).
Enhances team building
Strategic HRM also contributes to fostering a feeling of team spirit and togetherness. The strategic vision of a firm would rely ideally on the input of a large number of stakeholders, including managers, workers, clients and investors (Venegas, Thill and Domnanovich, 2017). Create an HR strategy that fits this open attitude of communication can benefit mainly by allowing stakeholders to feel that their views are appreciated and relevant for their owners and managers.
Assists in monitoring progress
Although the company's strategic vision can impact the development and assessment of HR policies, the opposite can also happen. Human resources may assist the business track its progress towards its stated strategic plan goals and objectives (Caligiuri et al., 2020). A large portion of the strategic plan may be based on the collaboration and support of employees and individual departments or activities within the business.
Maintains Legal Organization
A ultimate advantage of the human resources management plan is that the business remains in compliance with employee, salary, insurance and similar regulations (Nasir, 2017). Business laws and regulations are complicated and vary from jurisdiction to jurisdiction but HR has a crucial role to play in ensuring the strategic plan of the firm is not only currently legal but can be modified sufficiently to be adapted to changing times and legal conditions.
Failure to adapt.
HRM systems usually follow strategies and standards to standardise the management of your company. But people are not machines or data bits, and a strategy which works for one person may be useless for another (e Cunha et al., 2020).
Systems of human resources require money and do not necessarily produce short-term benefits. Cash invested in people management might be needed to make better use of the firm for inventory or upgrading equipment (Mala, 2020).
Hours of training and orientation are hours that are not spent on directly revenue-producing company operations (Stankevi?i?t? and Savanevi?ien?, 2018). If a firm is short or has urgent business issues to handle, a personnel programme may redirect employees when the company most needs them.
There is no assurance that the employees will stay with the firm training. Investing in a human resources programme is hazardous since a company is capable of devoting money to developing the abilities of staff that are not long enough to recover their spending (Verma et al., 2018).
6. Differences between HRM Development and HRM Investment, and their Dependency on the Size of the Company
The HR strategy is a key document that defines the course for human resources across multiple years and HR management clearly focuses on the creation and development of the HR strategy as the document is brilliantly clear and inspires the HR staff to work on it (Piwowar-Sulej, 2021).
The creation of an HR-Strategy needs to be carefully monitored and specified process steps followed as the HR-Management Team is fully accountable for the development of the HR-Strategy. The most essential component of all is the HR strategy (Schofield, 2020). TThe strategy will describe how the HR process works and how it functions to assist the company achieve its goals. The strategy provides the basis for how the HR department prepares and carries out its activities at all levels.The steps involved in the creation of the HR strategy are as follows:
- Collection of HR Information
- Information about organisational development
- Workshops on HR
- Human Resources Management Workshops
- HR Strategy Preparation
- Feedback on HR Strategy
- Approval of HR Strategy
(Landolt, Stephan and Scherrer, 2019)
6.2 HRM Investment
There is significant disagreement as to whether an organization's human resources may be regarded an asset and managed in the accounting system appropriately. Two schools of thinking exist. One contends that human resources are an asset and the other doesn't agree. Assets are anything the company belongs to in future and should have a legal right (Diaz-Fernandez, Bornay-Barrachinaand Lopez-Cabrales, 2017).
There is no assurance that the current human resources will get advantages in the future and that there will be no sales value like other assets. Consequently, human resources are not an asset a school of thought claims legally. Furthermore, corporate law does not see it as an asset (ul ain Ansari, ul Haq and Raza,2018). The opposing school, however, believes that "human resources are an asset." This school of thinking raises two arguments for its views as follows:
- The "Human Resource" has legal ownership, which in practise might prohibit him from joining other companies unless he complies correctly with certain procedures, such as submitting prior notices of resignation, etc.
- Uncertainty about benefits derives is a typical problem not just with human resources, for all assets.
- Like other assets, human resources also require training and development to maintain the employer's service potential.
- It is rational and pleasant to deal with individuals as assets and to account for them in the anticipation of future economic rewards.
(Rahmanand Hosain, 2021)
Any resource used to produce goods and services is termed investment. Investment therefore means expenses of new plants and machinery, capital equipment, physical construction of new structures and any changes in inventory of commodities produced.
As human resources are regarded as assets in accordance with the foregoing, all expenses made in the procurement and buildup of human resources are viewed as investments. Human resource costs are sacrifices must be made now to recruit and develop people in future(Rahman and Hosain, 2021). The cost of human resources sometimes known as the historical cost of human resources are human resources investments that both have components of income (expense) and capital (asset).
It is important to calculate the rate of return on human resources. When substantial amounts have been invested in creating human resources by not recognising such expenditure, the organization's earnings are underestimated. Return rate can be used as a metric of performance. The return rate can be based on the following premises:
- Assessment of return on organization building.
- Assessmentof return on organizational utilization.
(Hauff, Guerci and Gilardi, 2020)
The changes in human resources must be calculated and recorded in order to assess returns on investment. The entire investment in human resources must be calculated in order to figure out the changes in human resources (Nurshabrina and Adrianti, 2020).
7. A critique and evaluation of the relevance the chosen model of HRM for addressing the problems the workers of EEI are experiencing
Two of the most commonly used HRM models which are chosen by event companies are the “Hard” and the “Soft” models (Mustafa et al., n.d.). In order to ascertain which one of these would be the most suitable for addressing the various issues faced by EEI, it is imperative to understand the fundamental principles of both, which is precisely what the current section will be devoted to.
7.1 Hard HRM Model
"Hard HRM" is an employee management technique, where people are seen to be a resource for the greatest profit and competitive advantage. The best method of understanding the hard HRM strategy is to seem just like any other resource to individuals in a firm. Hard HRM human resources are not seen as being separate from other corporate resources, such machinery, equipment or money. The hard HRM focuses on the job to be done, on cost management and on achieving company goals. When making decisions, there is no difference when replacing a defective machine and replacing an unnecessary person or department (Michael, 2017). The hard HRM technique has special characteristics. One is short-term changes in staff or the quick recruitment of new workers to enhance sales or to reduce people quickly. Another is minimal communication, especially from above.
Examples of such communication include one-way communications, notifications and advertisements in which employees are instructed how to execute their work. With hard HRM, pay is just enough to recruit and keep enough staff (Goyal and Patwardhan, 2020). Employees have no financial motivation to perform and no pay disparity amongst employees. Pay is often the lowest wage. The style of leadership is authoritarian, and consequently employee empowerment or delegation is generally little. Performance assessments focus on rating employees as outstanding or bad. There are also vast organisational structures, which means that many management and monitoring levels exist (Aust, Matthews and Muller-Camen, 2020).
7.2 Soft HRM Model
"Soft Human Resource Management (HRM)" is an approach to human resources management that indicates that employees are one of the most important assets of a business. When management uses soft RHM, they see their employees as crucial resources for their long-term business goals (Muthuku, 2020). Human resources departments will include personnel requirements into their long-term organisational strategy.
"Soft HRM" differs from a hard HRM notion, as harsh HRM techniques regard the employee just as a resource similar to equipment and machinery required to operate the firm. The hard HRM approach considers employees the resources they need to assist the organisation, but does not take care of their needs (Gado and Ülgen 2018).
This approach sees workers as a crucial resource – if not the most important. This makes it a more advanced perspective. One is where employees are treated as individuals. The soft HRM approach focuses on your employees' needs, including their incentives and motivation.
- Focus on long-term business and staff planning.
- An open and transparent, well communicated business model.
- Competitive compensation, based on wage benchmarking and bonus programmes.
- Empowerment of employees.
- Assessment systems that highlight training and professional development possibilities.
- More democratic leadership type.
(Goyaland Patwardhan, 2020)
"Soft HRM" focuses on how workers are honoured for their success and how employees are inspired to engage actively in achieving the organization's goals, tasks and values. Other features of "Soft HRM" include greater effort to empower individuals to take charge of jobs, open communication between the management and staff and more rewards and performance-based recognition (Aust, Matthews and Muller-Camen, 2020). In the case of a soft HRM approach, organisations generally have a more competitive pay structure, such as profit sharing or corporate incentives.
8. Rationalization of the Recommendations for the Company
From the facts mentioned in the given scenario, it is evident that the issues faced by EEI in regards to its temporary staff members is that they cannot find sufficient number of candidates who possess the required skills and experience levels for handling the work. This implies that there is an issue regarding the organization’s staffing process, which is not letting it attract the kind of talent which EEI needs. In the case of their permanent employees, the problem is that they feel “over-worked”, “under-valued” and experience a certain degree of “diversity” and “gender” barriers. These problems might have arisen from issues regarding compensation, staff planning, lack of bonuses, promotional opportunities, lack of training, inappropriate leadership style, and dominance of conventional standards and practices in regards to the management’s attitude towards people belonging to gender and racial minorities. The final elements also hamper the process of integrating employees from various backgrounds into the culture of the firm. Finally, the issues associated to motivation arise out of these factors and eventually result in high rate of employee turnover.
Considering these factors, the best way for EEI to handle its HR related issues would certainly be the “Soft” model of Human Resource Management, about which sufficient information has been provided in the previous sections of this report. With this one model, each and every issue bothering the different kinds of workers who are engaged with the company, namely- the permanent, temporary, casual employees and the volunteers as well, can be effectively solved with EEI. This is so because it specifically targets all of the identified issues, and offers the workers of an organization with the necessary support to enhance their work experience, level of engagement, and satisfaction, thus greatly improving their overall productivity, and hence, the organizational performance at large.
The present report has been developed to address and identify the importance of humanresource management. It has been found that human resource management is becoming themost important aspect of any company. The organizations have realized that employees arethe key pillars of a company and therefore have started emphasizing the proper incorporationof the strategies so that they can keep their operational standards ahead of the competitivethreats. In this present context, EEI has been facing some of the major employee-relatedissues. EEI needs to implement HRM strategies to assure that its operations run smoothly inthe foreign land. A range of challenges might be reduced by adopting human resourcemanagement strategies. The report has suggested EEI the soft HRM strategy which is willequip the company to establish and tackle their employees proficiently to expand theirbusiness in foreign countries.
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