Introduction of Human Capital Management Assignment
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1. Reason for a reorganisation of HRM function of Bandag Automotive's
Human resource management plays a significant role in the operational management of the organisation. Human capital management (HCM) assist in changing the conventional administrative functions of the department of HR and management of performances into chances such as productivity, business value and drive engagement. As opined by Rasool et al. (2021), the primary HRM functions include "planning", "directing", "controlling" and "organising the activities of the company", "staffing and recruitment", and "workforce utilisation". Corporate strategy of Bandag Automotive focuses on contributing towards enhanced consumer services. However as per case study, the organisation does not have direct HRM functions within the organisation. It continues with an indirect recruitment process as the organisation outsources the activities of HR to others which include an employment agency that does its screening and recruiting. Bandag Automotive conduct informal survey for determining the salary structure of the employees and use the results for rewarding its employees for similar position. It is clearly evident from the case study that the appraisal policy of the organisation is not well structured for demonstrating the capabilities of employees. Since the functions of HRM are not internal to the organisation, the employees of the organisation experiences several issues that affect overall organisational performance.
Bandag Automotive, currently operating under Jim has been reported to face several issues due to lack of appropriate leadership style. This further lays emphasises on the leadership style executed by Jim within the business organisation. As per the case study, since, Jim is more focussed towards accelerating financial performance of the organisation, he neglects employee wellbeing. Several HR issues further highlighted dismissal of employee just on the basis of complaint without any kind of proper investigation thereby affecting organisational performance as a whole. HRM (Human resource management) within an organisation is defined as the term that is utilised to illustrate the formal system which is devised for people management within an organisation (Vveinhardt & Sroka, 2020). This automotive organisation must have proper human capital management planning to address and resolve the issues of HR at the earliest. Employees fail to connect with the organisational goals under the leadership of Jim. As mentioned by Vrchota & ?eho? (2019), human resource management is of two types: Direct recruitment and indirect recruitment. Indirect recruitment strategy creates certain issues for Bandag Automotive where its leadership strategy of Jim was also not appropriate. Jim was negligent towards organisational HR related complications existing within the organisation thereby affecting the whole work procedures.
Considering the working condition of Bandag Automotive, it is recommended that this organisation must follow a direct recruitment strategy within an organisation. As per the case study analysis, it can be mentioned that Jim must follow a transformational leadership style to develop a relationship with the employees and create a better working. Direct recruitment is mentioned as the external recruitment source where the qualified candidates are recruited by creating a vacancy notice on the notice board or through any sort of advertising on different mediums within the organisation environment (Engelbrecht & Samuel, 2019). In the direct recruitment strategy, the organisation can have its own HR team to handle all the internal functions of the organisation by looking through the internal process. In this case, the reward and appraisal policy and program of the organisation can get better where the employees can feel valued.
In an organisation, Human capital management is crucial for conducting business operational activities in more effective way. Bandag Automotive can enhance their liquidity in the future. Through the direct recruitment strategy, Bandag Automotive can enhance and develop the functions of HRM which assist in formalising the hierarchy of the organisation. As stated by Hauff et al. (2021), internal HRM within an organisation assists in featuring the programs that are important for creating the abilities and strategies of recruitment to assess the levels of expertise. The HRM and HCM emphasizing on direct recruitment strategy can assist Bandag Automotive to operate certain functions such as job designing and analysing, training and development of the employee, hiring and selection of employee, compensation and benefits, Communication and engagement of employee, regulations of health and safety. Other than changing HRM strategy, the transformation of leadership style can further develop the working conditions and cultures within Bandag.
2. Strategies for changing and developing the current HR practices, forms and systems
HRM is defined as the practices and policies that are necessary to perform the human resources routines in an organisation. Human capital management strategy is linked with the management of human resources which is the process of aiding daily operations and accomplishing longest term and strategic goals (Hamadamin & Atan, 2019). As opined by Collins (2021), the structured and well-planned practices, systems and procedures within an organisation come with the appropriate decision-making process. Some of the HRM practices that are severely lacking within an organisation are
- Providing the employees with a high security
- Employee training and development program
- Appraisal and compensation program
These are the major three areas of HRM practices that are required to develop for enhancing the culture and working conditions of the organisation. The practices of HRM assist in bridging the gap between the performance of employees and the strategic objectives of the organisation (Alomari, 2020). As per the case study, changing the recruitment strategy of Bandag Automotive can help the organisation to focus on these respective areas which are enormously essential for developing practices and policies. As cited by Farndale et al. (2020), the organisation is required to have HRM systems which are demonstrated as a suite of applications of software that are required to manage the human resources and related procedures throughout the lifecycle of employees. Having an Employee information system can help the organisation to keep a track record of employees which can assist the HRM of the organisation to comprehend employee performance management.
The development of certain practices, forms and systems can make the employees feel valued and involved. “Compensation and employment policies” are needed to be developed within an organisation to mitigate the issues of appraisal and leave policy of the employees. The organisation must consider the hard work of employees and reward them accordingly which will help them to feel motivated and dedicated towards the accomplishment of goals. The Changes or development of the practices, policies and systems help to develop the communication factor among the employees (Chams & García-Blandón, 2019). This can help to mitigate the issue of Henry where this person has complained regarding the problem of interacting with their co-workers. Enhancing communication within the organisation can assist in the development of the working conditions and culture of the organisation.
Most organisations in the UK are successful with the proper HRM strategy within an organisation. One of the major problems with Bandag Automotive is that the employees of this organisation are not valued. In this context, it has been comprehended from the case study that this automotive organisation lacks in HCM (human capital management). This organisation does not focus on their employees and neglect their issues and difficulties. Considering the facts of HCM can help the organisation to boost its profitability factor through attraction, recruitment, retention, induction and orientation. As opined by Leroy et al. (2018), employees are the most integral part of the organisation and they must be valued to enhance the productivity of the organisation. Changing the strategy, forms and practices and leadership style can help the organisation to mitigate the issues of mental illness, communication problems and firing problems (Boon, Den Hartog & Lepak, 2019). Other than this, this organisation is required to have proper HCM portal as the all-in-one portal helps in delivering the automation of workforce to managers and employees. This organisation must understand that having proper HCM portal can assist in reducing costs, increases the workforce and effectiveness. HR policy transformation is highly required in Bandag Automotive where the pregnant employees must get proper health and sick leave.
3. Was it justified to shout at the manager for a poisonous relation
Henry was terminated because he has some issues in communicating with his co-workers and was devastating the workspace culture. Henry had some issue with his mental health when he presented his dismissal to Jim. Henry never brought some concentration of the management event at his ill time. According to the study, it has been seen that the employees feel extremely dissatisfied to work in toxic environment of Bandag Automotive. As opined by , every employee of an organization requires a proper environment to work in and also demands to fulfil their basic rights. The main reason behind the agitation of the employee including Henry was that the employees wanted a proper working environment that facilitates the maintenance of the cleanliness and hygiene factor of the employees working at “Bandag”. Henry does not have any sorts of legitimate claim against the company. The management of this automotive organisation has waned Henry regarding his performance appraisal (Channa et al. 2019). However, Henry never reflected the fact of disability and has issues with the team environment. The employee of “Bandag” was habituated to healthy and parental behaviour due to the nature of Jim’s father early. Based on the case study analysis, it has been observed that Jim’s father treated the employee with utmost care while Jim’s complete focus was on the financial development of the organisation for utilizing it in the business for growth. Jim’s father focuses on the wellbeing of employees and also centres on the strategies of HCM for better output of company’s production. Jim is extremely unconscious of the subordinates which makes the employees unwanted and unrecognised. Recognition within an organisation included in the strategy of HCM and HRM is enormously crucial as it makes the employees to feel motivated and included within every process of the organisation.
Fair practice, EEO is enormously crucial for the organisation to follow and maintain it for better working environment. Other than this, Disability act of America mentions that employees of any organisation must possess the right to have covered disability. Much information was not provided in Henry’s defence to understand the reliability of his claim. There could an alternative to the situation conducted by Jim on firing his employee from “Bandag. It is of significant importance that fair practices are undertaken by the organisational leaders to meet employee needs (Hewett et al. 2018). Other than firing the employees, Jim could have recognised capability gaps and develop organic growth. It can be justified from the case study analysis that understanding the issues of employees and resolving it with proper solution could have motivated the employees more in showing more dedication and improve their performances for better future. Jim may have alternative decisions in transforming the position of Henry and provide him the final warning instead of firing him from the whole office. In every case or context, people must be provided one chance to prove himself and resolve their issues. Jim must consider the approach of HCM within the organisation instead of firing. Effective communication with the employees of Bandag Automotive may enhance the culture of an organisation. There is a justifiable claim in regard to the firing incident. The owner of the automotive organisation could incorporate fair practices where there could be implementation of “Right to information” and “right to be herald” and various security policies.
Avoidance of legal procedure
There could be an alternative option to attending to the matter regarding the firing of the employee from the organization of Jim. This action of Jim reflects the inattentiveness and impolite behaviour of the owner. There could also be further incorporation of “Occupation safety and health act(1970)”, which preserves the right of workers where they will be provided safety from any serious hazards. “Occupational safety and health act” enforces the act through investigation and inspection of the workplace. In the workplace, safety of the employees is crucially important which can help the Bandag Automotiveto mitigate the issues of employee’s mental stress.
In this context of American laws, Bandag Automotive must change the HR policy and services to maintain the Fair labour standard act. The act regulates the standards for overtime pay and wages which impact the public and private employment. Implementation of Fair labour standard act (1938) emphasises on minimal wage, overtime pay, recordkeeping for contributing towards fair practices executed by the organisation while promoting organisational effectiveness. As cited by Klopova, Komyshova & Simonova (2018), the law prioritises equality of the employees within the organisation ensures no discrimination within the organisation. However, this organisation does not focus on this Fair standard labour law that is the major reason of occurrence of internal issues among the employees. Communication was not proper within an organisation due to unfair treatment among the employees which hampers the whole working conditions.
4. Eluding benefit
Gavin, the old manager of Jim’s old organisation now has been shut and a new store has been opened. Thus, it was necessary to have a conversation or consultation with the employee of the store and the owner. As opined by Huo et al. (2020), in order to meet the basic criteria of an HR policy in an organisation, the policymaking of the HR and resources play a crucial role. Jim must understand the reason of shifting of their employees from his organisation to others. It must be understood by the management that benefits and profitability only emerges from the employees. There is a serious necessity of having some rights reserved for the employee of “Bandag”. In regard to the study, there can be an incorporation of the “American labour laws (1915-2015),” that aids in the finer learning of HR. Bandag Automotive must follow certain laws and policy within the organisation to mitigate the issues that are creating mental stress for the employees within an organisation. Section 7 of the Labour law prevents exploitation of employees by preventing them for working overtime. In this organisation, the pregnant woman was fired due to absenteeism which was not appropriate. The HR policy must be well structured to ensure, employee needs are also given due importance. The law further emphasises on availability of cooperative programs and compliance assistance that are to be considered by the organisation for better functioning.
The “Employee benefit security of American laws”, focuses on employee benefit during their stay within the organisation. The law emphasises on the appropriate maintenance of employee security and benefit. Apart from this, The ERISA act regulates the organisations that provide the benefit of welfare plans or pension to the workers. It is the responsibility of Jim to consider the claims of this act and develop the quality of workspace culture for the retention of employees. In this context, the welfare benefit plan can help the employees of Bandag Automotive to acquire this at the time of emergency. As per the view of Kosheleva & Bordunos (2018), it further interprets the mental and physical conditions of the employee are focussed upon. Employees working within the organisation cannot be forced. They must be treated with utmost care and dedication where they can be free to continue its operations and provide the heart and dedication to their job role. Among the HR policies code of conduct, leave policies, code of gratitude, employee wage requires to be enlisted to avoid the further misleading or misguiding factors of employee retention in “Bandag” automobile.
Contract of services
It is essential to have a clear concept of the service or conduct for every employee and the rule and regulations required to be abided by every member of the “Bandag” by Jim. Bandag automotive must have the practical policy of HR where the contract of services must be transparent to the employees and the clause is beneficial for the employees. In a “contract of service”, there are a variety of factors that are included like acceptance, offer, consideration, certainty, capacity and legality. As per the view of Hamadamin & Atan (2019), the “contract of service” is made in a way that allows for the benefits of the employees. Every employee within an organisation must focus on the “Contract of service” law which can assist them to claim for any injustice happening with them in future. In Bandag Automotive, service agreement law must be clear which is required to be followed both by the organisation and employees. Jim has made the decisions beyond focusing on “Service Agreement law” as this agreement is enforceable and legal also. Thus, justice could be served to Gavin in the context of the recruitment of another person in his position without even providing a source of information. Moreover, the leave was approved by the owner of the firm yet there was no sense of justice served to the employee.
The act of unfairness was served to Gavin even though he was allocated with similar pay structure in the new job role but he seems to be depressed as there was less dignity and respect in the new job role than earlier. Bandag Automotive is following the 4P’s deceptive practices or act which includes presentation, placement, proximity and prominence. The organisation must consider the fair practices and implement internal HR system and norms for the benefit of the organisation. Compensation design can be formulated by benefits, equity, compensation and variable pay (Kosheleva & Bordunos, 2018). In the previous position of “Bandag”, Gavin remained as the manager however, in the recent job role he is just a counter salesperson. Employees working within Bandag Automotive want to be treated with respect. Respect is a give and take policy which the organisation must focus on communicating with the employees. Treating the employees with utmost care and dedication is the part of HRM and HCM process. Unfairness can be resolved with the proper application of HCM process within the organisation.
5. EECO agreement on case study
Explanation of the scenario
In the context of the case scenario, the woman Miriam wanted to make an alternative work policy for her, where there was a request made on the basis of her health condition. Miriam was connected to the organisation for more than 6 years. Miriam has taken leaves for 12 weeks under FMLA and then got a three week extension under extended illness days. She was also terminated because he believed that Miriam is making financial loss and probably some documents. EEOC may not agree with Miriam and not fight the case for her. As opined by Marescaux, De Winne & Forrier (2019), equality in the workplace is vital for the healthy growth of the organisation, here in the case of Jim’s firm. Miriam has resumed working after her leave days and might get angry because her leave request was not approved by the management. On the counterpart, she replied that she can no longer work for the organisation and it not only relates to her pregnancy but it is also a part of negligence and habit of duplicity on the office premises. The action of the organisation is really not acceptable and it showcases no value of the employee to the owner.
Application of HR practices
Diversity within an organisation is a vital part of promoting different work cultures and a positive work environment. HR system of the company is not proper because they have not particularised contract and job description which everyone must abide by. Management of a diverse workforce encourages the employee of the company, where Jim is the owner of “Bandag Automotive”. As per the view of Sivapragasam & Raya (2018), this cultural equality can permit better bondage among employees of different backgrounds, races and religions. Application of the HR management is a vital, since hiring the right candidate for employment is directly related with organisational success. This organisation does not follow any specific process of HR which is bad for the organisation. It is mandatory that organisation must focus on process and procedure and understand the issues of employees.
Yes, there is a serious need for the implementation of the disciplinary action in “Bandag”. After the implementation of such practice, there can be an end to the illegal, authorized, misconduct, violence showcased by the organisation towards the employees. It is an inevitable part of an organization's promotion and successful creation of annual transactions in the market. As opined by Ullah et al. (2019), different types of disciplinary actions can be undertaken within an organization termination, verbal warning, suspension, or written reprimand. In HR policy such an aspect of disciplinary action must be included to avoid any miscommunication in the future.
The company should focus more on disciplinary actions of its own. According to the case study, immoral things happening in the company related to the basic needs and demands of the employee have affected the overall organisational performance. For instance, the example of a female employee could be taken in this context. She was on her pregnancy leave, but after returning to the company, Miriam claims that the company is refusing her further joining. She claims that the company is refusing her re-joining. It further elaborates on the unfair working culture of the company. Working culture of the company should be improved for gaining competitive benefit (Ybema, van Vuuren b& van Dam, 2020). The company should emphasize the needs of the employees and justify their demands and issues. In the context of the case study, more disciplinary actions should be taken by the company.
6. Equal employment complaint
Jim’s approach: criticism
Organizational culture affects employee performance on a large scale. In the context of the case study, it has been seen that employee complaint has increased at an alarming rate over the past five years. The sole reason has been attributed to Jim, who is very rigid in his approach. He is least bothered about the well-being of the employees and is much more concerned about the financial benefit. Jim was highly criticised by the internal stakeholders of the organisation due to his bad leadership quality and approach towards the employees. It is essential to look after employee wellbeing as failure to do so affect overall organisational performance thereby threatening organisational sustenance (Abdelmotaleb & Saha, 2020). Furthermore, Jim fails to cooperate with his employees and thus results in greater dissatisfaction among the employees. Jim has showcased negligence on his part which is somehow not acceptable to the employees and they feel parting from the organisation. He fails to look after the needs of the employees, thereby affecting the overall employee efficiency.
HR practices and policies: Advantage
The HR department within the organization plays a crucial role in facilitating the work procedures. HR policies and practices ensure that positive organizational culture exists and contributes to employee wellbeing (Kerdpitak & Jermsittiparsert, 2020). Advantages associated with HR policies and practices highlight that the policies are framed and formulated, keeping in mind the need of the employees, thereby contributing to improved employee satisfaction. Effective policies of HR assist in retention of employees which in turn increases the productivity and profitability of the business organisation. Furthermore, the implementation of effective HR policies and practices results in the coordination of activities among the employees resulting in improved organizational efficiency. Organisational culture develops with the effective practices and policies of HR systems which is necessary for every organisation. HR policies regarding employee benefit further contribute towards increased employee motivation resulting in increased effort investment by the employee for organizational growth and development.
HR improvement strategies
The company should focus more on the HR department for its further growth. The HR department should take more innovative ideas and strategies for the further improvement of the company. As stated by Navarro (2019), equality should be implied more in the company for future convenience. Organisation is required to adopt some effective strategies where the employees get equal and fair treatment within an organisation. HR strategies in the Bandag Automotive must have the fair rules, decisions and procedures that are applicable fairly in every individual of the case of staff member (Yusoff et al. 2020). Considering a fair practices and strategies of HR can enhance interpersonal communication within an organisation which is featured by respect, politeness, dignity and honesty. The company should carefully handle the demands of the employee and should notice all their issues. The HR department should be more careful regarding this matter. The company must develop their HR department in the matter of handling the employee, i.e. issues in a more considerable way. The study further includes that the HR department sometimes becomes rigid in some matters.
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