The main purpose of this report is to analyse the importance of “Human Resource Management” & the importance of effectively implementing the human resource management theories & business practices.The following report highlighted and discussed the case of “Hubbard Foods Limited”, a breakfast cereal manufacturing company, headquartered in New Zealand. The company is third largest in terms of market share. The following report covered and elucidated different aspects of the company. The first section discussed the major human resource management practices followed in the company. This talked about the health and safety, skilled work force, code of conduct, and social responsibilities in context of Hubbard Foods Limited. In addition to this, various human resource models and theories had been critically analysed and their advantages and disadvantages had been explained in context of the company. For instance, the effective human resource managerial theories were described, such as the human capital theory and the contingency theory. The next section talked about the environmental analysis, wherein the unionised environment and non-unionised environment were also explained. In these, the management, human resource, and employees’ concerns had been highlighted. Furthermore, the effectiveness & the importance of technology had been described & explained in the report along with the key strategies. All the effective social responsibilities were discussed that are performed by the managers and employees of “Hubbard Foods.” In addition to this, the social responsibilities and code of values were also given emphasise in the report. Moreover, the strategic leadership was also discussed in the report.
Apart from all the effective methods, the report also provided some recommendations. The first and foremost recommendation provided is the managers of human resource department be required to enhance the effective coordination among all the different departments in the business organization, so that the conflicts must get reduced & the operations can be effectively ensured. The effective business practices must be applied in the organization in order to retain the most efficient & skilled employees who are the most powerful assets of the business and can contribute their major level participation in achieving the organizational goals & objectives. Building up & retaining the trust among managers & their employees is another effective way of running the smooth operations in the organization.
The complete assignment includes the individual report on the case study of "Hubbard Foods Limited,” which is owned and founded by "Dick Hubbard" in the year 1988. By the year 2000, the company has 20% market share and about NZ$25 million revenue. In the very beginning, the owner Dick was unable to pay the salary to the company. However, the company has now 130 employees. Talking about the management philosophy of the company, it follows triple bottom line philosophy that focuses on financial, social, and environment values and responsibilities of the company.The human resource management practices that are suitable to be implemented within the company are evaluated and according to the environment of the company they are executed. The management applied different models and theories of management in order to achieve the strategic objectives of the company.As Dick believes employees should come to office regardless of their salary but to feel value. For that purpose, they have a no nonsense management zone.All the effective business practices are determined and how they can effectively contribute to achieving the overall objectives. In addition, the responsibilities of the managerial department are being identified to be performed by them, including the social responsibilities for enhancing the effective strategic leadership in the organization.The strategic approach in order to manage the people of the organization so that the competitive advantage can be enhanced is called as the process of “Human Resource Management”. The complete process is being enhanced in the business organization to maximize the level of employees’ performance, with the help of which the strategic business objectives can be attained. The HRM process deals with the variety of issues related to the performance, management, development, and many other things. It is possible with the help of conducting the training programs & enhancing motivation. The main strategic goal or the aim of HRM is to manage the people & also the overall operations in the workplace in accordance to the effective culture & the environment. The appropriate recommendations are also being given to improve the HRM process in the business organization.
In multiple organizations and companies of New Zealand, there are different roles and functions of the "Human Resource Management" which were traditionally centralized. The experienced practitioners of Human Resource Management ensure the effective working in the organization according to their own experiences. In "Hubbard Foods Limited", the effective decision was being taken by the organizers and the managers to decentralize the role and effective function of HRM to the line managers. But in order to decentralize the HRM functions, it is very necessary for the line managers of the respective organization to be effectively trained and skilled otherwise it can create a big problem for the company. The Human Resource Manager of "Hubbard Foods" has decided to decentralize the function of HRM to its line managers.
Following are the effective practices, theories or the business models of Human Resource Management that are being implemented by “Hubbard Foods” in order to achieve the strategic objectives:-
Strategic objectives:
Based on the case analysis, strategic objectives of Hubbard Foods Limited are as follows:
Besides these effective HRM practices being implemented by “Hubbard Foods”, there are also the theories of management which are applied by it, these are:-
By implementing this theory, the organization would be able to increase the productivity of its employees and eventually the effective growth and profitability will increase of "Hubbard Foods" (Saifaliaslam, et.al. 2014). “Hubbard Foods” as the investment and not the cost must treat the huge amount being incurred on providing the training.
Model/Theory
Best Practice
Pros
Cons
Achieving Strategic Objective/s
Human capital theory- Among the two theories, the best model, or theory is Human capital theory, which can be applied on given case.
The workers and the employees are the most important asset of any company. The organization of "Hubbard Foods" is nothing without the trained and experienced employees. "Hubbard Foods" must invest the standard amount in conducting the effective training sessions for all the employees. "Hubbard Foods" must understand that the amount or the expenses incurred on the training programs for various employees are not the cost which is to be incurred or wasted, the managers of “Hubbard Foods” must understand that it is the long-term investment whose benefits will be reaped by the company in the future (Mahadevan and Mohamed, 2014).
In case of selected theory, employment security is the best practice. It is helpful in maintaining strong relationships with the employees. The major issue of “Employee Retention” can be solved with the help of this practice. In case of ‘Hubbard Food’, the organization can maintain relationships with the employees and solve all the human resource issues by implementing this practice(Trehan and Setia, 2014).
As none of the organization can survive without its effective employees, so the Human Capital Theory of management can enable the “Hubbard Foods” to retain those efficient and skilled employees who can contribute up to a great extent in achieving the common goals of the organization.
The business practice of “Employment Security" enables the "Hubbard Foods" to retain its effective employees and maintains good relations with its employees.
The disadvantage of the theory of “Human Capital” is that the managing department of “Hubbard Foods” needs to incur the huge amount of cost in the process of recruiting, selecting, and interviewing for the skilled and efficient employees for the organization. Also sometimes, with the mistakes being done by “Hubbard Foods”, the inefficient employees enter into the company because of which the organizational growth can be reduced (Mahadevan and Mohamed, 2014).
This theory is not suitable for those organizations whose employees are inefficient and not skilled, as because there is no use of keeping and retaining those employees who are good for nothing and decreasing the enhanced productivity of the company.
Both the chosen effective business practice and theory of Human Resource Management, which are suitable according to the case, study of “Hubbard Foods.” The theory enables the organization to complete organization to achieve its defined goals and static objective of the business. With the help of best practices, the organization can enhance its productivity by maintain employee relationships (Trehan and Setia, 2014).
Proposed Recommended Best Practices for Hubbard Foods Limited:
Hubbard is focusing on the sustainability in order to gain the competitive edge and employee satisfaction, it needs to follow the management theory that helps in dealing with the employees related issues. As Dick believes employees should come to office regardless of their salary but to feel value. In addition to this, the theory should address the poor efficiency of the workers. Hence, the human capital theory is best suited for Hubbard Food Ltd.The above table describes the best and the most effective business practice and the most efficient theory which is very suitable to be implemented by the organization of “Hubbard Foods Limited.” All the advantages and disadvantages are being described under the table. In addition, up to what extent these human resource management practices and the effective theory can help the organization to achieve their strategic goals and objectives of the organization are being evaluated.
The policy of taking the financial responsibility is being reflected by the management style of Dick Hubbard, which considers all the effective stakeholders of the company and manages the changing impact on the environment. It is very essential for the effective managerial departments of “Hubbard Foods” to understand deeply about not only the external factors but also the internal factors within the organization. The effective analysis must be conducted by the organization of “Hubbard Foods” by identifying and examining the general environmental factors. The various different dimensions are being included in the general environment have a great impact on the industry, either directly or indirectly. All the trends prevailing in the market must be analyzed effectively and then the effective decisions must be taken according to the operations of “Hubbard Foods”. The trend being prevailing in the food industries must be listed and then identified or examined on the basis of which the effective action and the business strategies are needed to be taken and implemented (Al-Hawary and Al-Hamwan, 2017). The environment analysis of Hubbard Foods is as follows:
Unionized environment-In the organisation having unionised environment, the workers have the dominance and they pressurize their employers by going on the strikes and also demand for the formal agreement including all the members of the organization for bargaining to them (Al-Hawary and Al-Hamwan, 2017).
In past, Hubbard Foods was leading in the market in terms of maintaining employees relations. Currently, the employees have breached the code of conduct in the organization and this affected the brand reputation of organization in the market (Al-Hawary and Al-Hamwan, 2017).
Management: The management and supervisors do not even understand their rights and majority of them don’t even have any idea about the management skills and they lacks the supervisory skills in them. As a result of which employees carry out work as per their understanding and they try to dominate the manager.
Human Resource Management Specialist: In this environment, HR specialist want better fairness and consistency but they cannot teach the employees due to their dominating powers.
Employees: Employees in such environment believe that they have the whole power and dominance. They try to direct the decision-making process of the company as per their need and wants.
Non-unionized environment-In organisations with “Non-unionized environment”, the individual workers negotiate alone and also has the very little leverage. The working operations of the organization must be framed and controlled in accordance with these both the different kinds of workplace prevailing in the organization. All the effective strategies must be implemented in relation to these employees and they need to understand effectively and in a proper manner(Armstrong, et.al. 2013). All these external factors need to be considered effective and then the decisions are to be taken and the policies must also be framed according to the factors prevailing outside and inside the organization.
Talking about Hubbard Foods Limited, only assessment of external factors are not enough, the departmental objectives and all the other factors must be thoroughly analysed and examined effectively (Armstrong, et.al. 2013).
Management: The management is a bit concerning and they develop the working environment based on the major prevailing factors affecting the workers and their efficiency.
HR Specialist: the HR managers is required to analyse the internal factors also such as the attitude, behaviour of the employees, and the individual goals of employees.
Employees: They have very little leverage and the needs of the employees are needed to be properly addressed by the management. Policies regarding them should be attended and answered as per the internal and external factors affecting them.
The responsibilities of the management play a crucial role in the growth and development of the organizations. To handle the complex management it is important that managers must revert to both the planned and unplanned issues that are faced by the management. The management responsibilities assist in the achievement of the organizational goals and contribute to the performance of the business in several ways and enhance the level of profitability and productivity of the company.
Responsibilities of Management
To manage the business responsibilities, the role of the planning and organizing is crucial. For the achievement of organizational performance, the management of the Hubbard Food is responsible to organize the resources of business and fulfill the needs of the management and direct the company to fulfill the needs of the organization (Kerzner and Kerzner, 2017). As per the given scenario, current situation in the organization is that management is bullying and harassing the employees to improve productivity, especially in manufacturing areas. This is reducing the morale of the employees within the organization.
It is the responsibility of the management is to provide relevant and accurate information within the specified time period. This includes collecting, monitoring and reporting to analyze the performance of the business. It is the responsibility of the management to transmit the relevant and necessary information to the outsiders (Foss and Laursen, 2012). These include professional and stakeholders.It is the responsibility of the management is that to communicate with the managers, supplier, customers and vendors. Management is also responsible to manage the staff and connect then with the occupational place (Masli, et. al., 2017). This includes effectively manage the teams and resolve the conflicts with the assistance of dispute resolution system so as to effectively manage the issues and resolve the grievances of the customers.
Responsibilities of HRM specialists
In Hubbard Foods, there are various issues in the human resource department. The role of human resource department and managers is decentralized in the organization. There is the problem related to dealing with health and safety responsibilities in human resource department. There are several issues that need to be resolved by the HRM specialist which includes Health and safety related issues that prevail in the Hubbard Foods. There are also problems related to training and development process as human resource managers are nit focused on providing effective training to the new employees. They are not proving on-job training to the employees which is hampering the productivity of the employees (Wallin, et.al. 2017).
There are several responsibilities of the HRM specialists so as to execute the work efficiently for the betterment of the working environment at the occupational place. This helps the staff to contribute their ideas and lead the organizations for the goals and its achievement. It is the responsibility of the HR to continue the functions of decentralization (Nankervis, et. al., 2017). The executives of the human resources are responsible to participate in the planning and development by execution of business strategies to achieve the corporate objectives. Through effective participation and involvement of HRM specialist allows the company to achieve the organizational goals and understand the activities of the organization to achieve the sustainable growth of the company. The HRM specialist is responsible to train and develop the managers by keeping the function decentralized. In this context, the HRM specialist is responsible that while recruiting new staff it is important that the HR manager must view that the employee’s posses require qualification and certification to perform their duties (NINGSIH, 2018). The Health and Safety at Work Act, 2015 cover the responsibilities to ensure the safety and health of the employees improves the health and safety issues of the employees at the place of occupation.
Responsibilities of employees
It is observed that some of the employees have breached the code of conduct of the organization, which was a serious misconduct issue. Some of the employees did not follow the rules, obligations set by the organization, and that affected the brand reputation in the market.
Employees of the Hubbard Foods are responsible to perform the duties assigned by the employers as well as organizations. As per the given scenario, employees are responsible to not breach the codes of conduct and contribute to improvement for achieving the organizational goals (Wheelen, et. al., 2017). The main responsibilities of the employees for the success and growth of Hubbard Foods are mentioned underneath:
Dick Hubbard plays leading role to advocate the business social responsibility and consider the social and environment practices that impact on the business operations including suppliers, vendors, and staff. According to the Hubbard’s, there is nothing that concern with the religious beliefs but Dick thinks that the people need spirituality at the occupational place and appreciate the employees for caring the environment.
Dick Hubbard treated as a champion of the social responsibility and integrated the distinct practices into a number of ways (Grayson and Hodges, 2017). Dick acts as a role model and encourages people to adopt the practices of corporate social responsibility. Further, Dick educates the employees and the public about the importance of corporate social responsibility.
Dick Hubbard’s depicts the social and environmental effects that business has to face while performing their operations. Dick Hubbard’s sets the benchmark to measure the performance of the organization. Dick identifies the strengths and weaknesses of the organization that needs to change with the help of the triple bottom line approach and gain experience with it.
Given Dick Hubbard’s stance on social responsibility, critically evaluate the codes of values for Hubbard’s Food (Marshall, et. al., 2017).
Codes of values: financially responsible, considering all stakeholders in the business and managing its environmental impact.
Dick believes making the employees feel valued to the company is important and knows they work for more reasons rather than just earning money. He gives value to their employees and trying to maintain their interest in their work. He always prefers their likes and dislike, according to him if the employee is happy the productivity wills automatically increases.
Dick Hubbard’s opened a factory in a low income highly unemployed area as he wanted to bring benefits to the low socioeconomic areas. He always tried to create more employment for the people by which they enhance their productivity and sales. Work on the public interest; seek out the passionate people who really want to work with the specific organization.
The organization believes in manual work and does not want his employees to be replaced with machinery unless it is absolutely necessary to do so. This shows how much he wants to create and maintain new employment opportunities. This opportunity not only makes money for the organization, it actually increases the company growth and national growth as well. It reduces the poverty and maintains the well-experienced employee who makes their future bright in their respective field.
The company focuses its resources on the improvement of the local community. An initiative by Hubbard called the South Auckland Breakfast Club, provides breakfast free of charge to the children in need. By eight such clubs, Hubbard provides more than 1,000 breakfasts a week to children.
Hubbard provides support to students studying food technology at Massey University and also provides his time and energy to local projects and charities (Wijayati, et. al., 2018). By sharing their experience with the student is not only an inspiration speech, but it’s also displaying them to risk factors, the problems, and the issue which might be possible they face in the future.
An internal review displays that 80 percent of Hubbard’s staff lives in South Auckland and their company work on the improvement of the local community. Hubbard’s support the fundamental of the public and work on their needs.
Hubbard’s sponsored Head2Head Walk event by which the fund raised and that fund useful for the local community project for the young people of Auckland. They used the fund for that small project in which they cannot use their organization capital.
He launched a program called DVFREE which focuses on supporting victims of domestic violence which in turn benefits participating businesses. This program recognizes domestic violence as a serious, recognizable, and a preventable problem (Schwartz, 2017).
He also believes in sharing the company’s success with his workers and shows this by taking his employees on trips. He took all 100 staff members to a trip to celebrate 10 year anniversary of being in business. The trip was a tribute to the Pacific Islands workforce’s culture and heritage. In further years Dick has organized many such trips within New Zealand.
Code of Values (Hubbard Food’s) (Identify)
Evaluation on Hubbard Foods Limited
Evaluation on Strategic Leadership
Description on Effective & Efficient Performance of Hubbard Foods Limited
a) Environmental Impact : in general idea (Ref from EBSCO)
The organization is affected by environmental factors like climate changes, availability of resources etc
Enhance productivity and to develop the working environment in which the leaders encourage the employees to increase the productivity
Improve the performance of organization in the operating market in terms of profitability and sales
b) Social Responsibility (Ref from EBSCO)
The organization is focused on various CSR activities to improve the brand reputation in market like staff engagement and breakfast free for children
Motivates the leaders to implement more social responsibility practices in the organization
Enhance the brand recognition in the market by various CSR practices
c) Fair Communication(Ref from EBSCO)
Improves the relationship among the employees for best practices
Encourage the leaders to communicate effectively with employees for effective job performance
Improves the organizational operations to enhance the employee relations
d) Staff Engagement
Staff can provide their best in their job role. By various engagement activities, the employees can stay positive to achieve the organizational goals
Motivate to implement various engagement activities for the new employees like debate, sessions and much more
The performance of the organization can be improved in terms of achieving strategic objectives
e) ‘DV Free’ HR Programmed
Maintaining workplace relations with the employees
Providing effective training and development sessions for the employees
Enhance the performance of the organization in terms of better employee relations
The strategic leadership at Hubbard Foods leads and supports the codes of values and executes the strategies to influence the members of the Hubbard Foods. The strategic leadership main objective is to enhance productivity and to develop the working environment in which the leaders encourage the employees to increase the productivity for better performance and enhance the quality of employees. As per the given scenario, Dick Hubbard is a well-recognized leader among the business leaders in the UK who strongly dedicated towards the social practices of businesses. The leadership of the Hubbard Foods businesses is readily stable for past ten years. The practices that adopt by the Dick Hubbard to improve the performance level of the business effectively and efficiently.
Dick Hubbard represents as a powerful leader who strongly supports the social practices of business (Sanders, 2017). The Dick Hubbard updated about what is happening in the organization. The strategic leadership at Hubbard Foods involves leading and supporting the organization to perform effectively and efficiently.
As a strategic leader, the Dick Hubbard enhances the contribution level and develops the opportunities for the company to make decisions and see what happens when they take the risk for the organizations. The Dick Hubbard is always honest and open about the information’s that provides the opportunities to the leader to be challengeable and ensure the transparency and provides the opportunity to implement the changes.
As per the study of values in New Zealand, it is the responsibility of the government to provide a standard of living for the old and forced to establish such industries that provide less damage to the environment and establish such industry that provides opportunities to grow. Provide housing to the needs or those who cannot afford and create the opportunities for jobs who what it and reduce the difference in income level. This reduces the difference between the rich and the poor.
While making the decision, Dick Hubbard uses ethical way while making the decision for the company. While making the decisions Dick Hubbard considers the wealth of their members as well as promotes the ethical behavior in the organization. To enhance the ethical behavior of the corporate, several practices are adopted by Dick Hubbard to promote the ethical behavior in the organization. Codes of values determine the procedures that promote the ethical behavior in the company. Dick Hubbard engages in all such practices that are adapted to prevent unethical acts. Dick Hubbard considers ethics as the issue of the business and according to Dick Hubbard, ethical practices implement all over the organization(Smith, et.al. 2018). This practice wins the trust of the investors of the company to gain the higher performance and raise the reputation of the business based on ethical acts to maintain the ethical behavior in the organization.
The codes of values that abide by the Dick Hubbard for the successful operations of the business effectively and efficiently are mentioned below:
Fair treatment- Dick Hubbard provides fair treatment each and every person so as to eliminate the discriminated practices of the organizations.
Communication- This code of ethics assist the Dick to communicate the important matters to the staff and take necessary actions by discussing the relevant obligations.
Co-operation- Dick acknowledge the resources of the community and the responsibilities towards the community by integrating the local, national and international resources of the network.
Honesty- Dick avoids the conflicts between the staff and resolves their issues within the specified timeframe.
Education- Dick sharing the technical knowledge and skills that enhance the working of the organizations. This assists the employees to share information and experience with the professionals.
Social Responsibility- Dick understands the social and legal issues and ensures that the policies and laws are abiding on the employees and abide by the ethical principles (Trantopoulos, et. al., 2017).
Workplace Quality- In this context, this code values assist the employees to achieve and maintain the safety and productivity at the workplace.
According to the Dick, the organization believes that employees are not replaced with the machinery and wants to create new employment opportunities by enhancing the growth of the company on national as well as international level. The company focuses on the improvement of the local community and work on the needs of the public (Rastislav and Silvia, 2015).
The complete assignment includes a deep understanding of the case study of "Hubbard Foods Limited. It has been concluded that with applying and implementing the appropriate and suitable business practices in relation to the "Human Resource Management" the "Hubbard Foods" can not only retain its effective, trained and skilled employees but also they can achieve the defined organizational static objectives in an effective and efficient manner. Various theories and models of management are being discussed and applied in the operation of "Hubbard Foods". In addition, all the responsibilities and functions of the managers and the specialists of Human Resource Management, which are being identified, must be followed in a proper manner in order to gain the effective strategic leadership in "Hubbard Foods".
By implementing all these effective recommendations, the business organization can secure its human resource capital & also able to effectively utilize them.
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