case studyThe current HRM practioes in the firm.docx

case studyThe current HRM practioes in the firm.docx

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casestudyThecurrentHRMpractioesinthefirm

Introduction

a）Background

HumanresourceplanningandpolicieshaveneverbeenahighpriorityintheAviatorApplicationsCorp（AAC）.However,thecurrentHRMpracticesinthefirmhavetendedtolagbehindcompanygrowth.OnesignificantproblemofAAChasisthehighturnoverofelectricalengineerswhoworkinR&D,especiallysomeoftheyoungerengineerswhohadbeenconsideredtobefutureteamleadersandsectionheads.Inthereviewofcompany’sperformanceanddevelopment（PRD）programmeashavingnoprovisionfordealingwiththepotentialforfuturegoals,nocareerpathsand/orsuccessionplanningprograms,littlerecognitionforsupervisorswhodeveloptheirsubordinatesandnostrategichumanresourceplan（SHRP）.Inaddition,inthereviewofrecruitmentandselectionprocess,ACCdon’thavecentralizedjobdescriptionsorpersonspecifications.Allinall,theseproblemsatACCwereneededbettermethodsandpracticesifthefirmwastoremainsustainable.（Barney1991,p.

b）Aims

ThepurposeofthisreportistoprovidetheHRdirector（PaulineSteele）ofAviatorApplicationsCorp.（AAC）withashortreportthatprovidesacriticalanalysisofthecurrentHRMpracticesinthefirm.

c）Scope

ThereportevaluateontheHumanResourceManagement,focusingontheHRMfunctionsuchasHRMPlanningandstrategy,traininganddevelopment,employmentrelationsandotherrelevantissues.ThepaperfocusesondiscussionandrecommendationsforastrategicHRMPlanthatwillcontributetothefuturegrowthandprosperityoftheorganization.

Discussion

Todaytheorganizationsoperateinaverydynamicenvironment.Theexternalandinternalforcesareconstantlychangingtherulesofthegame,tofacethesechangestheorganizationsandbusinessesmustdevelopnewstrategiestoremaincompetitive.ChangesinstrategiesdeterminethedirectionofeachdivisionwithinfirmincludingHRM.InsimpletermsHRMisavarietyoftasksassociatedwithacquiring,training,developing,motivating,organizingandmaintaininghumanemployeesinanorganization.（Anthony,Perrewe&Kacmar1996,P.161）HRMisamanagerialconceptwhichdealswithpersonnel,hiringandfiringemployees,employeeskillsetandseveralotherhumanrelatedpoliciesandproceduresinorganizations.（Barney1991,P.99）HRMplaysaveryvitalroleinalltheoperationsoftheorganization.Inrecentyears,HRMhaschangedprofoundlyanditwillcontinuetochangeastheworkneedsoftheorganizationsareconstantlychangingandbecomingmorecomplex.TomeettheseprofoundchangesintheconceptofHRM,organizationsarerecognizingtheneedofstrategicapproachtoHRM.SHRMisnotanewconceptbutitisanextensionofthetraditionalHRMintheorganizations.（Becker&Gerhart1996,P.280）

Intoday'spowerfulcompetitiveandglobalmarketplace,maintainingcompetitiveadvantageandbecomingalowcostleaderoradifferentiatorputsaheavypremiumonhavingahighlycommittedorcompetentworkforce.（Christina,Ethel,LauraandFindley2003,P.379）Competitiveadvantageliesnotjustindifferentiatingaproductorserviceorinbecomingthelowcostleaderbutinalsobeingabletotapthecompany'sspecialskillsorcorecompetenciesandrapidlyrespondingtocustomer'sneedsandcompetitor'smoves.Inotherwordscompetitiveadvantageliesinmanagement'sabilitytoconsolidatecorporate-widetechnologiesandproductionskillsintocompetenciesthatempowerindividualbusinessestoadaptquicklytochangingopportunities.Thegrowingnumbersoforganizationalemployeeresourcesarenowregardedasasourceofcompetitiveadvantage.（P.401）

Inrecentyears,HRMhasdevelopedgreaterrecognitionfordistinctivecompetenciesthatareobtainedthroughhighlydevelopedemployeeskills,distinctiveorganizationalcultures,managementprocessesandsystems.Competitiveadvantagecanbeobtainedwithahighqualityworkforcethatenablesorganizationstocompeteonthebasisofmarketresponsiveness,productandservicequality,differentiatedproductsandtechnologicalinnovations.HRMisthemostimportantfactorforthesuccessofanyorganizationinthecompetitiveglobalmarkettoday.

HRplanning&Practices

AACdonothavereallyhumanresourcemanagementdepartmentandHRmanagerbefore.AsaresultofOvertheyearsAAChadbeentransformedfromanemergenttelecomsystemsproviderintoasuccessfulspecializedaviationsystemsdesigngroupwhichhadgrownsteadilyintermsofsalesandprofits.Therefore,HumanresourcemanagersareviewedasanessentialpartofAAC.AccordingtoDelery&Harold1996,P.31）pointoutthatPlanningorganizationalhumanresourceneedsisakeytaskforhumanresourcemanagers.Inaddition,Criticalsuccessfactorsareuniquedeterminantsofafirm'scompetitiveadvantage.Thesefactorsaddvaluethesuccessofthefirminauniquewaythatisdifficultforcompetitorstoimitate.HRpracticesshouldplayamajorroleandshouldbeapartofcriticalsuccessfactor.（Barney1991,P.109）

ToreviewofAAC,EmphasishasbeenonreactivepoliciestomeetrequirementsofexternalorganizationssuchastheCivilAviationAuthority.However,HRplanningandpolicieshaveneverbeenahighpriorityandhastendedtolagbehindcompanygrowth.ManystaffsfeltthattherewaslittleopportunityforcareerprogressionatAAC.Intheresult,theorganizationfacehighturnoverofelectricalengineersandlosingkeyadministrationstaffaswell.AccordingtoFish,SchoenfeldtandShaw（2003）statethatTheOrganizationalmissiongeneratestheorganization'sPlan,whichinturngeneratesthehumanresourcemanagementplan.（P.55）Humanresourcemanagersmustaligntheoperationalneedsofmanagerswiththemissionandorganizationalgoalsofthebusiness.Humanresourcemanagersmustcommunicateeffectivelywithoperationallevelmanagerstoinfluence,analyzeandsupplyexpectedstaffneeds.（Fred2003,P.312）However,planningorganizationalhumanresourceneedsisakeytaskforhumanresourcemanagers.Keystrategiesforeffectivehumanresourcemanagementplanningare:

●alignhumanresourcemanagementstrategywithbusinessstrategy

●determiningpriorities

●gaininglinemanagementsupport

Recruitment&selectionstrategies

Recruitingcanbedefinedasseekingtherightpeoplefortherightjob.Twofactorsinfluencerecruitment:

Expectedstaffsupplyanddemandandhumanresourcemanagementpoliciesandpractices.Humanresourcemanagementpoliciesandpracticesmayinfluencetherecruitmentprocess,inthatpeoplemaybeattractedtoapplyforjobsiftheorganizationbecomesknownforitsgoodhumanresourcemanagementapproach.Conversely,poorhumanresourcemanagementpracticesmayincreaseturnover.（Bechet,Thomas,andJames&Walker.1993:

16）ToreviewtheCase,thisisoneproblemofACCisemployeestaffrecordssystems-ACCdoesn’thavecentralizedjobdescriptionsorpersonspecifications.However,theyhaveafileonallthepeoplehereandwhatpositiontheyhold.Ifpersonneldepartmentwanttoreplaceanengineer,oranadministrationofficer,themanagerjustgothroughoneofthoseindividualfilespickingupthebitsandpiecesfromvariousjobs.Humanresourcemanagerareresponsibleforemployeestaffrecordsystemsdesign.AwfulemployeestaffrecordsystemscausesthatHumanResourcemanagerdon’tknowwhatthejobrequiredforemployeesandappearedeagertojointhefirm.Humanresourcemanagersmustdesigngoodemployeestaffrecordsystemsthatcandistributeemployeessuitablyinrelationtothejobdescriptionsandthepersonspecification.

Remuneration

Moneyisanimportantfactorinthemotivationofemployees,asprofitactsasameasureofsuccessofabusiness,somanypeoplejudgetheirownsuccessorfailureandtheesteeminwhichtheyareheldbytheemployerorthesalaryreceivedforthejobdone.Itmustbementionedthatalthoughahighsalaryisnottheonlymotivator,itcanactasanincentivetoworkmoreproductively.However,althoughhighsalarysatisfiestheemployeebutitisconsideredasalower-levelone,somehighskillsofemployeemorefocusonsomeothermotivationssuchasrewards.Thesetypesofrewardswouldmakethetasksmoreinteresting,morechallenging,couldteachtheworkernewskillsandcouldadvancetheindividualtobemorecreative.Thesetypesofmotivesareknownasintrinsicmotives,whichisabehaviorperformedbyinternalneeds.AccordingtoWhetten,Cameron&Woods（1996）pointoutWorkerscouldbemotivatedifthemotivatorcoulddeterminewhichrewardwillfulfillemployeeneedsinthebestway.（P.115）thisismainreasonindicatethatACCveryhardtokeeptheirstaffinthefirm.

Anorganizationoffersbothintrinsicandextrinsicrewardstoitsemployees.Itmustberecognizedthatpayisonlyanextrinsicreward.Employeesderiveintrinsicrewardsfromthejobitself,forexampleanemployeemaybemotivatedbythedegreeofauthoritygivenattheworkplaceorthesenseofachievementderivedfromcompletingtheirtask.Intrinsicrewardsareusuallytotallynotlinkedtoanemployee'spay/salary.AswellasWinston（1988）statethatevenwhenofferedwithahighsalaryandgoodworkingconditionsandallothercontributingfactorssomepeoplearestillnotmotivated.（P.42）Winston'stheoryofachievementmotivationrevealsthateveryindividualwanttoachievebutforsomepeopleitisahighprioritywhileforotherssuccessisquiteunimportant.Thestrengthforonesneedforachievementisnotaninbornpersonalitycharacteristicbutisdeterminedbyenvironmentalinfluencesandparentalattitudestogoalachievement.Theindividualsthathavehighachievementaimswillrationallysetthemselvesgoalst