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Human Resource
Management
SBS MBA
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Total Marks: _______ / 40
CASE STUDY: MANAGING PEOPLE FOR ORGANIZATIONAL
EFFECTIVES
You
are an engineering graduate with an MBA and 10 years of management experience,
and have just been appointed as CEO of a manufacturing company. The company has
existed since the 1950s, but tariff reductions since the 1970s have placed it
under increasing pressure. In recent years the company has been on the brink of
closing down and your task is to turn it back into a viable enterprise. You
were reluctant to take on the obviously difficult job and had a number of other
options, but the board convinced you by offering a very attractive salary
package and undertaking to support your decision fully, provided that you
delivered results within a year.
The
senior management team consists of five people, all of whom were appointed by
the previous CEO when he took up his job seven years ago. The former CEO’s
background was in accounting and his approach to dealing with the company’s
difficulties could best be described as ‘cost minimization’ – he sought to
rescue falling profits by reducing costs wherever possible. He was, moreover,
what he described as an ‘old fashioned manager’ which in practice meant being a
strict disciplinarian and asserting his right to make decisions without
consulting staff. The approach to encouraging staff performance has been the
threat of dismissal. The senior management team were in agreement with him on
this strategy and this remains their preferred option.
As
a result of this approach, the company’s plant and machinery has not been
upgraded for some years. The production process is an assembly line and workers
are rarely rotated among different jobs. Further, most staff are employed on
individual contracts and paid poorly by industry standards. The only assessment
of performance is based on production output (which is low by industry
standards), and no staff are formally appraised. In spite of a lack of
manufacturing jobs in the area, voluntary turnover – employees resigning – is
high and this is compounded by the fact that staff are routinely dismissed for
minor errors or breaches of procedure. This is justified by the other managers
on the basis that ‘there are plenty more where he came from!’ due to high
unemployment in the area. The company has already faced a number of formal
complaints about unfair dismissal, some of which have ended up in court.
Answer
the following questions.
a)
In your role as CEO, outline how you would
change the people management practices in the company.
Answer: People
management strategies can make all the difference between bad, mediocre, good
and great employee experience. New upgrades in the functioning of HR systems
and processes have altered the nature, extent and scope of people management.
That said, at the pivotal idea and aim remains to manage people better in ways
that work
b) How
would your proposed changes improve organizational performance?
Answer: Organizational
performance comes with job satisfaction. Levels of job satisfaction can be
affected by many factors including rewards, recognition, quality of
supervision, social relationships with workgroups and extent to which the
individual is successful in the performance of their duties. According to
Herzberg’s two-factor theory, there are hygiene factors that need to be in
place to prevent employees being dissatisfied. The factors being, sufficient
remuneration, fair and consistent company policies, fair and consistent
c) What
do you see as the major barriers to change and how would you overcome them?
Answer: The
management always wants to implement change because they have the belief that
the change in question will bring significant impact to the organization as a
whole.
Perhaps the
main objective for introducing organizational change and its implementation is
that the change will improve and maintain the production environment of the
organization on a daily basis.
While change is necessary,
usually for the good of the organization and its staff, it will always be
subject to some form of resistance. Change is usually traumatic, completely
unknown and saying goodbye to the former organizational process can be somewhat
difficult for embrace by the employees in the organization.
Dear students, get solved case studies by
professionals
Do send your query at :
or call us at :08263069601
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