HR Case Study Realigning HR Practices at Egans Clothiers

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However even after investing major chunk of money in the employees and the skills development, the results were not outstanding. The external sources revealed that the internal departments of the organization had certain complaints and reservations for each other, and this was another reason for company's poor financial results. The company has throughout stressed more on the employee's expertise, and emphasis on the production and quality standard is partial.


The management of the Egan's Clothiers Inc needs to prioritize their agenda according to the need of time, rather than taking a particular course of action purely on the grounds of expectations and hope. The sincere efforts of the management towards bringing reforms, and upgrading the company's economic and production activities is laudable but those efforts should be concentrated and focusing towards each and every possible aspect related to the organizational structure. The company has considered Human Resource as fundamental for implementation of all the activities and plans, but it is to be realized that organizational affairs are never handled by investing into particular department of it, rather all the other departments need to gain momentum at parallel.

The company has been investing millions into Human Resource and its development. The company has very stern practice of recruiting only experienced individuals, the company launches training sessions at regular interval for its employees. The employees are provided with wide opportunities of flourishing within the existing setup. The employees are paid affluently by the employers. The company under these circumstances is definitely going to expect profit, irrespective of how much revenue the company has generated for itself. The company is leaving itself without any substantial monetary assurance or gain because what ever the company earns is shared in between the employees.

According to Karmarck findings, ' the company should be investing 30-40 percent of income on the employees and human resource development, 20-30 percent should be spent on enhancing production activities, and the remaining should be either pursued for the long term investment or saving purpose, or shared among the partners and shareholders' (Economic and Real World)[continue]

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