Human resources play an integral role in any organization. The allocation of human capital is critical to the overall success of the organization. Depending on the particular industry, talent and its subsequent retention is directly correlated to the overall profitability of the firm. In many instances, as is the case in our current economic cycle, improper human resource activity can have a profound effect on our overall society. By employing and retaining the correct individuals for the corresponding position, both the business and society benefit. For example, the most creative individuals will be placed in the positions that utilize their talent most effectively. This talent will thus be cultivated in the position allowing the individual to grow and develop. This development allows the individual to create products or solutions that another individual with less talent may overlook. This is primarily how Microsoft, Google, Intel, and IBM continue to generate new and innovate products decade after decade. They simply have the right people in the right places through the use of HRM. Within the case, many flaws arose that provided insight into the companies dismal performance. Many of these issues centered on inadequate personnel, who were unmotivated. Below are the HRM issues addressed within the case.
Human Resource Issues for Case
1) Management out of touch with the company objectives and goals. (Point 2, Point 5)
2) Too much bureaucracy and separation of powers. Business functions should be streamlined. Individuals should be empowered to be proactive and compensated based on that behavior (Point 1, Point 4)
3) Disgruntled employees with lack of motivation and initiative (Point 2, Point 3, Point 5, Point 6)
4) Lack of competent employees (Point 9, Point 10)
Objectives to Handle the Issue
The first objectives I would use to handle this issue would be based on articulating a vision to all stakeholders involved. It is evident from the case, that many employees are unaware of their business function and how it impacts the organization as a whole. Furthermore, I would streamline the business in order to better align company objectives with the personnel best suited to handle those objectives. For example, payroll, accountancy, client database, expenses, client billing and consultancy time recording would all be under one or two jurisdictions. It would not be under separate supervision each. This structure just adds to the bureaucracy and layers of decision making within in the organization. In addition, my objectives would focus on skill enhancement of current employees. The IT industry is characterized by a fast-moving, ever changing environment. As such, the employees within the organization must also have this same characteristic. I would empower all employees within the organization to grow and develop to address the changing needs of the IT profession. This will also aid with employee retention which is also lacking within the company. Not only is the company's talent becoming obsolete but in many instances, our competition is attracting the company's talent as well.
Model used to address the objectives
Many models exist within the HRM field. One model in particular that would have a profound impact on the IT Company would that of the integration model. To begin, the textbook definition of the matching principle is as follows, 'An organization's HRM policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces' (1). This concept of integration can be further broken down into the following three aspects of strategic matching-
1) the linking of HR policies and practices with the strategic management process of the organization
2) the internalization of the importance of HR on the part of line managers
3) The integration of the workforce into the organization to foster commitment or an 'identity of interest' with the strategic goals. (1)
Point 3 above is of particular interest in the case of HRM. As geographic boundaries are dissipating, it is becoming increasing difficult to provide a workforce that is integrated. In regards to HRM integration within the matching model is important because a business wants to be consistent. In regards to the case, the IT business was not consistent with personnel. Employees were leaving to the competition, management was uninspiring, and employees were disgruntled. This causes inconsistencies in regards to performance and the metrics used to evaluate such performance. The business should instead have a heterogeneous mix of diverse workers who conform to a particular corporate value or strategy. If this does not occur, the entire business will suffer due to a lack of consistency as evident from the case. With the matching principle HRM managers must foster commitment within the workforce by identifying common interests. As such I believe the matching principle to be the best model for the current organization. Not only does this method provide a means of aligning company goals and objectives with all the stakeholders involved, but it also incorporates international stakeholders as well. As mentioned in detail above, many of the IT employees are disgruntled and without a vision of their job functions within the context of the business. As such, it is imperative to utilize the matching principle in order to align these divergent viewpoints. Basically, the matching principle is a method in which companies can determine the correct "fit" for their particular goals and objectives. If a prospective location or individual does not fit the principles of the organization, then that particular assignment, project, or individuals should not be considered. Below is a rough diagram of my above explanation of the matching principle and how culture, business objectives, and strategy fit within the entire concept. The arrows represent the pressures and demand of both international culture and domestic culture on the overall objectives of the business, which are within the triangle. Through the matching principle, some of these problems can be alleviated.
Even though it is my opinion that the matching principle is the best for the organization, I believe it important to address other models that are equally as beneficial as the matching models. One of which is the Universal Model. The universal model implies a "One best way," approach in regards to HRM policies. As we have seen above, that simply is not the case. In some domestic firms that operate in the U.S. entirely, the universal model may be of interest. However, it is my belief, that American and the globe are becoming more interrelated. As such, it is imperative to adopt HRM practices that can help circumvent the problems associated with this inevitable occurrence. A universal approach simply doesn't accomplish this. Now, to be fair, smaller business may find the universal approach beneficial as they are very small and don't have the time nor inclination to adhere to cultural requirements. Through a universal approach, small business can have a simplified strategy that works fairly well within the confines of the United States. However, as I stated earlier, the world is now becoming interrelated. It is only a matter of time before small businesses must adhere to the culture demands imposed on them through their international counterparts.
Finally, the Andrew Mayo Matrix can be used as a strategy in regards to HRM practices. This method focused on the underlying business operations of a firm and thus can be very beneficial in regards to initiating change within the organization. This model is very goal oriented and allows the organization to set an achievable action plan in which to achieve those goals. In model consists of various areas or departments for improvement which include, structure, culture, resourcing, HR policies, learning, rewards and employee relations. Many of these elements are lacking within the IT firm altogether. Below is a portion of the Andrew Mayo Matrix used to describe the strategy above.
ANDREW MAYO'S MATRIX
Type of Organization
Increase employee buy-in to corporate initiatives, Become a customer centric organization
Groups of employees / managers involved
Implications for People and People Management
Structure and culture
Learning and Development
Rewards and Motivation
Employee Relations and Communication
Cash and other store staff
Provide a profound emphasis on customer-focused solutions to business problems
Empower the staff to be proactive with customers and stakeholders
Create a staffing mechanism to provide solutions during all hours of operations.
Staff all available positions with competent, passionate individuals. Be sure to align employee goals with those of the organizations
Continually coach and motivate both employees and management. Contiunally provide incentives for which employees to learn and stay with the company
Reward good behavior and shun inappropriate behavior
Build an inclusive environment
Create a customer focused environment and culture. Establish metrics to help facilitate the customer-employee relationship.
Create a culture of management involvement and influence in the day-to-day activities of the business.
Increase teamwork and camaraderie between working teams.
Provide continuous coaching to help managers influence the associates reporting to them
Reward managers who help facilitate corporate objectives
Build an inclusive environment with all stakeholders