Australian Cladding Company Details Task: Please Read

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The Australian Cladding Company Analysis

The increased competition in most business fields has determined companies to develop innovative strategies that can help them create competitive advantage. In order to reach this objective, there are certain aspects that these companies must focus on when establishing their strategy. The most important issues that require their attention and efforts are represented by human resources management, costs, and resources.

The costs that are associated with their production process require increased efforts that certain companies cannot afford in this business environment. Therefore, they are interested in reducing production costs. There are several strategies that can be addressed in such situation. In order to reduce their costs, most companies prefer to outsource some of their activities and processes to cheaper destinations like China and India. This allows them to significantly reduce the costs of their products and services. However, the problem in this case is represented by the reduced quality standards determined by lower production costs. Many customers tend to distrust products from these countries because of the frequent quality problems reported by other customers.

The resources of these companies represent another area that requires improved strategies. This is because it is important to develop strategies intended to increase the efficiency of how these resources are used. This refers to financial, technical, and human resources. The efficient use of these resources is an important factor that helps companies create competitive advantage. However, this requires the help of specialists in the field.

There are certain issues that can significantly influence companies' activity on the market. It is important to understand that human resources represent the most important resource that companies can use in order to create competitive advantage. Therefore, it is recommended to develop the proper conditions that can help develop employees and improve their performance. Companies and their managers must focus on developing human resources strategies based on motivation of employees.

Problems of the Australian Cladding Company

The Australian Cladding Company is one of the most important companies in the constructions industry. The company's success on the market determined its managers to consider that it was their expertise and strategy that determined the company's success on the market. The situational analysis using the five forces model reveals the fact that the company's success can be attributed to the expansion of the market, and not to certain innovative strategies developed by its managers. This means that in developing markets, companies can increase their market share by simply addressing the increased demand, as it is not necessary to modify strategies in order to increase the number of customers (QuickMBA, 2010).

This is also the case of the Australian Cladding Company. The economic and financial crisis has determined significant reductions in the construction business. As a result, the company's sales, profits, and work levels have been reduced. Therefore, it is obvious that the company's activity was not based on a proper strategy that could be used in supporting the company.

There are numerous problems that are likely to affect the Australian Cladding Company's situation. Most of these problems refer to the situation of its human resources. The strategy that the company has used is revealing its effects on its employees and on its activity and position on the market. In order to correctly evaluate the company's situation, it is important to identify the issues that affect the company.

The most important problems that affect the company's activity are represented by: increased labor costs, efficiency problems, staff retention problems, workplace incidents, issues between men and women employed by the company, reduced performance of employees, reduced professional development, and others. These are the issues that the Australian Cladding Company must focus on in order to develop a successful strategy (Sims, 2007).

Increased labor costs

This is one of the most important problems that the company must deal with. It has been reported by the cost management analysis that labor costs are increasing. There are several causes that determined this situation (Armstrong, 2006). These causes are represented by the higher salary levels that can be attributed to market conditions, and by the increased number of hours spent by employees at work. In addition to this, it seems that the reduced efficiency of the company determines these costs to increase.

These increased labor costs lead to higher prices of the construction work developed by the Australian Cladding Company. This affects the company's customers, because some of them might not agree with increasing costs. This situation creates problems and a tense relationship with customers (Beardwell & Claydon, 2007). If such issues repeat themselves, the company is likely to create a bad reputation. It is common knowledge that reputation is an important factor that can affect businesses. Therefore, it is important that the company establishes certain strategies that can help the Australian Cladding Company improve its cost management.

Efficiency problems

The increased labor costs are also determined by certain efficiency problems that affect the company's activity. The fact that the company is not able to sustain a continuous efficiency level in the case of its staff can be attributed to the improper planning of the staff. It has been observed that in certain periods the staff does not have much work to do and employees are just hanging around, while in other periods there is too much work for this staff and employees are stressed and working too much.

However, this situation is because of the management practiced by Jim Hackett and his team. The team is unable to develop a strategic can that can successfully address the problems of the company (Mabey et al., 1998). Therefore, it is important to use specialists in the field. The team was unable to properly handle the situation because they could not identify the problems affecting the company and its activity. If these factors that determine this situation are not correctly identified and evaluated, it is difficult to develop strategies that can be considered useful.

It is obvious that when developing the company's strategy, the management team only focused on the work demand during that time and hired personnel in accordance with that demand. They did not develop proper human resources planning that can contribute to reducing costs and improving performance. This situation must be corrected by developing proper planning systems (Beaumont, 1993).

Staff retention problems

Another important problem that the Australian Cladding Company must deal with is represented by staff retention. This mostly refers to skilled employees, but also to engineering and certain specialists in different fields. The fact that the company has a problem retaining staff on all levels means that its human resources strategy is notable to address important needs of employees.

This also means that employees are not satisfaction by many aspects within the company. The fact that these employees prefer to work in other companies instead of gaining experience with the Australian Cladding Company reveals the fact that employees are not satisfied with their salaries, but also with other conditions at their workplace (Baker & Doran, 2007). Therefore, it is recommended that the company increases its focus on developing a motivational strategy that increases staff retention.

Workplace incidents

There has been reported an increased number of workplace incidents to the management team. The most important cause of such situations is represented by some of the workers not being careful enough around the company's machinery. This can be attributed to workers' lack of interest, or to the company not ensuring proper training to employees on how to use this machinery.

Problems between men and women within the company

It is a well-known fact that the construction business usually addresses men. However, an increased number of women have been employed by the company. Although they are able to successfully handle the job, it is their relationship with men in this company that leads to problems. It seems that men do not treat them fairly, and some of them have complained about this situation. This can lead to numerous sexual harassment problems.

Reduced performance of employees

This situation is attributed by specialists in the field to the company's human resources strategy that was not properly modified in order to address the challenges determined by the expansion of the market. It seems that this factor has determined most of the problems that the Australian Cladding Company is facing. Therefore, it is important that the company addresses this issue in the attempt of improving the performance of its employees (Schneider, 2011).

Reduced professional development

This is another factor that is likely to create staff retention problems and to lead to reduced efficiency of employees. The fact that employees are not provided important career strategies determines them to orient towards other companies. This also leads to reduced employee loyalty.

Human Resources Activities and Approaches

There are numerous activities that must be addressed in order to deal with the problems of the company. It is important that the Australian Cladding Company develops a human resources strategy that improves the situation of the company and of its employees (HRM Guide, 2010).

Improving cost management

Some of the problems of the company are determined by the increased labor costs. These costs lead to higher prices of the company's services. The profits are also reduced in this case. Therefore, it is obvious that cost management must be improved. It is recommended to hire a specialized company that can provide professional financial consulting to the Australian Cladding Company.

Based on the recommendations of this company, the managers can establish certain objectives that must be reached. They should focus on the sales volume, profits, and labor costs. These objectives must be included in the human resources strategy (Kubica, 2010).

Improve staff planning

Some of the company's problems refer to the planning of the staff. The company's managers have not been able to properly plan the necessary workforce. Therefore, in order to improve this situation, the company must identify the peak and the relaxed periods from the point-of-view of demand. In addition to this, the company must evaluate the number of workers required during these periods. It is recommended to organize the company's activity based on a certain number of employees and on collaborators. Establishing the human resources necessary is an important activity in the strategy that must be developed by the company (HRM Guide, 2011).

Develop the motivational strategy

The fact that the company has problems retaining its staff reveals that employees are not motivated to work at the Australian Cladding Company. This means the managers must develop a motivational strategy that is in accordance with employees' needs. In order to reach this objective, it is important to identify the needs, necessities, and requirements of the staff (HRM Guide, 2010). This can be achieved by conducting certain studies and surveys within the company. These surveys must be oriented towards identifying what employees expect from the company and on identifying the level of employee satisfaction.

Based on the findings of the surveys, the managers can determine what the important factors that must be addressed are and what the company is able to offer to its employees. In this case, the motivational strategy must be based on financial issues. The type of work provided by the company's employees requires a motivational strategy that focuses on providing satisfactory salaries to these workers. In addition to this, it is recommended to provide bonuses based on their performance. This is likely to stimulate them into improving their efficiency (Torrington et al., 2008).

In the case of other types of staff working for the company, other motivational issues are necessary. For example, such employees require certain career development opportunities. If they consider that this is not the case with the Australian Cladding Company they are likely to prefer to work with other companies. It is also recommended to increase investments in the training of these employees. By providing training in certain fields of these employees, the company reveals its interest in the professional development of these people. This is intended to increase employee satisfaction and loyalty.

In addition to this, the company must develop clear promotional strategies. These strategies must be communicated to employees in order to ensure that they understand what is expected from them and what they can benefit from if they reach the performance standards established by the company. This can help increase staff retention.

There are also other activities that can be used in order to improve the motivation of the staff. The company can organize a series of contests and competitions where employees can win trips, money, and different products they are interested in. Other perks and benefits can also be included in the package the company offers its employees. This refers to engaging employees in different activities where they and socialize and develop relationships (Buhler, 2002).

Increase security at work

The increased number of incidents at the workplace reveals employees' reduced attention when working with machinery, but also the company's reduced interest in the safety of its staff. It is recommended that the company organizes safety instruction programs. These programs are intended to teach employees how to work with this machinery and to understand the effects if they do not use them properly.

This is in the interest of both the company and its employees. Therefore, it is important to take this activity into consideration when addressing safety issues. In this case, the company can use the help of specialists in the field.

Address sexual harassment issues

This is another important aspect that the company must take into consideration. Such serious issues are likely to significantly affect the image of the company. Therefore, it is recommended to develop clear policies that must be oriented against such behavior from men and that discourage discrimination at the workplace. This is intended to ensure that the company is taking the required measures in case of lawsuits against the company because of these situations.

Conclusions

The Australian Cladding Company must develop a human resources strategy that focuses on numerous factors that can significantly affect the company's activity. Some of the most factors are represented by the increased labor costs, staff retention problems, efficiency of employees, and others. The analysis of the company's situation has revealed the fact that the causes that determined these problems are represented by the company's strategy that is not in accordance with the necessities of the market and of environmental factors that determine its activity.

Therefore, it is important to correctly identify and evaluate these factors and their influence on the company and its employees. Based on this evaluation the company can determine what the most important activities that must be addressed are in order to improve the situation (Authenticity Consulting, 2010). The objectives that must be reached by the human resources strategy are represented by increasing employee satisfaction and efficiency, and improving the performance of the company. However, this requires certain investments from the company.