Human resources management challenges at KD Transport

KD Transport

In the world of business today, it is vital to apply not only financial skills, but also communication and other interactive skills to optimize the profitability of the workforce and the business. In this regard, various components of the business need to be taken into account to ensure sustainability and profitability. Human resources are one of the most important components of a business; hence the emphasis that business publications often place upon work satisfaction and safety. An analysis of the case of KD Transport will reveal how the business is lacking a certain focus upon the human resources component. Recommendations will then be offered for possible remedies to address the problems identified.

Of course the KD case study problem is not unique, and the difficulties experienced find numerous occasion for echo in the literature. As examples, three articles are discussed in terms of their relevance and applicability to the problem. Jack P. Trautmann's "Top 10 Practices for Leading and Motivating a Workforce (2005), Applying supply chain optimization techniques to workforce planning problems by Gresh et al. (2007), and "Powerful Leadership Communication" by John Baldoni (2004) all concern some aspect of the problems faced by KD Transport and its managing team.

Communication for example is definitely one of the problems highlighted in the KD Transport case. As such, Baldoni's article is important, as it does not only explicate the concept of leadership communication, but also how it can be used more powerfully to help the company grow and prosper. Baldoni (2004: 20) for example emphasizes that communication and speaking skills are not synonymous. Importantly, the same emphasis is placed upon open and honest communication that reflects the values of an organization. If a CEO is passionate about the organization, its purpose, and its values, this will be communicated to followers by more than words. In order to accomplish this, Baldoni makes several suggestions. He notes that the key to successful communication lies in the recognition that the leader is not alone in the communication process (Baldoni 2004:22). The leader should involve others by means of soliciting input and inviting creative ideas. He also suggests active listening, on the premise that feedback is at least as important as communicating a message in the first place.

The most important points mentioned by Trautman (2005) include believing in a vision for the company, setting objectives, empowering people, and communicating genuinely. These are all actions that move the manager towards effectively managing a motivated and committed workforce. Here also the ability to communicate well is addressed. Communication and a focus on cooperating with the workforce are important components in ensuring the success of a business.

The article by Gresh et al. (2007) is somewhat more technical in nature, suggesting ways in which supply chain management can be applied towards optimizing the workforce. In their introduction, the authors emphasize that the human resources section of a business is both its most important and most costly component (2007: 251). Supply chain management principles are then used in order to optimize the workforce in terms of schedule and skill, in order to create a productive and motivating environment in which to accomplish the mission and goals of the company. The article further describes supply chain concepts such as optimal gap/glut, priority-based gap/glut, and pegging in order to quantify the cost of human resources and the benefit of employing them in their relevant positions. These then culminate in Priority Resource Action to determine what actions can most beneficially be implemented to optimize the workforce.

The authors mentioned above contribute valuable information to the literature on leadership, and are applicable to the problems relating to the case study.

Section II

1. KD Transport: Coordination and Unity

Various problems reveal themselves in the case study. A major problem is the lack of company-wide coordination among the various depots. Each depot functions on its own, without a common goal. This fragmented way of operating the business could be instrumental in the general lack of commitment from the workforce. It is however significant that there is a significant amount of loyalty within each depot. It appears that this loyalty needs to be communicated in a more coordinated manner.

The issue of workforce commitment via dedicated leadership is addressed by Dan Hill (2008). Hill notes that follower loyalty to upper management increases with perceived safety to do so. If a manager is distant and unreachable, this makes both communication and trust difficult. In the case of the KD depots, the lack of overall commitment to the company is directly related to the lack of overall management. Each depot is managed individually, with only major problems being referred to John. While John prides himself on his problem-solving ability, this management style has had an isolating effect. Depot employees perceive only their managers as their leaders, with little attention to how their work furthers the goals and objectives of the company.

Communicating the company's overall goals and objectives are vital in ensuring unity. This is an issue that both Baldoni and Trautman emphasize. A clear mission and vision statement contains the goals and objectives of a company, and each employee and group of employees should understand how these goals and objectives are met through the work that they do. Clearly, this is not the case with KD Transport.

2. Workforce Planning

Another cause of the lack of unity in the KD Transport workforce is the lack of workforce planning. This situation can be attributed to the way in which John acquired the company. The company has been built up and established by his family, with John taking over an already successful business. The problem appears to be John's lack of understanding the leadership paradigm that he needs to follow in order to optimize the workforce and the company's movement towards its goals and objectives. The stage at which KD Transport finds itself in its lifetime necessitates a major change in operations, as John correctly understands.

In this, the suggestions made by Gresh et al. (2007) can prove useful. John's management method so far has been to discuss business issues with his wife and son, who represent the workforce. There has been no quantification of the workforce or how to optimize the company's human capital. There also appears to have been no restructuring of the workforce after the acquisition of the workforce.

John should study management concepts such as the ones provided by Gresh et al. In order to quantify and plan the workforce better. It may also be advisable to use the help of a professional in order to statistically determine the best way to apply the workforce. This will serve to disseminate the workforce and redistribute them among the various components of the company. In this way, employees can develop loyalty to the company as a whole rather than to a specific department or leader within the company.

Recommendations

The recommendations are two-fold. Firstly, it is recommended that John makes a thorough assessment of his leadership style and the way in which he intends to communicate change. Secondly, rather than summarily retrenching workers in order to mitigate the company's debt problems, he should also first consider ways in which to handle the existing problems within the company.

In terms of the first recommendation, John needs to work thoroughly on his personal power as well as his power of leadership. It is only by developing his self-respect (as explicated by McCollum) as a leader that John can begin to develop personal power (as explicated by Gins) in order to effectively handle the problems within his company. The study states that he is not sure how to handle the lack of unity within his company -- this means that there are substantial gaps in his leadership knowledge and that he needs to address this by field and literature investigation. His reliance on his wife for important decisions indicates a basic lack of self-confidence, without which he is not truly in a good position to handle the problems the company is facing.

In this regard, it is recommended that John thoroughly investigate and reform his leadership style. In order to do this, John needs to redefine his concept of communication. Communication is not simply a leader who speaks and a follower who listens. Baldoni quite thoroughly explicates this in his article on communication. Good leaders not only listen, they also actively ask for input from their followers.

Specifically, John can implement such action by means of a communication session with all the departments in his company. Rather than implementing his original plan, he can visit each depot and explain the problems the company is experiencing. Employees and their managers can then provide input on possible alternatives for the future.

While the crisis should be the first focus of communication, regular meetings should be a precedent to establish future goals and the mission of the company. John should also ensure that he maintains an open communication policy that involves more than only his wife and son. He should recognize and respect employees as a valuable resource not only of work but also of information and planning. This will create a precedent of mutual respect rather than the hostility that will doubtlessly be the result of John's original plan.

In terms of creating unity, it is recommended that John redistribute the workforce according to a statistical determination of effectiveness and efficiency, as explicated by Gresh et al. This should only occur after the communication paradigm has been implemented. It should also be discussed with employees to ensure they understand the reasoning behind it and the ways in which it will benefit both the company and themselves.

In conclusion, John has been leading the company from a distance. This is not an effective leadership paradigm for today's business world. With thorough attention to increasing his self-respect and respect for others, John will be able to improve his company's operations.