Protec Ltd case study

Business-Human Resources

Introduction review of the case on Protec, Ltd. demonstrates that the organization currently faces a number of notable challenges when it comes to its overall development. In recent months, the organization has examined the need to consolidate operations and streamline its overall efficiency. Even though the organization has identified clear strategies to achieve this goal, the reality is that the organization has not carefully integrated its plans to meet the overall needs of its employees. With an underdeveloped human resource management (HRM) program in place, the organization faces a number of challenges when it comes to effectively navigating its proposed changes.

Given the current challenges facing the organization, there is a direct impetus to consider both the specific issues facing the organization and the proposed methods that could be used to improve outcomes for human resource management. Using this as a basis for investigation, this research proposes to examine both the underlying causes of the company's current distress and the methods that could be used to facilitate the process of change at Protec Ltd. Through a careful review an integration of the issues, it will be possible to provide a comprehensive human resource management strategy that can be used by the organization to effectively facilitate change and ensure positive outcomes for organizational performance.

Review of the Issues

In order to begin this investigation, it is first helpful to consider the current issues facing the organization. While it is evident that the integral nature of the organization mandates that each of the issues identified here are tied in some way to each other, it is necessary to examine each issue individually. Analysis through this process will enable a clear delineation of the underlying challenges facing human resource managers in the organization.

Communication Issues critical review of the data provided in the case clearly demonstrates that communication is a critical issue impacting the development of change in the organization. Overall, the data indicates that human resource management function has been restricted to central operations in the organization, making it difficult for human resource managers to effectively provide employees in the organization with vital information about current strategy changes. As a result of this situation, rumors have proliferated, creating low employee morale, creating significant problems for organizational operations.

A critical review of what has been noted about communication in the organization suggests that this variable is essential for success in all operations that occur in this context. As reported by Jenkinson (2006, p. 47) "People establish common meaning and understanding and, therefore, relationships through communications." Jenkinson goes on to argue that without proper communication in the organization, efforts to create positive relationships can be markedly impeded. Further, Jenkinson asserts that poor communication can impede the development of a positive organizational culture in which employees openly share values, ideas and beliefs.

Other scholars have also examined the importance of communication in the organization. For instance, Breen, Fetzer and Howard (2005) argue that poor communication can inhibit the change process by limiting the amount of information available to key decision makers. These authors note the challenges that can arise in this context as cyclical in nature:

Impaired communication can also be detrimental to organizational change and development. Employees may fear speaking up and voicing their opinions and suggestions, resulting in less information reaching senior management for problem-solving. This situation has been termed "organizational silence"...and may be brought about by managers' fear of negative feedback from their subordinates. Fear of feedback may result in managers' avoidance of feedback from subordinates, or if they do receive it, in dismissing or discrediting it (p. 216).

Breen and coworkers insist that poor communication can lead to the development of low employee morale and reduced output for the organization.

Finally, Sosa, Eppinger and Rowles (2007) note the importance of communication during times of change in the organization. According to these authors, communication is essential during change because it provides employees with a foundation upon which to understand the function of change and the overall impact that change will have on the individual. Without communication, Sosa and coworkers argue, organizations will face notable challenges when it comes to creating employee morale and productivity. These issues can remain even after change has occurred as a lack of communication can have a negative impact on the development of relationships between mangers and leaders (Sosa, et al., 2007). In this context, it is evident that communication is a necessary component of change management.

The Impact of Change

While the overall lack of communication that has developed in the organization is a critical issue of concern, human resource professionals working in the organization also face notable challenges when it comes to managing change. Based on the information provided in the case, the organization is making an effort to streamline its operations. However, it has not put in place an effective change management program to help facilitate this process. As a result, employee resistance -- in the form of unions -- and decreased employee morale has resulted. Thus, the impact of change must be address as a central issue of concern.

A cursory examination of the current literature on change in the organization indicates that this issue can have significant implications for the overall success of operations. Of particular concern in the change process is the issue of resistance. As reported by Gotsill and Natchez (2007, p. 24) "People resist change for many reasons. They may not understand the objectives driving the change or they may not agree with the organization's new direction. or, they may simply be anxious about how the changes will affect their jobs." Regardless of the specific reasons for resistance, Gotsill and Natchez assert that resistance can have a damaging impact on the ability of the organization to effectively achieve change.

Examining the overall impact of resistance on the organization, Craine (2007) insists that resistance can impede the ability of the organization to effectively undertake change. In most instances, Craine argues, organizations undertake change to create value. Often, change must be completed in a particular time period to ensure positive outcomes. Resistance to change can make it difficult for the organization to effectively complete change activities in the timeframe needed for the organization to garner success. Further, Craine argues that resistance can, in some cases, cost the organization money as failed change initiatives result in the expenditure of time and money with no real return on investment.

Resistance to change can also impact intangible variables in organizational performance as well. Specifically, LaBonte, Arets and Heijnen (2006) report that resistance to change can create underlying tension in the organization which can lead to the development of hostility, low morale and dissatisfaction with the organization. These issues can have significant ramifications for productivity in the organization, dramatically limiting the ability of the organization to meet specific performance goals. Additionally, LaBonte and coworkers insist that this situation can facilitate the development of long-term organizational culture that is characterized by animosity between labor and management. In this context, it becomes evident that resistance can have overarching implications for both the short- and long-term development of the organization.

Lack of HR Integration

The final issue that must be addressed in the context of this assessment is the overall lack of integration of the human resource department in the organization. Based on data from the case, it becomes evident that human resource managers have focused on the application of HR function to central operations in the organization. Further HR has not been widely expanded in the context of the organization to effectively provide leadership in personnel management at all levels of the organization. As a direct result, the HR department currently does not have the authority and impetus that it needs to provide direction and support for the organization during this process of change.

A careful examination of the current literature on HR integration in modern organizations suggests that this issue is one that many companies have addressed in recent years. According to Wahrenburg, Hackethal and Friedrich (2006) trends toward outsourcing in HR function have served as the basis to marginalize the purpose and function of human resource management in the organization. According to these authors, human resource management is often viewed as an ancillary expense for the organization; one which is necessary but should be minimized in order to facilitate positive financial outcomes for the organization. As a result of this situation, HR function has been disenfranchised from larger operations in the organization.

Additionally, Acquaah (2004) asserts that human resource function in the organization has been marginalized in recent years because of the overall challenges associated with understanding the direct impact that human resource management has on the organization. As reported by Acquaah, HR function often translates into intangible benefits for the organization that can be difficult to measure. Organizations focused on the development and implementation of quantitative measures to assess financial performance may find it difficult to interpret the impact of human resource management on the organization. Because of this situation, HR function can become less of a priority for the organization to effectively meet its objectives (Acquaah, 2004).

Proposed Plan for Improvement

The above assessment of the current personnel management challenges facing the organization indicates that there are a number of pertinent issues that must be addressed if the organization is to effectively optimize its human resource capabilities and help facilitate the development of change in the organization. With this in mind, the proposed plan for organizational development focuses on two specific areas for improvement. First, the proposed plan considers the need for the strategic development of human resource practice in the organization. Strategic human resource management will enable the organization to embed human resource function into the process of facilitating organizational objectives. Second, the proposed plan considers the need for a comprehensive change management program which will facilitate HR integration while building the necessary organizational infrastructure to help improve change outcomes.

Strategic Human Resource Management

Strategic human resource management or SHRM is the process by which human resource activities are effectively aligned with the objectives of the organization (Khatri, Wells and McKune, 2006). As reported by Khatri and coworkers (2006, p. 9) "HR has now emerged as a strategic paradigm in which individual HR functions, such as recruitment, selection, training, compensation, and performance appraisal, are aligned with each other and also with the overall strategy of the organization." These authors go on to report that because of the tremendous value that can be created through this paradigm, organizations have taken a focused interest in this paradigm for improving operations.

Applying SHRM to the Protec organization, it seems reasonable to argue that this approach would facilitate the development of HR practice such that outcomes of HR policy would be directed toward facilitating change in the entire context of the organization. According to Boswell (2006) strategic human resource management serve as the basis for aligning employees with the organization. Because HR provides a basic foundation for building employee relationships in the organization, strategic focus in this area can provide employees with what Boswell calls a "line of sight." As reported by Boswell, line of sight for employees is critical because it facilitates a deeper understanding of the organization's overall needs and objectives. With this understanding, issues such as resistance to change can be effectively mitigated and, in some cases, eliminated.

Additionally, Khilji and Wang (2006) assert that strategic human resource management can foster the integration of culture and structure based on an alignment of human capital with organizational objectives. As reported by these authors, strategic human resource management can serve as the foundation for allowing HR managers to effectively integrate human capital management into larger infrastructure needed by the organization to effectively achieve its goals. Job development programs, job descriptions and organizational culture can all be improved through the alignment of human capital with the specific needs of the organization. In this context then, SHRM can provide an integrative tool for the complete development of the organization.

Although the proposal to create a SHRM program will require considerable effort on the part of the Protec organization, the reality is that this paradigm is needed to help foster greater integration of HR function into the entire scope of the organization. Given that this is a critical issue for the current organization, development along these lines should help improve outcomes for the organization. Additionally, as reported by Green, Wu and Whitten (2006) strategic human resource management provides a number of advantages for the organization that can effectively improve employee morale, job satisfaction and productivity. Improvements in this area appear to be vital to the success of Protec's operations.

Change Management

While the development and implementation of strategic human resource management will help improve the role of human resource management in the total organization, in order to help facilitate the current change occurring in the organization, HR managers will need a complementary strategy to meet this end. For the purposes of this investigation, a change management program has been proposed as a central means to improve the organization and facilitate larger integration of HR function over the long-term. Scholars examining the definition and scope of change management have made the following observations:

Change management -- the formal process for organizational change -- is the systematic approach and application of knowledge, tools and resources to leverage the benefits of change. Change management means defining and adopting corporate strategies, structures, procedures and technologies to deal with change stemming from internal and external conditions. Increasingly, change management is seen as a permanent business function to improve productivity and profits by keeping organizations adaptable to the competitive marketplace (Change management..., 2007, p. 1).

Although the basic definition of change management provided above clearly indicates that this process can have a number of notable benefits for the organization, there are significant changes proposed under this paradigm which could have marked implications for improving outcomes at Protec. For instance, Oakland and Tanner (2007) note that change management programs often require the development and implementation of coordinated communication systems. These systems facilitate two-way communication in the organization and the delivery of pertinent information in a timely manner. The development of communication infrastructure is clearly an issue that must be addressed by Protec. Thus, applying this paradigm could have significant ramifications for improving communication in the organization.

Additionally, Gravells (2006) argues that change management can improve leadership by providing clearly defined goals and objectives for managers and human resource personnel. The development of leadership in the Protec organization is one that clearly has implications for the success of the current change. Based on data provided in the case, resistance to change is rampant and few initiatives have been undertaken to improve leadership and focus. As a result different management teams are communicating in a manner that is both chaotic and disorganized. This perpetuates problems with rumors, employee morale and the ability of the organization to manage the change process. Leadership through the development of clear change management protocols would have a direct impact on the ability of the organization and human resource managers to effectively control human capital.

The information provided by Gravells (2006) also indicates that the development and implementation of a change management program could reduce resistance among employees in the organization. At the present time, a lack of communication and leadership appear to have created considerable resistance on the part of employees. However, through the utilization of a change management program, it is possible that human resource managers can better control this issue. Communication can be improved and leadership will provide a unifying umbrella under which all employees in the organization can unite. While the implementation of a change management program will also require considerable resources and effort on the part of the organization, it appears to represent a comprehensive method for systematically addressing all of the current problems facing the organization.