Human resource management has become essential for organization’s effectiveness. Reputedly, human resources should be the major investment of any organization. Nevertheless, it is almost impossible to avoid issues concerning human resource management which can be explained by the major principles of agency theory. Thus, principal-agent relationship is often characterized by different aims and behaviors.
For example, in spite of the fact that Hong Kong Food and Environmental Hygiene Department (FEHD) reports about positive working environment and many opportunities for personnel, there are some problems concerning “leave entitlement of civil servants” (Management of Leave 1). Admittedly, increasing rate of leave entitlements is a sign of personnel dissatisfaction with workplace and management.
To evaluate human resource issues in FEHD, it is necessary to point out the major principle of agency theory. The major concern of the theory is “the contract between a principal and an agent” which is characterized by “a degree of conflict between the goals” of organizations’ members (Child and Faulkner 23). According to Horn agents should be monitored by principles, but he also states that it is “very difficult to monitor” agents (19).
Thus, any organization’s human resource management efficacy should be considered on the basis of the assumption that principals and agents often do not have the same aims. More so, principals often have more information than agents do, and this also causes difference in objectives since insufficient information provided by principles does not motivate agents to carry out their task in a way they are supposed to.
Taking into account the agency theory it is possible to point out that Hong Kong Food and Environmental Hygiene Department faced the same problems that every organization has, and could not manage to solve them. Admittedly, FEHD pays much attention to human resources development.
According to FEHD they have many training programs aimed at “enhancing the overall competence and professionalism of staff” (Administration and Development). It goes without saying that such incentives motivate personnel to self-develop and fulfill their task in the best possible way.
However, according to Report No.55 of the Director Audit FEHD has significant problems concerning leave entitlements. In the first place, it is necessary to state that sick leave levels of the organization since 2005 up to 2009 was “significantly higher than those of civil servants as a whole” (Management of Leave 2).
Apart from this the audit reports that numerous guidelines about leave entitlements registration are violated and this make it impossible to check the level of leave entitlements properly. Thus, though principals enact agents to register leave entitlements, this task is fulfilled unsatisfactorily. Admittedly, the high level of leaves means that personnel do not work hard for the sake of organization.
The lack of motivation can be explained by the lack of information available for agents. Thus, civil servants have only little information concerning their tasks. They do not have the entire picture and cannot associate their work (on their specific level) with the effectiveness of the organization as a whole. Apart from training it is necessary to make personnel aware of their impact of the organization’s development.
In conclusion, it is possible to state that Hong Kong Food and Environmental Hygiene Department has certain problems concerning human resources which can be justified by violation of leave entitlements guidelines. However, it is possible to solve the problem if to take into account the agency theory, and provide personnel with more information about organization.
Works Cited
Administration and Development. FEHD Annual Report 2009, Food and Environmental Hygiene Department, 2009. Web.
Child, John and David Faulkner. Strategies of Cooperation: Managing Alliances, Networks, and Joint Ventures. Oxford: Oxford University Press, 1998.
Horn, Murray J. The Political Economy of Public Administration: Institutional Choice in the Public Sector. Cambridge: Cambridge University Press, 1995.
Management of Leave in the Food and Environmental Hygiene Department and the Housing Department. Report No.55 of the Director of Audit – Chapter 5, aud.gov.hk, November 2010. Web.