Outline
Today, the global business is filled with cut-throat competition and most of the companies are trying to expand their business internationally. This is a case study of the organization called ‘I Just Love It Here, Inc’. This case study is designed in such a way that there is a brief introduction followed by the statement of problem, recommendation or solution and finally the conclusion.
Introduction
The article entitled ‘Global Business Resources Center’ explains that industry knowledge and capital are essential parts of running a business. (Welcome to global business resource center, 2002). An efficient and effective human resource department is very significant for any organization. Human resource management system consists of making payroll system, fixation of working time, enrolling, training, maintenance of employees’ performance records and so on. The article ‘Management – Hub.com reveals “The Human Resources (HR) function provides significant support and advice to line management.” (Human resource management case studies related articles and resources, 2009). I accepted the job of Human Resource consultant in the organization called ‘I Just Love It Here, Inc.’ I noticed many problems in this company. Some of them are: the management does not give proper care for the prime organizational functions such as training, proper interviewing method, data storage, salary increment, and promotion policies. Another problem I found was discrimination shown to employees. Job promotion is given to only those employees who have close personal relationship with the management. It is unfair and unjust towards the employees who are eligible for job promotions.
Statement of problems
‘Just Love It Here, Inc.’ is planning to open a new branch in China. The company would suffer if it is going to continue the same management policies in China. The detailed analysis of the case revealed the following problems:
- Selection process: There is no effective panel for the selection of employees. The selection process is not based on the candidate’s eligibility criteria such as experience, qualification and skills.
- Data storage: The Company does not maintain the data of current employees, interviewers, exit interviewers, training products, resigned employees, terminated employees, performance records of employees, and employee benefits records. The absence of such essential records would have an adverse impact on the company’s productivity and stability.
- Training program: A training program is recognized as a key factor of any organization. Here the management does not bother to impart proper training to their employees; this is one of the reasons for poor performance of the company. The employees lack product knowledge which affects overall output and delays their promotion.
- Performance review record: There is no record of performance review in the company. Performance review record is very essential for verifying whether the employees meet or do not meet the expectations of the organization. In this company, the promotion criterion is employee’s influence on management instead of employee’s performance.
- Remuneration package: Salary increase is another problem in this company, because here it is not based on any specific criteria, but purely employee’s closeness to the management.
Recommendation or solution
From the analysis of the case it is clear that there are many problems in this company. The solutions for these problems are explained here. These problems are not unsolvable. However, for solving these problems, proper intervention from the management and employees is required. Here the major issues faced by the company and recommendations for solving these problems are discussed.
- One of the major problems faced by this company is the lack of proper criteria for interviewing and selection of employees. For avoiding this problem, the management should adopt a well-defined interview method. For selecting the right candidates, interview is very important. For that, the company should form an efficient interview board which should consist of persons from the concerned department and representatives of the management. External influence should be totally avoided and it should not be a factor in the selection. Priority should be given to qualification, experience, skills and so on.
- Currently, this company does not have an efficient data storage system, and therefore, it does not have much essential data. The management should take initiative for developing a perfect data storage system that includes the facilities for storing different details related to the company and the employees. The important details which should be kept in that storage system are applicants’ bio-data, details of short-listed candidates, details of present employees, details of resigned and terminated employees, and so on.
- Employees in this company do not get any training. It is another problem faced by the employees. For solving this issue, the top management must decide for providing training to the newly recruited employees in their job. Management should also consider conducting periodical training programs for all the employees. This will help to give awareness to the employees about the new technology.
- Currently this company does not keep employees’ performance review records. The company should analyze the performance of each employee and prepare monthly reports about each employee’s performance. It will help the management while considering the employees for promotion and for granting rewards. This job can be assigned to team leaders, supervisors, or department heads. It is a good method for making judgments. (Nazir, n.d.).
- Lack of proper remuneration package is another problem that exists in this company. The concerned authority of the company should prepare a proper remuneration package. In the book, The Director’s Handbook, author Martin Webster says, [for developing a remuneration package] “companies take to the design of base salary, benefits, annual bonuses, and pensions. Share incentives are considered in the next section.” (Webster, 2007, p. 128).
This criterion can be adopted in this company for developing the remuneration package.
Conclusion
The efficiency of the management is the most important factor for the successful running of a company. Before expanding an organization, the management has to take initiative to rectify the current problems. Then only it can survive in the global market.
References
- Human resource management case studies related articles and resource: Significance of human resource management. (2009). Management-Hub.com.
- Nazir, F. (n.d.). How to write performance appraisal report – a supervisor’s point of view. TRCB.com: The red Carpet Broadcast.
- Webster, Martin. (2007). The director’s handbook: Your duties, responsibilities, and liabilities (2nd ed.). Kogan Page Publishers. Web.
- Welcome to global business resource center: Business resources, information and links. (2002). Global Business Resources Center: Free Business Resources, Information & Links to help Your Business.