Introduction
- Small manufacturing company;
- Founded in 1994;
- CEO – David Dukakis;
- Specializes in computer components;
- High-quality, specialized equipment;
- Sells its own products;
- Small customer base;
- Operates in the US and Asia;
- Faces financial difficulties;
- Employees are dissatisfied (Gusdorf, 2011).
Purpose of the Presentation
- Conduct SWOT analysis for PAC Resources, Inc.
- Propose a range of recommendations meant to add value to different areas of work.
- Describe the way, in which the company can institutionalize best practices.
- Design and recommend HR “so that” statement.
- Justify the recommendations.
- Summarize findings and make a conclusion.
SWOT Analysis
Strengths
- Growth and strong revenue;
- Stable management;
- High-quality products made in the US;
- Patents for specialty components.
Weaknesses
- Unethical behavior;
- Poor benefits package;
- Bad communication between the employees and managers;
- Reluctance to change.
Opportunities
- Enter new markets;
- Enhance employee morale;
- Provide needed training;
- Improve employee productivity.
Threats
- Unionization;
- Lawsuits;
- Reduction in sales;
- Economic downturn.
Recommendations
- Improve the compensation system.
- Plan and facilitate training programs for all managers.
- Implement staff meetings.
Compensation System
- Employees are dissatisfied;
- Expensive;
- Led to cost-cutting;
- Possible lawsuits:
- Increase employee satisfaction;
- Save costs;
- Reduce the number of issues;
- Increase promotion level;
- Prevent abuse of power.
Currently, the employees of PAC Resources, Inc. are not satisfied with the complex compensation system that is implemented, and the organization faces a range of difficulties because of it.
The creation of the merit bonus plan was an attempt to to link compensation to actual results in the early years, but now it turned out to be an expensive giveaway that creates employee anxiety. Benefits became increasingly expensive over time, which means that they worsen the financial state of the company. Every piece of the package is under scrutiny for cost effectiveness, and cost-cutting is given. There is even a possibility that a salary freeze will be needed. In this way, promotion level is greatly reduced. One of the e-mails also reveals that the employees are not completely aware of the peculiarities of the compensation system. Some issues are even likely to lead to lawsuits, as they are perceived as inequities. Unfortunately, managers tend to pay no attention to the worker’s claims until they turn into lawsuits and believe that the employees are constantly dissatisfied without any reason. They consider the situation only from the organizational perspective and use their power to promote themselves.
Thus, PAC should reconsider its compensation system to make it more beneficial for both personnel and company. Improvement in compensation and benefits will increase employee satisfaction, and make them more willing to work.
In order to implement best practices in this area, changes should be managed. First of all, it is critical to change the managers’ views on the current problem. When the employees from the upper level realize and accept the necessity to make the system beneficial for the staff, they will be likely to design more advantageous strategies. Still, if they are not able to create such system, it might be less costly and more efficient to hire a professional who can assist the company.
Training Programs
- Indecent management behavior;
- Wrong attitudes;
- Unwillingness to implement changes;
- Poor HR support;
- Bad communication with employees;
- Poor performance;
- Enhanced relations and cooperation;
- Fewer issues;
- Improved performance;
- Knowledge management.
One of the main problems faced by PAC is ineffective management, which makes the personnel unrest.
The behavior of some managers is indecent, as they are totally focused on their own needs and wishes. They tend to use their power to make their life easier and to receive more benefits from work instead of focusing on their duties. Even people who are willing to implement changes are not able to do this effectively. Managers are reluctant to listen to the employees’ ideas and demands. They seem to be sure that the workers receive all they need, and there are no reasons for complaints. Managers believe that people will be always unsatisfied and nothing can change their attitude. That is why, they do not respond to the issues effectively. As a result, simple discontent leads to possible lawsuits that have an adverse impact on the organization. Managers fail to support HR department and do not provide required feedback on progress toward goals. Thus, the operations are maintained without clear understanding. The employee development is not encouraged, and the workers tend to be reluctant to work. There is no sufficient interaction between the employees and members of the upper management. Moreover, the staff is encouraged to report issues to the bosses of their boss, which makes the relations tense.
Training programs for managers are likely to improve the situation and make them aware of the ways to enhance communication. Additional programs will teach the managers how to improve their performance. Being targeted at a wide range of problems, training programs will add value to the areas of people, performance, information, and workflow. Their supervisors are likely to influence the managers and make it easier to institutionalize best practices. If training works, PAC will need to design concrete goals and efficient plan to reach them. Knowledge management and personnel’s support will streamline this process. To make sure that the best practices are implemented, the assessment should be done. Unfortunately, some managers may not want to change, which means that they should be replaced by efficient workers (Venkateswaran, 2012).
Staff Meetings
- Disgruntled employees;
- Lack of communication;
- Poor cooperation;
- Indecent performance:
- Poorly addressed issues;
- Opportunity to express concerns;
- Enhance employee morale;
- Communicate information;
- Enhance employee satisfaction;
- Improve performance.
Needless to say that even if all workers have excellent skills, the company will not be able to operate efficiently when its employees are disgruntled.
The communication between the employees and managers in PAC cannot be assessed as a decent one. It seems that the staff is divided into two main groups and communicate only within them. The process of interaction is not thoroughly designed, which gives those who are not willing to implement changes and accept the ideas of others an opportunity to avoid communication. As a result, the employees remain dissatisfied with their jobs and working conditions while the managers look the other way. As a result, the overall performance is affected, and the company faces a range of difficulties that cannot be addressed without cooperation.
It would be beneficial for PAC to implement staff meetings on the routines basis. In this way, the employees will have an opportunity to express their concerns to managers. Such approach is likely not only to add value to the area of people enhancing employee morale but also allow the staff to manage their duties efficiently. The information related to issues and success will be easily communicated to managers, which will streamline the working process and make the employees willing to do their best. There will be no necessity to address problems to the bosses of the boss, which will surely make the managers more satisfied. Such practices should be implemented at the organizational level. It is vital to design a schedule of these meetings and to add them to the current working schedule so that every employee knows when it is held. It might be beneficial to create a plan for the meetings to make it structured and not to turn them into a mess. It would be also advantageous to create some kind of a chart where the complaints will be pointed out as well as the ways, in which they were addressed. In this way, the employees will be sure that their work is appreciated (Pattison, 2001).
So That Statement
The HR team are innovative thinkers and strategic positioners who endeavor to provide quality services in employment, ensure personnel’s competencies, and implement strategic initiatives so that PAC Resources, Inc. increases its revenue, enhances workflow, and reaches sustained success.
- Who: The HR team are innovative thinkers and strategic positioners who.
- What: Endeavor to provide quality services in employment, ensure personnel’s competencies, and implement strategic initiatives.
- Why: So that PAC Resources, Inc. increases its revenue, enhances workflow, and reaches sustained success.
Justification: The “so that” statement that is recommended is likely to focus the HR team on their duties, as it considers the vision, mission and the results that should be achieved (The RBL Group, 2009). The main things HR team is likely to want to be known by those who use their services are mentioned. The outcomes that are delivered are pointed out as well as the reason to do so.
This statement is appropriate will help to address current issues. The HR team will search for new approaches to assist the working process. They will make sure that the managers and employees reveal all required competencies (including communicational and working skills). The financial problems faced by the company will be also considered. In this way, the staff will enhance its performance, and the departments will cooperate, which will bring success to PAC. New initiatives will allow to translate the vision into practice and help PAC achieve its targeted performance. Moreover, such “so that” statement will provide an opportunity to monitor the progress the HR team makes and identify the influence on the organization.
Conclusion
Pac Resources, Inc. should enhance its performance as it fails to operate efficiently. It would be advantageous to consider the way managers perform their duties, and communicate with employees as well as the compensation system that does not satisfy the workers. The company should Improve the compensation system, plan and facilitate training programs for all managers and Implement staff meetings. HR team should develop a new statement of strategy that will help them to focus on the most critical issues and bring success to PAC.
