Introduction
Business activities have witnessed stiff competition in the last two decades due to modernization that has facilitated various business activities. It should be noted that the increase in the use of modern skills and technologies by firms has made it possible for them to compete effectively.
One of the challenges that are facing firms is the fact that while technology is evolving every day the market for goods and services produced is not proportional to the rate at which production is taking place.
In addition, the high costs of production are not compensated by market prices for the goods produced since consumers are experiencing very tough financial constraints and thus they have very little disposable income. This case study is about the challenges and solutions to the problems faced by the human resource department at Harrison Brothers Company.
Overview of the Case
Harrison Brothers Company is among the oldest firms that have established their outlets in many parts of America. The firm was initially selling clothes for men women and children. However, it developed and expanded its operations to include basic household furniture that were expected to help boost its sales. It has established twenty stores that are located in various parts of America and has achieved exemplary results that have made it to stand out among other similar firms.
Background Facts
This firm has enjoyed monopoly in terms of selling clothes for men, women and children and also selling furniture and other household items. This was due to the fact that it invested heavily on basic household items that are not only cheap but also long lasting to enable consumers get the correct value for their money (Ulrich 2009).
However, modernization has made it difficult for this company to continue enjoying the large market available due to the challenges that arise as a result of the introduction of modern techniques and expertise in similar firms. James Harrison who is the executive officer of this firm noted the gradual decline in profits made by the firm and sought an expert’s opinion in evaluating the effectiveness of its human resource department in order to establish the causes of its inefficiency and suggest possible solutions.
Obstacles
This firm faces three main challenges that are making its operations an exercise in futility; the greatest threat comes from big stores that have been established in the recent past. These stores offer a variety of goods under one roof and thus they make them a better choice for consumers. Moreover, these stores offer discounts on their goods and this attracts consumers who are keen on cutting down their expenses.
They have highly motivated and trained sales staff and managers that know the choices of goods of their clients. It should be noted that this obstacles are inevitable since they are motivated by changes that are brought by modernization (Ulrich 2009). Consumers are keen on keeping up with the pace at which fashions and trends are changing and thus prefer to buy items that reflect modern trends. However, this firm is focused on past sales practices that assume consumers know what they want and thus do not need any help from their staff.
Problems and Symptoms
The fact that Harrison Brothers Company was established on the basis of providing consumers a collection of basic needs means that the company operates under traditional practices of providing customers with all they required. However, modern stores that specialize in a particular commodity have sprung up and this exposes the problems that this company faces (Holton 2009).
Consumers are now searching for companies that do not provide junk goods since there are higher possibilities that these goods are not of the required standards. In addition, the staff of this company was not well trained to understand what their clients wanted. Most of the workers in this company are not well trained. Moreover, the management has ignored basic needs that boost workers’ performance like employee motivation and training.
Evidence of these Problems
It goes without asking that James Harrison has admitted that it faces great risks that may force it to close down due to a number of reasons. First, he admits that this company has committed itself to traditional practices of providing customers with a variety of goods under one roof.
This practice compromises the quality of such products while at the same time the benefits associated with specialization are not accrued (Holton 2009). In addition, the staff of this company is not well trained in order to understand the needs of their clients. Their management has very limited knowledge on various aspects that control the buying behavior of consumers.
When James Harrison took over the management of this company, he hired a business consultant to help him asses the strengths and weaknesses of this company in order to plan on how to improve its management. The consultant noted that the human resource and stores manager had limited knowledge about the company’s safety. Moreover, the human resource manager had limited ideas about the business and he had scanty information on how to manage change in the company.
Causes of these Problems
The main cause of these problems is the fact that the management of the firm had for a long time ignored the fact that the society is changing, thus there is need to adopt modern skills and technologies that will enable it compete with other firms. In addition, it also failed to take notice of the inevitable changes in fashions, trends, likes and dislikes that guide consumers’ demand for goods or services.
Solutions
The fact that the business consultant hired by James Harrison was able to outline major weaknesses that hinder the company from achieving its goals means that the problems above are half solved. The first approach this company should take is to train its human resource and stores managers (Worley 2008).
This will help the managers to have all the relevant information regarding the services they are offering. In addition, it will enable the human resource department to take good care of the company’s staff by organizing for seminars or sponsoring them to learning institutions.
This will help to train and equip them with relevant knowledge that will help to improve the company’s services. Furthermore, they will be in better positions to identify the needs of their consumers as far as fashions, trends and preferences are concerned.
Conclusion
The fact that a company is able to run its operations every day is not enough evidence that it is doing well. It should be noted that human resource managers play important roles in promoting the quality and quantity of service offered by their staff to their clients. However, this department should work with other departments in order to ensure they work together to achieve the goals and objectives set by the company.
References
Holton, E. (2009). Foundations of Human Resource Development. California: Barrett-Koehler Publishers.
Ulrich, D. (2009). Human Resource Transformation: Building Human Resources from the Outside In. New York: McGraw-Hill.
Worley, C. (2008). Organizational Development and Change. Boston: South-Western College.