Farm Right is a farm equipment manufacturer and service company. It has been in business for 23 years whose head office is in Milwaukee, Wisconsin, USA. FR manufactures heavy and lighter equipment for the farm industry. They also provide service and maintenance support for their products. From the beginning, FR value high quality products and customer support. However due to the increasing demand for food and high quality farm products with customer support, FR took the decision to expand into Madrid, Spain and established both a manufacturing plant and office. They had one of their senior management team relocate to Madrid to set up the subsidiary and to recruit local employees. One of the reasons for this was to ensure transmission of the FR culture and management practices to the new subsidiary.
Unfortunately the establishment of FRS Spanish subsidiary has not gone smoothly. The employees have found the American management style difficult to adjust to, especially the more participative leadership style. This is due to the Spanish workers preferring less uncertainty and a clear direction from their superiors. In addition, FR's management has demanded that the work hours mirror the same pattern as in America, which is an 8 hour work day with 45 minutes for lunch. This has created many conflicts, as these Spanish workers prefer their siesta period that allows for longer lunch breaks.
Therefore the key issues that the employees union and the general manager want to discuss have been agreed and the meeting time set for one week. As the general manager is not a specialist in HRM, he would like to speak with someone who is knowledgeable in this field prior to meeting with the employees' union representative. They have been given your name as such a person.
TASK 1
As a means to involve and engage the workforce FR's general manager (GM) has chosen a participative leadership style that has a negative impact on employee morale. A participative leadership is also known as the democratic management style which involves two way communications between managers and employees hence there is employee participation when decision is being taken.
However the GM recognizes that HRM needs to play a strategic role in the organizational strategy. Therefore there are THREE (3) broad theoretical approaches that link HR strategy to practice, FR can use any one approach in their organization, these are as follows:-
Universalist approach: - this approach is derived from the formation of human resource management as "best practice" this concept is one best way of managing human resource in order to improve business performance. An expression of this approach can be viewed in Guest's theory of HRM which is based on four HR policy goal this are shown below.
Strategic integration: ensuring that HRM is fully integrated into strategic planning, that HRM policies are rational, and that managers use HRM practices as part of their daily work.
Commitment: ensuring that employees feel bound to the organization and are committed to high performance with their behavioral and attitude.
Flexibility: - ensuring an adjustable organization formation, and functional flexibility based on multi tasking.
Quality: ensuring a high quality of goods and services through high quality employees.
All the above needs to be achieved to create the preferred organizational outcomes which are high job performance, problem solving, change innovation. Clarity of goals and cost effectiveness hence low employee turnover, absence and grievance.
Fit or contingency approach: - also known as the "best fit" this approach is based on two critical forms of fit. That is external fit also known as vertical integration in this case the HR strategy fits with the demand of business strategy; the second one is internal fit also known as horizontal integration in this case all HR policies and activities fit together so that they make a rational whole, these are applied every time.
If an organization require a cooperative team with mutual sharing of information the broad implications would be:
Selection: experience on team work and supportive personality, rather than an independent thinker who works alone.
Appraisal: this is based on contribution to the team and supports other, rather than personal outstanding performance.
Reward: this is based on team performance and contribution, rather than individual performance and personal effort.
The above mentioned model shows how selection, appraisal, and reward can be geared together to produce the required type of employee performance.
Resource based approach: - this approach is concerned with the relationships between internal resources which are one, strategy and firm performance. It focuses on competitive advantage through the development of human capital, rather than just aligning human resources to strategic goals. Inorder for a resource to have competitive advantage it should meet four conditions and these are as follows:
Valuable-
Unique
Incomparable
Non substitutable
However I as an HRM generalist consultant would like to advice Farm Right (FR) to go for universalist approach this is because of some strong factors which FR are currently facing would be resolved. This approach benefits in high job performance, easy solving problems, change in innovation, there are also clear goals and hence understood by employees and organization as whole, it also benefits them from low employee turnover, absence and grievance which seemed to be a big problem in FR. Never the less the organization will also benefit from high employee commitment, and also employee flexibility.
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TASK 2
If the general manger is not able to retain the most productive employees, then FR may need to recruit and select additional personnel.
Recruitment can be defined as the assessment of posts, the considering resources of fitting applicants, getting in touch with those applicants and attracting applications from them.
Selection can be defined as the next stage; that is evaluating the applicants through different means and making a decision followed by presenting employment.
There are various strategies or approaches to recruitment and selection that FR could take these are shown below:-
Job description: - is to gather all precise information about the job this includes the content which makes up the job, the purpose of the job, all the necessary output needed by the job holder, the skills and personal attribute needed to perform the role efficiently and hence all this analysis can form the basis of a job description and person requirement. In short a job description outlines duties, responsibilities, the required qualifications of the candidate etc.
job specification:- this stage specifies the necessary and enviable criteria for selection, this specifications are based on the following:-
Skills, knowledge and experience.
Qualifications of the candidates
Personal qualities relevant to the job, such as ability to work as a team.
Finding candidates: - there are 2 methods to find candidates. That is internal method which includes staff referrals, succession planning, job sharing etc and external method which involves networking, open days, press advertising etc
However advertising should be the most common way to recruit, it should be clear on certain basis such as:
Necessary requirement of the job
Criteria for job applicants.
The environment of the organization
The process of applying
The location of the job
Possible reward package
And how long is the contract for.
Managing the applicant process: - there are two ways in which an application is received. One is application form and the other is curriculum vitae. However it can also be sent though internet, intranet and also via email. The above mentioned can manage the applicant process.
Selecting candidates: - short listing and assessing are two ways to select the candidates. However short listing is the process of cutting down the total number of candidates to a number of them you would like to take forward to asses them. Hence assessment can be scanned through a number of ways these are interview, role play, presentations in tray exercise etc.
Making the appointment: - in this stage before offering the job, the employers have a responsibility to check the applicant's relevant documentation. This documentation can be in the form of contract, reference and medical examinations.
Induction: - this stage is very critical for both the employee and the employer, however an induction plan includes.
Orientation
The organizations aims and strategy
Health and safety information
Detailed information on terms and conditions
A clear picture of the job requirements
Details of the organization, its products and services
Information of its culture and values etc
http://www.freshhr.co.uk/editor/files/Recruitment%207%20Steps.pdf
If the general manager is not able to retain the most productive employees, then FR many recruit and select the employee using the above mentioned strategies and approaches.
TASK 3
The general manager has stated his willingness to better understand the connection between how HR policies and practices affect firm performance. The current focus is on commitment.
Commitment is used in current Human Resource practice to describe the quality of being devoted to the cause, and a variety of methods are used to extend this quality among the members of the labor force in their commitment to the basis of company success. Some maybe committed to their profession or to employment security that is linked with the victory of the business, while others are committed to the success of their career.
On the other hand employee commitment is the willingness of an employee to be in the business for long and to work with loyalty and support the organization.
However increasing employee commitment will make a very big difference to organizational performance this includes organization such as Farm Right.
Increasing employee commitment can lead to better quality in terms of products.
Lower turnover and better individual performance.
A greater capacity for innovation and more flexible employees.
All the above mentioned points in return these are seen to enhance the ability of the organization to achieve competitive advantage.
Absenteeism will lessen due to commitment of the employee.
Higher productivity.
Two primary commitments are as follows:-
Attitudinal commitment: - is the loyalty and support for the business, strength of recognition with the firm, faith in its values, aims and willingness to put in effort for the organization. In other words attitudinal commitment focuses on procedures by which people think about their relationship with and or within the organization.
Behavioral commitment: - is to stay with the firm for long and continuing to target its aims. In addition to that behavioral commitment also looks upon how an individual is tied up into a particular business and how they end up dealing with a certain problem.
if the farm right employees tend to adopt any of this commitment than it would be a benefit to the organization in form of better quality, flexibility in employees, chances of achieving competitive advantage, high productivity and hence all this leads to less turnover.
TASK 4
It has been recognised that absenteeism has become a problem at FR.
Absences refer to missing part or whole days of work due to any reason, either avoidable or unavoidable. (Thompson)
Absenteeism is failing to report for scheduled work. Traditionally, absenteeism was viewed as an indicator of poor individual performance and a breach of an implicit contract between employee and employer. (Johns 2007)
Below are THREE (3) potential causes of absenteeism in farm right industry.
One of the potential causes of absenteeism is that shorter lunch break, this has created many conflicts as these Spanish workers prefer their siesta period that allows for longer lunch breaks.
A general air of dissatisfaction which seems to centre around the general managers leadership style. The employees have found the American style difficult to adjust to, especially the more participative leadership style. This due to the Spanish workers preferring less uncertainty and a clear direction from their superiors.
In addition to that increase stress due to short lunch breaks and the impact of this on family life.
Due to solve the above mentioned problems FR can use the below mentioned recommendations.
Assess the absence problem: - management should assess the real cause of absence. For example in industry such as FR have long working hours, shorter lunch breaks, and not suitable management style. These problems can result in high staff turnover, increased absenteeism, low staff morale and also sickness such as stress however workers will usually give another reason for their absence, and some kind of stress-related problems will usually be at the root of it.
Locate the absence problem: - management style in Farm Right is not suitable for the employees as the Spanish workers are not familiar with the American management style. Hence in this case the managers have to implement a new management style inorder to be understood by both the Spanish and American workers. However the case for long working hours and shorter breaks has to also be considered.
Evaluate the current absence control methods. In this farm right Company they need to control absence of their employees but within this company there is no exact method to control the current absence so there for if it introduces a new control method system there might be a positive response.
Policies for managing absence: - farm right company should have a tendency to have an attendance policy. This allows a manager to get involved with an employee who is frequently absent. And if the number of absents is reduced, than the company should support their employees by rewarding them with employee benefits that can be either health care insurance, accommodation, increment etc.
Identify and prioritize absence causes. Once the company identifies the causes of absenteeism and turnover it will easy for them to deal with it. And one of the reasons are stress within the organization due to shorter breaks, long working hours, not suitable management style and also negative impact on family life.
The above mentioned recommendations may help Farm Rights (FR) to reduce their absenteeism problems and also management style issues and hence give the organization a healthy and motivated employee.
TASK 5
The meeting between the general manager and the employee union representative will be the first time that the general manager will have to deal with a union.
Every leader has a different and unique style of handling the employees. The various ways of dealing with the subordinates at the work place is called management style.
There are FIVE (5) categories of management styles in employment relations this are shown below:-
Autocratic management style:- this management styles states that the leaders, managers and superiors have individual responsibility of taking the entire decisions themselves rather than any involvement of employees/ subordinates. This is a one way communication; In this case the employees are totally dependent on the managers and do not have any freedom to take any decision on their own without consulting their managers. Therefore the employees will feel less important and there will be lack of motivation in this style of management.
Authoritative management style: - this management style focuses more on setting goals and encouraging employees to work out their own priorities. This management style can be affective when working with staffs that are not keen in their work. However the authoritative management style cannot work when working with knowledgeable and hardworking teams. Most employees who know what they are doing want encouragement rather than to train their co workers. Hence this may de-motivate other workers.
Paternalistic management style: - this style of management the managers decide what is best for the both the employees and the organization. In this style suggestions and feedback of the subordinates are taken into consideration before deciding something. Employees feel emotionally involved and dedicated towards their organization and they stay motivated and enjoy work rather then it being a burden on them.
Laissez- Faire management style: - in this case there is very little help from the managers, most of all the decisions are taken by the employees and they manage work on their own. Managers will only provide them with tools and resources .However the employees are not dependent on the managers so in this case they won't know what is right or wrong for them.
Affiliative management style: - in this style a manager promote harmony, teamwork, and good feelings in the work place. These actions involve providing them with accommodation, family needs etc this also smoothens tensions between employees and
Promote positive energy within the team. Leaders tend to put employees first and work second.
http://www.managementstudyguide.com/management-style.htm
I as a HRM generalist consultant would recommend the general manager to apply paternalistic management style in farm right industry; this is because employees are given right to give suggestion and feedback before deciding on something; hence this will improve morale and due to this overall staff turnover and absenteeism rates will also decrease since that was the main problem FR was facing.
Never the less the employees will feel attached and loyal towards their organization and they stay motivated and enjoy their work, rather than taking it as a burden. Unlike participative management style.
TASK 6
Farm right employees have identified work life balance as being an area that needs improvement.
Work life balance is effectively managing or prioritizing work that is either career or ambition and lifestyle that is health, pleasure, family, leisure etc. however if this is applied then it can really benefit the employees and employers by building a strong community and a healthy business.
If farm right applies this policy of work life balance than this are the benefit shown below:-
Benefits of work life balance.
Work life balance reduces absence especially those absenteeism which are sudden or unplanned, hence it raises morale and increases level of job satisfaction.
It increases performance level because employees are less tired and so work more effectively when they are working.
Since all employees are less tired and are work effectively the productivity and quality of work also improves.
Fewer turnovers which eventually results in less money spent on hiring and training new employees.
Employees will be engaged in work.
Reduces stress level.
Increases job security.
Work life balance also benefits from higher organizational performance.
http://www.gateshead.gov.uk/Education%20and%20Learning/Preschool/FIS/worklife/Work%20Life%20options.aspx
Appropriate options for achieving work-life balance.
Flexible time: - in this case the employees can choose the hours they work each day. For instance in a company such as farm right an employee can choose to work between 8am and 5pm and take a time off or work part time that is from 8-3pm .It can help the company with cutting down the employee absence and can enable a company to extend the hours when the service can be provided.
Flex the place: - this involves technology known as telecommuting which helps to regular work from home. This relies on communication technology such as fax, telephone etc this can help FR employees to arrange their working schedules, saves cost, and also saves their office space.
Family leave: - this can be categorized in as maternity and paternity leave, adoption leave and family emergencies. These are special leave given to the employees by their employers. If FR adopts this option then it would help the company to recruit and retain key employees and increases loyalty.
Flex the job: - this means changing the job itself and not the time and location; this can be done either using job sharing or job redesigning.
Job sharing: - this can be done when 2 or more people divide their responsibility for one full time job. This improves sharing of information and also employees stays focused hence signs of commitment to job are also seen.
Job redesigning: - this involves redesigning of jobs, responsibilities and processes. This can help employees reduce job stress, and number of options Can be considered which encourages them to work.
The above mentioned are some of the appropriate options for farm rights (FR) in achieving work life balance.
REFERENCES
www.google.com
http://wikipedia.com
www.scribd.com
www.essay.se
http://www.articleclick.com/error_page.php
http://www.managementstudyguide.com/management-style.htm
http://www.gateshead.gov.uk/Education%20and%20Learning/Preschool/FIS/worklife/Work%20Life%20options.aspx
http://www.freshhr.co.uk/editor/files/Recruitment%207%20Steps.pdf
