HRM Issues and Solutions for Desklib Online Library

Human Resource
Management
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1
Table of Contents
Answer 1.................................................................................................................... 2
Answer 2.................................................................................................................... 3
Answer 3.................................................................................................................... 4
Answer 4.................................................................................................................... 5

2
Answer 1
The five significant problems and HRM issues in Part A are given below:
1. The organization is perceived by outsiders to be bureaucratic, insular, and inward-looking
and need a major managerial shake-up. At present, it faces stiff competition due to too many
decisions by ACCC. The market share of the company has fallen from 90% to 65% and still
continuing to fall. The firm has four business units, and a small holding organization that is
structured in accordance with the business focus and three out of four business units of the
company are losing money. The former CEO has not appreciated the core business concept,
although the junior managers, most of them who has MBA and Business degrees have given
suggestions that it is a critical issue for consideration. They have argued that several
functions of the company need to be outsourced.
2. The workforce has been decreased from more than 5000 staffs since last two years achieved
through voluntary termination. Unfortunately, several of them are leaving the company, and
they are those employees who have been least afforded to be lost. As a result, several
intellectual investments and business memory have been lost. The development and training
of the staffs have been one of the areas which have severely reduced as part of many rounds
of cost-cutting. The customer and workforce base are totally different, but the team of the
senior managers do not highlight it and also do not know the concept of diversity
management. The idea is perceived as one of the fuzzy and warm trends of HR.
3. The leadership of the company is predominantly the responsibility of middle-aged white and
older males those who have lifetime employment in the company. The executive team of
seven-man has no experience in the private sector outside the current company. Each of the
seven-member started their careers as a trainee with the company. Five out of seven are
engineers, and the remaining two are accountants, and the leaders follow the transactional
leadership style. The ex-CEO was also one of the trainee engineers and was also a
transactional leader. He did not follow the fuzzy and warm approach of the modern leaders.
4. The policy of remuneration is ‘one size fits all’ policy. There is clearly no connection
between the performance and the pay, and even though in theory, senior leaders are at the
range of risk for their salary packages. Middle and senior managers could package their
incomes and use the strategies of salary-sacrificing. Most of the highly unionized employees