Organisational Behaviour - Issues and Solutions

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Organisational Behaviour
ORGANISATIONAL BEHAVIOUR –
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Table of ContentsIntroduction.............................................................................3
Human Resource Management Issues and Solutions...................4
Recruitment & Selection..................................................................4
Performance Management...............................................................7
Employee Motivation.......................................................................8
High Employee Turnover................................................................11
Conclusion.............................................................................. 12
References.............................................................................13

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Introduction
ABC Tech Solutions is a private firm that operates in the information technology sector and
manufactures technology related products and services. The company was founded in the late
1970s in America and as of today, it has its operations running throughout the globe. The
company has its headquarters in Virginia and offers a number of products and services to the
customers, such as smartphones, application development software, cloud storage, search
engine, e-mail client, etc. ABC has a workforce of 148,400 employees working for it
throughout the globe. Some of the major competitors of the company, in the global market,
are Google, Yahoo, Hotmail and Apple.
Recently, the company has been facing a number of difficulties in managing its human
resources that are working in the Australian subsidiary. The company had expanded its
operations in Australia in the late 90s and has been operating there quite smoothly since the
last year. The condition of the human resources in the Australian subsidiary is the worst,
which is also having an adverse impact on the performance and efficiency of the subsidiary.
The company fears that if the present condition of the Australian subsidiary remains
unchecked, it would have an adverse impact on the global market position of the company
and will also result in a loss of its market share.
Some of the major problems that are being encountered in the Australian subsidiary, with
respect to the management of human resources, are high labour turnover ratios, lack of a
performance management system, lack of employee motivation, etc. These human resource
conditions, along with a lack of a performance management system, have been making it
difficult for the company to achieve its desired performance objectives. As a result, it has lost
some part of its market share in Australia and the condition has gained media attention, which
is acting in favour of the competitors.
The prevailing human resource conditions have been haunting the senior level management
and the management has decided to implement a major human resource development
intervention, which would be aimed at improving the performance of the subsidiary by
strengthening its human resource management functions. Therefore, in this report, we will

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gain a deeper insight into the inefficient human resource management areas of the subsidiary
and design appropriate functions to deal with the present conditions.
Human Resource Management Issues and Solutions
Human resource management is a concept that aims at improving employee-employer
relations and workplace conditions in order to optimise employee performance in a business
setup (Brewster, Vernon, Sparrow, & Houldsworth, 2016). Efficient human resource
management in business organisations can do wonders. It can help a company in becoming a
top performer in the industry while inefficient human resource management can deprive
business organizations of their competitive advantages and market shares (Noe, Hollenbeck,
Gerhart, & Wright, 2017). Further, human resources are the only resources which cannot be
easily replicated, unlike other resources and processes, which increase the reliability of
business organizations on their human resources even more (Cascio, 2015). Thus, efficient
human resource management is of an utmost important in the present day business
environment. The four key human resource management areas where ABC Tech Solutions
lack efficiency are discussed below:
Recruitment & Selection
Recruitment and selection is as a process of advertising, inviting and screening job
applications to hire potential candidates in order to fulfil human resource demands of a
workplace. Recruitment and selection is one of the core functions in human resource
management that is essential for the smooth functioning of an organisation (Farndale,
Nikandrou, & Panayotopoulou, 2018). In absence of recruitment and selection, business
organizations can face a shortage of staff and can find it difficult to carry out their day to day
operations and processes.
Recruitment and selection at ABC Tech solutions is not as efficient as it should have been.
First of all, the workforce in the Australian subsidiary is not diverse in nature. ABC is a
global company but it has largely failed to make use of economies of scale and recruit
employees from different cultural backgrounds and countries to work in its Australian
subsidiary. 95% of the employees working in the Australian subsidiary are Australians by
origin while 3% belong to the United States and the other two belong to third countries. The
inability of the company to recruit a diverse workforce has been having an impact on its