logo

Human Resource Management in Arbaco

   

Added on  2021-04-21

6 Pages1239 Words91 Views
 | 
 | 
 | 
Running head: HUMAN RESOURCE MANAEMENTHuman Resource ManagementName of the StudentName of the UniversityAuthor note
Human Resource Management in Arbaco_1

1HUMAN RESOURCE MANAEMENT1.According to the above scenario, analyze the causes of the problems in the ArabcoCompany.The issue faced by Arbaco Company is excessive employee turnover due to variousreasons. The chief reason behind excessive employee attrition of the mentioned companyincludes change in the HR policy by the newly appointed HR manager, Karim Imam. In order toenhance the total revenue of the company by decreasing the cost, Karim lowered the salary of theemployees. As a result, a good number of employees were leaving the organization. In order todeal with this turnover, the new HR, Karim Imam, started to appoint employees who were readyprovide service within the low salary range. Due to lower salary, the commitment of theemployees decreased and hence the quality of the products of the company also decreased.Moreover, the employee turnover rate gradually increased. All this imposed a highly negativeimpact on the overall revenue of the company. The chief reason behind the decrement in the commitment of the employees is thelowering of salary by the new HR. It is unethical to make an employee invest the same amountof effort while his or her salary has been reduced (Cascio, 2018). Majority of the employees feltthat the sudden salary reduction policy of the new HR unfair. This, in turn, reduced thecommitment of the employees. Reduction in commitment resulted in high employee turnover.Since the salary of the managers was also reduced, 5 project managers had also resigned fromthe company. Since managers play a vital role in maintaining the productivity and quality of thecompany, resignation of the manager further deteriorated the quality of the manufacturedproduct. This, in turn, reduced the consumer loyalty of Arbaco Company to a great extent.2.Do you think the new policies set up by the HR manager were helpful for theCompany?
Human Resource Management in Arbaco_2

2HUMAN RESOURCE MANAEMENTThe new HR manager of the company had lowered the salary of all the employees inorder to reduce the overall expense of the company. The chief target of the HR was to enhancethe profit of the company by the end of the year by reducing the cost. While implementing thispolicy, he was aware of the fact that several employees may resign due to reduction of the salary.In order to deal with the massive amount of employee turnover, he had implemented the strategyof hiring new employees who were ready to work at a very low incentive. Thus the strategy ofthe new HR manager was to maintain the productivity of the employees, the quality of theproducts along with reducing the production cost. All these steps were taken by Karim, for thebenefit of Arbaco Company. However, the HR of the company was unable to predict the negative aspects of loweringthe salary of the employees. Reduced salary decreased the commitment of the employeestowards the organization. As a result of the quality of their work also got reduced. Severalcomplaints regarding the quality of the product delivered to the consumers were filed. Thusreduced quality resulted in the decrement of consumer loyalty of the company. Besides that,since the salary of the managers was also lowered, 5 managers left the organization. Consideringthe fact that all the five managers played a major role in managing the business of the mentionedorganization, the absence of them further deteriorated the condition of the organization. The thirdmajor issue faced by the organization due to the implementation of the new policies wasexcessive employee attrition. Since a lot of employees were leaving the organization, the abovementioned company was suffering from the loss of experienced and highly skilled employees.This, in turn, reduced the competitive advantage of the company in the global market. Moreover,recruitment of new employees was both times consuming and expensive. Besides that, theylacked the skill and talent of the experienced employees who had left this organization. Thus it
Human Resource Management in Arbaco_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Strategies for Reducing Expenses in Business Operations
|9
|1831
|189

Toshiba Scandal Analysis and Ethics
|8
|2415
|124

The Business Environment: the Case of Roger David Presentation 2022
|13
|812
|17

Strategic Human Resource Management TABLE OF CONTENTS INTRODUCTION
|9
|2545
|247

STAFFING PLAN. name of student: name of college: author
|3
|491
|207

Case Study Answers
|4
|1094
|95