Human Resource Management at Ariama: Issues and Best Practices

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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1HUMAN RESOURCE MANAGEMENT
Introduction:
The report aims at providing an insight into the issues of human resource management
faced at Ariama, a manufacturer of garments with its headquarters in Australia. However, the
manufacturing firm of the organization is based in Bangladesh. The report puts across solutions
of how the human resource (HR) should respond in dealing with lack of the employee
engagement, outdated system of performance, ineffective communication between Australia and
Bangladesh and dealing with issues of employee underperformance in Bangladesh. The report
also puts across suggestions for the best practice from the other organizations in dealing with the
situations. The report also puts forward recommendations in dealing with the situation.
Identification of the Organizational Issues:
The Australian wing of Ariama employs 65 percent of females along with the marketing
and the sales people while the Bangladesh wing has close to 2300 employees. The business
experienced rapid growth in its initial years which enforced the authorities in thinking for an
extension of the firm that led to the growth of the factory in Bangladesh. However, in the recent
times, the manufacturer is not being able to attain the heights due to the presence of certain
issues which is creating an impact on the revenue and profitability. The key issue lies in work
productivity and revenue earned within the factory since employees are treated differently in
Australia and Bangladesh. Although, annual appraisal and rating for the work was ensured in
Australia but the lack of appreciation faced by the employees lead to its downfall. However, the
key reason for the downfall has been the lack of communication between managers of
Bangladesh and Australia. In addition, the managers of Bangladesh are not capable of managing
the underperforming employees.

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Relevant Literature Review:
According to Anitha (2014), employee engagement is defined as the intellectual and the
emotional commitment towards the organization or amount of the discretionary efforts portrayed
by the employees in the job. Although, accepted and acknowledged employee engagement refers
to multi-faceted construct. Alfes et al. (2013) put forward a definition where employee
engagement is defined as the passion for the work that refers to the psychological state that
encompasses the dimensions of engagement.
Boon and Kalshoven (2014) put across an argument stating that the organizational
commitment differs from the engagement since it refers to the attitude and attachment of the
person towards the organization. Organizational engagement is not simply an attitude; it refers to
the degree towards which a particular individual remains attentive while being absorbed in the
performance of the role. Besides, while organizational commitment involves the informal and
voluntary behaviour helping the organization and its co-workers, engagement focuses on the role
performance instead of the voluntary behaviour and the additional role.
According to Bailey et al. (2017), engagement remains closely associated with constructs
of the job involvement and the flow. Job involvement refers to the cognitive state of the
psychological identification. This aspect differs from the engagement in the sense that it remains
concerned with how individual employs oneself during their job performance. Besides, job
involvement focuses on the job involvement is on engagement and cognitions and also
encompass behaviour and emotions.
It has been found that higher involvement work practices helps in developing positive
attitudes and beliefs in relation to the employee engagement which helps in generating

3HUMAN RESOURCE MANAGEMENT
discretionary behaviours leading to enhanced productivity. Thus, it can be said that a lack of
employee engagement has a direct impact on the profitability of the organization.
Miller and Rice (2013) stated the role played by the outdated systems of performance
hinders the organizational profitability and growth. To deal with this aspect workers needed to
spend most of the time doing the things that the machines have a harder time with. This includes
things like creatively solving the problems, taking initiative and effectively collaborating across
the teams for maximizing the contributions. In return it was necessary for the organizations in
adjusting the management system thereby allowing greater employee flexibility and autonomy.
Thus, in the era of the automation companies that successfully adapts in making the most of the
human resources will represent the ones possessing the competitive advantage. On cracking the
code and using the data in configuring the workforce for meeting future needs, individuals must
adapt themselves and develop an interest in the people analytics.
According to Mishra, Boynton and Mishra (2014), effective communication is a
key aspect where the managers communicate with the employees at all times of the work. It is
however impossible for imaging them doing a particular job without communicating with
employees. Effective employee communication has been linked to better performance of the
company. Communication can however be classified as formal and informal communication.
The smaller companies rely on the informal methods while the formal methods of
communicating with the employees are considered as bureaucratic (Lewis 2019). In certain
instances, they prefer in encouraging the social events for the promotion of mutual
communication. Here the report primarily focuses on the formal methods of communications
since practices related to formalized communications results in positive psychological contract