HRM Industry Case Studies: Problems, Effects & Strategic Solutions

This report identifies and analyzes Human Resource Management (HRM) problems within three distinct case studies: 7-Eleven, The Country Fire Authority (CFA), and The Australian Banks. In 7-Eleven, the primary issue revolves around wage-related scams and non-compliance with workplace policies, leading to employee exploitation and a tarnished company reputation. The CFA case highlights leadership inefficiency, gender discrimination, and a lack of a safe working environment for women, resulting in poor organizational culture and performance. The Australian Banks case focuses on inadequate performance measurement, underdeveloped employee behavior, and a lack of customer satisfaction. The report further explores the effects of these HRM problems on organizational performance, managers, and employees, detailing decreased productivity, legal scrutiny, and damaged trust. Finally, the report recommends both short-term and long-term strategic solutions to address these issues, aiming to improve organizational culture, ensure compliance, and enhance overall performance. This report provides valuable insights into HRM challenges and potential remedies, contributing to a better understanding of effective people management in diverse organizational settings.

Human resource management
A Industry case studies Report
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Table of Contents
Introduction...........................................................................................................................................3
1. Identification of HR Problems in organisations.................................................................................3
Case study #01: 7-Eleven..................................................................................................................3
Case study #02: The Country Fire Authority (CFA)..........................................................................4
Case study #03: The Australian Banks..............................................................................................5
2. Effects of HR problems on organizational performance, managers, and employees..........................5
7-Eleven Stores..................................................................................................................................6
The Country Fire Authority (CFA)....................................................................................................6
The Australian Banks........................................................................................................................7
3. Recommendation of long term and short term strategic solutions.....................................................8
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
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Introduction
Human resource management is the most imperative in today’s challenging corporate
environment. While corporate performance is trying for keeping away off challenges by
expert moves and corporate strategies, challenges often come in the way of better
implementation of management strategies. In support of human resource management better
and effective corporate performance can be ensured on condition that people management is
better ensured and organizational culture is followed through the hierarchy and every people
in organizations (Armstrong & Taylor 2014). Clear knowledge about organizational culture
and vision if could be permeated into the thought pattern of human resources of organizations
then sensible and conscientious manners are expected from everyone in organizations.
Organizational leaders with help of effective human resource management steer through a
challenging environment for leading business towards profitability backed by operational
excellence. Any deviation from organizational cultures result into errant behaviours of
employees and if are left uncontrolled the organizational excellence can never achieve its full
potential and the working atmosphere becomes less productive and ruins the organizational
performance (Evans 2010). This report is based on three case studies which are 7-eleven, The
Country Fire Authority, The Australian Banks and the case studies reflect major loopholes in
leadership roles and organizational cultures as well. The effect thereof and related supportive
measures have been also discussed in this report which is a salient part of this report related
to human resource management in light of the case study.
1. Identification of HR Problems in organizations
Case study #01: 7-Eleven
7-Eleven stores private limited is a privately managed firm in Australia. This company is
owned by Withers and Barlow family. The firms have huge numbers of stores operational in
Queensland. The firm has faced a problem which has caused the reputation plummeted to
nadir due to a wage-related scam that broke out. This was a major violation of workplace-
related regulations. Most employees are underpaid and exploited badly and they are deprived
of their proper wages for their service in the organization (Boxall & Purcell 2011).
Franchisees were in collusion with each other and experienced among them were found
training the new and non-experienced to master in the role of falsification of payroll and
manipulation of records. The gravity of the concern was hugely impactful and position of
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HRM and its role in relation to manpower management is largely tarnished. The major
problem in the HRM identified with this role is non-compliance of wage rules and workplace
policies. This may be an inadvertent or unwilling act on their part but the problem appears
largely due to the ineffective contribution of the department in managing a balance of
organizational culture and required statutory performance within the firm (Guest 2011).
Additionally, the HRM is unsuccessful in implementing a better and secured working culture
as people are intimidated to work and do not open their mouth fearing termination of a job
about other forms of punishment. The poor cultural display, poor working atmosphere and
least consideration of statutory compliance were the cruxes of the HRM problems and the
reputation of the company dipped.
Case study #02: The Country Fire Authority (CFA)
The company is a fire and emergency service organization with numerous volunteer
firefighters, supporting and administrative personnel to support the organizational functions.
The main problem with the HRM of the company is leadership inefficiency. This has
manifested in several forms of unprofessional and detrimental activities aimed at women and
other employees in the company. Poor organizational culture, lack of diversity, the poor
relationship between management and workforce are problems in the firm (Bratton & Gold
2017 ). The brutal assault of the 17-year-old woman mirrors the picture of authoritative
management or leadership which does not consider being reactive to the issues brought by the
women. Many other women were also subjected to the bullying, intimidation and physical as
well as sexual assault. Gender discrimination and lack of empathy and apathetic management
were the main unproductive aspects of human resource management in the company. This
firm has also failed to adhere to the workplace guidelines and apparently has not adopted zero
tolerance to the issues discovered in the spate of the assaults and ill-treatment of female
employees. The leadership of the firm is largely lackadaisical (Aswathappa 2013). Poor
consideration about workplace culture as well as women’s low security have largely affected
the working relationship in the company and eventually, the firm is crippled with a problem
such as poor workplace and lack of integrity, organizational underperformance, lack of faith
among stakeholders. A tarnished image of a firm cannot be mended in one go and only
strategic management coupled with better HRM with the cooperation of management itself
could be of large help to rid the firm of this situation. HRM inability of the company is also
clear from the poor show of diversity in the firm. Diversity could have improved the working
culture, working kinship among the employees and their talent demonstration.
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Therefore the HRM function of the company is identified as inadequate in the
implementation of proper working culture, discrimination-free working atmosphere, gender
neutrality, and better working relationship and proper coordination among management and
working people. Therefore the main area of the inability of the company and its HRM part
were lack of focus on complain area such as unsafe working atmosphere within the firm and
irresponsive and irresponsible attitudes of managers to the issue, the victimized women
voiced of. Therefore the core problem of the HRM of Country Fire Authority is lack of
leadership reflected through inadequate organizational capability. These problems have
compounded the problems of lack of cooperation among employees and lack of respect to
female employees and the physical and sexual harassments were the most aggressive forms
of indiscipline in and across the organization.
Case study #03: The Australian Banks
As pointed out by the royal commission, the Australian banking system is plagued with deep-
seated problems which came down heavily on performance measurement, customers’
satisfaction and operational efficiencies of the company. Poor controls of management are
highly apparent from the case study given here and if HR perspectives are taken into thought
in relation to the problems some of these are attributable to them. The findings from the case
study sum up the following in the Australian banking system.
Poor performance measurement of employees, underdeveloped behavioural aspects of
employees, lack of adoption of measures to increase the satisfaction level of customers are
some major aspects of inadequate performance of human resource management of the bank.
HRMs of the banks are skeptical of balanced scorecards and this is often viewed by them as
less credible in setting and tracking organizational objectives. This method of performance
tracking often includes offers of bonuses to employees and as a result, they become short-
term goal oriented while long-term objectives are ignored. Moreover, even employees are
motivated their behavioural aspects do not improve and customers feel largely ignored.
Therefore the banking organizations find difficulties to balance out the performance delivery
and behavioural features of employees. HRM therefore within the banking system is unable
to improve behaviours and attitudes of staffs towards customers even their performance level
is improved. In addition to this, the largest existing problem is the inadequate performance
management since performance measurement is not sufficient under the circumstance of
inability to track performance. Therefore in relation to the given case study, HRM inability is
conspicuous in the failure of people management.
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2. Effects of HR problems on organizational performance, managers, and employees
7-Eleven Stores
The problems and effects related to a case study of 7-Eleven stores are influential on
managers, employees, and performance of the firm.
Employees are less productive because they are intimidated and feel less safe within the
organization due to their complaints are unheard of by their seniors and they are exposed to
threats from their authority. Lack of motivation, less engagement of them and less feeling of
attachment with the firm are big problems. Their hard works are not paid off by the authority
and this is the reason the employer-employee relationship is not apparently visible in the
company because the relationship is poor among them. Moreover, employees have a very
poor perception about their company and are less considerate about the long-term association
with the firm (Nankervis et al.2016)
Managers are the spokesperson of the company and after the scam came under broad
daylight, their reliability among their juniors is highly affected. They are exposed to the wrath
of employees and legal authorities for showing apathy to the problems stated by the victims
of under wages. They are not only subjected to legal scrutiny but also severe actions could be
initiated against them. At the same time, this is also obvious that all of them are not guilty but
their career aspiration is unfulfilled (Anderson, 2013).
Organizational performance of the company is deeply affected. Being a company that has
been hit by a scam, the trust level of employees and other stakeholders is gone and
operational stability of business is low in all measures. Business is grilled under numerous
investigations and even the operation of the business is allowed for the sake of employees,
organizational performance is open to several challenges such as low productivity, lack of
talented employees, interrupted and unbalanced organizational objectives (Brewster, Chung
& Sparrow 2016).
The Country Fire Authority (CFA)
Employees are the direct victims of anarchy in the organization. They are physically and
sexually assaulted. Needless to say that they are least motivated and are traumatized for
several attacks carried on female colleagues. Fear out of unsafe working conditions, lack of
faith in management loom higher in them. Thus they are not motivated to work properly even
if they have requisite knowledge and talent (Marchington et al. 2016). Employees or high
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ranking officials who are less cooperative are unable to understand the cultural direction of
the company given the fact that there is no cultural practice to introduce an amicable working
practice in the firm. lack of diversity practices and autocratic form of leadership have affected
their performance level. According to the case study, the employer-employee relationship is
poor and lack of discipline along with gender discrimination in the workplace are adversely
influential to productivity (Buller & McEvoy, 2012).
Managers of country Fire authority are expected to invoke rules and regulations related to safe
working cultures. Failure in the implementation of an effective organizational culture and lack of
attention on the problems of female colleagues make them responsible for the overall working
conditions and assault on female employees. They are therefore subject to several scrutinies and
their ignorance of the existing problem cannot stand chances of impunity within the legal
frameworks supported by several legislations and authorities controlling the respective legislation.
Managers who are even supportive of better working conditions and congenial working conditions
within the company are skeptical about their future and the magnitude of the problem has a
negative impact on their motivation level leading to the unsatisfactory performance delivered by
them (Chuang & Liao, 2010).
Organizational performance of Country Fire Authority is seriously affected due to prevailing
conditions in the firm. The overall performance of the firm is dependent on the performance of
employees and the attitude of management. Hence the case study scenario indicates the poor
organizational performance of the company in the industry.
The Australian Banks
Behavioural pattern of pattern of employees is not satisfactory although they are trained by their
managers. They are less focused on long-term objectives and are satisfied with the
accomplishment of short-term goals. However, their customer service approach is not effective
and this is the reason a large contingent of customers are dissatisfied as they feel their service
requirement is not fulfilled. Self-actualization of employees is not actually fulfilled due to the
inadequate performance management by the banks. Lack of effective performance tracking keeps
employee performance unchecked and this causes dissatisfaction among performance-oriented
staffs of the banks (Harzing & Pinnington 2010).
Managers are not enabled to adopt and implement performance measurement tools as their banks
are not completely certain of the effectiveness of balanced scorecard and other effective tools to
analyze employees’ performances. If managers’ performance is viewed on basis of soft skill and
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customer services then this can be said that they are not achievers of performance standards set by
their banks as well as perceptions among customers in the Australian banking industry.
Organizational performance of the banks are largely dependent on overall operational excellence
which includes service approach of employees and the performance measurement and volume of
customers satisfaction is the indication of organizational performance. In this respect, the
organizational performance of the Australian banks are not high and improvement is required
(Lengnick-Hall et al. 2011, pp.243-255).
3. Recommendation of long-term and short-term strategic solutions
From the case study analysis, some recommendations are important for the organizations to ensure
immediate and long-term improvement.
Compliance related to wages and workplace is must for the firms. Therefore there is a need for
setting up of compliance committee who will be responsible for immediately to taking measures
for addressing compliance issues. Official assistance requires to be taken from Fair work
ombudsmen and others statutory authorities and periodical report of progress to be submitted
(Scullion and Collings, 2011). Australian banks must take advice from a royal commission to
increase the quality of customer’s service by minimizing chances of fraud (Chelladurai & Kerwin,
2017). Country fire authority must adopt fair working policies and accordingly needs to comply
with all existing legal requirements under several acts. All the firms in the case study must consult
with the relevant legal authorities to fulfill the immediate requirement for gaining back trusts from
stakeholders and employees as well as customers. Similarly, these must address the requirement of
immediate statutory compliance.
For consolidating HRM and its functions the firms could think of adopting AHRI model of
excellence which offers better insights for HR practitioners. As per this model, there are seven
capabilities and ten behaviours that make for better HR practices. The case study organizations
with help of this model can ensure better HR practices (Alfes et al.2013, pp.330-351)
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AHRI Model of Excellence
The important dimensions of the recommended HR model are mentioned below.
Behaviours –I am’
In this segment, HRM of the companies must practice the quality of critical and enquiring
thinking, solutions driven, future orientation by accepting new concepts and innovations. They
must play the role of influencers for making better and effective relationship, courageous to accept
the challenge, must show intelligence and caring attitude. Alongside they need to be credible,
collaborative, issue resolvers (Scullion and Collings, 2013).
These are business driven qualities. These include knowledge about organizational context and
purposes. Knowledge of products and operations, business environment, the capacity to respond to
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external and internal influential factors, knowledge about stakeholders are also important elements
(Briscoe, Tarique, I & Schuler, 2012).
Expert practitioner
In this category application of knowledge, the ability of challenge acceptance, knowledge about
problem solutions, skill display regarding pragmatism and problem-solving skill is important to
improve the performance of overall HM function (Wright &McMahan, 2011).
Strategic architect
In this category firms’ strategies are converted to strategies of HRM. HR functions could be
managed to implement HR strategies. The organizations can design and implement solutions to
HR issues and adapt to most suitable and effective HR practices for improvement of overall
conditions.
Ethical and credible activist
Through ethical insights, the effectiveness of HR practices could be maximized. HRM of the
companies must show organizational values, leadership with maximum integrity. This will help
HRM to manage people and improper and violent behaviours can be completely avoided (Jiang et
al. 2012, pp.1264-1294)
Competencies-‘I Do’
Workforce and workplace designing need to be practiced by HR people. By implementing this, the
workforce could be kept ready to meet the needs of organizations. The organizations need to
utilize workforce analytics to understand the requirement of the strategic and operational
workforce and satisfaction among employees gets maximized. People are enabled to serve the
future requirement.
Stakeholder Mentor and Coach
By practicing this role HR practitioners of the companies build and maintain a relationship with
stakeholders. On this basis, organizational capabilities can be achieved.
Culture and change leader
By practicing this, sustainable and productive organizational culture could be ensured. The change
could be initiated and implemented with frequent monitoring of change process and progress.
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Conclusion
Human resource management based on effective strategy can shape organizational performance.
The above case studies indicate organizational problems that have been analyzed and some
recommendations herein have been mentioned to strengthen HRM aspects of the case study
organizations. Statutory compliance and people management are key concepts of organizational
success. Statutory compliance is a broad term which necessitates the organizations to implement
better working practices, safe and healthy working atmosphere to enable female employees to
work within safe and friendly working settings.
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References
Alfes, K., Shantz, A.D., Truss, C. & Soane, E.C., 2013. The link between perceived human
resource management practices, engagement and employee behaviour: a moderated mediation
model. The international journal of human resource management, Vol. 24 no.2, pp.330-351.
Anderson, V., 2013. Research methods in human resource management: investigating a
business issue. Kogan Page Publishers.
Armstrong, M. & Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Aswathappa, K.E.M.A.L., 2013. Human resource management: Text and cases. Tata
McGraw-Hill Education.
Boxall, P. & Purcell, J., 2011. Strategy and human resource management. Macmillan
International Higher Education.
Bratton, J. & Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C. & Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Briscoe, D., Tarique, I. & Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Buller, P.F. & McEvoy, G.M., 2012. Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, vol.22, no.1,
pp.43-56.
Chelladurai, P. & Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Chuang, C.H. & Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
psychology, vol.63, no.1, pp.153-196.
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Evans, P., 2010. The global challenge: International human resource management. McGraw-
Hill Higher Education.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal, vol.21, no.1, pp.3-13.
Harzing, A.W. & Pinnington, A. eds., 2010. International human resource management.
Sage.
Jiang, K., Lepak, D.P., Hu, J. & Baer, J.C., 2012. How does human resource management
influence organizational outcomes? A meta-analytic investigation of mediating mechanisms.
Academy of management Journal, vol.55, no.6, pp.1264-1294.
Lengnick-Hall, C.A., Beck, T.E. & Lengnick-Hall, M.L., 2011. Developing a capacity for
organizational resilience through strategic human resource management. Human Resource
Management Review, vol.21,no. 3, pp.243-255.
Marchington, M., Wilkinson, A., Donnelly, R. & Kynighou, A., 2016. Human resource
management at work. Kogan Page Publishers.
Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2016. Human resource management:
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Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Wright, P.M. &McMahan, G.C ., 2011. Exploring human capital: putting ‘human’back into
strategic human resource management. Human Resource Management Journal, vol. 21, no.2,
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