HRM742 - Case Study Analysis of Horvath Foods: Leadership Issues

This case study analysis examines the organizational behavior challenges within Horvath Foods, a Canadian food manufacturer. The analysis, written by a student, addresses key areas such as job design, employee motivation, teamwork, and equity, drawing on relevant organizational behavior theories. The student evaluates the company's current HR practices, including issues with salary negotiation, lack of performance appraisals, and the absence of employment equity policies. The analysis explores the application of scientific management principles, the importance of fair treatment, and the role of intrinsic and extrinsic motivation. The analysis also emphasizes the need for effective conflict resolution, team building, and the implementation of equitable compensation and benefit plans to foster a more positive and productive work environment. The student references various academic sources to support the recommendations for improving the company's HRM practices.

CASE STUDY ANALYSIS 1
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CASE STUDY ANALYSIS
Name of the Student
Name of the university

CASE STUDY ANALYSIS 2
Decision making
In 1970 Bob Horvath has started Horvath Foods Limited. This Canadian company manufactures
and distributes food products for Canadian market. The current situation of the organisation is
not upto the mark . There are many HR related issues that are occurring in the organisation .
Executives and Managers are appointed at started salaries which was set primarily on the basis of
their ability to negotiate the salary rather than any specific salary range criteria (Thompson,
2017). No policies are made regarding Employment equity or Pay equity. Performance appraisals
are not provided except the senior managers. The scientific management approach theory
suggests that work must be simplified, specialised and standardized so as to increase efficiency.
Application of scientific management theory of Taylor will minimize errors and increase
productivity by easing the decision making process (Vibert, 2017). The organisation must make
a proper decision on such issues and communicate to the higher management so that there are
some organisational changes and behaviour. The Human resource of the organisation should
make proper check in the skills and abilities of the candidates being hired (Miner, 2015). This
will help Horvath Foods to resolve through setting salary scientifically rather than arbitrarily.
Job Designs
According to Morgeson, Brannick, & Levine, (2019) the organisation should make always have
standard range of salary for all the members being appointed. Job means a particular task being
allotted . The task should be allocated among the employees on the basis of their skills and
abilities. The wrong job provided to wrong person will waste the time as well decrease the
quality of the work. The important and challenging job should be assigned to motivated

CASE STUDY ANALYSIS 3
employees who can identify the task and can perform it confidently. Each and every employee
should have the freedom of working without any kind of fear.
In this Horvath company the employees fear of losing job if it goes against the favour of the
owner. Varieties of skills must be used while doing any work. Employee motivation increases
only when the team member use varieties of skills rather than one set of existing skills to execute
a particular piece of work (Miner, 2015). The employment are working so hard but they are not
getting any performance appraisal until they become manager but this should be removed and
performance appraisal must be provided to each and every employees. Bonus act as a motivation
for the workers but it is provided only to those who are working in sales department on the basis
of the target. Barnard theory of organization implies that authority of manager lies in acceptance
of subordinates rather than hierarchal structure of organization. Hence, mangers should motivate
through monetary incentives and bonuses. This will bring pay parity in Horvath Foods and
equalize the effort of the employees as per compensation.
Work Group and teams
The organisation should always work in a team. According to Costa, Passos, & Bakker, (2015)
the team work always helps to work in a friendly and comfortable atmosphere. Each and every
individual possess some weakness and challenges but when it comes to team work it can be
divided among every members on the basis of their capabilities thus the work can be done in
systematic and scientific manner. Team work always provide different kind of innovative ideas
and development . Different opinions and thoughts are being shared which helps to design the
work more efficiently and effectively(Miner, 2015). The company should focus on providing
quick feedback to the team so that team effort increases which ultimately increases the

CASE STUDY ANALYSIS 4
productivity . When the team works efficiently then the planning and implementation can be
done in much effective manner. The Horvath company should also focus on making small teams
and motivate the employees to work in a group . Employees can wear the jackets having Horvath
food logo on it which creates a sense of cooperation and association with the company among
every employees (Podsakoff, MacKenzie, & Podsakoff, 2016). Team work provides a huge
scope for employees to learn many things. Contingency theory of OB implies that conflicts are
unavoidable but manageable hence an organization should incorporate adequate mechanism to
resolve conflicts of employee dissatisfaction promptly and proactively (Miner, 2015). Resolving
conflicts within a team will bring job satisfaction at a larger scale and initiate greater affinity
with the Horvath Foods. The ideas of individuals and skills are collated together to make the
best possible outcome of it. Mutual work and thoughts provide workplace synergy.
Equity
Equity means equal treatment to every employees. According to Albers, Wohlgezogen, & Zajac,
(2016) no employees should feel superior or inferior. Every employees should be equal in the
eye of the management. In Horvath Food the management has created a rift in equality. There
must be standard salary for every post . It should not be decided on the basis of negotiation as
then it reduces the equality with other employees belong from post having same level of criteria.
It has also been observed that the performance appraisal are provided only to the senior
managers not all employees but this should not be the case . The appraisal will motivate the
employees to work in best manner . Employment equity or pay equity must exist in the
organisation (Abraham & Sheeran, 2017). Flexible benefit plans must be introduced in the
organisation with same-sex benefits in order to bring the company up to current standards. Bonus
must be provided to everyone instead of only sales department on the basis of their targets as

CASE STUDY ANALYSIS 5
bonus instigate the employees to work with sincerity otherwise they become reluctant on
maintain the quality of work . The employees will try to maintain better quality of work only
when better feedback and bonus or appraisals are provided as reward for their hard work.
Power Influence and Motivation
Employees are afraid to organize union because they have heard that the company had no
problem in ceasing operations if the drive was established. The organisation even fears that their
job might get affected if they are not in favour of the owner. Thus this shows that the
environment is not friendly and flexible enough to operate. Motivation act as the driving force
for every employee to work with much confidence and better manner. The modern organisational
behaviour theory is founded by behavioural science .According to Gerhart & Fang, (2015)
motivation is divided into two types they are intrinsic and extrinsic motivation. Extrinsic
motivation means external factors such as the employees must be made timely payment and
promotions should be given and holidays as when required by the employees without much
disagree. Intrinsic means internal factors such as building self-esteem and sel- actualization
needs. It means providing rewards to one ‘s own needs . Such theory must be maintained in
every organisation so that the success is maintained .
According to D'Souza & Gurin, (2016) theorist Douglas MC Gregor has brought organizational
behaviour theory in workplace. There are two theories such as theory X and theory Y where
theory X assumes that the people are lazy and irresponsible but this should not be done until it is
being practically as this will stop the employees to give their best in work . Theory Y assumes
that the people have the capability and desire to take up the work and responsibility. Thus it
allows the workers to excel in their work field (Thompson, 2017). It helps in creating a better

CASE STUDY ANALYSIS 6
cooperation among the employees and management and workers can create more satisfying work
for every individuals that in turn would help to create more stable and effective organisation.

CASE STUDY ANALYSIS 7
References
Abraham, C., & Sheeran, P. (2017). Implications of goal theories for the theories of reasoned action
and planned behavior. In Planned Behavior (pp. 101-122). Routledge.
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An organization
design perspective. Journal of Management, 42(3), 582-614.
Costa, P. L., Passos, A. M., & Bakker, A. B. (2015). Direct and contextual influence of team conflict
on team resources, team work engagement, and team performance. Negotiation and Conflict
Management Research, 8(4), 211-227.
D'Souza, J., & Gurin, M. (2016). The universal significance of Maslow’s concept of self-
actualization. The Humanistic Psychologist, 44(2), 210.
Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance, and
creativity in the workplace: Revisiting long-held beliefs. Annu. Rev. Organ. Psychol. Organ.
Behav., 2(1), 489-521.
Miner, J. B. (2015). Organizational behavior 4: From theory to practice. Routledge.
Morgeson, F. P., Brannick, M. T., & Levine, E. L. (2019). Job and work analysis: Methods,
research, and applications for human resource management. Sage Publications.
Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2016). Recommendations for creating
better concept definitions in the organizational, behavioral, and social
sciences. Organizational Research Methods, 19(2), 159-203.

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Thompson, J. D. (2017). Organizations in action: Social science bases of administrative theory.
Routledge.
Vibert, C. (2017). Theories of Macro-Organizational Behavior: A Handbook of Ideas and
Explanations: A Handbook of Ideas and Explanations. Routledge.