Report: HRM Issues, Solutions, and Risk Analysis for Cleethan Clothing

This report examines the Human Resource Management (HRM) issues facing Cleethan Clothing, including low productivity, decreased employee retention, increasing carelessness, increasing grievances, and absenteeism. The report identifies motivation, retention, and absenteeism as major problems, analyzing them through the lens of motivation theories (Maslow's hierarchy) and organizational culture models (Handy's model). It proposes specific HRM process improvements, such as understanding employee needs, establishing a person culture, and addressing working conditions. The report outlines costing and responsibilities for each proposed solution and includes a risk register assessing potential challenges, particularly regarding changes in organizational culture. The report uses literature review to support the claims, and offers a comprehensive approach to improving HRM practices within the company. The report also highlights the importance of addressing employee needs and creating a positive work environment to improve overall performance and profitability.

Cleethan Clothing

Table of Contents
Cleethan Clothing........................................................................................................................1
Outline of the primary HRM issues in Cleethan Clothing...........................................................3
Proposal to Improve HR processes at Cleethan Clothing............................................................4
Costing and Responsibilities........................................................................................................6
Risk Register................................................................................................................................6
REFERANCES............................................................................................................................8

Outline of the primary HRM issues in Cleethan Clothing
There are various issues which Cleethan Clothing is facing and among all of them
major issues which Cleethan Clothing is facing are
Low productivity, there are various problems which are reducing the productivity and such
problems are motivation of employees.
Decreased retention of employees is major problem and because of this HRM have to repeat
its efforts which includes identification of talent and recruiting them in the company.
Increasing carelessness of employees which increasing problems at the Cleethan Clothing
such as duplication of work, mistakes in the work (Sheehan, 2019). This problem is occurring
because employees are not paying attention to their work and are being negligent about their
roles and responsibilities in the company.
Increasing Grievances of the employees. The rate of grievances of employees are increasing
and this also a big problem as along with HRM which need to deal with all these grievances
the employees also have negative impact of these and their work gets affected.
Increasing absenteeism. Absenteeism of employees at
All these HRM issues are being faced by the Cleethan Clothing. These are resulting in
increased cost of the company and also reduction in profitability.
When employes are not able to perform properly and as per the standard than the performance
of Cleethan Clothing also goes down.
Among all these major problems are Motivation of Employees, reducing retention and
Increasing absenteeism.
These problems can be discussed using the theories of motivation, morale and theory of
organization culture.
Literature Review
As per the view of Yanjuan Zhang, (2016) there are various reasons and factors behind
turnover intention of the individual. The factors are personal factors, organisational and work
factors and Social and economic factors. In this the factor of organisation and work factors
includes organisation and its culture. This culture decides the pattern of work at organisation
and in case the pattern is not suitable and employee friendly than employees intends to leave

the organisation. This view have been supported by Ehrhart and Kuenzi, (2017) they state that
culture of organisation is most important aspect which affect turnover intention of employees.
There are culture which give more importance to rules and regulations and this is why chances
of turnover of employees are higher. The reason is that no one likes to follow rules and
regulations more than a limit.
Because of these issues cost of organization is increasing and its profitability is negatively
affecting.
Proposal to Improve HR processes at Cleethan Clothing
To improve the process related to problem which is Motivation,
Here HR can use the theory of motivation there are various theories for motivation which can
guide organisation to motivate its employees and carry out such processes.
Maslow's hierarchy of need is one widely used and applied theory of motivation (Fallatah and
Syed, 2018). Cleethan Clothing can also use this theory to understand the needs of its
employees so that they can be motivated to perform and perform as expected and as per the
standard.
The proposal to Improve HR processes are as follows-
To observe and identify needs of the employees.
In this organisation can divide its employees on the basis of various needs which are-
Physiological
Safety
Social
Self- Esteem
Self-Actualization
To understand needs of employees company can identify this through observation and even
this can be understood through the position and work of the employees in the Cleethan
Clothing. People who are working at lowest level in the organisation are having physiological
and those who are working at clerical level are having safety and other needs are increasing as
the level of the worker and employee increase in the Cleethan Clothing.
Now what company can do with people at different level of motivational needs.

People who are having physiological needs company can give such people enough
remuneration so that they can fulfil such needs and remain motivated and perform and do not
leave the company.
People who are at the level of safety needs should be provided security in monetary form and
non monetary form. Such as insurance (Wilhelm, 2016).
Employees who are having social needs should be allowed to work I team so that they can
socialize and perform in Cleethan Clothing.
Employees at self-esteem and self-actualization level should be allowed to work which is
challenging and people like to do that kind of task.
This way Cleethan Clothing can manage the problem of motivation in their organisation.
Another problem which is being faced by Cleethan Clothing is problem of Retention.
This is the problem that turnover of employees in Cleethan Clothing is increasing. This is
because culture of Cleethan Clothing is not employee friendly. In this theory of culture can be
applied. Handy's model of Organisation Culture is one of the widely used culture model. As
per this model there are four classes of culture Power, Role, Task and person culture.
Power culture means a culture in which organisational power is held by some selected people
and other people are required to do what those people in power decides. In this employees are
judged on the basis of what they achieve rather than what they do.
Role Culture in Organisation are based on rules. In this organisation are highly controlled and
all the people in the organisation know their rules and regulations. In this power in
organisation is determined by their role in the organisation.
Task Culture is when teams are formed to complete specific project or address specific
problems.
Person Culture refers to culture in which all the individuals in the organisation see themselves
superior and important to organisation (Fernández-Muñiz, Montes-Peón and Vázquez-Ordás,
2017). This theory is for people at work.
As there is high turnover of employees in the organisation they should establish and follow a
culture which is person culture so that employees can see themselves superior and important to
the organisation this will increase their motivation and retention.

High Absenteeism is also a problem which Cleethan Clothing is facing. Absenteeism
refers to unavailability of employees on the time when they are scheduled to work. There are
various reason because of that employees avoid coming to their workplace such as work and
working condition, value of the work employees see, this is important reason as only when
people see that their work is important and worth doing they will come to workplace.
To solve this problem in Cleethan Clothing, company can conduct an survey to find
out what are the factors which motivate individuals to come to work and what are the factors
which resist individual to come to work.
Company can find out and work on the issues which individuals are facing at Cleethan
Clothing and which resist them to work.
In this some issues which are working as barriers so that individual come to work are work
and working conditions.
Work is not really possible for company to change but they can add some factors which make
their work interesting (Fallatah and Syed, 2018). Working conditions should be definitely
improved by company so that individuals can work and work efficiently.
Costing and Responsibilities
The first plan which includes identification and understanding the factors of
motivation.
This plan includes costing as increasing pay and remuneration of individuals at physiological
and safety needs. This is responsibilities of HR and senior manager to identify and later
management is responsible for taking decisions.
Another plan which includes establishing person culture this does not include any
costing but management plays most important role in this as they have to sacrifice their
position and decision-making power to some extent.
Lastly, the plan and proposal to deal with absenteeism which includes improvement of
working condition. This is the responsibility of HR to find out what are the faults in working
condition and how they can be improved. The costing involved in this is related to
improvements and expense of those improvements.

Risk Register
There are no risks involved in any of the proposal.
The only risk which is involved in second proposal for Issue 2 which is related to change in
the organisational culture. In this individuals are given environment and culture in which they
feel that they are superior and important in organisation this definitely involves management
to sacrifice their decision-making power and their authority. This may disturb decision-making
in the Cleethan Clothing. This problem can be considered RED.

REFERANCES
Books and Journals
Ehrhart, M.G. and Kuenzi, M., 2017. The impact of organizational climate and culture on
employee turnover. Pulakos, J. Passmore, & C. Semedo (Eds.), The Wiley Blackwell
Handbook of the Psychology of Recruitment, Selection and Employee Retention,
pp.494-512.
Fallatah, R.H.M. and Syed, J., 2018. A Critical Review of Maslow’s Hierarchy of Needs.
In Employee Motivation in Saudi Arabia. (pp. 19-59). Palgrave Macmillan, Cham.
Fernández-Muñiz, B., Montes-Peón, J. M. and Vázquez-Ordás, C. J., 2017. The role of safety
leadership and working conditions in safety performance in process
industries. Journal of Loss Prevention in the Process Industries. 50. pp.403-415.
Sheehan, C., 2019. Contemporary HRM Issues in the 21st Century.
Wilhelm, P., 2016. THE IMPORTANCE OF COMMUNICATION IN LEADERSHIP
CULTURE.
Zhang, Y., 2016. A review of employee turnover influence factor and countermeasure.
Journal of Human Resource and Sustainability Studies. 4(2). pp.85-91.