A Report on HR and Financial Related Problems at Holden Company
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This report examines the significant human resource (HR) and financial problems that contributed to the downfall of the Holden Company, a prominent Australian automobile manufacturer. The study identifies critical issues within Holden's HR management, including deficiencies in training and development programs, recruitment processes, and communication strategies. The report highlights the impact of these HR failings on the company's financial performance, leading to operational challenges and ultimately the cessation of manufacturing operations. Theoretical concepts, such as reinforcement theory and learning types, are analyzed in relation to the problems. The report presents a designed research program, findings from secondary data, and practical recommendations for improvements in HR strategies. These recommendations include better recruitment practices, improved training programs, clearer objectives, and enhanced communication, all aimed at revitalizing the company's approach to human capital and financial stability. The report underscores the importance of aligning HR practices with organizational goals to prevent similar failures.

Running Head: HR and Financial related problem in
Holden Company
HR management problem in Holden Company
Name of the Student
Name of the University
Author Note
Holden Company
HR management problem in Holden Company
Name of the Student
Name of the University
Author Note
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1
HR and Financial related problem in Holden Company
Executive Summary
The purpose of the study is to understand the various
reasons that led to the downfall of the company. The HR
related issues in Holden Company has been identified
and properly stated the types of issues that are related to
HR. The main issues in the Holden Company is related to
training and developmental program existing in the
company. There are certain theoretical analysis that has
been stated and few selected theoretical study also has
been highlighted in the study. The application of the
recommended theoretical study could have helped the
company in filling the loopholes. A research program has
been designed. The research has been carried out
regarding the organization’s exact loopholes. The findings
have also been stated. There are some
recommendations and alterations suggested for the HR.
HR and Financial related problem in Holden Company
Executive Summary
The purpose of the study is to understand the various
reasons that led to the downfall of the company. The HR
related issues in Holden Company has been identified
and properly stated the types of issues that are related to
HR. The main issues in the Holden Company is related to
training and developmental program existing in the
company. There are certain theoretical analysis that has
been stated and few selected theoretical study also has
been highlighted in the study. The application of the
recommended theoretical study could have helped the
company in filling the loopholes. A research program has
been designed. The research has been carried out
regarding the organization’s exact loopholes. The findings
have also been stated. There are some
recommendations and alterations suggested for the HR.

2
HR and Financial related problem in Holden Company
Table of Contents
Introduction.......................................................................3
Management Problem.......................................................4
HR related issues..........................................................4
Research Questions..........................................................6
Theoretical Concepts related to HR issues......................6
Reinforcement Theory...................................................6
Theory of learning types................................................7
Designing of the research program..................................7
Analysis of the findings.....................................................8
Alternatives and Recommendations for the HR of the
company............................................................................8
Strategies for HR...............................................................9
Conclusion......................................................................10
References......................................................................11
HR and Financial related problem in Holden Company
Table of Contents
Introduction.......................................................................3
Management Problem.......................................................4
HR related issues..........................................................4
Research Questions..........................................................6
Theoretical Concepts related to HR issues......................6
Reinforcement Theory...................................................6
Theory of learning types................................................7
Designing of the research program..................................7
Analysis of the findings.....................................................8
Alternatives and Recommendations for the HR of the
company............................................................................8
Strategies for HR...............................................................9
Conclusion......................................................................10
References......................................................................11
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HR and Financial related problem in Holden Company
Introduction
The Holden Company is now known as General
Holden Motors. It is an Australian based automobile
brand and previously they were automobile production.
Its headquarters is in Port Melbourne, Victoria. The
company started in 1856, they practiced only
manufacturing then later they entered in the automobile
industry. It was earlier known as General Holden motors
and later in 1998, the company renamed it as Holden Ltd.
It outsourced the body parts of the car to various
renowned companies such as Nissan, Chevrolet, Suzuki
and Opel (Holden.com.au 2019.). The company has
undergone many financial and HR related problems
within the company, which made it experience many
failure in their business. The company had many issues
in their manufacturing department for which they stopped
the manufacturing services in 2017 (ABC News 2019).
The purpose of the study is to highlight the areas of
problems that exists in the company. The HR
management in the company is not very systematic and
organized. Hence, there will be certain strategies,
objectives and recommendations that will be stated for
the company so that can they can cope up with the new
competitors. The focus of the study will be to ensure that
the issues that the company has been experiencing will
be exempted and new policies will be provided for the
company so that they can regain the business structure.
There are various aspects in the domain of HRM that
needs to be considered in an organization such as job
motivation, recruitments, training and policies formulation
and issues in these aspects existing in an organization
can lead the company to downfall in its business. The
HRM problems is also leading to finance related
problems in the organization.
HR and Financial related problem in Holden Company
Introduction
The Holden Company is now known as General
Holden Motors. It is an Australian based automobile
brand and previously they were automobile production.
Its headquarters is in Port Melbourne, Victoria. The
company started in 1856, they practiced only
manufacturing then later they entered in the automobile
industry. It was earlier known as General Holden motors
and later in 1998, the company renamed it as Holden Ltd.
It outsourced the body parts of the car to various
renowned companies such as Nissan, Chevrolet, Suzuki
and Opel (Holden.com.au 2019.). The company has
undergone many financial and HR related problems
within the company, which made it experience many
failure in their business. The company had many issues
in their manufacturing department for which they stopped
the manufacturing services in 2017 (ABC News 2019).
The purpose of the study is to highlight the areas of
problems that exists in the company. The HR
management in the company is not very systematic and
organized. Hence, there will be certain strategies,
objectives and recommendations that will be stated for
the company so that can they can cope up with the new
competitors. The focus of the study will be to ensure that
the issues that the company has been experiencing will
be exempted and new policies will be provided for the
company so that they can regain the business structure.
There are various aspects in the domain of HRM that
needs to be considered in an organization such as job
motivation, recruitments, training and policies formulation
and issues in these aspects existing in an organization
can lead the company to downfall in its business. The
HRM problems is also leading to finance related
problems in the organization.
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HR and Financial related problem in Holden Company
Management Problem
HR related issues
The massive problem that has been identified in
the company is related to Human Resource
management. The company had announced of ceasing
its manufacturing department in 2017 due to the heavy
losses that they had experienced. The decision that the
company had taken led to the unemployment of almost
1500 employees (Holden.com.au 2019). This is a loss
both for the company as well as for the Country. This
mainly occurred due to the loopholes that existed in the
HRM of the company.
Recruitment
The selection of candidates for the particular
domain was not done rightfully. the candidates were not
properly scrutinized. Their capabilities and knowledge
about the domain they are expected to work were not
properly judged.
Training
There was no proper training given to the
employees to understand the modern implements that
their products required to cater the needs of the
customers. The main issue in the company is related to
training. The HR failed in adopting to the various training
programs that could have been conducted in order to
make the employees cater the requirements of the
company (Monks, et al., 2013).
Objectives
The objectives and the aim of the company was
not made clear to the company’s workers. They failed to
understand what exactly they had to deliver to the
company (Dickmann, Brewster and Sparrow, 2016).
HR and Financial related problem in Holden Company
Management Problem
HR related issues
The massive problem that has been identified in
the company is related to Human Resource
management. The company had announced of ceasing
its manufacturing department in 2017 due to the heavy
losses that they had experienced. The decision that the
company had taken led to the unemployment of almost
1500 employees (Holden.com.au 2019). This is a loss
both for the company as well as for the Country. This
mainly occurred due to the loopholes that existed in the
HRM of the company.
Recruitment
The selection of candidates for the particular
domain was not done rightfully. the candidates were not
properly scrutinized. Their capabilities and knowledge
about the domain they are expected to work were not
properly judged.
Training
There was no proper training given to the
employees to understand the modern implements that
their products required to cater the needs of the
customers. The main issue in the company is related to
training. The HR failed in adopting to the various training
programs that could have been conducted in order to
make the employees cater the requirements of the
company (Monks, et al., 2013).
Objectives
The objectives and the aim of the company was
not made clear to the company’s workers. They failed to
understand what exactly they had to deliver to the
company (Dickmann, Brewster and Sparrow, 2016).

5
HR and Financial related problem in Holden Company
Recognizing potential hurdles
The HR must identify the obstacles that can lead
to various challenges in future for the company. The
challenges can be related to the economic and cultural
transformation that occurs in the country (Melton, 2014).
Improper Communication
The communication between the employees and
the authority was not systematic. The transparency in the
flow of communication between the various departments
of the organization was too unorganized (Ulrich, et al
., 2013).
Improper analysis of accountability
The HR of the company did not properly analyze
the challenges that aroused in the market and did not
guide the employees properly to overcome of the issue.
Accepting the challenge without understanding the
consequences led the company to great failures (Noe, et
al., 2017).
Improper resource utilization
The advanced technologies were implemented in
the process of the company, which led to heavy
capital expenditure of the company. The
implementation of the advanced machineries
should be done after analyzing the cost and the
proper methods that are required to operate the
machineries.
Examining the impact
The HR of the company is responsible to analyze
the impact of the challenges on the company and take
HR and Financial related problem in Holden Company
Recognizing potential hurdles
The HR must identify the obstacles that can lead
to various challenges in future for the company. The
challenges can be related to the economic and cultural
transformation that occurs in the country (Melton, 2014).
Improper Communication
The communication between the employees and
the authority was not systematic. The transparency in the
flow of communication between the various departments
of the organization was too unorganized (Ulrich, et al
., 2013).
Improper analysis of accountability
The HR of the company did not properly analyze
the challenges that aroused in the market and did not
guide the employees properly to overcome of the issue.
Accepting the challenge without understanding the
consequences led the company to great failures (Noe, et
al., 2017).
Improper resource utilization
The advanced technologies were implemented in
the process of the company, which led to heavy
capital expenditure of the company. The
implementation of the advanced machineries
should be done after analyzing the cost and the
proper methods that are required to operate the
machineries.
Examining the impact
The HR of the company is responsible to analyze
the impact of the challenges on the company and take
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HR and Financial related problem in Holden Company
the precautionary measures to safeguard the company
from heavy losses (José, et al., 2013).
The main issue related to HR in the chosen
company is due to inefficient training programs. Adequate
and proper training programs can be conducted in order
to eradicate the issues within the company.
Research Questions
What are the training related issues in the company?
What are the training programs that the company could
have adopted?
How the employees during the training program can be
motivated?
How the HR can adopt various training methods and
motivate the employees at the same time?
Theoretical Concepts related to HR issues
There are various concepts that are related to the
development and training programs for the employees.
The HR of the company must implement such theoretical
ideologies in their company in order to make the
employees capable enough to cater to the requirements
of the company. Through this concept application, the
employees will be able to polish their skills and
understand the ne machineries properly (Harasim, 2017).
Reinforcement Theory
In this type of the theory, the group of people or
the individuals tend to develop the skill that they are
lacking. The economist named Skinner initiated the
theory of reinforcement and proposed that the
development and the training programs should be made
according to the aims and objectives of the company so
that the employees can easily achieve and learn the
techniques to perform their work in an organized manner.
The development and the training program will help the
employees to provide productive outcome to the
HR and Financial related problem in Holden Company
the precautionary measures to safeguard the company
from heavy losses (José, et al., 2013).
The main issue related to HR in the chosen
company is due to inefficient training programs. Adequate
and proper training programs can be conducted in order
to eradicate the issues within the company.
Research Questions
What are the training related issues in the company?
What are the training programs that the company could
have adopted?
How the employees during the training program can be
motivated?
How the HR can adopt various training methods and
motivate the employees at the same time?
Theoretical Concepts related to HR issues
There are various concepts that are related to the
development and training programs for the employees.
The HR of the company must implement such theoretical
ideologies in their company in order to make the
employees capable enough to cater to the requirements
of the company. Through this concept application, the
employees will be able to polish their skills and
understand the ne machineries properly (Harasim, 2017).
Reinforcement Theory
In this type of the theory, the group of people or
the individuals tend to develop the skill that they are
lacking. The economist named Skinner initiated the
theory of reinforcement and proposed that the
development and the training programs should be made
according to the aims and objectives of the company so
that the employees can easily achieve and learn the
techniques to perform their work in an organized manner.
The development and the training program will help the
employees to provide productive outcome to the
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HR and Financial related problem in Holden Company
company after learning the procedures (Corr and Cooper,
2016). In this theory, it is also stated that the employees
must be provided with some token of appreciation from
the company, which can be both financial and non-
financial. The HR of the Holden Company could have
implement this type of developmental and training theory
in their process. The application of this theory could have
helped the company in retaining the employees. The
employees could have been taught the proper operational
techniques and the correct methods that were needed to
function the machineries. The practice of the employees
working on the machineries during the time of the
developmental and training program could have helped
the company in gaining the maximum productivity from
them (Akers and Jennings, 2015).
Theory of learning types
In this type of theory, a group of people or the
individuals can develop their intellectual skills.
Candidates often lack in intellectual skills as they formal
training are never provided to them. Gagne proposed this
theory, which clearly states that it is important for any
employee to have adequate intellectual capabilities. The
cognitive, information, attitude, verbal and intellectual
skills are developed after undergoing this theory of
learning. The companies can implement this type of
learning theory so that communication and interpersonal
skills of the employees develops (Ulrich, et al., 2013).
This will help the employees in developing their
understanding skills along with vocabulary capabilities.
Holden Company could have implemented this type of
development and training program so that the employees
could have found the instructions and the handling of the
machineries in simpler way. The communication barrier
that became one of the factors in mass unemployment
from the company could have been mended (Buscombe,
2013).
HR and Financial related problem in Holden Company
company after learning the procedures (Corr and Cooper,
2016). In this theory, it is also stated that the employees
must be provided with some token of appreciation from
the company, which can be both financial and non-
financial. The HR of the Holden Company could have
implement this type of developmental and training theory
in their process. The application of this theory could have
helped the company in retaining the employees. The
employees could have been taught the proper operational
techniques and the correct methods that were needed to
function the machineries. The practice of the employees
working on the machineries during the time of the
developmental and training program could have helped
the company in gaining the maximum productivity from
them (Akers and Jennings, 2015).
Theory of learning types
In this type of theory, a group of people or the
individuals can develop their intellectual skills.
Candidates often lack in intellectual skills as they formal
training are never provided to them. Gagne proposed this
theory, which clearly states that it is important for any
employee to have adequate intellectual capabilities. The
cognitive, information, attitude, verbal and intellectual
skills are developed after undergoing this theory of
learning. The companies can implement this type of
learning theory so that communication and interpersonal
skills of the employees develops (Ulrich, et al., 2013).
This will help the employees in developing their
understanding skills along with vocabulary capabilities.
Holden Company could have implemented this type of
development and training program so that the employees
could have found the instructions and the handling of the
machineries in simpler way. The communication barrier
that became one of the factors in mass unemployment
from the company could have been mended (Buscombe,
2013).

8
HR and Financial related problem in Holden Company
Designing of the research program
The research program that can be appropriate for
Holden Company is survey that will help to understand
the position of the existing employees and the exact or
proper loophole that still exists in the management of the
company. The aim of the research program is to
understand the main reason behind the massive failure of
the company, which also led to financial downfall of the
company. The research program will be helpful to
understand the reason that led to termination of so many
employees from the company. The research program will
not only be helpful in identifying the loopholes of the
company but also the identification of these drawbacks
will help the company to apply certain strategies or
theories that will help in finishing the drawbacks.
Analysis of the findings
The findings that has been obtained is from the
secondary data. The data of the research program is
derived from various secondary sources such as internet,
news channels and from the official website of the
company. The findings clearly states that the huge
financial losses that the company has experienced is due
to their unsystematic and unorganized management. The
HR of the company has not conducted any type of
training and developmental program for the employees
that will help them to learn and adapt to the changes that
was required for both the company and the
transformational period in the automobile industry of
Australia. The new machineries that was implemented
the company; the employees hardly knew the procedures
of operating them and this led to poor productivity from
the employees. The research program also revealed that
the employees were not properly encouraged and
motivated or better performance, which made them lose
their concentration and dedication towards their work.
HR and Financial related problem in Holden Company
Designing of the research program
The research program that can be appropriate for
Holden Company is survey that will help to understand
the position of the existing employees and the exact or
proper loophole that still exists in the management of the
company. The aim of the research program is to
understand the main reason behind the massive failure of
the company, which also led to financial downfall of the
company. The research program will be helpful to
understand the reason that led to termination of so many
employees from the company. The research program will
not only be helpful in identifying the loopholes of the
company but also the identification of these drawbacks
will help the company to apply certain strategies or
theories that will help in finishing the drawbacks.
Analysis of the findings
The findings that has been obtained is from the
secondary data. The data of the research program is
derived from various secondary sources such as internet,
news channels and from the official website of the
company. The findings clearly states that the huge
financial losses that the company has experienced is due
to their unsystematic and unorganized management. The
HR of the company has not conducted any type of
training and developmental program for the employees
that will help them to learn and adapt to the changes that
was required for both the company and the
transformational period in the automobile industry of
Australia. The new machineries that was implemented
the company; the employees hardly knew the procedures
of operating them and this led to poor productivity from
the employees. The research program also revealed that
the employees were not properly encouraged and
motivated or better performance, which made them lose
their concentration and dedication towards their work.
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HR and Financial related problem in Holden Company
Alternatives and Recommendations for the
HR of the company
The alternatives and the recommendations of the
HR for Holden Company are as follows:
The HR of the company could have hired the best
and capable employees for the company.
The HRs could have employed the candidates with
good experienced or have a proper concept about
the domain of the industry.
The company could have conducted proper
interviews in which they could have involved all the
necessary aspects that would have helped them to
understand the capability of the candidates and
chose accordingly.
The HRs could have conducted proper training of
the candidates ensuring that they are well
accustomed with the protocols and the procedure
that the company follows and the proper
operational capabilities that was required for
handling the machineries. The candidates should
have been trained to understand the requirements
of the customers and the companies to cater them
accordingly.
Strategies for HR
The HR strategy of a company encircles proper
management of the human capital in order to have proper
plan management and meet the aims of the company.
The job of the HR is to provide adequate knowledge to
the employees about the objectives and goals of the
company. The HR must understand the requirements of
the company and cater them accordingly. The HR must
analyze the capital loss that the company can experience
due to the implementation of the advanced machineries.
Hence, he/she must consult with the management of the
HR and Financial related problem in Holden Company
Alternatives and Recommendations for the
HR of the company
The alternatives and the recommendations of the
HR for Holden Company are as follows:
The HR of the company could have hired the best
and capable employees for the company.
The HRs could have employed the candidates with
good experienced or have a proper concept about
the domain of the industry.
The company could have conducted proper
interviews in which they could have involved all the
necessary aspects that would have helped them to
understand the capability of the candidates and
chose accordingly.
The HRs could have conducted proper training of
the candidates ensuring that they are well
accustomed with the protocols and the procedure
that the company follows and the proper
operational capabilities that was required for
handling the machineries. The candidates should
have been trained to understand the requirements
of the customers and the companies to cater them
accordingly.
Strategies for HR
The HR strategy of a company encircles proper
management of the human capital in order to have proper
plan management and meet the aims of the company.
The job of the HR is to provide adequate knowledge to
the employees about the objectives and goals of the
company. The HR must understand the requirements of
the company and cater them accordingly. The HR must
analyze the capital loss that the company can experience
due to the implementation of the advanced machineries.
Hence, he/she must consult with the management of the
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10
HR and Financial related problem in Holden Company
company and find alternatives or proper strategies that
will help the company in both implementing the
machineries and not experiencing the loss at the same
time. The HR must motivate the employees properly so
that they find interest in working and can properly
concentrate (B'far, et al., 2017). The HR must formulate
the policies of the company after consulting it with the
authorities, circulate them amongst the employees and
supervise if they are being properly followed. The HR
must be proactive in conducting appreciation programs
for the employees. The HR strategy must be aligned with
the strategies of the company in order to achieve the
goals of the company. The HR must supervise that the
communication between the authority and the employees
is transparent. The HR must respond to the grievances of
the employees and seek justice to them. The HR must
maintain a healthy environment within the company.
Conclusion
The conclusion from the above study can be
derived that the HR Company has led it to many failures
both within the company and in the markets. The
strategies that the company’s HR has applied were not
very appropriate to gain good revenue from the market.
The training and development program was not
conducted for the employees due to which they could not
cope up with the new machineries. There are many
issues that are related with the HR and these issues can
lead the company to severe downfalls, but the main issue
in the Holden Company is related to inappropriate
development and training program. There has been no
training and developmental program for the employees,
which has led to the downfall of the company. The study
contains many theoretical concepts that could have been
for the chosen company. Research program has been
conducted and designed and the findings have been
stated in the content of the study. Some
recommendations and alterations have been provided in
the study for the betterment of the company.
HR and Financial related problem in Holden Company
company and find alternatives or proper strategies that
will help the company in both implementing the
machineries and not experiencing the loss at the same
time. The HR must motivate the employees properly so
that they find interest in working and can properly
concentrate (B'far, et al., 2017). The HR must formulate
the policies of the company after consulting it with the
authorities, circulate them amongst the employees and
supervise if they are being properly followed. The HR
must be proactive in conducting appreciation programs
for the employees. The HR strategy must be aligned with
the strategies of the company in order to achieve the
goals of the company. The HR must supervise that the
communication between the authority and the employees
is transparent. The HR must respond to the grievances of
the employees and seek justice to them. The HR must
maintain a healthy environment within the company.
Conclusion
The conclusion from the above study can be
derived that the HR Company has led it to many failures
both within the company and in the markets. The
strategies that the company’s HR has applied were not
very appropriate to gain good revenue from the market.
The training and development program was not
conducted for the employees due to which they could not
cope up with the new machineries. There are many
issues that are related with the HR and these issues can
lead the company to severe downfalls, but the main issue
in the Holden Company is related to inappropriate
development and training program. There has been no
training and developmental program for the employees,
which has led to the downfall of the company. The study
contains many theoretical concepts that could have been
for the chosen company. Research program has been
conducted and designed and the findings have been
stated in the content of the study. Some
recommendations and alterations have been provided in
the study for the betterment of the company.

11
HR and Financial related problem in Holden Company
HR and Financial related problem in Holden Company
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