HRM Analysis: Pandora's Restructuring, Employee Impact, and Strategies

This report analyzes Pandora's decision to lay off 5% of its employees and the subsequent organizational restructuring. It examines the impact of this decision on employee morale, organizational commitment, and employer branding. The report also discusses relevant HRM theories, such as the Resource Based View and Maslow's hierarchy of needs, to understand the implications of restructuring on employee motivation and productivity. It assesses the effectiveness of Pandora's HRM practices in managing the changes and maintaining a positive brand image, highlighting the importance of two-way communication and employee motivation during organizational transitions. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments, to support students' academic endeavors.

Running head: HUMAN RESOURCE MANAGEMENT AND THEORIES
Human Resource Management and Theories
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1HUMAN RESOURCE MANAGEMENT AND THEORIES
A recent media event hinted at Pandora’s lay off 5 percent of its employees in order to
save $45 million annually as reported on January 4, 2018, in Variety online portal. The massive
elimination has no doubt set a particularly bad example to the other employees aspiring to start
off their careers with Pandora (Spangler, 2018). Market analysts have pointed towards their poor
management system which is propelling them to incorporate the step in order to save operational
costs. One of the most revolutionized aspects would be that the company would now be
concentrating more in technology and innovation. One of the essential concepts illustrated as a
result of Pandora’s decision is restructuring of employees in order to adjust to the first changing
pattern of consumer demands. However, the restructuring of employees would help them to
partner and promote their products in a more efficient manner to increase its global sale.
According to researchers, employee restructuring can have an adverse impact on employer
branding which conveys career expectations to the outer community in the light of work,
employer relationships and the like. It is also a breach in the organizational commitment. The
concept restructuring of employees is inter-related with the organizational theory which is
concerned with the internal proceedings of an organization for instance whether it is acting in
sync with its long-term organizational goals (Shah, Irani & Sharif, 2017). Results have shown
that restructuring is crucial to implement new programs and reshuffle priorities, modify growth
strategy and grow revenue.
A number of HRM issues come to the forefront at this stage in the organizational
culture of Pandora which is the de-motivation of the remaining employees and a diminished
sense of commitment towards the organization. However, the same can led to a number of
unfavorable results like employee disagreement and intolerance to adapt to the new change. It

2HUMAN RESOURCE MANAGEMENT AND THEORIES
can shrink the morale of the employees, the operation of which ensures for excellent employee
performance eradicating hindrances like absenteeism from job and etc. the Resource Based View
nonetheless emphasizes on the need for restructuring in order to provide the organization with a
competitive advantage in the market (Hitt, Carnes & Xu, 2016). The resources are after all
allocated to a firm in order to add profit and make the performance more success driven.
Organizational restructuring that has taken place inside the organizational structure of
Pandora was implanted to improve the productivity and effectiveness. Organizational
restructuring within Pandora gave birth to a swift organizational re-design and the prevention of
loss of amenities. The strategy has a resounding global success especially in the U.S market,
where it is reported that around 3 million jobs have been eliminated annually to gain competitive
market. Likewise, senior officials at Pandora hope the restructuring will help them to invest more
to facilitate growth and adapt strategic policies to act swifter in times of crisis.
It is the responsibility of the HRM to ensure that the current action of downsizing the
company is not affecting the brand image or the productivity rate of Pandora. It has a crucial
impact on the internal branding and on the intricate relationship between individual career needs
and organizational relationships. The concept of restructuring also has an impact on the
relationship between the employer and the employee which misbalances the implied obligations
on the part of both parties.
However, the fact that Pandora’s revenue growth has been a sprawling success, as
Pandora has witnessed improvement in market share by 1.89 percent only hints at the
organization’s efficient HRM practices and strategies (Forbes Welcome, 2018):

3HUMAN RESOURCE MANAGEMENT AND THEORIES
Effective two-way communication- a two way communication process fosters communication as
it ensures a prompt response of employee feedback and complaints by the management
authorities. The flow of information and adequate response between the seniors and subordinates
gives room for clarification and respect from the end of both parties.
Employee motivation- employee motivation is directly proportional in increasing productivity,
after all they are the firm pillars on which the success of an organization depends (Omolo, 2015).
According to Maslow theory of motivation, he has developed a hierarchy that influences an
employee’s productivity, they are physiological, security, social needs, respect and trust and
personal development (Anderson, 2014).
Pandora has implemented these strategies to extract the best possible results as a
consequence of restructuring of employees. The above stated practice of restructuring can indeed
have a controversial outcome if the above theories are not properly implemented in the
organizational framework. It can cause the company a loss of talent, loss in key information and
knowledge due to downsizing and a possible breakdown of trust and confidence. Eliminating
manpower should be a last resort of company in order to maintain its brand image and employee
loyalty.

4HUMAN RESOURCE MANAGEMENT AND THEORIES
Reference List:
Anderson, A. (2014). Maslow's Hierarchy of Needs. The Prairie Light Review, 36(2), 7.
Forbes Welcome. (2018). Forbes.com. Retrieved 5 February 2018, from
https://www.forbes.com/sites/greatspeculations/2014/07/22/pandora-earnings-preview-
growing-market-share-and-improving-monetization-in-focus/#23eab2adada3
Hitt, M. A., Carnes, C. M., & Xu, K. (2016). A current view of resource based theory in
operations management: A response to Bromiley and Rau. Journal of Operations
Management, 41(10), 107-109.
Omolo, P. A. (2015). Effect of motivation on employee performance of commercial banks in
Kenya: A case study of Kenya Commercial Bank in Migori County. International journal
of human resource studies, 5(2), 87-103.
Shah, N., Irani, Z., & Sharif, A. M. (2017). Big data in an HR context: Exploring organizational
change readiness, employee attitudes and behaviors. Journal of Business Research, 70,
366-378.
Spangler, T. (2018). Pandora Laying Off 5% of Its Employees. Variety. Retrieved 5 February
2018, from http://variety.com/2018/digital/news/pandora-layoffs-5-percent-workforce-
1202683446/