Addressing HRM Problems: Hospitality, Aged Care, and Banking

This report analyzes critical Human Resource Management (HRM) problems across the hospitality, aged care, and banking industries. It identifies issues such as underpayment, overwork, inadequate training, and poor working conditions, specifically referencing examples like Grill’d and Neil Perry's restaurant in hospitality, Bupa and other aged care centers, and Westpac and Commonwealth Bank of Australia in banking. The report evaluates the failures of HRMs in managing employees and the overall firms, highlighting the negative impacts on employee morale, financial stability, and customer trust. Recommendations are provided for HR managers to address these issues, including auditing payment records, improving working conditions, providing adequate training, and ensuring compliance with labor laws. The report also discusses the application of the AHRI model, focusing on the capabilities of expert practitioners, culture and change leaders, and business-driven approaches to solve these HRM challenges, ultimately aiming to enhance employee satisfaction and organizational success.

HRM Problems in Organizations
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Executive Summary
The motive of the report is to the key issues of the firms within the banking, hospitality as well
as aged care industries. It has discussed the failure of the HRMs in the firms to manage the
employees and the overall firms. It has also recommended some suggestions to the HRMs to
solve the issues of the companies. AHRI model has also been used for discussing the skills of the
HR managers in the context of the managing the problems by using their capabilities. Three
capabilities such as expert practitioner, culture and change leader and business driven has been
explained in this report.

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Table of Contents
Introduction......................................................................................................................................3
Hospitality........................................................................................................................................3
Aged Care........................................................................................................................................5
Banking............................................................................................................................................6
Conclusion.......................................................................................................................................7
References......................................................................................................................................10

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Introduction
The Human Resource Management (HRM) have a significant strategic role to manage
employees as well as workplace environment and culture. It focuses on enhancing and
maximizing employees’ performance to accomplish the organization’s objectives. HRM
confirms proper and the smooth implementation of processes and strategies in the organizations
and keep balance between employees’ satisfaction and needs related to the jobs and the
organizations’ success and their capabilities to achieve their objectives. It also ensures good
relationships among staffs, between the organizations and staffs, and among the organizations in
the communities. So, the failure of the HRMs can lead non-achievement of the full potential of
the organizations and their employees.
The report will analyze key problems of organizations in hospitality, aged care and banking
industries. It will also evaluate failure of HRMs in managing the organizations, employees and
provide recommendations which will the HRMs to effectively address the issues which are
evident on these organizations. Moreover, it will discuss the application of AHRI model for
explaining the ways the HRMs can solve the issues in these organizations. This model consist of
seven vital capabilities of HRMs. This report will choose three capabilities such as expert
practitioner, culture and change leader and business driven.
Hospitality
Key Problems in the Organizations
There are several issues found in the hospitality industry as evident from the problems in
restaurants such as Grill’d and Neil Perry's restaurant. Underpayment and over work are some of
the issues noticed in these restaurants. The staffs of the restaurants have to work for several
hours but are not paid adequately. Most of them have to work for almost seventy hours each
week such as twenty hours shift from 4 am to mid-night over successive days without any break
for twelve dollars per hour (Neil Perry's Restaurant is Being Sued after Chef Claims to Work 70
Hours for $12 an Hour, 2019). Another problem is training program of the restaurants where the
employees considered the training program as a wage theft. The employees of the restaurants
have to complete the training in eighteen months (Ferguson, 2019). They also considered lack of
training, low wages as well as working conditions as am exploitation to them. If some staffs have

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complained about the work conditions and underpayment, they have been bullied and pressured
for resigning from their jobs.
Failure of HRMs
The HRMs of the restaurants failed to protect the staffs from unfair, illegal as well as unethical
practices in their places of work. Various issues has been captured and presented that occurred,
and focused primarily on the challenging nature of hospitality works. It has been observed
largely that states that unless the basic needs of the staffs are satisfied, motivational aspects like
opportunities for progress would have no effects, and leave the employees unhappy and
unmotivated (Macdonald, Bentham and Malone, 2018). The HRM failed to consider the issues of
underpayment of the staffs of the restaurants along with the poor work environment. Work
conditions experienced by staffs of the restaurants indicates that their motivation to work has
been severely slowed down due to disappointment with their wages, their managers, as well as
their work circumstances. The HR managers also failed to organize for a short-term training
program since the eighteen months training was like an exploitation of the staffs (Triatmanto,
Wahyuni and Respati, 2019).
Recommendations
It is recommended to the HR managers of the restaurants to audit the records of payment for the
whole employment period of the underpaid staffs of the restaurants, relying on the cause of
underpayment. They must arrange for back paying the staffs as soon as possible. It is also
suggested to HR managers to take proper measures to ensure better working conditions and
protect the staffs from abusive circumstances, offer guidance during challenging times and assist
for maintaining a positive working culture in the restaurants (Martins, Silva and Silva, 2017). It
is also proposed to them to consider appropriate steps to make the training program for a short
period of time and not long for eighteen months and make it enjoyable and educational so that
the employees can enjoy the program and gain significant knowledge and skills necessary for
working the restaurants and also for the future. HRM confirms proper and the smooth
implementation of processes and strategies in the organizations and keep balance between
employees’ satisfaction and needs related to the jobs and the organizations’ success and their
capabilities to achieve their objectives.

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Aged Care
Key Problems in the Organizations
There are several issues found in the aged-care industry as evident from the problems in in Bupa
and several other aged care centers. The aged care homes treated their staffs as indentured
servants (Gollan, 2019). Most of the staffs have complained of wage theft cases which have
pushed the aged care workers towards poverty. The work environment is also extremely poor
where the workers have to sleep on the floor, couches or in the garages and hallways. They often
have to live in their workplaces (Tyler Dymock and Henderson, 2016). The aged care workers
often feel trapped as well as desperate. Most of the aged care staffs are often exploited and rarely
given any day-off. They have to work six days in a week and given minimum salaries. It is the
issue of over work and underpayment in the aged care centers. They are not allowed to leave for
their homes without the permission of their bosses (Rodwell, 2018). The aged care workers are
frequently abused by their bosses.
Failure of HRMs
The HRMs failed to protect the aged care employees from unfair, as well as illegal practices in
their places of work. They failed in meeting all the safety and health standards in the workplaces
(Connolly and Stewart, 2019). The HR managers also failed to address the issues of under-
staffing as well as sexual and physical assaults of the elderly patients. The HRMs also failed to
solve the issues of untrained aged care staffs and shortages of employees in most of the aged care
facilities (Flores, Posthuma and Campion, 2016). They also failed to prevent the mistreatment of
the aged care workers in their workplaces. The managers of the HR department of the aged care
centers failed to notice that the training requirements for supervisors and employees of aged care
homes are weak.
Recommendations
It is suggested to HR managers to take proper measures to ensure better working conditions and
protect the staffs from abusive treatments from their bosses. Since the aged care employees are
paid poorly but are made to work overtime, it is recommended to HR managers to take relevant
measures to ensure that the staffs of the aged care centers are paid properly by the owners of the
aged care homes (Dolors Celma-Benaiges, Martínez-García and Raya, 2016). As the training

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requirements for supervisors and employees of aged care homes are weak, it is advised to the
HRMs of the aged care centers to organize for initial 80-hour training program for supervisors
and employees of aged care homes and make them pass an open-book examination. The
managers must also arrange additional training for the aged care employees (Ravenswood and
Harris, 2016). The owners of the aged care centers need to be advised by the HR managers to
follow proper pay practices for the aged care home employees and improve the environment for
both the patents and employees of the aged care centers.
Banking
Key Problems in the Organizations
There are several issues found in the banking industry as evident from the problems in banks of
Australia such as Westpac and Commonwealth Bank of Australia (CBA). The underpayment of
the employees of the banks is the key issue (Ahmed and Shin, 2019). The trusted banks of
Australia has been in headlines for wrong causes due to underpayment of the staffs of the banks.
These incidents eroded finances as well as reputations of the banks and negatively impacted trust
of the customers and loyalty of the employees of the banks. Because of the failure of the HT
systems of the banks the actual wages of the staffs could not be counted accurately and the banks
faced the issue of underpayment (Eyres, 2019).
The staffs of the banks affected to this issue range from the frontline employees to middle
managers. In an investigation, it has been found that the employees have worked hard and even
in additional work hours for managing the shortage of staffs and during peak times. Another
allegations which was evident in a last year report which demonstrated that almost one third of
employees has not been given their retirement claims. It has been worst case that some of the
most reputed and profitable banks of Australia has been paying some of the lowest pays within
the banking industry.
Failure of HRMs
The HR technology systems failed for calculating accurately and processing entitlements, which
forced them for repayment of millions of dollars to their former as well existing staffs. The
failure of the systems highlighted the scale of challenges and vulnerability the banks faced to
their attempt to ensure their HR methods and systems could cope up with the complications and

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ever-changing nature of their judicial and regulatory settings (Bartholomeusz, 2019). It is a
specifically daunting problem for the banks since the staffs of the banks affected due to this issue
range from the frontline employees to middle managers.
Recommendations
It is advised to the HR managers of the banks to monitor the HR systems of the banking
institutions on regular basis. They also need to ensure that the employees of the banks are given
protection from the risks of underpayment, even if the banking institutions are hugely consist of
salaried staffs (Masum, Azad and Beh, 2016). The HR managers must regularly organize for
payroll audits within the banks for the performing and serving staffs to make sure that their
payments are compliant with the labor laws. The experience and knowledge would help HRM to
forecast potential employment patterns as well as technological developments that might have
tremendous influences on organizations and employees. They must also confirm that manual
payroll calculations are finished and compared with the records of the systems, and are
consistent with the specifications laws. It is also recommended to the HRMs of the banks to
make that HR systems regularly review heavily automated as well as complicated payment
calculations for keeping pace with the legislative changes since minor changes in legislature
could have substantial and unexpected financial impacts on the banking institutions with
numerous employees, and so it is significant not to turn satisfied about payment reviews (Taskar,
Pratap Singh and Antony, 2018).
Conclusion
The report concluded with the evaluation of leading issues of organizations in hospitality, aged
care and banking industries. There are several issues found in the hospitality industry as evident
from the problems in restaurants such as Grill’d and Neil Perry's restaurant. Underpayment and
over work are some of the issues noticed in these restaurants. Another problem is training
program of the restaurants where the employees considered the training program as a wage theft.
There are several issues found in the banking industry as evident from the problems in Bupa and
several other aged care centers.
The aged care homes treated their staffs as indentured servants. Most of the staffs have
complained of wage theft cases and the work environment is also extremely poor. Most of the

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aged care staffs are often exploited and rarely given any day-off. There are several issues found
in the banking industry as evident from the problems in banks of Australia such as Westpac and
CBA. The underpayment of the employees of the banks is the key issue. The HR technology
systems failed for calculating accurately and processing entitlements, which forced them for
repayment of millions of dollars to their former as well existing staffs.
Application of AHRI Model
Business Driven
The business driven capability is necessary for HR managers to understand the importance and
objectives of the organizations. In the business environment of the organizations, HR managers
can provide better-suited as well as functional approaches for the employees. The business-
driven competence will allow the HR managers for considering the success of the organizations,
leading strategic engines, and, the interests of the leading investors (Mcdonnell and Sikander,
2017). All through this process, the employees would be more encouraged for engaging with
organizational objectives.
Expert Practitioner
This capability can help HR managers for preserving the workplace relations and retain the staffs
engaged within organizational performance. The experience and knowledge would help HRM to
forecast potential employment patterns as well as technological developments that might have
tremendous influences on organizations and employees. Thus, the employee training program
could be planned well in advance by the HRMs for harmonizing the skills and abilities of the
staffs with changing organizational needs (Prikshat, Kumar, Nankervis and Khan, 2018). They
could also allow employees to manage the organizational trends for boosting sustainable
benefits. Thus, this type of HR potential is exceptionally significant for HR managers to develop
long-term effectiveness and sucesss of the companies.
Culture and Change Leader
This capability can allow the HR managers to transform values as well as meaning into activities
in the companies and their staffs. Hence, in partnership with the employees, the HR managers
could promote successful training in the organizations that can improve their levels of

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performance (Prikshat, Salleh and Nankervis, 2016). On the contrary, it is recommended that HR
managers must frequently work with the employees for expressing organizational strategies and
conveying organizational improvement needs where required. Therefore, this skill is vital for HR
managers for promoting systemic improvements connected with the long-lasting viability of the
companies.

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