Case Study: Human Resource Management in a Manufacturing Firm

This case study analyzes the human resource management challenges faced by a struggling manufacturing company. The analysis focuses on the impact of poor leadership, autocratic management styles, and inadequate employee engagement on organizational performance. The solution proposes implementing participative management, restructuring employee compensation, and revising performance evaluation metrics to include quality. The case study identifies potential barriers to change, such as resistance from senior management and shareholders, and suggests strategies to overcome these obstacles, including effective communication and demonstrating the long-term benefits of the proposed changes. The paper emphasizes the importance of employee satisfaction, fair compensation, and a focus on both quality and quantity in production for achieving sustainable organizational success. The goal is to improve employee performance and overall company performance by changing the company culture.

Running head: HUMAN RESOURCE MANAGMENT
Human Resource Management
Name of the Student
Name of the University
Author Note

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Introduction:
The leadership and the management of the employees in the modern business world,
is a significantly important aspect. With a precise focus on the increasing level of competition
associated with the manufacturing industry, the companies are seen to restructure their
strategies in order to manage the threat of the high level of competition in an effective
manner. The entry of the new organizations is seen to be one of the main reason of the
increasing intensity of the competition and that has the potential to affect the survival and
growth of the existing organizations. Hence, the managers are seen to face the need of
employing the scientific management inside the organization. On the other hand, the
inappropriate management inside the organization has the potential to affect the performances
of the employees and the overall performances of the organization as well (Schyns and
Schilling 2013). With a precise focus on the increasing level of competition in the industry,
the organizations cannot afford to lower down the intensity of their operations as that will
certainly make the organization irrelevant in the business industry. Hence, in order to create
an environment that supports the improvement in the business operations, the leadership will
be an important aspect in the modern business context.
The paper is focused in the elaboration of the suitable people management practices in
a manufacturing company with precise analysis of the condition of the selected organization
and along with that, it also describes the techniques in which the proposed changes is
expected to improve the organizational performances of the company. In addition to this, the
paper identifies the barriers that have the potential to affect the implementation of the change
inside the organization and also includes the possible strategies for overcoming those
barriers.

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Elaboration of the case:
The case provides a context of inappropriate management affecting the performances
of the employees and the overall organization. The inappropriate method of managing the
employees is seen to be a menace for the selected manufacturing organization. The selected
company is seen to be in operational mode from 1950s. However, the organization faced a
significant setback during 70s due to the notable reduction in tariffs. In recent times, the
condition of the organization is observed to decline in a rapid fashion as a result of the
inappropriate leadership from the part of the previous Chief Executive Officer of the
organization and from the part of the members of the senior management team of the
organization.
The style of the leadership of previous CEO of the organization reflected significant
amount of autocracy and an old fashioned manager’s style where the power of decision
making only belongs to a particular individual. Apart from this, the previous CEO of the
organization created such an environment which forced the employees to be insecure about
their job inside the organization and that was pretty evident with the approach of the previous
CEO in encourage g staff performances through threating the employees for dismissal. The
employees inside the organization were confused regarding their responsibilities as they were
rotated amongst the different job positions in a frequent manner. Apart from this, the overall
performances of the employees inside the organization was subjected to a significant decline
as a result of considerable amount of employee grievances and that was evident with the
generation of the dissatisfaction amongst the employees owing to the issue of underpayment.
The production was the main basis for the evaluation of the performances of the employees,
however, the organization was seen to be reluctant in improving the plant’s infrastructure.

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Hence, this created a significant amount of vulnerability amongst the employees of the
organization which resulted in increment of the turnover rates for the selected organization.
A.
With a precise focus on the current condition of the organization, one of the top most
priority in being the CEO of the organization will be the effective management of the
employees inside the organization. The findings of the evaluation of the current condition of
the organization, clearly states that the employees of the organization is significantly insecure
regarding their job in the organization. The insecurity amongst the employees of the
organization is seen to decrease the level of involvement of the employees towards the
organization (Gayathiri et al. 2013). Being the CEO of the organization, it is significantly
important to strengthen the relationship between the employees and the organization. Hence
the much required action that needs to be undertaken from the part of the CEO of the
organization is to initiate the participative management in the organization (Iqbal, Anwar and
Haider 2015). Being the CEO of the organization, I will make sure that the employees of the
organization are given the power to take the decisions for their operations. However, I will do
communicate the strategic objectives of the organization to the employees of the organization
and will provide them the much required freedom to strategize their operational activities to
accomplish the strategic objectives of the organization.
In addition to this, I will make sure that the employees of the organization are paid in
accordance to the industry standards which is much required not only in this organization but
also in any of the organizations of the modern business industry. With a precise focus on the
Maslow’s hierarchy of needs, the effective management of the basic or physiological needs of

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the employees is one of the much required aspect in the establishment of a profitable and
fruitful business (Jerome 2013). Hence, meeting the needs of the employees in an efficient
manner will be a major responsibility for me in being the CEO of the organization.
Apart from this, the company desperately requires a restructuring in the factors for the
evaluation of the performances as the modern business operations is observed to be
influenced by both quality and quantity. However, the senior management of the organization
is seen to be more concerned with the product output. Being the CEO of the organization, I
will make sure that the company creates such a framework where the quality in the services
of the employees and the production of the employees both are equally evaluated in
appraising a particular employee (Dugguh and Dennis 2014). In addition to this, I will make
sure that I initiate the formal appraisals as it is much needed for the organization to motivate
the employees through recognizing the good performances of the employees.
Hence, the four changes that I will introduce to the workforce are an attractive
rewarding policy for appraising the performances of the employees of the organization, the
introduction of the participative management in the workforce, formation of an effective and
suitable pay structure for the employees of the organization and I will include the aspect of
quality in the list of parameters for evaluating the performances of the employees of the
organization.
B.
As mentioned earlier, the organization was mainly affected with the inappropriate
leadership and management of the operations of the employees. The introduction of the
participative management will be significantly crucial in the improvement of the condition of
the selected organization. First of all, the establishment of the participative management
inside the organization will enable the employees to strengthen their bonds in an efficient

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manner and that will be crucial for the organization in the effective management of the team
performances which has the potential to provide notable amount of competitive advantage to
the selected organization in comparison to the competitor organizations (Mesu, Sanders and
Riemsdijk 2015). In addition to this, the establishment of the participative management will
increase the involvement of the employees of the organization towards the company in a
notable manner. This will be substantial for the selected organization in increasing the
responsibility of the employees towards the organization and will also be crucial in
influencing the employees in proactive undertaking of the initiatives to improve the quality of
their services and the level of production.
From the case elaboration, it is pretty evident that the employees of the selected
organization were notably confused regarding their operations inside the organization due to
the occurrence of the frequent changes in their job positions inside the organization. The
establishment of the participative management and providing the freedom to the employees to
take the decision regarding their operational activities will be of great significance in the
appropriate distribution of the tasks amongst the employees (Mesu, Sanders and Riemsdijk
2015). This will be crucial for the employees in undertaking tasks in accordance to their
expertise and this will also be significant for the selected organization in providing flawless
services to the customers.
Apart from that, the formation of the appropriate pay structure is one of the crucial
strategies in the improvement of the condition of the organization. As it was pretty evident
that the company’s performances was affected in a significant manner due to generation of
the dissatisfaction amongst the employees for being underpaid, the formation of such a pay
structure which meets the physiological needs of the employees and prepares them well for
achievement of the esteem needs in accordance to the Maslow’s hierarchy of needs, will be
crucial for the organization (Kaur 2013). The formation of the pay structure in accordance to

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the industry standards will be of great significance for the selected organization in providing
the basic help to the employees of the organization in performing efficiently. This will also
help the organization in avoiding any sort reputational damage which can affect their
business performances and sales as well.
With a precise focus on the increasing level of competition in the modern business
world, it is visible that the companies are fighting over both the aspect of quality and
quantity. The increment in the production is enabling the organizations to serve a larger
number of customers and at the same time, the improvement in the quality of the services is
notably essential in making sure that the customers are happy with the products and the
services of the company. The improvement in the quality is significant for the organization in
increasing the customer loyalty which has the potential to retain the customers in an intense
competitive market. Hence the precise concentration of the employees in maintaining a good
rating in both the aspect will be crucial in improving the current condition of the selected
organization (Dugguh and Dennis 2014). In addition to this, the formal appraisals is a much
required need for the selected organization as it is significantly important to motivate the
employees and recognizing the performances of the employees who will do well, will be the
best possible way to motivate the employees and along with that, it will also provide the
benchmark for the other employees to follow.
C. Barriers and Solutions:
One of the major barrier in implementing the change, will come from the senior
management team of the selected organization. As the team believes like the previous CEO
of the organization that the performances of the employees is in need to be evaluated only on
the basis of the production output and the formal threats of dismissal is the only way to
encourage the employee performances, the effective consultation regarding the effectiveness

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of the new strategies in improving the performances of the employees in the organization is
one of the much required step to be followed from my part. The shareholders of the
organization may have some sort of apathy in approving the new pay structure and reward
policy owing to the possibility of slightly losing the margin of profit, however the effective
communication regarding the impact of meeting the basic needs of the employees on the
performances of them and on the overall performances of the organization will be crucial in
managing the shareholders (Rothaermel 2015).
Apart from this, the effective portrayal of possibility of improvement in the
production and the quality of the services of the employees with the introduction of the new
reward structure will be crucial in gaining the approval of the shareholders. Apart from this,
the developmental needs of the employees could be a massive concern for me in
implementing the change inside the organization. Under such situation, the identification of
the training and the developmental needs of the employees and meeting them with the
conduction of appropriate developmental activities will be of great significance in
implementing the change in an efficient manner and improving the current condition of the
selected organization (Sung and Choi 2014).
Conclusion:
On a concluding note, it can be said that the changes inside the organization are much
required in order to make sure that the impact of the ineffective organizational culture
developed under the previous CEO of the organization is minimized. With a precise
evaluation of the case, it is pretty evident that one of the top most priority for the selected
organization is the establishment of the participative management which has the potential to
meet the concerns such as inappropriate allocation of the task, frequent changes in the job
position of the employees of the organization or the lack of involvement of the employees in

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the organization. Along with that, the necessary actions from the part of the senior
management of the organization in the formation of an effective rewarding policy or in
establishing the pay structure that meets the physiological needs of the employees of the
organizations, are considered to be of great significance in the recovery of the declining
condition of the organization.

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References:
Dugguh, S.I. and Dennis, A., 2014. Job satisfaction theories: Traceability to employee
performance in organizations. IOSR journal of business and management, 16(5), pp.11-18.
Gayathiri, R., Ramakrishnan, L., Babatunde, S.A., Banerjee, A. and Islam, M.Z., 2013.
Quality of work life–Linkage with job satisfaction and performance. International Journal of
Business and Management Invention, 2(1), pp.1-8.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review, 5(5), pp.1-6.
Jerome, N., 2013. Application of the Maslow’s hierarchy of need theory; impacts and
implications on organizational culture, human resource and employee’s performance.
International Journal of Business and Management Invention, 2(3), pp.39-45.
Kaur, A., 2013. Maslow’s need hierarchy theory: Applications and criticisms. Global Journal
of Management and Business Studies, 3(10), pp.1061-1064.
Mesu, J., Sanders, K. and Riemsdijk, M.V., 2015. Transformational leadership and
organisational commitment in manufacturing and service small to medium-sized enterprises:
The moderating effects of directive and participative leadership. Personnel Review, 44(6),
pp.970-990.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Schyns, B. and Schilling, J., 2013. How bad are the effects of bad leaders? A meta-analysis of
destructive leadership and its outcomes. The Leadership Quarterly, 24(1), pp.138-158.

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Sung, S.Y. and Choi, J.N., 2014. Do organizations spend wisely on employees? Effects of
training and development investments on learning and innovation in organizations. Journal
of organizational behavior, 35(3), pp.393-412.