Case Study Analysis: HRM Problems and Solutions - BUSN2038

This case study analyzes the human resource management challenges of a private sector organization facing increased competition and declining market share. The assignment explores key issues such as poor performance, inadequate management systems, and ineffective HR practices, including low employee salaries, lack of training, and poor leadership. A SWOT analysis is conducted to evaluate the organization's strengths, weaknesses, opportunities, and threats. The study then examines how proposed changes, such as improved management strategies, HR practices, cultural shifts, performance appraisals, and restructuring, can alleviate the identified problems. Furthermore, the assignment proposes additional changes and HR practices, including changes to organizational culture, improved HR management strategies (remuneration, training, career growth), and the adoption of a participatory leadership style. The analysis emphasizes the need for improved employee motivation, performance management, and overall organizational effectiveness.

Running head: HRM CASE STUDY 1
Human Resource Management-Case Study
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HRM CASE STUDY 2
Human Resource Management-Case Study
Q 1: Main Issues and HR problems in Part ‘A’
The Private Sector Organization is no longer what it used to be in the past. Although it
was the only company that enjoyed monopoly in the market, it no longer enjoys that kind of
privilege because of the changes that have been introduced in the economy. The company faces
numerous challenges in its management, performance, and human resources management. Some
of the main issues of concern in the organization are:
1. Stiff competition from other firms which are now allowed to join the market and
participate in this line of trade like the company. In the past, the Private Sector
Organization was enjoying monopoly in the market because the government had
protected it. However, this no longer happens because the ACCC introduced a new policy
that opened up the market to other investors.
2. Poor performance in the market. In the past when the company was enjoying monopoly,
its market share was over 90%. However, this no longer happens because, today, its share
of the market has educed t less than 60%. The worst thing is that the market share
continues to decline. This shows that the performance of the company is deteriorating so
fast. With poor performance and reduced sales, the copay s likely to start realizing losses
or becoming unsustainable in the near future.
3. The company does not have a good management system in place. According to the
organizational culture, the company employs people and retains them for a very long
time. The retention of staff is a good strategy, but it has worked against this company. As
it is today, there is a conflict between the old workers who have stayed for over 20 years

HRM CASE STUDY 3
and the new ones who have just joined the company. The two classes of workers face
conflicts because of the different perspectives that they have regarding the way the
organization should be managed. While the old workers want a conservative approach,
the new employees want the company to be liberal and prog4resicve as possible.
4. The company has been facing a problem of poor HR management. With a workforce of
2,000 employees, the Private Sector Organization is proving that it does not have good
HR strategies in place. The employees are not given attractive salaries that can satisfy
them and make them feel motivated. Poor remuneration is a serious issue because it has
been demotivating many employees some of whom opt to leave the company and instead
look for better opportunities in other places.
5. The management does not care much about the welfare of the employees. The old
conservative leaders have poor leadership styles which always work against the majority
of the workers. Among the weaknesses in their leadership style is that the management
does not offer good training to the employees as it ought to. Meaning, it does not care
about their career growth and improved performance. At the same time, the management
has created tension in the workplace because it keeps on sacking employees whenever it
feels it necessary to do so. The restructuring program has not only caused fear on the
remaining workers, but has made the company to lose some of the best employees that it
could not have lost.
Q 2: The Private Sector Organization SWOT Analysis
SWOT is a short form for Strengths, Weakness, Opportunities, and Threats. SWOT
analysis is, therefore, a kind of strategy that is used to analyze the internal and external
environment of an organization by identifying and knowing about the strengths, weaknesses,

HRM CASE STUDY 4
opportunities, and threats that directly or indirectly affect the activities of the organization and
determine the levels of its performance or success. Here is the strengths, weaknesses,
opportunities, and threats of the Private Sector Organization:
Strengths
1. The company has a good brand name in the market because it has been serving clients as
the only firm in the industry for a long time.
2. The company has an economy of scale and strong asset base. Meaning, since its
establishment, it has acquired lots of assets on which it has been relying upon in the
production process.
3. The company has many employees who have the required skills, education, professional
training, and experiences to run its operations.
4. The company operates different kinds of businesses which makes it possible to increase
revenue and spread its risks
5. The company has a strong organizational culture that has enabled it to effectively run its
operations
Weaknesses
1. The company has been realizing losses in some of its businesses that do not perform well
today
2. There is poor leaderships system in the organization
3. There are conflicts in the workplace especially between the old long-serving managers
and the new class of employees who want the organization to be run differently

HRM CASE STUDY 5
4. The company has a poor HR management strategy because there is no training, poor
payment of the workers, and lack of recognition
5. The company has a high rate of transition because there are many employees who leave
the company including some of its best workers. For the last two years, the company has
lost 3,000 out of its 5,000 workers.
Opportunities
1. The company has an opportunity to diversify its production into additional lines of
businesses which can be profitable. It has got resources to do so
2. The company should overhaul its management by bringing in a new team of managers
who are dynamic, flexible, progressive, ad responsive to the latest trends in the market.
Retaining the old class of employees will harm it further.
3. The company to improve its HR management strategies to ensure that the employees are
treated well, remunerated well, recognized, motivated, and retained in the company for
the longest tie possible.
4. The organization should embrace the use of modern technology and use it to improve the
quality of its productivity so as to continue enjoying a competitive advantage in the
market.
5. The management should outsource for the services from the external consultancy firms.
Threats
1. Loss of protectionism from the government. The company no longer enjoys the
protection it has been enjoying all along because the government no longer gives it
subsidies or imposes exorbitant taxes to its rivals who were intending to enter the market.

HRM CASE STUDY 6
2. There is a stiffening competition in the market because it has become free ad pen to other
investors who now manufacture and distribute substitute products to the clients.
3. The company is losing its share of the market at a very high speed. Today, it only claims
a 60% of the market and continues to lose it as time progresses. If this trend continues,
the company might even collapse.
4. The company is having a bad reputation in the market because of the way in which it
treats its workers. Its poor relations with the union have also damaged its image. This is
bad for its future.
5. There is a threat of employee transition because the workers leave the company in a very
high number. The unfortunate thing is that the company is even losing some of its best
employees.
Q 3: How the Changes introduced in Part B will alleviate the Issues and Problems identified in
the Case
In Part B, the management has introduced some changes that, in its opinion, will improve
the situation by alleviating the problems that the company has been going through all along. The
changes that have been introduced include the improvement of management strategies, HR
management, cultural change, strengthening performance appraisal, and restructuring process.
The changing of the remuneration system from an entitlement to an earned culture will
address the problem of demotivation. It will motivate the workers and encourage them to serve
the organization better. The restructuring program will enable the company to be sustainable.
Meaning, getting rid of extra staff and retaining a few properly-remunerated full-time employees
will guarantee high-performance and financial stability in the organization. Restructuring is a

HRM CASE STUDY 7
good change that should be introduced because it has reached a time when the organization
should have a manageable size of workers. Any remaining gaps might be filed by a few part-
time and contract-based employees who are not entitled to high salaries and additional benefits.
All thee will make it possible for the management to effectively run its operations.
The outsourcing of non-core services from the external consultancy firms will enable the
organization to address the problem of poor management that it has been facing. Among the
benefits that it can bring include the improvement of customer care services and the management
of employees. Moreover, the improvement of the performance review will enable the
management to improve the quality of service-delivery by the workers. In order to improve the
performance of each employee, a well-organized performance appraisal program must be
introduced. This should be done by aligning it with personal and the organizational objectives
and needs. If such an appraisal is done well, it will be possible for the organization to improve its
performance by rectifying all the inefficiencies that have been so far faced by the organization.
The decision of the board to change the organizational topmost leadership is a brilliant
idea that will benefit the organization get deal. From the information provided in Part A, it is
obvious that the organization’s performance has been deteriorating because of the inefficiencies
of the top management which has been failing to make important decisions that can help the
company to progress. However, by hiring a new CEO, the company is going to prosper. It is an
appropriate tie to bring in a new CEO who is capable of managing the organization well,
managing the workers properly, and bringing new changes that will transform the organization
for better. All these will happen because the new manager appears to be committed towards the
improvement of the performance of the organization.

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Q 4: Changes and/or HR Practices would you introduce to address the issues and Problems in the
Case, as a Consultant
If I were to serve as a consultant for this organization, there are many changes that I
would introduce. I will have to do so because, from the information provided in Part A, it is no
doubt that the company is facing lots of challenges that might continue to interfere with its
performance for a very long time if not addressed. In this regard, if I got a chance to consult for
tis firm I would introduce a number of changes.
The first change I can introduce is to advocate for the change of the organizational
culture and the leadership styles. Currently, the organization has been largely-bureaucratic. The
information provided indicates that the organization has been using a bureaucratic culture to
manage its affairs. This has been making it challenging for the employees to effectively
discharge their roles. The leaders have also been relying a lot on the transactional leadership
style. This should change to a participatory style so as to enable the employees and all the other
stakeholders to participate in the major decision-making processes. If such changes are
introduced, the overall performance of the organization will improve. Everything that is done
depends on the organizational culture and the leadership style. If these changes are properly-
implemented, the organization will have to succeed.
The second change I would introduce to the company is the improvement of the HR
management strategies. From the information given, the Private Sector Organization is in a bad
shape. The way I which it has been managing its employees is quite bad. Because of this, if I
were to consult for it I would bring new change aimed at improving the management of its
workers. The first thing I would do is to improve the remuneration package for all the workers. I

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will ensure that all the workers are paid well to motivate them. At the same time, I will ensure
that the employees are properly trained and given career growth opportunities. The performance
will also be regularly and assessed using a well-organized and objective appraisal programs.