HRM Operations Analysis and Recommendations for JKL Industries

This report provides a comprehensive analysis of the Human Resource Management (HRM) operations at JKL Industries, an Australian business specializing in forklifts, small trucks, and spare parts. The report examines the company's current HRM practices, including its industrial relations policies, employee motivation, and the impact of external environmental factors. It identifies key HR requirements, such as improving business documentation, performance management, and employee skill development. The report presents various options to meet these needs, evaluates them using Return on Investment (ROI) calculations, and recommends specific strategies, including creating clear industrial relations policies, designing grievance policies, and emphasizing training and development. The report also addresses issues of diversity and discrimination, and concludes with an action plan for effective implementation of recommendations to facilitate organizational change and successfully integrate the sale of medium and large trucks, offering insights into the strategic importance of HRM within the company.

Assessment Task 1
(HRM)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................3
3...................................................................................................................................................4
4...................................................................................................................................................4
5...................................................................................................................................................5
6...................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management relates to the strategic approach of managing the
operations of all human being involved in a business organisation, with the intention of
maximising the performance of the human resources of the business (Nankervis and et.al., 2019).
This report analyses the HRM operations of JKL Industries which is an Australian business that
sells forklifts, small trucks and spare parts. JKL Industries is headquartered in Sydney, with its
operational branches existing in Brisbane, Perth, Canberra, Adelaide and Melbourne.
MAIN BODY
1
JKL Industries is an Australian business organisation that specialises in selling small trucks,
forklifts and spare parts to the customers, with the business being headquartered in Sydney. After
having operated successfully for over 12 years, JKL Industries now has been offered the sales
rights to medium and large trucks by an overseas supplier, which can provide JKL Industries
with a competitive advantage against its rivals, but will also force the business organisation to
undergo significant organisational change, during which its HR department will have to perform
key roles in the implementation of operational and strategic changes within the business
organisation.
2
JKL Industries has never had a clearly set industrial relations policy in the past on account of this
responsibility being shared amongst various levels of management within the business
organisation. This has resulted in great confusion within the workplace as employees are unsure
and inconsistent. Additionally, the workforce of JKL Industries is also highly demotivated and
unsatisfied due to various reasons such as dissatisfaction relating to payments, unresolved
workplace conflicts, no rewards and incentives etc. which the HR is required to address.
3
External Environment Factor Impact on HR Requirements

Political Factor Political Stability of Australia can help stabilise the key
operations of JKL Industries and its HR operations.
Economical Factor Inflation in the Australian economy can slow economic
development and result in decreased value of JKL Industries
financial resources negatively impacting its HR operations.
Social Factor Globalisation can aid JKL Industry’s HR to procure diverse
talents from the external markets aiding JKL Industries
operational performance.
Technological Factor New technological solutions can help the HR department of JKL
Industries to reorganise the workplace making some roles
redundant (Michael, 2019).
Legal Factor Changes to legal legislations and regulations such as minimum
wages act can have severely negative impact on both JKL
Industries and its HR operations.
Environmental Factor Revisions to environmental laws and regulations can increase the
overall prices of raw materials, negatively impacting the
operations of JKL Industries.
4
 Service Manager:
Consulting with JKL Industry’s service manager allows for us to determine its HR requirements
to be related to conducting effective business documentation and performance management
operations within the business organisation. Business documentation relates to keep formal
meticulous physical records of all business events undergone by JKL Industries by the HR
department. Performance management relates to regular appraisals of the employees in order to
encourage them to conduct their daily operations towards optimum standards of performance and
efficiency.
 Sales Manager:
Consulting with JKL Industry’s sales manager allows for us to determine its HR requirements to
be related to increasing the overall skills of the sales manager’s subordinates either through

better recruitment and selection by the HR or through training and development operations
(Ahammad, Glaister and Gomes, 2020). Another HR requirement of sales manager relates to
increasing the overall motivation and job satisfaction levels of the JKL Industry’s employees.
5
A: Information Gathered from:
 Analysis of Business Documentation
The JKL Industries operates using the HR business partner model, with the business’s human
resources employees being aligned to the three major business areas for JKL Industries- service,
sales and fleet rentals. For all of its state based establishments, JKL Industries operates a branch
office that comprises of an office building, service department, warehouse and a sales office. All
HR officers of JKL Industries are required to report to both their branch managers and HR
manager at headquarters in Sydney.
 Consultation with Internal Stakeholders
The stakeholders of JKL Industries include its employees, customers, leadership, management
etc. Currently the management of JKL Industries has been appointed primarily based on their
acumen in sales or other technical operations, with the management having little understanding
of industrial relation matters. The employees of JKL Industries are also immensely dissatisfied
and unmotivated because of the issues at JKL Industries such as rumours of change, possible
operational redundancies, unresolved internal conflicts, payment issues etc.
 Review of External Environment
The political stability in Australia can be beneficial for JKL Industries as it does not have to
worry about maverick changes. Economic slowdown of Australian economy can negatively
impact the profit margins of JKL Industries. Social trends such as globalisation allows for JKL
Industries to procure new and diverse talent from external markets (Kianto, Sáenz and
Aramburu, 2017). New technological solutions can have a significantly positive impact on the
performance and efficiency of the business. Changes to legal and environmental legislations and
regulations of Australia can have adverse impact on the productivity and profit margins of JKL
Industries.

B: Options to Meet Human Resource Needs:
 Labour Market Skill Shortages:
In order to meet human resource management needs, JKL Industries can choose option of
outsourcing basic HR services as the expected cost of this option is $600,000 and direct revenue
would be $800,000, with a risk of 10% being considered as low. The risk associated with this
option relates to the fact that it has become increasingly hard for the HR of JKL Industries to
procure skilled, experienced and talented employees from the external markets, with JKL
Industries not being able to control any aspect of this risk.
 Uncertainty in Environmental and Legislative Environment:
In order to meet the human resource requirements, JKL Industries can also choose the option of
Enhanced HR services with respect to industrial relations, with the expected cost of this option
being $150,000 and direct revenue being $500,000, with 20% risks attached. The risk associated
with this option relates to the uncertainty in the external environment which can always make
choosing this options a risky strategy.
C:
The return on investments (ROI) can be calculated by the formula;
ROI = (Investment Revenue – Investment Cost) / Investment Cost
ROI for Outsourcing Basic HR Services: (800000-600000)/600000 = 33.33% at 10% risk.
ROI for Restructuring HR: (1000000-800000)/800000 = 25% at 20% risk.
ROI for Retaining Rental Employees: (3000000-500000)/500000 = 500% at 30% risk.
ROI for Integrating HR Services: (1500000-100000)/100000 = 1400% at 10% risk.
ROI for Enhancing HR Services with Performance Management: (1000000-100000)/100000 =
1000% at 10% risk.
ROI for Enhancing HR Services with Industrial Relations: (500000-150000)/150000 = 233% at
20% risk.

JKL Industries is recommended to choose option which has least risk attached (10%).
D:
In order to be able to effectively meet the HR needs, JKL Industries is recommended to:
 Create organisation wide clear industrial relations policies that would help the business
achieve industrial relations objectives.
 Design and created required grievance policies for the employees of JKL Industries in
order to effectively resolve internal conflicts and disputes.
 Design a fair and legal organisation wide pay structure (John and Taylor, 2016).
 Emphasise on the training and development operations of their workforce.
 Implement a moral, ethical, safe, healthy and incorrupt organisational culture.
E:
 JKL Industries places increased value on the diversity of its employees, customers and
workers and respects the rights held by their employees to be able to operate free of any
kind of discrimination within the business organisation.
 JKL Industries has created policies that allows for its employees to operate free from any
kind of discrimination based on the grounds of age, disability, sex, physical features,
pregnancy, religion, gender identity, sexual orientation, personal association, marital
status, political inclinations etc.
F:
In the past, JKL Industries has not had any clear form of industrial relations, with this
responsibility being shared by various members of the business’s management including its
sales, service, human resource and operations managers respectively for each branch of the
business. This has resulted in a lot of inconsistencies and confusion within the business with
even the union being involved is cases of internal conflicts and disputes (Yong and et.al., 2019).
The current management team has been chosen based on their acumen in sales and other
technical areas and not on their understanding of industrial relations.

6
Activity Timelin
e
Strategy/Application of
Policy
Resources Person Policy
To review
policy,
legislation and
procedure
1 Week Strict regulations and
rules
Organisation’s
policies and
procedures
HR
Manager
Anti-
discrimination
Act
To evaluate
performance
2 Weeks Gather required surveys
and feedbacks from
customers and workforce
Survey/Feedback/
Evaluation forms.
HR
Manager
and Staff
Outsourcing
employees
1 Week Subcontracting the
business and importing
talent from external
environments
External talent HR
Manager
Outsourcing
policies
CONCLUSION
Through the findings of this report, it can effectively be concluded that HRM operations
are of immense importance in order for JKL Industries to incorporate organisational change and
successfully sell medium and large sized trucks. The report reviews the information provided in
the case study and determines the HR requirements of JKL Industries. Further the report
emphasises on human resources needs and recommends options to meet such HR needs with
their associated risks using ROI calculation. Further the report has created an action plan for
effective communication and implementation of recommendations.

REFERENCES
Books and Journals
Ahammad, M.F., Glaister, K.W. and Gomes, E., 2020. Strategic agility and human resource
management. Human Resource Management Review. 30(1). p.100700.
John, R. and Taylor, B., 2016. Human resource management.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management
practices, intellectual capital and innovation. Journal of Business Research. 81. pp.11-
20.
Michael, A., 2019. A handbook of human resource management practice.
Nankervis, A. and et.al., 2019. Human resource management. Cengage AU.
Yong, J.Y. and et.al., 2019. Nexus between green intellectual capital and green human resource
management. Journal of cleaner production. 215. pp.364-374.