Premier Auto Components: A HRM Case Study on Expansion Challenges

This case study examines Premier Auto Components (PAC), a St Neots-based SME, and its HRM challenges as it expands into North America and Western Europe. The company faces issues related to harmonizing employee terms, rigid operational structures, and outdated recruitment processes. The case explores the application of AMO theory to improve employee ability, motivation, and opportunity. It recommends altering the recruitment process to attract better talent and providing training to upskill employees. Furthermore, the case emphasizes the importance of complying with UK government regulations and ethical business practices. The analysis concludes that effective HRM practices, including employee motivation and revised recruitment strategies, are crucial for PAC to achieve its expansion goals. Desklib is a valuable resource for students seeking similar case studies and solved assignments.

Case studies HRM

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Executive summary.....................................................................................................................3
The issue......................................................................................................................................4
AMO Theory...............................................................................................................................4
Recruitment process alteration....................................................................................................5
Training to employees.................................................................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
It is very important to manage the workforce that will help in attainment of goals. Due to the
dynamic business environment, it is needed to bring innovation to the products so that company
can face the cut throat competition. Due to the pandemic, it had affected the operations of all the
companies that adversely impacts on the functioning. Every business organisation wants to
expand its business oeprationa that requires skilled and technical staff so that they can effectively
manage all the function of key areas. The company should follow a structured procedure that will
help in attracting the potential candidate for the right job. It has been analysed that work can be
done in a more effective and efficient way if it is done by the skilled employees. The
management should provide training sessions so that employees can sharpen their skill work
with their peak potential. This case study is based on Premier Auto Comp , a new StNeots based
SME. It engages in the business of car service parts and now it wants to expand its business but
faced many challenges in HRM. (Fenech, R., Baguant, P. and Ivanov, D., 2019) This case study will
include the issue and how they can be overcome.
TASK
Executive summary
Premier Auto Comp, a St Neots based company that is engaging in the business of car service
parts and wants to capture the market of North America and Western Europe. A this is highly
competitive market and small margins based on the volume sales. There are four distribution
centre in Europe and they are Germany, France, Spain and Ukraine. These staff have been
recruited by the frontline staff personnel and are selected from those countries rather than a fully
centralised. The company is having a five year development plan that it wants to achieve in the
upcoming five years. Its aim is to provide the car components for the high end cars and special
vehicles. There have been a wide range of terms and condition of the employees from a full time
to zero hour contracts. It has been analysed that around 50% of the UK staff have been paid as
final salary pension scheme. And around half of this number is due to retire in upcoming five
years. The recruitment process were also ad hoc and based on the traditional way and it is needed
to opt the modern procedure of hiring the potential candidate.( Bratton, J., Gold, J., Bratton, A. and
Steele, L., 2021)

The issue
From the above case study it has been analysed that there is lack of vision as there is neded to be
harmonised to the terms and condition. Being rigid in nature, the company should bring
flexibility to its operations so that it may successfully expand its business operations. The FD
wants to see the issues of these benefits to be addressed in the very first step. But the problem is
that, it is quite complex to address the issue. The issue must be solved in an constructive manner
by going to its root cause in order to analyse the cause and then finding the feasible solution so
that it can solve that issue. The commercial Director of Premier Auto Comp has favouring the
radical approach as the employees should be given the extra fringe benefits so that they can work
for a longer period of time and by this the company may reduce the staff turnover too. The
company offers the employees to provide with high reward benefits that will eliminate the
absenteeism. The employees can become more productive if they are motivated by the financial
benefits or increased their position. The CEO of the com0pnay is more cautious and do favour
the maintenance of final salary pension scheme. The company wants to be more transparent
benefit that will helps the company in generating more revenue by expanding its business
operations. There is also threat to the company as it had already received the legal notice from
the UK government but the former CEO of the company have ignored. The company bfo not
comply with the rules and regulations that are formulated by the UK government. (Barrena‐
Martinez, J., López‐Fernández, M. and Romero‐Fernández, P.M., 2019)
AMO Theory
This theory suggests that there are three independent components of work system that helps in
shaping the employee’s characteristics which will contribute in attainment of organisational
goals. As the company wants to expand its business operations so it is needed to have skilled
employees so that they can work in an effective and efficient manner.
Increased employee’s ability – It is important for the company to increase the ability to do work
that will help both the company and employee. In case of PAC, they should be provided with
training so that they can enhance their skills and contribute towards the attainment of goals.
While recruiting the employees the company shoulf formulate the criteria for which the company
have to hire the required candidate. They should be provided with motivation that will helps
them to work with their peak potential. The motivation can be given in terms of financial

benefits or promoting the employees to a higher position. In case of PAC, they shoufl be
provided with fringe benefits that will helps them to motivate and can perform their roles and
responsibilities with peak potential. If the employees in the company have low motivation, then
it may lower down the productivity of the employees and of the company too. By opting this
Human Resource Management theory, the company cans seek the opportunities and can take the
advantage of it. This framework is suitable for the company s it helps in motivating the
employees by improving and enhancing their productivity so that they can acquire the available
opportunity that can be utilised in the attainment of organisational goal. (Chaudhary, R., 2018)
Recruitment process alteration
The company is opting the traditional method of recruiting as it was much time consuming and
costly. Company is hiring the employees based on the references and social networksw that
makes the company in hiring the wrong candidate for the vacant place. The company is not
opting the modern procedure of hiring the candidates as it will helps the company in getting the
bright candidate for the right job position in the company. The company is also not complying
with the rules and regulations that are formulated by the UK government and the prior CEO of
the company have also received the notification of legal challenges but he had ignored that. The
company should comply with all the rules and regulation and operate its functions in an ethical
way. The company should pay the salary to the employees timely and should not apply any
unethical activities. The recruitment process of the company is based on biasness as they tend to
hire those employees who are in social network of their existing employees.
Training to employees
Service parts is a technical industry and it is emerging very rapidly across the world. It requires
upgradation to face the competition in the market. There is cut throat competition that requires
training of employees. Employees should be aware about the new technology and must be
provided with training sessions so that they can be aware about the technical upgradation. It also
helps the company as if the employees become more aware about the technology then they
become more productive to company. Training helps the unskilled employees to get insight of
bthe technology and their company will take advantage by bringing new innovation to their

products. The company who is not taking initiative to bring innovation may suffer loss and may
shut down their business as they do not come up with the technology.
Recommendation
 It is very important for the organisation to analyse the various HRM practises in order to
increase work through force in the calls in the business environment. It is recommended
that the organisation developing structure in an appropriate manner so that the employees
can achieve. It beneficial minutes. It is very important for the organisation to develop
strategic plan to do is the various promotional to know to do to increase the effectives in
the goals and objectives within the organisation. Several strategies which included the
training in development for the employs is required by the organisation in order to
achieve the objectives. Various platforms such as the online training can be adopted by
the company so that the employs are aware of the task which need to be performed in an
effective manner. What is the organisation King use the various tools in the online
training and development programmes in order to increase the capacity of the employees.
As there were several issues among people is working within the organisation which need
to be solved by the organisation so that employees are satisfied that the company can be
more cautious in order to be in favour of big addition to these employs. There are various
benefits which need to be provided to the voice so that they have self-motivated and kin
increase in the performance within the organisation. (Zhao, Y., 2018)
 Another aspect which is recommended that the recruitment process need to be revived in
order to achieve effectively and efficiently. As it is observed that the company was
recruiting the employees on the basis of this relationship and recommendations of the
present employees which is not beneficial for the company. This was making the bad
image of the company where the company was not able to hire the talent workforce
within the organisations that who are having the potential in order to work effectively.
Whether the human resource management was focusing on the hiring of the people who
are in relationship with the employees who are already working within the organisation.

This was impacting the organisation in various ways. So in this case it is recommended
that the company can hire recruit the people from outside by viewing their applications in
the resume and hire the people in accordance to the talent which can help in achieving the
goals and objectives effectively and efficiently. (Zhang, Z., Wang, J. and Jia, M., 2022)
CONCLUSION
From the above report it is concluded that it is very important to manage the workforce
which will help in attaining the goals in objectives of the business organisation. As it is a very
dynamic business environment which brings the innovation in the product so that the company
can face through the where is Competition in the market. As every business wants to expand his
business operations in other aspects which requires the skill in technical employs in order to
manage all the functions. This is the report in which auto com company wants to expand its
business but providing the car service parts. As there will be the challenges which was paid by
the company due to the human resource management. It is identified that there are various issues
which needed to be solved in order to achieve the goals and object is affectively. It is
recommended that it is very important for the organisation to improve the human resource
management services in order to develop a successful business organisation. It is also
recommended that it is very important to motivated employees so that they can increase their
performance in the capability to achieve growth and success.

REFERENCES
Books and Journals
Fenech, R., Baguant, P. and Ivanov, D., 2019. The Changing Role Of Human Resource Management In
An Era Of Digital Transformation. Journal of Management Information & Decision
Sciences, 22(2).
Bratton, J., Gold, J., Bratton, A. and Steele, L., 2021. Human resource management. Bloomsbury
Publishing.
Barrena‐Martinez, J., López‐Fernández, M. and Romero‐Fernández, P.M., 2019. The link between
socially responsible human resource management and intellectual capital. Corporate Social
Responsibility and Environmental Management, 26(1), pp.71-81.
Chaudhary, R., 2018, December. Can green human resource management attract young talent? An
empirical analysis. In Evidence-based HRM: A global forum for empirical scholarship. Emerald
Publishing Limited.
Zhao, Y., 2018. Managing Chinese millennial employees and their impact on human resource
management transformation: an empirical study. Asia Pacific Business Review, 24(4), pp.472-
489.
Zhang, Z., Wang, J. and Jia, M., 2022. Multilevel examination of how and when socially responsible
human resource management improves the well-being of employees. Journal of Business
Ethics, 176(1), pp.55-71.