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This report examines and analyzes the major business concerns affecting the Consolidated Global Mining Services, and particularly addresses the human resource problems and issues affecting the company. The analysis significantly borrows human resource concepts from a review of pertinent literatures in human resource strategies. The discussed findings indicate that while the company executives mull over possible problems affecting the company, the main problem has to do with the hemorrhaging finances from the financial coffers. Cognizant of this, the HR department should as a matter of urgency institute mechanisms to save CGMS from losing more funds. CGMS suffers from a poor or lack of coordination between service teams, project groups, and special development groups, and this is a HR issue that needs to be urgently addressed.
Most companies in the development of their business strategy might overlook the HR department and accord it minimal attention when it is apparent that it may play a direct role in firms' long-term success. Adopting strategies such as collaborative leadership, organizational change and performance culture among managers at CGMS is important for the company's growth. Human resource managers are tasked with the role of molding and entrenching employees into company culture and play a vital role in collaborating leadership, organizing change and cultivating high performance culture for the success of the company. Such officers must accomplish a wide range of activities from screening employees, strategic planning to fundamental transaction processes. That way, they will be able to "avoid potentially enormous financial fallout from liability, lawsuits and damage to company's reputation stemming from bad hire" (Keller, 2004, p.28).
As is the case with most business ventures, overlooking the human resource department has resulted in short term success. The purpose of having a human resource business strategy is to predict and ensure the steady future for the company (Kearns, 2010). Unfortunately, most companies, as is the case with CGMS, fail to perform a cost-benefit analysis in their human resource sector. CGMS has considerably grown over the last ten years but the uncontrolled spending and non-existent review of the workforce's viability risks unmasking the firms' weaknesses. According to Keller (2004), delivering a strategic impact calls for objective-driven corporate support that mainstreams and prioritizes consistent companywide programs meant to accomplish the objectives.
2.0 Identification of Problems/Issues
Consolidated Global Mining Services has a couple of issues, both in its overall management structure and its HR department. The firm's human resource manager, Stacey Stavrou, has only been on the job for three months but is faced with the challenge to either 'toe-cut' some of the workforce or act as the ultimate capacity builder. Either way, Stacey has to identify and assess the problems facing her docket to save the company. The company is relatively overstaffed; much as it may meet its large scale servicing demands, and the large number of workforce lacks proper supervision. According to Stacy, the company with its large number of employees requires supervision and supervision. Another problem facing the company is the need to balance the expenditure against the income. CGMS chief financial officer noted that much of the company's financial pressures come from wages and salaries. This is also a direct implication of the ratio between employee numbers to that of the incoming generating services of the company.
Up until the executives' meeting, the CEO had assumed financial tranquility and stability of CGSM pointing a finger at the severely hemorrhaged money as the cause for negative cash-flow. William wants to keep the 900 plus employees and at the same time lays emphasis on need for value. However, the CEO has to save the company image from deteriorating as the firm was considered the industrial leader among clients and competitors alike. The pressure to remain a pacesetter and to keep its employees intact and happy has complicated matters for the management. The CEO appears hesitant to accept Stacey's idea that layoffs and redundancy procedures should be adopted to downsize the seemingly irrational number of employees, and to match quality and service provision. In addition to the listed issues, organizational effectiveness and collaborative leadership seems to lack in CGMS. There is need to implement strategic or organizational change within the company by incorporating and integrating top down approaches for effective management. This approach will come in handy where managers have to reach individual workers and assess their services to the company.
2.1 Non-HR Issues
Some of the non-human resource issues that are needed attention include financial audits and assessment of the company. During the executives' meeting, the financial officer identified loosely monitored expenditure as one of the major loopholes in the firm. The CEO himself was quick to express concern over severely hemorrhaged cash resulting to negative cash flow which translates to weak financial basis. These are issues that should be handled by the finance department.
2.2 HR Issues
The CGMS Company has its major problems in the human resource department. Implementing HR-oriented techniques and tools such performance driver analysis is lacking in the company HR department. The CGMS performance analysis will help diagnose organizational performance on external and internal basis. As identified earlier, the HR director had identified loose supervision or tracking of individual contribution within the company. From Stacey's perspective, the large number of employees may not necessarily represent good performance in the company, so employee screening might be required for cost benefit analysis.
2.2.1 Most Important HR Issue
Judging from the executives' meeting, the most pressing HR issue at CGMS seems to be lack of coordination between the top management and employees. As Regan identifies, the company has in place countless teams who work on temporal bases subject to changes in work conditions and requirements over time. The pressure to remain the top industrial leader and the demand to meet cost-efficiency and quality particularly contribute to the strenuous personnel management relationship (Bamberger & Meshoulam, 2000). This is evident in the repetitive concern over loose supervision and deprivation of knowledge by manager as to what employees are involved. To some extent, the company's CEO fails to recognize poor coordination as the major cause of reduced company performance in terms of finance. Identifying and rectifying this area will not only improve the firm's service delivery, but it will also help in improving employee commitment, managing change and effective implementation of strategic action.
3.0 Strategies and Evaluation
To help solve poor coordination and improve employee effectiveness, there is need to integrate some key human resource strategies at CGMS. Two strategies are particularly relevant in the CGMS case: business partner model and the performance culture model. Performance based culture model places a premium on employees excelling in their performance (Graham, 2004), and business partnering model emphasizes the competencies of HR professionals as business partners (Caldwell, 2008).
Basically, the business partner model proves effective in building and promoting strong interpersonal skills among employees. In the CGMS case, this model will help identify and diagnose competency and cooperation between human resources employees. Adopting this model will reflect the effectiveness of both the executive management and lower level employees (Caldwell, 2008). Competent relationships between the CGMS management and employees will guarantee high levels of quality in the competent workforce. The performance culture model on the other hand demands performance records based on strategic goals throughout the organization (Graham, 2004). As is the case in CGMS, employee performance is directly affected by existing relationships between departments and performance based cultures works on the 'mindset' of employees. According to Graham (2004), the employees work collaboratively to attain a common goal for the company by delivering well-timed, high quality products for clients.
The business partner model seems viable in ensuring operational feasibility given the company's large employee number. This model is more appropriate for large or medium companies seeking to move away from the chaos resulting uncoordinated departments (Caldwell, 2004). The performance-based culture model is suitable for CGMS as it fundamentally aligns the individual employee efforts with the companywide strategic plan to guarantee all employees are sticking to the strategic plan (Graham, 2004).
Reframing and restructuring the human resource as a business partner for the CGMS will be cost effectiveness on two fronts. First, it will stabilize future projections and provide a predictable company budget through proper forecasting. Secondly, it will eliminate any potential outlays that might have been used on outsourcing (Clawell, 2004). The short term projections using the performance-based culture involve investments in training and development, employee screening, and funding to acquire technology and tools requisite for successful appraisal of employee performance (Graham, 2008). In the long run however, the business partnering model will streamline the workforce by eliminating redundant workforce and cutting down extra costs through cost benefit analysis.
Humans are inherently opposed to dramatic changes and introduction of new human resource strategies might meet resistance (Brown & Grundy, 2010). The business partnering model might meet less resistance compared to the performance based culture since performance based culture involves extensive auditing of employees performance and employees might be jittery of their future (Graham, 2004).
Based on the identification, comprehensive analysis and evaluation of both models, it is in correct order to conclude that these models are the most viable to adopt. The most pressing issue at CGMS is poor coordination and these two promises to improve and help rectify the identified weaknesses. The company does not have to wait for a recession or financial storm to destabilize it and should act on initial signs to save the company from economical meltdown.
The executives should adopt a hybrid of the two strategic plans to ensure a turnaround of the firm's prospects. One of the company's major concerns is hemorrhaged money which has led to negative cash flow. Following the root cause and phasing it out is the only way out. This entails a series of problem solving procedures.
The firm needed to identify the most pressing human resource issue that has a direct effect on the company's economical prospects. In this case, the company's expenditure has the heaviest weight on wages and salaries of its largely uncontrolled employee number.
The next step was to identify the most relevant strategies for coarse filtering the problem. First the company should employ the business partnering model to provide the human resource division with greater role and capacity in reviewing the competencies and cooperation within the firm. The firm should then implement the performance based culture to institute companywide audits and appraisals to eliminate redundancies and shore up its hemorrhaging accounts.
The level and extent of investment in performance auditing tools and technology depends on the firm's capacity and resolve.