Reviewing The HR Related Issues In Java Company Commerce Essay

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This report is an upshot of all my efforts regarding the analysis and reviewing the Hr related issues in Java Company. It always had been one step ahead in its field and one of the top independent gaming providers in Europe.

I have strong belief that this report will guide and ease the readers to understand the innovative processes that are appropriate for Java Company which will enhance its business capabilities in terms of competitive environment and people management. Also enrich its corporate culture to maximise its high involvement culture.

This report will portray how to identify and analyse the Hr related issues and providing with the desirable solutions to encounter the concerned areas such as selection & recruitment, reward management, fairness and equity and people excellence to form innovative mechanism.

Table of Contents

Terms of References 5

Executive Summary 6

Introduction 7

Reviewing recruitment and selection Techniques 8

Ensuring Fairness and Equity along with divisional flexibility 10

Legal prospective for ensuring equity and fairness in organization 11

Current Reward Strategy Review & Proposal 12

High Involvement Culture Mechanism 15

Conclusion 16

Recommendation 16

Statement of Cost 17

Appendices 17

Bibliography 18

Terms of Reference

CHRISTOPHER & CYNTHIA KAY STEVENS(1999). "RECRUITMENT AND DECISION-MAKING: THE EFFECTS OF EARLY RECRUITMENT PRACTICES ON THE DECISION TO APPLY TO AN ORGANIZATION." Academy of Management Proceedings & Membership Directory F1-F6.,ip,url,shib&db=bu&AN=27611041&loginpage=Login.asp&site=ehost-live&scope=site (Accessed: January 18, 2010).

Richard (2002), "Hiring and Keeping the Best People" Harvard Business School Publishing Corporation [Online] (Accessed: January 18, 2010.)

New Jersey Institute of Technology (2008) "Expectancy Theory".  Available at: (Accessed: January 17, 2010).

Alan Chapman (2010) "Adam's Equity Theory".  Available at: (Accessed: January 17, 2010).

Alan Chapman (2010) "Douglous Mcgregor - Theory x y".  Available at: (Accessed: January 17, 2010).

Acas (2009) "Equality" (Accessed: February 20, 2010).

Acas (2009) "Equal Pay" (Accessed: February 20, 2010).

Caroline (2010) "Week 12: Diversity" Introduction to HRM[Online]. Available at: (Accessed: January 19, 2010)

Department of Human Resource Management (2000) "Employee Recognition Program Handbook".  PDF Geni [Online].  Available at: (Accessed: January 19 2010).

Adam & Roz (2006)"Perceptions of rewarding excellence in teaching: motivation and the scholarship of teaching", Motivation and the scholarship of teaching [Online]. Available at: (Accessed: 19 October 2010).

Caroline (2010) "Best Practice Hr Case Studies" Introduction to HRM[Online]. Available at (Accessed: January 16, 2010)

Alan Chapman (2010)"People Development and Teamwork".  Available at: (Accessed: January 17, 2010).


This report is identifying the issues concerned to Hr with Java Company as well as providing with preferable alternatives to cope up with the situation. Issues that have been taken into consideration are Hr policies are not aligned with the corporate policies of the company, less hr involvement in departmental decisions, limited job description, reward management is weak and job analysis, job evaluation plan is not sufficient to meet required needs of the company resulting high turnover.

Recruitment and selection techniques have been reviewed and findings are suggested according to the desirability of the company which requires the innovative techniques to be chosen with the specific format. Another issue that has been considered is fairness and transparency of the company to which there is a need of employee involvement methods that has been proposed to generate equity and fairness as well as to promote high involvement culture.

Thirdly by analysing company situation reward management is quite weak that is the foremost requirement of any company in such innovative business for employee retention, satisfaction and growth of its business. Both types of rewards intrinsic and extrinsic are kept in mind while proposing. Lastly high involvement cultural mechanism has been demonstrated to overcome the communication gap and flexibility concerns of the employees and employers both for generating the best suitable results.


This report is about the Hr related issues and their analysis in the gaming company named Java in Hertfordshire, which has been quite successful in its field but in the meantime the number of employees has depreciated which has directly affected the company business as well as performance. The major issues that can be identified briefly seem to be the weak hr practices and policies due to the limited Hr setup inside the company. It is also observed that their Hr policies are not aligned with their corporate policies as well as limited job description and traditional job analysis schemes are another factors which needed deliberation to cope up with this dilemma.

Purpose of this report is to provide best suitable ways to counter with the recent issues company has faced. Based upon analysis issues like transparency with business decision, basic company benefits and employee motivation are kept into consideration.

Therefore in order to determine the factors which has been the cause of depreciation in the number of employees for the company and loss of business we need to investigate the areas such as recruitment and selection methods (ensuring the best possible candidate for the company growth), consistency and fairness among the employees as well as departmental flexibility, performance and reward management.

Important tool which has been used to acquire the awareness of issues is the exit interviews of the employees as well as methodology adopted to analyse is not based only upon one professional opinion or view. It has been reviewed in detail, covering the above mentioned issues. All the opinions and views are provided by renowned authors; consequently report has just transformed their view for encountering company issues.

Reviewing the recruitment and Selection Techniques

Reviewing the recruitment and selection techniques we generally identify two kind of different techniques which are traditional and innovative. The success of most of today's businesses depends more resting on human assets than on physical or pecuniary assets. Buildings, equipment, manufacturing facilities, and most technologies can be quickly purchased, but the human talent and know-how needed to drive our knowledge-based industries are much harder to come by. Basically both the techniques for recruitment and selection are covering the below areas such as.

Defining the job requirement

Making a job description


Evaluating Candidates

Making decision and offer

Barber (1998) proposed that recruiters may find stronger relationships if they spotlight on the separate phases or cycles of recruiting: generating applicants, maintaining applicants' interest, and influencing job choices. She argued convincingly that the goal of recruitment practices at each phase should be to influence the decisions applicants make within that phase. In the initial phase of applicant generation, Barber suggested that organizations seek to attract the interest of potential applicants by providing information that will entice them to apply for existing openings. She noted that, although this phase is often overlooked, it is critically important to success at later phases because potential applicants who fail to apply implicitly reject any offers that might otherwise have been forthcoming. Among the potential recruiting practices used by the organizations traditionally were

Seek to build organization image or visibility

Improve an organization presence

Rely on social network to disseminate information

Provide information through traditional means.


Whereas the innovative techniques regarding the recruitment and selection that are developed in recent years are like e-recruitment, telephonic interviews, assessment centres and etc.

As java is a game company therefore identifying the need of employer what should be the point we kept in our mind is knowledge worker who are skilled in computing profession. Therefore technology is the edge for a company and internet is the source where could we target and find more computer professionals rather than going for traditional recruitment techniques.

If we analyse the model for recruitment and selection for the company the factors that should be kept into consideration are like

Proper job analysis

Defining the job or making the job description

Identifying the promising candidate

Structured/Unstructured interviews

Evaluating the candidate

Making decision and offer

Internal FactorsAnother question that arises when it comes to practical implication is its implementation. For that the model has been drafted below.

Job Analysis

Primary Responsibilities & tasks

Background Education/ Experience e.g. Industrial / functional

External Factors

Job Description

Your managerial style & its implications

Key features of your company e.g. reward system & team - orientation

Recruiting promising candidate

Job title/business unit name/name of company

Job task and responsibility

Hiring/reporting manager

Summary of job responsibilities and objectives


Background & personal required characteristics.

Screening resumes/use channels E-recruitment, recruiting agencies, networking, referrals and etc.

Interviewing in different ways e.g. panel, one on one, telephonic etc.

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Evaluate candidate by making evaluating matrix or key Area Ratings/ Competency model

Model is based upon the suggested study of Richard Luecke in Harvard Business School Publishing Corporation 2002

As Richard Luecke in Harvard Business Publishing Corporation 2002 suggests this is the most effective way for hiring and recruitment moreover these techniques are being the most suitable techniques used for the knowledge companies.

Personal Character (Analytical & Creative ability, Decision making style, interpersonal skills & motivation)Therefore interviews could be which shall be conducted must have the unstructured format as well. Also recommended to identify the core areas while evaluating the candidate and rate them accordingly. It will provide best possible outcome analytically and idea works in this innovative system is to reduce human errors and biasness and create finest result in terms of recruitment and selection which java company needed. Therefore the Harvard suggested model is quite

suitable for Java Company to adopt in future.

Ensuring Fairness and Equity along with Divisional Flexibility

Before ensuring the fairness and equity among any company along with its divisional flexibility we need to identify where the issues or factors of inequality could take place or even give such impact. The main hinders which have been identified from the company situation are as follow

lack in policy making

Rely on leadership qualities of managers/team leaders (which could vary across department on depending on personal managing style)

Limited Hr setup and fewer roles in decision making.

Bonuses are inconsistent

Rely on basic salary reward system which also vary department wise.

These are the areas which needed to be improved in terms to overcome the equity and transparency issue within the company.

Hence under equity theory process theory focuses on workers' perceptions of the fairness of their work, outcomes and inputs. Specifically they endeavour to maintain ratios of their own rewards to contributions which are equal to others' ratios.

Another theory related to below mentioned diagram is expectancy theory that states motivation is considered by the outcome people expect result of their actions on the job. It holds people to expect they could achieve what they feel motivated for from their job.

expectancy theory.jpg

Diagram illustrates the logical way to meet desired motivated result. (NJIT, 2008)

However JS Adams suggests that equity and fairness can be achieved by required input to achieve desired output as mentioned here under.

adams.jpgAnalytical design for job motivation (Js Adams, 1995-2009)

The idea of JS Adam is to keep equity as an arbitrator between people inputs and outputs that might create harmony, (Alan, 2010). Another theory that express the two managing styles is theory x and y. In which X-represents authoritarian management whereas Y- represents participative management, in contrast to both styles we could identify which is more likely suitable for Java Company.



Diagram illustrating both management styles (Douglas McGregor, 1960).

Nevertheless there is quite visible gap in between both styles. In terms of which needed to be harmonized in terms of check and balance and accountability factors as well as freedom of expression and flexibility.

Therefore Theory Z introduced by William Ouchi in 1981which was the combination of Theory XY and more toward the 'Japanese' management style. This theory kept more reliance on attitudes and responsibilities of workers. (Alan, 2010)

Legal Prospective for Ensuring Equity and Fairness in Organization:

It is against the law to differentiate against people at work on the grounds of:




Sexual orientation

Religion or belief


(Acas, 2009)

Apart from that the discrimination factors are involved e.g.

Direct: Less encouraging behaviour than single person, opposite sex or racial grounds.

Indirect: Implementing condition, practice or requirement serving greater portion to particular group needs.

Victimization: Subjecting to a loss for using legal rights.

Harassment: Uncomfortable environment where intruding dignity is encouraged. (Caroline,2009)

Men and women doing equivalent work and work rated as of equal value are allowed to equal pay. Employers may wish to take out a pay audit to make certain that men and women are getting equal pay according to the Equal Pay Act 1970. (Acas, 2009)

Looking towards Java Company as it has been innovative and creative in its field following steps could be effective in terms of proposal.


Monitoring frequently for creeping inequity.

Keep legal prospective into consideration while policy reviews and drafting.

Sensitive in equity perceptions.

Distribute equally from top to bottom if sacrifices needed.

Treat workers with respect.

Give workers voice for the decision related to them.

Clear the decisions to them.

Help and coach them to achieve desirable performance level.

Identify types of reward they needed.

Always deliver your commitments and keep promises.


Avoid over and under payment.


Department rigidness


Retaliate towards criticism

One way communication.

Invite suggestions.

Considering an order a delegation.

Unappreciative with no gratitude.

Unfair role distribution.

Current Reward Strategy Review & Proposal

By analysing the company reward strategy scheme it is reviewed that salaries are the only reward tool. Even bonuses needed to be agreed for awarding.

The four major factors that are needed to take into consideration to built a proper relationship between business, Hr and Reward practices are

Job satisfaction

Employee involvement

Hr practices

Business Performance

They should be interlinked and there should be a balance to meet the needs in each area above. If we take into deliberation rewards we might categorise them into two types which are intrinsic and other one is extrinsic. By extrinsic we mean financial rewards like salary bonuses etc where as Intrinsic rewards mean non-financial such as job satisfaction, flexible working hours etc. Therefore Porter and lawler model has been selected for research and development. Where expectancy is used as a level of achievable objective where as instrumentality is applied for deciding that what is required for working on that objective. Valence refers towards the subjective value placed on the accomplishment of objective. (Adam & Roz, 2006)


This model is demonstrating the smooth flow of practices to achieve the satisfaction goal of employee which will be leading towards the best reward practice after all. According to Jim Britnall's description what makes a good reward? Jim says it has to be SMART that means it should be

Sincere: Above all a good reward should be reflecting a genuine expression of admiration.

Meaningful: To endure a motivating pressure, rewards should be aligned with the values, goals, and priorities that matters most.

Adaptable: Consider creative options to refresh your program.

Relevant: Some personal relevance is important for good reward with personal touch and be awarded to receiver in significant way.

Timely: Important that rewards should be responding to the behaviour they are intended to reinforce without any delays as too much time pass could devalue its importance. (DHRM,2000)

For Java Company what is foremost suitable is to keep balance way in terms of reward strategy that should be considered from both prospective to meet the mutual needs as well. Elements that are needed to take into consideration are

Employer prospective

Employee Prospective

Organizational capabilities

Organization structure

Business Strategy




This will take towards the mutual agreement between both. And four basic areas needed to be covered like



Training, Learning and development

Work environment

The formulation of this reward program must be done in a strategic way and based on analytical need of the company. Various steps will be involved in determining the need of reward system program.

Targeting the audience

Type of work and job in your audience.

How many and who are they?

Recognizing individual motivational needs.

Going for team or individual or for both?

Recognizing employees how and what way should it be done.

Choose and specify goals

While choosing audience also target specific group of behaviour you need improvement in.

Focus on particular objectives and challenges your company or division needs.

Analyse current recognition methods.

Are the goals achievable?

Are you designing goals for company or division or both?

Building a budget

Cost of promotional materials with potential participants.

Cost of reward and presentation type(formal or informal, location)

Expected number of people attending award presentation?

Facilitating cost like food, facilities and etc.

Administration cost and training costs for managers and supervisors.

Developing a criteria

Specify the time frame for setting criteria.

Create measurement system that reflects transparency. e.g. reporting (daily, weekly, quarterly, monthly )

Choosing the awards

Review your budget

Identify specific needs of groups, individual, company, division and other influencing factors.

Program communication

Employee involvement and promotional teasers shall be introduced in initial phase.

Use promotional material often to remind and energise employees, also keep updated them by emails or Intranet.

Presentation of awards

One to one




Evaluation of the program.

Employee reaction



Depending on the need for java Company the company recognition awards can be below one

Creativity in fresh and innovative methods.

Higher performance


Employee of the month and year. (DHMS, 2000)

As the final reported body is related to finance so use of intrinsic rewards will be more desirable. However where it is necessary extrinsic rewards shall be provided.

High Involvement Culture Mechanism

It is desirable for the Java Company to promote high involvement culture however we need to focus on its feasibility as well. Therefore we try to reach conclusion after proper analysis which is based on three main key features








The Investor should be fully committed in development of its people to achieve its objectives.

>Organization is supportive in its commitment.

>Peoples are encouraged for own and others performance.

>Making people belief for their contribution by recognizing them.

>Equality in opportunities

>Strategies and actions should be explicit to everyone described by the management.

>Involve people feedback for their improving areas.

>Involve people to recognize their contributions.

>Actions and strategies must ensure equality and fairness.


Investor must be clear about aims and objectives his people need to achieve.

>Organizational plan must be clear all.

>Developing people aligning with aims & objectives.

>People must be clear about their contribution towards achievement of company aims & objectives

>Provide a clear plan of action.

>Clear priorities leading people to link with aims and objectives of the organization.

>Invite people in explanation for achievement of desired goals of a company.


Invest in

Developing people to improve performances.


>Effective management in supporting development.

>Outcome from learning and development.


>Skilled managers perform this task.

>Show to right way to follow.



Impact of investment toward its people performance.

>organizational development must improve performance of teams, groups as well as organization.

>Impact should be understood by people of overall development.

>organization improvised at developing people.

>Depiction of organization regarding development

>overall costs and benefit of development must be taken into consideration.

>Involve timely feedback of people for improvement.

Adapted from (Alan, 2009) High involvement culture mechanism

This is mechanism takes toward the organizational objectives.


Model based on Johnny Sung David Ashton article, (2010) taken from (Caroline, 2010)

This suggested model is covering all the areas that have been discussed before with the provided mechanism which is foremost suggested for the Java Company to take into deliberation.


It has been concluded that issues like job description, lack of transparency, unaligned policies, unfair decision making, high turnover, proper reward management and high involvement culture can be overcome in the Java Company if we enrich the Hr setup inside the company as well as delegate the power of policy making rather than just consultation. Apart from that innovative techniques shall be encouraged in most key areas like recruitment and selection, reward management, performance management etc. They techniques provide more variety with cost effective methods with the company resources it already had such as Technology. The need is of proper utilization of its assets in right direction with aligned policies and strategies that make company aims and objectives more explicit and achievable and under stable to everyone.


Hence based upon the analysis and conclusion it is recommended that

Hr setup shall be strengthened inside the company for effective policy making as well as decision making.

Innovative techniques shall be introduced in the company to gain competitive edge and maintain pace in the market.

Training and development should be the motivating factor that company lacks as well as timely performance reviews and reporting shall be done.

Reward and recognition shall be considered eminent part of employee development as well as company growth.

Involve employees in decision making in decisions concerned to them whether they are direct or indirect.

Statement of Cost

Here under is the Balance Sheet proposed to the business of the company.


Budget Planning %


Assets (Current, Fixed, Intangible)



Liabilities (Long-term, taxes, capital expenditure, Wages)



Other expenses (compensation, allowances, bonuses & rewards)


This statement of cost is hypothetical explaining the budgeting criteria that Java Company should follow and will be beneficial for its output.


Types Of interviews are

PRE-INTERVIEW / Preparation of recruitment /selection document for the position


Preparing advertisement

Media selection


Response handling

Initial interview online or telephone

Short-listing for interviews

Interview arrangement

Sending emails or calling short listed candidates

Interview details to the short listed candidates

During Interview

HR interview

Technical interview

Conducting tests [Aptitude / Mathematical / Analytical etc.]

Initial final list of candidates.

Reference check (if required)


Email or Telephone call to unsuccessful candidates

Technical Manager Approval for a start up date.

Email or Telephone call to successful candidates

HRM prepares a letter of appointment

Examples of OPEN Questions for Candidates:

Q. Please tell us about the problems you have handled as a Programmer / Supervisor?

Q. Please tell us how do you work well within a team?

Q. Please give us an example of how you have dealt with conflict within your team?

Examples of CLOSED Questions for Candidates:

Q. Have you handled problems as a Programmer / Supervisor?

Q. Do you work well within a team?

Q. Are able to deal with conflict?

Rewards and Recognitions

·€ Exemplary attendance

·€ Positive attitudes ·€ Exemplary attendance

·€ Productivity ·€ Safety achievement

No or Low Cost Rewards



flexible working hours

opportunity of cross training

T-shirts/pens/Mugs with company logo

Job rotations

Moderators Cost Rewards

Cash bonuses


Annual picnic

Annual Dinner

Time Off

Managerial Functions of HRM

Planning: Plan and research about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.

Organizing: Organizing manpower and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives.

Staffing: Recruitment & Selection

Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down.

Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations.

Operational Functions of HRM

Procurement: Planning, Recruitment and Selection, Induction and Placement

Development: Training, Development, Career planning and counselling.

Compensation: Wage and Salary determination and administration

Integration: Integration of human resources with organization.

Maintenance: Sustaining and improving working conditions, retentions, employee communication

Separations: Managing separations caused by resignations, terminations, layoffs, death, medical sickness etc.