Room for Improvement. Restructuring and Redesigning Human Resource Management in a family-run manufacturing company

Table of Contents

Case Study … 2

Case Synopsis … 2

Key Concern Areas … 2

Analyzing the environment … 3

Redesigning work systems/ Organization Structure … 5

Strategic selection and recruitment by HR managers … 5

Organizational Chart … 8

The Map of Human Resource Management Territory … 9

Core functions of human resources with organizational References … 9

Service Advisors … 12

Analyze Employee Motivation … 12

Equity theory … 12

Internal Equity … 12

External Equity … 13

Individual equity … 13

Citations … 14

Case Study

Case Synopsis

In the following case study we would be looking at a manufacturing company, “Flambo Plast GmbH” (FPG) specializing in the fields of plastic packaging, catering largely to the food industry. It is a family run business, involved in manufacturing three types of products viz., beverage packaging, food packaging and cutlery. It has an enlisted record of 500 employees. It was enjoying a good stand since its inception, but the growing competition in the field in the recent years, have pushed the management to rethink newer possibilities. The general threat is mostly experienced from the cheap product options flooding the German market. The management is run single-handedly by one owner. Lack of specialization amidst the employees is baffling and disappointing the management.

Key Concern Areas

The condition in the manufacturing unit is not proving to contribute to organizational growth.

– Large number of temporary workers, leading to higher churn, lack of skills.

– High rate of sick leave application, burdening productivity of the firm.

– Lack of employee motivation, owing to mismatched skills, low managerial control.

– Employees are supervised by three administrative managers dealing with three individual product lines. This causes conflict in direction and reduced clarity on product line, requiring different set of focus and skills. Lack of customer feedback has reduced the customer connect.

– With global markets garnering momentum, it is imperative to understand cost competitiveness, product competitiveness, differentiating products to market.

Thus it is quite apparent that the management will have to consider a total organizational restructuring along with a thorough redesigning of the functioning of the human resource segment. The following statements can be considered as necessary aids:

[This is a preview. Figures and tables are not included.]

Source: Jeffrey A Mello, Strategic Human Resource Management (South Western College Publishing)

Analyzing the environment

By understanding the competitive industrial world, one can understand the loopholes present in the individual organizational system at the same time. Understanding competitors would help strike better deals. In case we have analyzed the possibilities like common grounds to work upon, we should not put off the idea of merger[11],[12]. The laws and regulations should be studied thoroughly so that the performances of organizations can be calculated[6],[7]. New technologies should be adopted to have a steady upper hand on the competitors surfacing from time to time in the specific markets[16],[21],[22],[23]. The research body should realize the needs of the potential customers, target groups and the marketing strategies required to rope in new customers.

The environment for FPG shall comprise of two factors:
1. Internal to FPG
2. External to FPG

Internal factors shall comprise of Operations, Management, Employees.

External factors shall include competitors, new product on offer, skill available for hire, cost etc.

Analyzing the environment of an organization is mostly necessary when one is intending for growth. This environment essentially means the competitors, market trends, technological changes etc. In addition to these, we have to deal with government regulation and economic policies as well.

The following factors may be affecting FPG internal environment

– Human resource skills:
- Temporary staff: Analyze if temporary staff is handling key skill profiles, key decisions making roles etc. Temporary staff in key area may result in low motivation owing to differentials in pay and company benefits extended to permanent staff.
- Personnel leaves: Evaluate and monitor the leave records of staff, categorize it in permanent and temporary staff. Seek reasons for absence. Categorize reasons of absence under various categories such as medical leave, personal leave, travel leave etc. Stringent control needs to be brought in on leave policy to boost productivity.
- Remuneration benefits[17]: The global competition offered in packaging industry shall also open more employment opportunities for existing staff. HR officers should monitor similar offering in market offered by competition to match with its existing employees. This may also be a reason of lack in motivation and eventual outside churn of skilled workers.

– Product Offering
- Increased Customer demand: As the globalization offers multiple offering to end customers, the organization needs to modify its product offering[24],[25]. This offering could be in multiple facets, such as different sizes of packaging material, special prints to cater to children, offering variety of colors etc
- Price strategy: Change in pricing strategy with knowledge of competitive offering, value perceived by customer, fitting the offering based on tax structure and slabs shall increase the overall value proposition.

[...]