Managing Human Resources

Managing Human Resources
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Question One
HR teams in different corporations face problems in running their departmental operations and their consistent enforcement of policies in the company. In Huntsman Hotels plc case study, the company faces issues on employee retention, recruitment and selection process, discrimination and diversity, high turnover rates, the company’s staffing model, and its payroll process. The aspect of employee retention arises due to the fierce competition in the hotel industry from other establishments like Travelodge, Primer Inns, and Ibis. The act has led to a shortage in managerial staff within the industry and emergent issues in the staffing process. Consequently, Huntsman has been severely implicated, and its growth plans have been restricted due to the frustration among its workforces. Therefore, this conforms to the open systems theory that views a corporate as one that does not function in splendid segregation but within a setting made up of elements outside the organization. The acts can have a direct or indirect sway on performance. Huntsman Hotel plc was directly affected by the environment through the aspect of competition that led to a shortage of managerial staff in the industry.
Open systems theory helps companies to comprehend that they cannot entirely control organizational environmental factors but they can manage their inputs, transformations, outputs, and customer or employee feedback.

The theory is made up of four characteristics of people that include: reasonable balance of autonomy, self-governance, homonymy, and the act of interdependence (Emery, 2004, 48). (Paragraph Two, Page 48) Therefore, this shows that the theory works as the best apparatus for diagnosing the areas that companies need to concentrate on when carrying out assessments on how to maximize success and resolve problems.
Huntsman’s recruitment and selection processes have been faced with difficulties and issues on the way they are handled by the HR team. In the case study, it’s evident that the company was involved in two lawsuits where it ended up paying considerable indemnities due to discrimination and other indiscretions that were realized in their processes. It should be noted that discrimination claims costs employers many resources and lost work time, employee stress, and a negative public image that results in a discriminatory lawsuit (Gusdorf, 2008, 3). (Paragraph Six, Page 3) The undertakings go hand in hand with the structuralism theory that focuses on behaviors. It links exogenous forces like societal bias with employer structures so as to protect corporations from being held accountable for discrimination cases in the workstation (Saucedo, 2009, 353). (Paragraph One, Page 353) The discriminatory structures under this theory play a similar role as that of explicit exclusionary barriers in employee recruitment or promotion. In the case study, some discontented workforces of Huntsman raised discrimination assertions towards the inner circle of Giuseppe who hold an upper ranking in the syndicate and possess the majority of the remaining corporation stocks. It is depicted that junior employees tend to be blamed whenever things go wrong, and the company portrays a “them and us” culture.
Huntsman Hotels plc’s HR department has experienced first-hand low determination and hitches with labor force organization. The act makes the new HR manager to be worried that he may be fired if he does deliver and meet the expectations of the principal shareholders of the corporation. In the case study, he is viewed to have comprehended that he has a short spell to ascertain the vital problems facing the company and find relevant elucidations or be dismissed just like his predecessors. The character traits depicted by Huntsman’s employees can be related to theory X that assumes that workforces are naturally unmotivated and dislike working (Lawter, Kopelman, and Prottas, 2015, 86). (Paragraph Three, Page 86) The theory encourages the application of an authoritarian type of management through intervention so as to make things work in the right direction. Employees who fall under theory X are perceived to have a trait of not willing to work, avoiders of responsibility, have to be threatened to deliver, need to supervised from time to time, and they need to be enticed so as to produce good results. Therefore, this is an explicit portrayal of the current situation that has been illustrated in the case study. The firm has a small delegation of authority, and the control of the organization remains firmly centralized.
The company is faced with payroll and pay raise issues that relate to employee compensation program. In the case study, it is evident that Huntsman Hotel plc has no formalized wage structure. The author of the case study explains that any pay increases in the company have been made on an “ad-hoc” root either because there was an apparent requisite to recompense devotion or to prevent an employee from resigning from the corporation. The acts have made the employees create perceptions of inequity acts making them take actions like quitting with an attempt of trying to restore equity. Huntsman’s employee reactions conform to equity theory that touches on employee perceptions on their contribution to the organization, what they earn in return, and their return-contribution ratio in comparison to other staff within and outside the firm (Gerhart, Minkoff, and Olsen, 1994, 6). (Paragraph One, Page 6) The theory recognizes that some of the actions that may be taken by workers may not be helpful to the organization. On the same note, they may portray a negative feedback on the picture of the company on how it handles its workforces and the operation of its HR department.
Question Two
The HR issues analyzed in the case study can be fixed through the application of the following recommendations. The changes will help in improving the company’s human resource processes and other employee aspects within the company. The issue of employee retention can be resolved by the firm assessing its current situation of handling employees. The act will enable HR executives to establish the reasons behind the retention problem and determine how they shall measure the impact of their solutions. Companies should look at rewards, recognition, and other aspects that may influence employee satisfaction so as to comprehend on how they can improve retention of valuable workforces (Dipietro, Kline, and Nierop, 2014, 259). (Paragraph Two, Page 259) Huntsman Hotel plc management team should start recognizing employees who do exemplary work in their assigned chores so as to encourage employee engagement and retention. The act may pose a risk to the company on spending more of its resources in recognizing employees. Similarly, it may demoralize employees who are not regularly recognized by the company. On the other hand, the firm will be rewarded by a majority of employees sticking around the company and be motivated to produce good results in the different tasks that they handle.
The aspect of discrimination in Huntsman’s recruitment and selection process calls for the adoption of the legal clauses that should be followed to ensure that the process is done in a fair and rational manner. The discrimination rules do not allow rejection of applicants based on their age, gender, religion, race, and many other discriminatory aspects (Doornenbal, Stitselaar, and Jansen, 2012, 8). (Paragraph 3, Page 8) If the company decides to use an in-house recruitment process, the management directors should take reasonable measures to prevent its workforces from acting in a discriminatory way that may make the company be held liable for their actions. The company should have a written policy covering the selection process and its conduct of interviews, and it should be provided to all interviewers of the firm. The act may be involved with a risk of losing potential employees who had some interests in ensuring that their candidates take up the positions advertised by the company. On the other hand, it will help in averting legal issues based on discrimination. Similarly, the company will be rewarded by a motivated workforce due to the enhancement of trust in the actions carried out by its directors.
Similarly, if the company decides to use recruitment agents to short-list applicants, it ought to carry out an inquiry to guarantee that the agency is aware of their legal obligations when it comes to discrimination. On the same note, the firm should go ahead to discuss key requirements of the job with the agent and provide all information on equal opportunity principles. The act is involved with a risk of many agent groups declining to take the task of Huntsman’s selection and recruitment process because of the stipulated consequences if they fail to observe the set legal requirements. Conversely, the act will reward the company with a hiring agent that believes in the principle of fairness and equality. Similarly, the company will end up gaining the best employees who shall fill its vacant positions.
Huntsman Hotels plc’s turnover rate can be resolved by the company holding exit interviews as a reactive measure. The HR team should obtain data from departing staffs about their experiences with the firm and the causes that have made them quit. Consequently, the statistics from the exit interviews should be studied by the affected sector, position, and occupation. The act will enable the firm to determine the employment factors that make workforces cut links with the company. Higher-than-average turnover in certain sections may indicate ineffective control, traumatic assignments or intricate departmental practices that upset the way workforces feel about their professions and the firm. Huntsman should apply proactive measures to reduce the turnover rate through improving the quality of their selection process and ensuring effectiveness in the company’s leadership style. The risk associated with this act is the change of the method of decision-making in the enterprise. The act shall call for the contribution of junior employees as compared in the past where Huntsman’s top management used to make individual decisions. Thus, this may make the top managers and directors feel like their roles have been undermined or reduced. On the other hand, the company will be rewarded with an entry of new decision-making techniques and a reduction in its overall turnover rate.
The management team of Huntsman Hotels plc should carry out employee gratification reviews to ascertain operational disorders that may be instigating staffs to be less passionate about their works. The HR team should discourse the review outcomes and its exploration with the directors of the organization so as to create action strategies for administrators and executives. The action strategies shall play a critical role in providing a way for determining occupational problems and creating a follow-up scheme for sustaining perfection. The risk associated with this is that employees may not be willing to freely discuss with their bosses due to the fear of losing their jobs if they criticize distinct approaches applied by the top management teams. Thus, this shall lead to the development of flawed action plans that shall not produce the desired and expected results that the company anticipates. Conversely, the changes will reward the company with increased employee morale and good engagement levels that shall act as signs of job satisfaction.
Huntsman Hotels plc director and executive managers should include the new HR manager in the development of the firm’s strategic direction and embrace him at the executive table. The change calls for the company’s executives not to view the HR team as a meager managerial function of the firm but as a tactical companion that validates the significance of the organization’s most treasured assets. The act will enable the directors to make a clarification on the roles carried out by the HR manager and reward the company with the best strategy for managing people. Conversely, the change can be faced with a risk of exposing the company’s inner secrets that are held by the top executives. The risk can take place due to the high market competition from other establishments that may poach the Huntsman’s HR by promising him a higher pay and favorable working conditions. Therefore, this may make the company incur losses since its competitors shall work on its weaknesses so as to kick it out of the market or engage it in unnecessary legal tussles.
The company can solve its payroll issue by conducting regular audits on the entire process through a comprehensive workflow analysis and itemizing each step of the practice. The act will make the organization to be able to develop pay rise increases for its employees in different departments and branches. On the same note, the company should seek input from employees so as to make its payroll process to be effective and attractive. The action will enable the organization identify any confusion and misunderstanding among employees, and receive suggestions on the method that workers feel should be instituted for their pay rise purposes.
Question Three
The changes that have been suggested relating to the management of people at Huntsman can have wider implications for its employees as they undertake their day to day activities. Firstly, the aspect of employee recognition shall lead to a rise in satisfaction and increase in productivity among employees, and make them motivated to improve their good work. Non-financial rewards and recognition motivate many people as compared to the aspect of receiving money (Burton, 2012, 16). (Paragraph One, Page 16) The reinforced actions of the workforces shall act as critical elements of supporting the enterprise’s undertaking and a strategic performance gauge. The management team shall be able to receive direct performance response for persons and crews on how they handle various tasks of the organization. Thus, Huntsman’s employees will spend more time concentrating on their work and less time complaining or raising various grievances. Similarly, retention of quality employees shall increase, and a reduction in employee turnover shall be realized. The employees shall tend to lower negative job effects like absenteeism and stress in the work area.
Adoption of legal clauses that should be followed so as to ensure that the recruitment and selection process is done in a fair and rational manner shall make employees feel motivated as they handle different tasks on behalf of the company. Employees will view the company as one of their homes and feel part of it due to the elimination of the aspect of discrimination. Thus, this will mitigate the corporation from potential liability on allegations of unfair employment practices. The employees will be happy since the elimination of discrimination shall act as a critical step in creating a work environment that values diversity. Equally, employee turnover will improve since workers will not be demoralized or disheartened like in the past when discrimination in the recruitment process was evident. Therefore, this will help in saving the high cost of turnover that may affect the overall performance of the firm.
Huntsman Hotels plc shall be able to restore the morale and engagement of employees in the different tasks that they handle on behalf of the company in the light of the implementation of the suggested changes. The employees shall depict an enthusiastic approach to their job tasks and hold a genuine interest in making a contribution to organizational goals. Therefore, the company shall be in a position to sustain a productive workforce in which employees have a belief that their employers value their talents and expertise.
The act of involving Huntsman’s employees in the decision-making process of the company shall build trust that shall serve as a key factor in establishing the workforces’ relations to the top management team and directors. Participation of workers in decision-making affects job gratification, employee performance, organizational efficiency, employee inspiration, and managerial commitment (Zubair et al., 2015, 307). (Paragraph Three, Page 307) The workers shall view different decisions taken by the management of the company as transparent verdicts since they were consulted and involved in the process. Thus, this will avert adverse outcomes among employees since the company has not kept them in the dark on their current and future intentions. Similarly, the employees will develop a feeling that the firm values their opinions and comprehend that their daily undertakings may hurt or assist in the development of the syndicate. Consequently, the employees shall build a strong working relationship between themselves and the top management since they shall have a feeling of being beneficial to the company.
Huntsman’s inclusion of the new HR in the executive table shall make employees develop good feelings towards the owners of the company since they shall view to be represented by one of their own. The act will help in curbing the perspective held by junior employees on the existence of a “them and us” culture due to the tendency of shifting blames to low-grade employees whenever things go wrong. Consequently, the workers will restore their trust in the selection and recruitment process of the company. Therefore, this will be valuable for the durable actions of Huntsman’s directors, top executives, and the junior employees.
The change of resolving the payroll issue and coming up with a strategy of pay increase among employees shall make them be motivated and produce the desired results in their daily undertakings in the workplace. The workers will strive hard so as to attain the required results stipulated in the strategy for them to increase their pay. Equally, the employees will start setting targets that they aim to achieve and emulate group spirit in solving different tasks and problems that may arise in the corporation. Similarly, engagement of employees in making payroll decisions will make them be assured of the existence of transparency and eliminate the doubt of discrimination on the way the company pays its different categories of personnel. Therefore, this will make the company flourish in the marketplace and face its competitors courageously.
Bibliography
Burton, K. (2012). A Study of Motivation: How to Get Your Employees Moving. Management, pp.1-33.Dipietro, R., Kline, S. and Nierop, T. (2014). Motivation and Satisfaction of Lodging Employees: An Exploratory Study of Aruba. Journal of Human Resources in Hospitality & Tourism, 13, pp.253-276.Doornenbal, E., Stitselaar, W. and Jansen, L. (2012). Recruitment and Selection. pp.1-20.
Emery, M. (2004). Open Systems Theory: Implication for Development & Learning. Dynamics of Organizational Changes and Learning, pp.43-69.Gerhart, B., Minkoff, H. and Olsen, R. (1994). Employee Compensation: Theory, Practice, and Evidence. Center for Advanced Human Resource Studies, 95(04), pp.1-29.Gusdorf, M. (2008). Recruitment and Selection: Hiring the Right Person. Society for Human Resource Management, pp.1-15.Lawter, L., Kopelman, R. and Prottas, D. (2015). McGregor’s Theory X/Y and Job Performance: A Multilevel, Multi-source Analysis. Journal of Managerial Issues, 27(1-4), pp.84-101.Saucedo, L. (2009). The 3 Theories of Discrimination in Brown Collar Workplaces. University of Chicago Legal Forums, 10(1), pp.345-379.Zubair, A., Bashir, M., Abrar, M., Baig, S. and Hassan, S. (2015). Employee’s Participation in Decision Making and Manager’s Encouragement of Creativity: The Mediating Role of Climate for Creativity and Change. Journal of Service Science and Management, 8, pp.306-321.