Contemporary Issues in Hr
EXECUTIVE SUMMARY
“To manage people well, companies should elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers.” (Jack Welch 2005: 98)
Surviving in this era of globalization, organizations face varying degree of challenges to remain relevant and to obtain that ‘extra’ competitive edge. In doing so, HR managers play a vital role in ensuring that strategies adopted by the organization are fully supported. The challenges faced by HR managers in the current global trend, which includes the key issues pertinent to the company in question, Asiatic, are low morale and underperforming staff, high labor turnover, absenteeism and lack of training and development. The nature of these challenges and how Asiatic may address those situations are elaborated further in this report.
Based on the external and internal analysis done, it recommended that Asiatic adopt several strategic HR initiatives to combat the above prevalent issues. These recommendations include having a clear HR policy in terms of career path and corporate culture as well as disciplinary procedures, to introduce a mix of a performance based compensation system with the existing remuneration system and to adopt a Learning and Development approach across Asiatic.
Upon embarking on the recommendations provided, through empirical evidences provided, the challenges faced will be tackled gradually and boost Asiatic to a new level of competitiveness in its industry.
TABLE OF CONTENTS
EXECUTIVE SUMMARY……...……………………………………….…....…….…..2
1. INTRODUCTION …………………..……..………………………………...….4
2. ORGANISATIONAL BACKGROUND…………….…………………………5
2.1 Asiatic SWOT Analysis………………………...…………………………5
2.2 Other External Factors…………………………………………………….6
3. CURRENT HR CHALLENGES IN ASIATIC………………………………..9
3.1 Low Morale and Underperforming Staff …..…...………...………………9
3.2 High Labor Turnover, Particularly in Administration and
“To manage people well, companies should elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers.” (Jack Welch 2005: 98)
Surviving in this era of globalization, organizations face varying degree of challenges to remain relevant and to obtain that ‘extra’ competitive edge. In doing so, HR managers play a vital role in ensuring that strategies adopted by the organization are fully supported. The challenges faced by HR managers in the current global trend, which includes the key issues pertinent to the company in question, Asiatic, are low morale and underperforming staff, high labor turnover, absenteeism and lack of training and development. The nature of these challenges and how Asiatic may address those situations are elaborated further in this report.
Based on the external and internal analysis done, it recommended that Asiatic adopt several strategic HR initiatives to combat the above prevalent issues. These recommendations include having a clear HR policy in terms of career path and corporate culture as well as disciplinary procedures, to introduce a mix of a performance based compensation system with the existing remuneration system and to adopt a Learning and Development approach across Asiatic.
Upon embarking on the recommendations provided, through empirical evidences provided, the challenges faced will be tackled gradually and boost Asiatic to a new level of competitiveness in its industry.
TABLE OF CONTENTS
EXECUTIVE SUMMARY……...……………………………………….…....…….…..2
1. INTRODUCTION …………………..……..………………………………...….4
2. ORGANISATIONAL BACKGROUND…………….…………………………5
2.1 Asiatic SWOT Analysis………………………...…………………………5
2.2 Other External Factors…………………………………………………….6
3. CURRENT HR CHALLENGES IN ASIATIC………………………………..9
3.1 Low Morale and Underperforming Staff …..…...………...………………9
3.2 High Labor Turnover, Particularly in Administration and
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