Reasons of Core issues:
HR Department and HR Functions
HR department design was the biggest issue at the Gourmet. As there was too much product and branch expansion of Gourmet, There was strong need to formalize the structure of HR department in its all aspects like functions of recruitment, selection, appraisals, benefits, hiring and firing etc. There were two HR managers, one HR general manager and one HR production unit manager. It wasn’t a good idea as to have two different HR managers one for general purposes and one for HR related issues to production department as all the functions performed by them come under HR umbrella. All the HR functions were not being performed by the specialized persons as mediocre experience was given preference over qualification also it had become a culture that a little formal outlining the HR department function would do the job for them.
There was no strict formal policy implemented at the production plant for the recruitment of employees. No definite policy of hiring and firing of the employees. Lower level staff both at the production plants and at the bakeries were not qualified and skilled. Employees’ motivation level was too low causing turnover to be high. Skilled employees for the production plant were not available easily so training was biggest aspect that needs to be catered but again no definite policy for the training of the employees. No proper training was given and sheduled for the staff of the bakeries about how to deal and attend the customer.
Compensation and benefits department was not doing the job properly again because of lack of policy making and implementation.