Assignment Task
Case study
Escape to the Wild is a successful company, which sells specialist clothing for outdoor leisure pursuits through mail order and through a small number of retail outlets. It is a privately owned company, which has been in business for over 15 years. It remained small until six years ago. At that time, a managing director was recruited with the remit to expand the company. Initially, the range of items available in its mail-order catalogue was extended and the company took over larger warehouse premises for stock and dispatch of goods. Four years ago, it opened its first retail outlet and, since then, has expanded the number of outlets to 10. There are proposals to open five more. Two years ago, it set up a website for customers to order goods online, and this aspect of its business continues to grow rapidly and has resulted in strong export sales. Since the appointment of the managing director, the workforce has increased from 20 to approaching 300, as the business has expanded and become more complex. The strong demand for specialist outdoor clothing and the expansion strategy continue to stretch staffing resources. The need for more staff has been identified right across the company. Escape to the Wild has no dedicated human resource function. Senior managers recruit the staff they need and, within clear boundaries, have been delegated responsibility to determine their initial salary levels and pay rises. Salary administration is outsourced. Staff raining is ad hoc. The finance director issues employment contracts and deals with requests for special paid leave, such as maternity leave, and salary increases. During this rapid growth, the company has focused on delivery of services to its expanding customer base. Until now, employee relations in the company have generally been good. However, there was a realization that it is time to focus on the introduction of policies and procedures to allow for a more systematic approach to human resource issues. At recent meetings of the company management team, the senior line managers have been voicing their concerns that they spend too much time on issues that could be dealt with by a human resource section, if the company had one. The increasing number of employees has resulted in the finance section spending too much time on staff-related issues and they feel out of their depth. Also of concern to managers are the inconsistencies in job descriptions, recruitment and selection practices and matters relating to employee pay and conditions. One member of the senior management team recently attended a seminar on employment law. This has brought a realization of the complexities of the law in this area and the need for the company to be better informed to ensure fair employment practices. This is also the case in regard to other HRM activities in which the senior members of staff have no formal qualifications or experience. Employees, too, are beginning to raise concerns about inconsistencies in terms and conditions. Some are leaving, as they are feeling dissatisfied with what they see as an unfair approach to human resource issues. All in the senior management team are agreed that a more systematic approach is required. This includes putting in place a robust Management Information System (MIS) to deal with the new complexities of the business and acting on information quickly and effectively. The managing director has expressed that the company takes a more strategic approach to the way it recruits, trains and promotes its employees, to ensure that it can retain those who can help it continue its successful and profitable expansion.
Escape to the Wild — organizational structure chart
You are a human resource management adviser who has been brought in by the company to write a report for the board of directors and senior management team, advising them on the human resource function you think would be appropriate for the company.
Your remit is to assist the senior managers in their understanding of HRM activities necessary to run a successful business. You must answer all of the following questions.
1. Give your recommendations, with reasons, to the managing director of Escape to the Wild on:
a) The structure of the human resource function, with the use of a diagram — you should include the number of staff you think should be employed in human resources, the roles they will undertake and their reporting lines.
b) The human resource responsibilities you will leave with senior line managers.
c) The rationale for implementing a computerized Management Information System (MIS).
2. Analyze the benefits for individual employees of Escape to the Wild having a human resource function.
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