HRM - Problems and Resolutions for Any Company

Essay by aayushmailA, August 2009

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Introduction:Klad-It is a company producing a low cost housing product and was started by Jo Bundy and Al Johnson. The company has grown dramatically in the last few years and now employs 100 people compared to the earlier 20. This growth has been responsible for a change in the place of operations to new premises. The productivity of the company has been dropping in the last few months and the aim of this case study will be to find the reasons and provide suitable solutions for them.

List of Issues:Based on the given information, there are many problems revolving around Klad-It which concern HRM. They have been identified and explained below:Lack of Strategic HR Planning and Insufficient Workforce Planning:Developing a human resource (HR) strategy to support the business plan requires human resource management (HRM) planning to be recognized as a fundamental part of the business planning process.

This paper argues that integrating HR strategy and strategic planning is fundamental to achieving business excellence. Klad-It has grown and there are a huge amount of orders, but it has been unable to handle them well. The HR department in Klad-It is being managed by Jill Bundy who has been mainly involved with personnel management instead of having a strategic focus. The focus has been on cost & efficiency and short term in nature without a long term plan.

Problems with Employee Retention:Lack of Employee Development or Training program:This is attributed from the assumption that Klad-It does not encourage or provide training and development to their employees despite having a steady growth for the past eight years.

With no employee training and development program, it resulted in the stagnation of employee morale. Despite the many permanent staff in Klad-It, it can be seen that there wasn't any information about each...