Strategic Human Resource Management in Metro Manila Retraders Essay Example

The family's goal is to take care of and promote family members and relatives, while the business must produce superior products and services efficiently and cost-effectively.

Organizations can create significant inequality among employees if they employ and promote an ineffective household member or relative, leading to obstacles for the organization. Inefficiencies in the sales department and a lack of management motivation also contribute to corruption.

Undertaking 1

PURPOSE OF STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management is responsible for staffing, recruitment, training, and managing people to optimize organizational performance. It plays a crucial role in supporting the organization's transformation process and attracting talented individuals to fill vacant positions.

Strategic Human Resource Management seeks to develop policies that benefit both the organization and its employees by aligning employee management initiatives with the mission and vision of the organization. To effectively manage individuals, it is crucial to have sufficient knowledge and skills to unlock their maximum potential. Human resource strategies play a vital role in achieving organizational goals.

According to Martin (2009), strategy serves as a means of comprehending the diverse conditions within which a company functions. This comprehension becomes the foundation for organizational change, as the company adjusts to an evolving perception of the future. The HR specialists face a considerable challenge in maintaining the effectiveness and efficiency of human resource management. Activities such as staffing, training, and supporting people management play a vital role in ensuring the organization's success.

Metro Manila Retreaders Incorporated's human resource management is in charge of various aspects of personnel management, including experiences, competences, expertise, personal information, and payroll records. They are responsible for time and labor management, benefit administration, and effective employee management as the company's

most valuable resources. It is important to ensure strictness in the recruitment and selection process in order to prevent biases that may arise from hiring immediate family members or relatives. Furthermore, it is crucial to provide clear communication about rules and regulations to all employees at the beginning of their employment.

It is essential for staff members to understand that any violation of company policy will result in consequences from upper management, in order to prevent favoritism. By promptly granting sales allowances and addressing operation-related requests promptly, the sales team will be motivated to excel. Assisting and training employees will foster a productive work environment. Retaining talented employees should be a priority for the HR department, as it leads to higher retention rates and reduced hiring expenses. The HR department is responsible for creating effective hiring strategies, implementing policies, managing payroll, and handling compensation matters.

It is a section that addresses all aspects related to employee relations and benefits while they work towards achieving favorable outcomes.

Undertaking 2

2.1 HUMAN RESOURCE REQUIREMENTS (Metro Manila Retreaders, Inc.)

The organization requires skilled individuals to ensure the productivity of operations. This will help the company increase sales and maintain liquidity. Due to various employee complaints, the working environment has been affected. Therefore, human resource management needs to implement activities and plans that promote effective communication among employees to avoid confusion and conflicts in the workplace. The employees need to have the freedom to come up with their own initiatives and use their own ideas. Business factors that support human resource planning: Currently, MMRI can be considered to have experienced organic growth as it initially established its market in Manila before expanding to other

areas.

The location of operations must be measured because the demand for sales advisors in the company will mainly be based in the country. Additionally, the organization currently needs to increase productivity as profitability has been declining for a long time. Considering the competition in the business, with the emergence of tire retreading companies in the Philippines, it is crucial for the company to stay financially stable and compete effectively. Metro Manila Retreaders Incorporated has observed fluctuations in sales performance due to the need for sales personnel, specifically sales advisors.

Several people were fired for malversation, which is a highly sensitive issue. Provincial areas rely heavily on the company's sales consultant for services and support since they are located far from the city where the company operates. Therefore, human resources must be careful in selecting candidates for the position and should consider the relationship between applicants and current employees, as this has been identified as one of the causes of corruption. In simpler terms, the company's human resources department should avoid hiring individuals who are closely related to current employees.

There is a pressing demand for 10 Sales advisors to cover the areas in the northern region of the Philippines.

2.2 HUMAN RESOURCE Planning

According to Armstrong (2003), human resource planning aims to expedite the acquisition, assimilation, improvement, and retention of a company's human resources, which are considered its most valuable asset and should be utilized appropriately. This process comprises two components: needs and availability. When discussing the forecast of human resource needs, it entails determining the required number of employees as well as their skills and location. Conversely, predicting availability requires considering both internal factors like current employees and

external factors such as the labor market.

Recruitment and Selection

This aspect of the resourcing process involves presenting a suitable pool of potentially qualified candidates from whom a specific selection of individuals will be interviewed according to Martin (2009).

According to Martin (2009), organizations assess three levels of fit during the selection process: fit with the organization, fit with the department and team, and fit with the job itself. The human resource management department will conduct the selection process after two weeks of advertising. To ensure the selection of the right candidate, candidates will be contacted for an examination after completing the shortlist. Those who pass the test will then advance to the next level, which is a first interview conducted by the Sales Manager.

Successful candidates in the first round will undergo a concluding interview with the General Manager and will be asked for references to ensure their reliability. Those who meet the qualifications will receive a letter of appointment. To retain skilled salespeople, adequate motivation must be provided financially and non-financially. Individuals expect motivation from others to perform well and benefit the organization's profitability.

Training and Development

According to Harisson (2005), training and development in human resource management aims at improving individual and group performance within an organizational context. It is also referred to as employee development, human resource development, or learning development.

Metro Manila Retreaders, Inc. must provide training to their newly hired staff before they start their job, making sure that employees, especially the salespeople, have enough knowledge to go out into the market and sell the products. Additionally, skills and learning development are also offered to each employee to ensure effectiveness in their respective field for the

benefit of the organization.

Undertaking 3

Organization's Structure

Defined as a traditional design of communication and coordination created by management to link the tasks of individuals and groups in achieving the objective of the organization (Bartol and Martin, 1994). It involves various tasks such as task allocation, coordination, and supervision, all aimed at the accomplishment of the organization's goal.

Structure is the point where individuals perceive the overall organization and its environment. The typical organization structures include Hierarchical, Flat, and Tall Structure. MMRI maintains a Flat Organizational structure where there are few management levels between the executive level and the front-line employees. This structure aims to empower staff by involving them in decision-making process, reduce bureaucracy, and encourage their participation.

Hill and Jones argue that organizational structure is the precise structure of standards and customs shared by individuals and groups within the organization. It governs how they interact with each other and with stakeholders outside of the organization. A strong organizational culture maximizes the resourceful ideas and strategies of employees.

To ensure productivity, it is crucial for the organization to undergo necessary changes, which will primarily arise from civilization. However, effectively implementing and transforming the organization requires determination from its human resource. A few years ago, Metro Manila Retreaders, Incorporated was considered an outstanding retreading company. Unfortunately, due to nepotism, its productivity has declined, and it now struggles to generate profit. The organization must allocate more time and resources towards changing its culture. Currently, the organization faces challenges with poor working relationships as a result of ineffective communication and lack of motivation.

The organization is experiencing a shortage of motivation and high performance from individuals due to limited financial support. It is

imperative for management to prioritize employees as they are crucial assets.

Impact of Organizational Structure and Culture

A flat organizational structure promotes effective communication between management and staff, leading to the development of a robust organizational culture.

Despite facing challenges, Metro Manila Retreaders, Incorporated strives to endure. The smooth communication across different departments contributes to employees feeling more satisfied and less anxious. However, the organization's culture has a significant impact on its overall functioning. This is because it is an everyday setup that employees have to experience. The current culture at Metro Manila Retreaders, Incorporated has negatively affected employee performance, leading to a decrease in company profits. The presence of nepotism in the culture has had widespread consequences, as several individuals have been terminated due to corruption. Various complaints have arisen, creating an unpleasant work environment that demotivates employees.

It is crucial for HR directors to undergo a transformation in order to benefit both the company and its employees.

Recommendations for Maintaining HRM Effectiveness

In my view, in order to ensure the success of HRM, it is vital that all department directors possess knowledge and actively participate. The organization's success does not solely depend on one individual. Directors have a responsibility to establish effective relationships among employees, the company, and their work. To maintain HRM effectiveness, it is important to remember that those who contribute to the survival of the organization are those who perform the work and generate ideas. Creating a human resource management plan does not need to be complicated but requires time and careful consideration.

Developing the program can assist in identifying the right people for the job, as well as determining countries and skill areas that would benefit

from additional staff. The responsibility of HRM is to efficiently utilize workforce abilities, improve job satisfaction and fulfillment, and enhance quality of work life in order to achieve organizational goals. MMRI must implement an anti-nepotism policy to combat corruption and address company challenges. Additionally, an efficient communication process is essential for the sales department.

It is important to consider increasing employee satisfaction as one of the factors contributing to malversation in the organization. Satisfied employees are more productive, while unsatisfied employees tend to be absent, quit frequently, and are generally unproductive.

Undertaking 4

HR policies play a critical role in the organization as they provide clarity on various aspects such as the nature of the organization, expectations from both parties, the functioning of policies and procedures, and appropriate and inappropriate behavior and its consequences. Metro Manila Retreaders Incorporated currently follows the following human resource policies: Recruitment and Selection, which includes medical examination results to assess fitness for work, and requires references for reliability.

Before starting a new job, employees are provided with an orientation to familiarize themselves with the organization's background, structure, departments, products and services, and physical layout. All aspects related to the job are discussed during this period. During employment, the company implements policies regarding health and safety, discipline and grievances, maternity and paternity leave pay, absences, and performance management. Similarly, when it comes to ending the employment, the company pays close attention to policies related to dismissal, retirement, and voluntary resignation. In the current situation at MMRI, it is recommended to adopt an anti-nepotism policy as it is one of the reasons for the organization's current struggles. Additionally, the company should consider implementing a competitive wages

policy to motivate and increase productivity among employees, reducing their reliance on personal financial resources due to lack of support from management.

Decision

MMRI needs immediate human resources to enforce and execute all policies. Currently, although the policies are in place, they are not being strictly followed. The leniency of the management has rendered these policies ineffective. Additionally, it is crucial to strictly enforce the anti-nepotism policy to prevent further issues in operations. At the same time, to ensure fairness to employees, the legal advocate should review the provision to avoid infringing on workers' rights. Employment decisions should be made based on their skills, competence, and experience rather than irrelevant factors.

To conclude, nepotism hinders progress in organizations because it does not attract talented individuals. Instead, people are chosen based on personal biases rather than their skills, leading to negative effects on the organization's performance.