The primary purpose of this assessment item is to assist students develop skills in the use of HRM principles, theories and models in the analysis of a typical business situation that has human resource outcomes. The assignment requires you to analyse the current situation, identify and specify the problems, and suggest a probable solution.
Human Resource Management
This case is about Utilities Company slashing 120 jobs by stating tough market conditions and increasing heat from its competitors. Utilities Co wanted part of middle management and senior management to go as the CEO thought that they were stagnant and were blocking Utilities Co to move in the direction of his visions. First, they gave voluntary options for people to go hoping that those middle management as well as senior management people whom they wanted to drop will apply for voluntary retirement. This move failed as most of the Start Performers applied for that as they stated that they now felt insecure about their future in Utilities Co.
Also, Labor Union went into action and gave a notice regarding Industrial action. They tried to negotiate but all the meetings were increasingly futile. There were increasing reports of bad customer service and sales dropped, but CEO didn’t budge from his stance and went all out to release those employees. The HR Manager Maree was also concerned about this development and at the end gave his resignation when things were going out of control and CEO refused to listen to anybody’s voice. The reason given for lay off employees was to make the company leaner and fast approaching towards the future goals set by CEO. But, this had led to decrease in employee morale and increase in tensions of job insecurity which led to higher Occupational Health and Safety problems but also low levels of customer satisfaction. The HR department was also incapable of coping with the situation as they were very less informed about the decision and also very less time was given to them on preparing themselves for the layoff and its antecedents. Also, there was a plan on step by step approaching towards this layoff plan with taking Union , Employees and Top management into confidence but the CEO override all authorities and pressed for a fast movement so that they can achieve desired outcomes as early as possible (Palmon, Sun & Tang, 1997).