HUMAN RESOURCE MANAGEMENT

TMA02: Human Resource Management

TMA02: Human Resource Management

Executive Summary

Balancing the needs and interests of employees against the needs and interests of the organization is often a difficult task in HRM. This focus places a strong emphasis on employee rights and needs and employee wellbeing in general. HR plays the role of employee advocate or 'champion' in ensuring the equitable treatment of employees in order to ensure that the interests of employees as well as the organization are protected. This paper explores the fundamental issues that organization confront when dealing with the shutdown of operational sites and how it can effectively manage the challenges. While much of the literature focus on the needs and concerns of the organization, as well as their potential contribution as resources contributing to organizational performance, an important subset of concerns relate to the management of the HR function itself. Without effective human resource management, the company cannot accomplish high-level goals such as competing globally, grabbing market share, and being innovative.

A Description of the HRM-related Work Problem

The human resource management problem reviewed and analysed for this case is 'Downsizing at Novartis'. In 2011, Novartis announced that it will close down its manufacturing site at Horsham, West Sussex. The current shut down of one operational site created a challenge or company to rightsizing its workforce requirement. This would involve reduction in the number of employees. Company is in compelling need to terminate workers against their wishes. The most common reasons for dismissal are reduction in the operational cost and improving efficiency (Allen, 2001, 4). In this case, it is very important to carry out the procedure for termination of employment because of claims for restoration work on the court very often takes the direction of the employee.

Appropriate approach to downsizing for the company is to go for Voluntary Separation Scheme (VSS). This would create some financial burden on the company in short-term, but would result in reducing the workforce without creating any conflict, while maintaining the high morale of existing employees (Cascio, 2009, 118). Layoffs, contractions, and reorganizations would propel the company compete in an ever changing and dynamic business environment. Cuts in staff and processes are not reserved only for times of economic recession. Contrastingly, it tends to occur almost every time an organization fails to meet its revenue expectations. In order to resolve this challenge, company should run a redundancy plan (Sisson, 1990, 1). The decision of termination should be the final measure. This process generates low morale among survivors.

An Analysis of the Problem Using HRM Concepts

The strength of organizations in a position to compete in the light of globalization and privatization is in its ability, scientific knowledge, and human capital. Human capital and intellectual capacity development requires the transformation of the organization from the traditional approach to contemporary human resource management (Cascio, 2009, 76). Although Novartis stands at 6th place in the pharmaceutical industry, its profits are just close to its industry competitors. To become the market leader, Novartis has to consider optimising ...