Neighborhood Textiles Ltd

Neighborhood Textiles Ltd

Introduction

Neighborhood Textiles Ltd 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 Neighborhood Textiles Ltd 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. Neighborhood Textiles Ltd has grown and there are a huge amount of orders, but it has been unable to handle them well. The HR department in Neighborhood Textiles Ltd 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 Neighborhood Textiles Ltd 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 Neighborhood Textiles Ltd, it can be seen that there wasn't any information about each of them and what other skills they have besides their current work skill. This hinders the company to implement training and development program for the employees. Moreover, from the case study, it shows that there were young talented individual in the company who lack of the opportunity to grow and flourish and thus left the organization for other opportunities, as is evident in the case of the IT specialist. This goes against the theory that states the importances of having talented individuals grow and keep them performing at their best level (Berglas 2006). In addition, the older employees in Neighborhood Textiles Ltd were not trained to upgrade their knowledge although many of them are experienced and have been working with the company for a long time, as in case of the skilled floor staff. Their importance could have been enriched and complemented with some training and development, which in turn would have enhanced performance (Odums, G.A., 2006; Loretto, W. & White, P., 2006; Cabrales, A.L., Valle, R. & Herrero, A., 2006).

Career Management

In terms of the career management issue, it lies with how the company direct and enable the employees ...