HUMAN RESOURCE MANAGEMENT

A Case Study: Human Resource Management

A Case Study: Human Resource Management

Introduction

This report provides detailed analysis of the HR problems of South Pacific and Development Company (SPC&D), which is currently operating in Australia, Asia, Europe and South America. The HR related problems faced by the company includes high turnover ratio despite attractive remuneration package, lack of training of employees, in effective use of information resources among employees and lack of an effective performance measurement system to retain employees. The company desires to achieve some long term goals for which it requires to perform a SWOT analysis to determine the strengths, weaknesses, opportunities and threats faced by SPC&D. Following the swot analysis, the report highlights the key HR related problems faced by SPC&D and creates an HR plan to eradicate these HR related problems. Further, the report includes HR objectives and practices to achieve SPC&D's objectives and suggest ways to implement these changes.

Discussion

The construction company South Pacific and Development Company (SPC&D), currently having operations in Australia, Asia, Europe and South America, has the following strengths and weaknesses:

SWOT Analysis

Strengths

The salaries of employees are 10% above the industry average pay rates

The company has a huge experience, collected through wide range of projects completed by the company

Standard Performance Management System is used to assess the performance of each team member to select the best employees during the project to stay

Weaknesses

The company's staff turnover is very high, currently 18%

No proper training of employees because groups of managerial, professional and trades people come together to complete projects, and then disband

Opportunities

The company's diversified operations across Australia, Asia, Europe and South America open ways towards further entrance into other industry groups

Remuneration package like bonuses, other rewards for meeting goals and recognition programmes are high as compared to the industry average, providing the opportunity to choose best employees globally

Threats

High turnover ratio can cause the knowledge, from projects completed, to reach competitors through the company's ex-employees

Political instability or internal conflicts in a country can create challenges in promoting construction business in that country

HR Related Problems in the Case

Since, SPC&D has completed many major projects and has employed the staff for short-term basis, that is, the staff turnover ratio at SPC&D is very high due to different durations and nature of the projects. Therefore, SPC&D has created a data base of the knowledge received from the projects completed regarding expected completion dates of stages with respect to actual completion, ways to achieve timelines, ways to achieve deadlines, supplier changes and the reasons behind changing suppliers, suppliers and contractors performance, material quality, efficient budgeting, measuring staff performances and changes in personnel during the project, besides others to apply this knowledge across similar areas of other projects. The information stored regarding previous projects, was accessible easily by any staff member.

However, the company notice that despite providing such useful information at such easy access, no one was utilising the information and same errors were being committed as ten years ago. Another problem that I recognized while going through the case ...