Case Study #2

THE HR FUNCTION AT GLENN VALVES

Glenn Valves Ltd., from Detroit, Michigan, is a specialist manufacturer of various kinds of valves and pumps manufactured originally for the motor industry, but more recently for other branches of the engineering industry, such as aerospace and marine. A healthy export trade has also been developed.

Under its Chairman and Managing Director (who is the major shareholder) the business has expanded its workforce from just under 150 to over 250 in the last three years. However, there have been problems recently with quality and a number of complaints have been received from customers. As Glenn Valves depends on its reputation for high quality, this is alarming.

The Chairman has recently taken over another business, so appointed a Managing Director for Glenn Valves, whose function is to concentrate on running the company under the overall guidance of the Chairman. The new Managing Director was appointed from outside and quickly identified employee problems in regard to quality of product, employee relations, employee turnover, and other issues. Since Glenn Valves did not have a functional Human Resource Department, the new Managing Director decided to engage an independent HR consultant to find out how staffing issues were being dealt with, to examine the need for creating an internal HR department, and if one was needed, to recommend what it should look like.

The consultants findings were as follows:

1. Recruitment each of the functional departments at Glenn carry out their own recruitment, having agreed with the Managing Director on the engagement of additional people and what they should be paid. Some use is made of recruitment agencies for administrative staff but sales representatives, production engineering staff, operatives and technical staff are mainly recruited by advertisements and interviewing, which as observed by the consultant, were crude to say the least.

2. Labor turnover this is fairly high: 20 per cent for operatives and 15 per cent for technical and administrative staff. The failure to retain a number of recent technical and operative recruits is worrying and may have contributed to the quality problems.

3. Training there is no formal training; people are recruited with, it is hoped, the required skills and experience and learn the Glenn way of doing things on the job. Some supervisors carry out orientation training conscientiously but the majority dont. Again, it was considered that this prejudiced the achievement of high-quality standards.

4. Pay operatives were paid the local going base rate and staff were paid whatever it was believed necessary to recruit and retain them there was no formal grade and pay structure. Pay was reviewed once a year, generally to keep pace with inflation and in particular to ensure that key staff were paid competitively. Some cash bonuses (usually not more than 10 per cent) were paid to some staff as authorized by the Chairman. There was no formal performance management or appraisal system.

5. Employee relations There were no formal consultation or communication processes with employees. Managers lacked the proper skills to motivate and engage employees.

Questions

1. Based on the Human Resources Consultant findings noted above, what solutions would you recommend for each of the 5 issues identified? Utilize information discussed in class and formulate responses that offer logical HR problem solving methods

2. What recommendations would you make to improve recruitment efforts and interviewing skills?

3. What retention strategies can be explored to decrease the high-turnover of skilled employees at Glenn Valves?

4. How can HR improve training and development programs? How should the orientation program be implemented for maximum effectiveness?

5. How can Glenn develop fair and equitable pay grades and structures?

6. What type of Employee Relations practices should be developed to better motivate and engage employees?

Sources: Clardy, Ph.D. Advantage Human Resources, HRD Press, Amherst, MA

#3 NEW ROLE OF HUMAN RESOURCES MANAGEMENT

The role of human resource management is much more strategic than in years past. The New Millenium is further evolving the role of HR by questioning accepted practices and re-inventing the organizations HR function further with AI . Many traditional practices have been eliminated with now a greater focus on work specialization and skill development.

It also means upgrading the norms and standards of work and how it is conducted, as well as recognizing the importance of formal performance appraisals. Some of the new directions of the role of HRM are summed up below. Please explain what they mean and their importance to the field and practice of effective HR administration:

1. A Facilitator of Change

2. An Integrated Approach to Management

3. HR Role as Mediator

4. Employee Career Development

5. Succession Planning