Shark Steel Ltd is a private-owned company, established in 1998 by two brothers Peter and John,...
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Shark Steel Ltd is a private-owned company, established in 1998 by two brothers Peter and John, who had graduated with bachelor degrees in production, engineering and mining technology, respectively. The company which is located in the Eastern region of Kenya manufactures stainless steel pipes, pipe fittings and steel plates. It started off with35 employees and three managers heading the production, finance and marketing departments. In its early years, the company enjoyed monopoly in the region since most of the steel manufacturing companies were mainly located in Central and Coastal regions. Shark Steel Ltd experienced rapid growth in 2018 and as a result, the management decided to restructure the operations. This resulted in the creation of new departments namely; human resource management, information technology and procurement among others. The human resource management department was headed by Mr. Rashid, who was appointed to this position as a reward for having worked in the company since its inception. He previously worked in the production department as a logistics officer. Five other employees were hand-picked to work in the Human Resource department despite the fact that they lacked necessary competencies. Mr. Rashid and his team held the perception that the functions of a human resource management department were limited to hiring, disciplining and firing. The team could therefore not guide the management on the importance of human resource policies. The management held the traditional view which emphasized on loyalty and rewarded employees who never questioned the management decisions even when they were inappropriate. Moreover, 80% of the employees were from one particular region of the country. On its part, the management violated several regulations in relation to human resource management. For instance, employees were regularly dismissed for flimsy reasons and such dismissals were executed without following due process. Furthermore, such employees, together with those who left the company through natural attrition were never paid any benefits. The hostile employee relations climate at the company made it difficult for such employees to raise the issue with the management. In 2015, thirty five former employees filed a dispute at the Employment and Labour Relations Court accusing the company of unfair dismissal and denial of terminal benefits. The Court ruled in the employees' favour and ordered the company to not only pay the terminal dues the employees were claiming but also compensate them for wrongful dismissal. This cost the company millions of shillings. Upset by the turn of events, the management resolved to engage qualified professionals to manage human resources. After an advertisement, Ms. Jeanston was recruited as the human resource manager through a competitive process. Her work was cut out and after formulating the necessary human resource policies, she embarked on their implementation. The company being in the engineering sector naturally had a diverse workforce but in her opinion, the rules were not favourable to female workers. As a result, female employees were outnumbered by their counterparts in all areas. Keen on correcting the situation, Ms Jeanston embarked on streamlining the diversity and inclusion policy. This resulted in the number of female employees rising and at the same time, the number of female employees promoted to management positions rose by 30%. Another significant milestone for her was convincing the management to computerize employee recruitments which eliminated the numerous problems the company faced previously. As a result of the changes, the company made a turnaround and has been posting profits. During the 2022 Labour Day celebrations, the Cabinet Secretary for Labour and Social protection recognized Shark Steel Ltd for having employed the highest number of people living with disability. During the 2022 end of year party, the directors promised to reward the employees with a 10% salary increment for a job well done. (a) (b) (c) (d) (b) In 2008, the company effected some changes in its organizational structure. Examine the reasons that made it necessary to effect such changes. (10 marks) Ms Jeanston succeeded in her role. Explain the attributes that may have enabled her to succeed. (10 marks) Ms Jeanston streamlined a certain policy which in her opinion, was not favourable to a certain gender. Examine the ways the policy may have disadvantaged that specific gender before she amended it. (10 marks) Examine the benefits that may accrue to Shark Steel Ltd for adopting a certain employee recruitment approach. (10 marks) Assess the negative effects that technology may have on job design. (10 marks) SECTION B Answer any THREE questions from this section. Question Two (a) The directors of a new private school are in the process of writing job descriptions for the employees. As a human resource consultant, advise them on the details to include in the documents. (10 marks) (b) Identity the measures that the management of an organization should take to motivate its employees. (10 marks) 3 Question Three (a) You have been recruited by Apex University as a human resource assistant. Explain FIVE functions that your department will be expected to carry out. (10 marks) (b) Evaluate FIVE aspects of human capital that may contribute to high productivity in an organization. (10 marks) Question Four (a) The Constitution of Kenya, (2010) stipulates that no employee should be discriminated against at the workplace. Analyse ways in which a human resource manager may fulfill this requirement. (10 marks) Shark Steel Ltd is a private-owned company, established in 1998 by two brothers Peter and John, who had graduated with bachelor degrees in production, engineering and mining technology, respectively. The company which is located in the Eastern region of Kenya manufactures stainless steel pipes, pipe fittings and steel plates. It started off with35 employees and three managers heading the production, finance and marketing departments. In its early years, the company enjoyed monopoly in the region since most of the steel manufacturing companies were mainly located in Central and Coastal regions. Shark Steel Ltd experienced rapid growth in 2018 and as a result, the management decided to restructure the operations. This resulted in the creation of new departments namely; human resource management, information technology and procurement among others. The human resource management department was headed by Mr. Rashid, who was appointed to this position as a reward for having worked in the company since its inception. He previously worked in the production department as a logistics officer. Five other employees were hand-picked to work in the Human Resource department despite the fact that they lacked necessary competencies. Mr. Rashid and his team held the perception that the functions of a human resource management department were limited to hiring, disciplining and firing. The team could therefore not guide the management on the importance of human resource policies. The management held the traditional view which emphasized on loyalty and rewarded employees who never questioned the management decisions even when they were inappropriate. Moreover, 80% of the employees were from one particular region of the country. On its part, the management violated several regulations in relation to human resource management. For instance, employees were regularly dismissed for flimsy reasons and such dismissals were executed without following due process. Furthermore, such employees, together with those who left the company through natural attrition were never paid any benefits. The hostile employee relations climate at the company made it difficult for such employees to raise the issue with the management. In 2015, thirty five former employees filed a dispute at the Employment and Labour Relations Court accusing the company of unfair dismissal and denial of terminal benefits. The Court ruled in the employees' favour and ordered the company to not only pay the terminal dues the employees were claiming but also compensate them for wrongful dismissal. This cost the company millions of shillings. Upset by the turn of events, the management resolved to engage qualified professionals to manage human resources. After an advertisement, Ms. Jeanston was recruited as the human resource manager through a competitive process. Her work was cut out and after formulating the necessary human resource policies, she embarked on their implementation. The company being in the engineering sector naturally had a diverse workforce but in her opinion, the rules were not favourable to female workers. As a result, female employees were outnumbered by their counterparts in all areas. Keen on correcting the situation, Ms Jeanston embarked on streamlining the diversity and inclusion policy. This resulted in the number of female employees rising and at the same time, the number of female employees promoted to management positions rose by 30%. Another significant milestone for her was convincing the management to computerize employee recruitments which eliminated the numerous problems the company faced previously. As a result of the changes, the company made a turnaround and has been posting profits. During the 2022 Labour Day celebrations, the Cabinet Secretary for Labour and Social protection recognized Shark Steel Ltd for having employed the highest number of people living with disability. During the 2022 end of year party, the directors promised to reward the employees with a 10% salary increment for a job well done. (a) (b) (c) (d) (b) In 2008, the company effected some changes in its organizational structure. Examine the reasons that made it necessary to effect such changes. (10 marks) Ms Jeanston succeeded in her role. Explain the attributes that may have enabled her to succeed. (10 marks) Ms Jeanston streamlined a certain policy which in her opinion, was not favourable to a certain gender. Examine the ways the policy may have disadvantaged that specific gender before she amended it. (10 marks) Examine the benefits that may accrue to Shark Steel Ltd for adopting a certain employee recruitment approach. (10 marks) Assess the negative effects that technology may have on job design. (10 marks) SECTION B Answer any THREE questions from this section. Question Two (a) The directors of a new private school are in the process of writing job descriptions for the employees. As a human resource consultant, advise them on the details to include in the documents. (10 marks) (b) Identity the measures that the management of an organization should take to motivate its employees. (10 marks) 3 Question Three (a) You have been recruited by Apex University as a human resource assistant. Explain FIVE functions that your department will be expected to carry out. (10 marks) (b) Evaluate FIVE aspects of human capital that may contribute to high productivity in an organization. (10 marks) Question Four (a) The Constitution of Kenya, (2010) stipulates that no employee should be discriminated against at the workplace. Analyse ways in which a human resource manager may fulfill this requirement. (10 marks)
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SECTION A a The company effected changes in its organizational structure in 2008 due to the following reasons 1 Rapid growth The company experienced rapid growth in 2008 which led to the need for rest... View the full answer
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Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
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