Introduction
Due to economic issues hitting diverse industries and markets these days, companies have to cut their costs and develop new strategies and models to address numerous challenges. Human resource management is one of the spheres that are closely related to organizational performance improvement. The King Company case can serve as an example of the role effective or inappropriate HR policies, and practices can play in the performance of a company. This paper includes a brief description of strategies and practices HR specialists (as well as the HR director) should introduce to ensure the sustainable development of the company.
Main body
Some of the primary areas of HR specialists’ agenda include training, reimbursement, retention, and communication, to name a few. It is noteworthy that all these aspects have been addressed to different extents by HR professionals at The King Company. However, those policies had serious flaws, which have led to rather adverse effects. It is also important to mention that the launch of the new HR policy should be implemented simultaneously with a 10-percent layoff. In order to implement the layoffs effectively, performance reports can be utilized. Self-reports, as well as KPI analysis, are common tools employed in various organizations in the private sector (Holten et al., 2019). For the identification of effective assessment criteria, it is important to develop appropriate goals and expected outcomes.
One of the most urgent serious issues the company is facing in terms of HR practices is associated with reimbursement and performance assessment. The existing reimbursement plans and goal-setting process lack transparency, which leads to decreased trust and motivation of employees, who feel that benefit distribution is unfair and unclear. Therefore, it is important to concentrate on these aspects when creating effective HR policies. First, goal setting should not be implemented by HR specialists with no reference to employees (Gogoi & Baruah, 2021). It has been acknowledged that employees should be involved in (or rather be the key developers of) the formulation of aims to be reached, which leads to improved performance and engagement (Islami et al., 2018). Supervisors and employees should elaborate on the objectives to be reached. Employees will understand what exactly is expected from them and will also be aware of potential benefits they may obtain when (or if) they complete this or that task.
Another HRM practice that is gaining momentum in private-sector companies used to implement layoffs is associated with benefits and social responsibility principles. For example, Ericsson Telecom offered subsidies and financial support for employment transitions that went beyond the legally required support (McLachlan, 2021). Such policies were favorably accepted by stakeholders, and the layoff process was not associated with adverse effects that are quite common in such cases, such as low morale and poor performance among those who remained.
The introduction of a prolonged transition time is another effective strategy that is widely used by Chrysler. This U.S.-based company even contributed to the implementation of certain changes in American legislation (McLachlan, 2021). At the same time, proper communication channels and strategies should be in place to ensure that the change will be successfully implemented (Dewhurst & FitzPatrick, 2019). The use of internal communication channels (such as the existing information system or social media network) can be an effective strategy for The King Company. In addition, it is important to develop a system of reporting and knowledge sharing. Employees should be able to articulate their concerns and ideas to their supervisors and share their ideas with peers.
In order to implement change, it is possible to use Kotter’s change model, which implies the division of the change process into eight stages. These steps include creating urgency, forming a coalition, creating a vision, communicating the vision, removing obstacles, creating short-term wins, building on the change, and making the change part of organizational culture. Again, effective communication patterns are critical for the appropriate implementation of change (Holten et al., 2019). Thus, the internal HR consultant can be the change agent who will guide the change (Trotter, n. d.). The consultant will develop a change project proposal and address the company’s top management. The development of the proposal (and the plan itself) will start with data collection, which will also be a strategy to create a sense of urgency.
The HR consultant will arrange discussions (individual and group meetings) to understand employees’ exact needs, as well as their views on potential solutions. The HR will also initiate a survey identifying the major concerns and expectations to prioritize the issues to be addressed. The surveys will be based on the results of meetings and discussions. After the approval of the proposal, the HR consultant will start the change implementation process following the eight steps described by Kotter.
Conclusion
In conclusion, The King Company needs considerable changes in the HRM area. The organization should focus on communication, performance assessment, and layoff implementation. The change can be supervised by the internal HR consultant, who will become the change agent. The recommended practices include the introduction of more benefits for employment transition, which will make the motivation and performance of remaining employees better. Communication is one of the spheres to pay special attention to, which can be associated with the use of existing information systems, regular meetings, and reporting. Kotter’s model can be utilized to implement change as the model provides a detailed framework leading to the creation of a new (or improved) organizational culture.
References
Dewhurst, S., & FitzPatrick, L. (2019). Successful employee communications: A practitioner’s guide to tools, models and best practice for internal communication. Kogan Page Publishers.
Gogoi, K., & Baruah, P. (2021). Goal setting: Its impact on employee outcome. SCMS Journal of Indian Management, 18(1), 75-87.
Holten, A. L., Hancock, G. R., & Bøllingtoft, A. (2019). Studying the importance of change leadership and change management in layoffs, mergers, and closures. Management Decision, 58(3), 393-409.
Islami, X., Mulolli, E., & Mustafa, N. (2018). Using management by objectives as a performance appraisal tool for employee satisfaction. Future Business Journal, 4(1), 94-108.
McLachlan, C. J. (2021). Developing a framework for responsible downsizing through best fit: The importance of regulatory, procedural, communication and employment responsibilities. The International Journal of Human Resource Management, 1-29.
Trotter, W. (n. d.). How internal consultants support change management. Prosci.