Assignment 1

THE HRM FUNCTION/ENVIRONMENT

1. Discuss the Relationship Between Corporate Human Resources Structure and Operations at
Plant Level. What Impact,iIf any, did that relationship have on the Situation Described by
Newcombe?

The relationship between Corporate Human Resource Structure and Operations at Plant Level seems
unclear in Mount Ridge Engineering System. Although the company has an established set of procedures
and policies developed but is implemented at corporate headquarters only and not at the plant level. The
gap between corporate human resource structure and plant operation level is itself explained by
Newcombe statement “One of our biggest problems has been getting management – especially plant
management – to understand the legal and governmental regulations affecting human resource
procedures”. Newcombe as a Human Resource President has been able to perform astounding work at
the Corporate Level but could not do much at plant operation level and so, although having a complete
set of procedures and policies, detailed employee handbook and supervisor’s manual, no employee
implemented those rules or followed the HR’s policy at plant level.

As presented in the plant structure, plant superintendent reports directly to the plant operation and
maintenance manager. This results the plant superintendent and shift supervisor to be responsible for
day-to-day administration of personnel policies, while personnel operations are generally centralized at
corporate headquarters, i.e. the problems, if exists, related to human resource does not reach HR
department at corporate headquarters and the plant superintendent exercise the full right of HR at the
plant level.

This gap and improper linkage has led the plant superintendent exercise the HR right of hiring and firing,
assigning task of different position. Here, Johnson has been working as equipment operator based on the
needs at the plant, although not holding the position, which should probably be taken care of by the Plant
Superintendent, informing the HR department regarding the vacant position or incapability of the present
equipment operator if there was no vacant position. Also, Johnson has proved his capability in his own
plus equipment operator position and has been trying to have conversation regarding his dissatisfaction
towards his pay and lack of promotion, but only if the information reached the Corporate HR department,
it could have been solved. Johnson being absent without notifying, Braxton terminating Johnson on his
own without notifying the Corporate HR department, Braxton taking signature in blank sheet and adding
incorrect reasons on his resignation letter clearly shows the negative outcome of Plant management
lacking the understanding of legal and governmental regulations of HR procedures and the Corporate HR
department being in lose tie with the plant level management. Because of this, the company might face
a big legal problem in future.

One of the company goal, as stated in the case, was to remain nonunion by offering employee a good
quality of work life and attractive benefits does not seem to be fulfilling. The importance of internal
employee relationship to maintain enjoyable and productive workforce for the future seem to be fallacy
because of the situation described.

2. How should Newcombe have handled this situation?

Newcombe, as the head of HR Department, could have avoided the situation in first hand working in
bridging the gap between Corporate HR Department and the management at Plant Level. HR department
Personnel should regularly communicate with the Plant Supervisor to understand the current employee
situation, the skills and qualification required for a particular department function, the job requirement,
and if there is any vacant position to be filled or any employee is looking towards resignation.

Since, the company has established belief toward internal employee relationship to maintain enjoyable
and productive workforce for the future, frequent communication on the same should have been done
from Newcombe end, to verify if the same is being followed at Plant level.

Human resource training to Braxton and other Plant superintendent could also have proved helpful to
skip the situation, as the plant superintendent and shift supervisor, in Mount Ridge Engineering System,
are responsible for day-to-day administration of personnel policies at Plant level.

At the same, appointment of Human resource executive at each and every plant could have best avoided
the situation. HR executive would have handled the situation at first place of occurrence by analyzing the
welfare needs of employee (here, Johnson) and would not allow conflict to arise between Johnson and
Braxton.

3. What, if any, disciplinary action should have been taken against the plant
superintendent(Braxton) at the time of the incident?

At the first place, a proper investigation on the matter is to be done on determining if Braxton is the culprit
of the scenario. Since, any disciplinary action against Braxton cannot undo the incident, necessary action
as per the company’s policy or as mentioned in the Supervisor’s manual should be taken. The action can
be as;

a. Removing the authorities on taking decision on employee hiring or firing matter

b. Shifting him to other plant, providing him completely new environment to work from very
beginning on understanding everything.
c. Demoting him from his current position
d. Suspending him from his work for few months.
e. Putting him in coaching class regarding the HR practices and policies, and relationship
management.

Or, any other action that is mentioned in company’s policy.

4. If Johnson’s allegations were true, what are the legal ramifications of Braxton’s Behavior?

If Johnson’s allegations are true, then the company will surely rethink about his position on the company.
The legal ramification Braxton’s can face for his behavior are;

a. Loss of job due to falsely using Johnson’s signature, and also misleading the Superiors with the
incorrect message in the resignation letter.
b. Disciplinary action against misusing his power
c. Punishment as in fine towards company for acting with wrong intent and ruining company’s
reputation. And also, towards Johnson for misusing his signature, giving him emotional stress.
 5. Describe Mount Ridge’s business strategy. What is the relationship between its business
strategy and its human resource practices?

Mount Ridge’s has a business strategy to cut energy cost i.e. following the production strategies that is
cost effective. The company developed a strategy to reduce the energy cost they provide at the same time
remain nonunion and provide employee a good quality of work life and attractive benefits, to keep a
balance in both company-customer and company-employee relation. This is clearly reflected in the words
of Levinson “Mount Ridge places great value on its relationship with our industrial and utility clients. Our
Internal employee relationship has an equally important role in order to maintain an enjoyable and
productive workforce for the future. Management believes that companies that are good to their
employees reap the benefits in terms of increased productivity and loyalty”, as mentioned in the case.

The strategy is to build a strong relationship with the employees so that they remain in the organization
for a long time thus increasing the productivity of the company.

6. What strategic human resource issues will Newcombe likely face as the company expands to
the Northeast? How might this expansion affect the structure of the organization and its human
resource department?

Newcombe is already facing issues in developing strategies related to human resources with current
expansion, as mentioned in the case, and further expansion to the Northeast will only lead to increased
issues in the sector. The issues can be shortly described as mentioned below;

1. Issues in recruitment and selection process: As stated, the HR team is available only in the Corporate
head office, the small HR team has to manage the entire recruitment and selection process required for
all the branches and the central office. This will lead to increased burden for the limited HR team member.

2. Increase in work load can be seen, as hiring of new employee will require providing training to all the
employees in the corporate office and the branches as well.

3. The issues related to reviewing for the promotions and remuneration of every employee can also be
encountered and will increase the complexity of the work because the HR team is in the corporate office
and the performance of employees in branches cannot be accessed properly by central HR alone.

4. Further, the issues like that one with Johnson and Braxton, might occur again because of increased
work load and limited HR team, if the gap between HR department and Plant management remains.

This expansion will deeply affect the structure of the organization and its human resources department.
If Recruitment, selection and training of the employees is done properly along with addressing the
promotion and remuneration, company is most likely to achieve its objective.