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Human resource management is a function which helps the organization to increase employee’s performance in order to achieve their strategic objectives. It is basically concerned with managing individuals within business corporate which concentrates on policies and systems. Further, HR activities focuses on training and development, performance appraisal, rewarding employees, maintaining working atmosphere and solving disputes within the business organizations. HRM helps enterprise in attaining goals and objectives efficiently and effectively by recruiting competent and motivated employees. This report is carried out for the purpose of understanding better HR concepts. For this, case study of Leah's bakery is given which deals with breads, pastries, and other types of baked foods. This present report focuses on identifying cause of high turnover which Leah's bakery is facing. Further, it also focuses on various motivational factors which enterprise can provide to their employees in order to retain them. Further, it stresses on concentrating on various HR activities with the help of various models. It also involves techniques to control labor to reduce high turnover rate of organization.
Employee’s turnover is a major drawback as it increases the cost for organization without any mutual benefit to employees and enterprise. This usually happens when human resources are not satisfied with the working condition and also with the environment they are working in. Major cause of labor turnover in Leah's bakery:
Workers in today's generation want to show their talent and caliber and want requisite salary to satisfy their individual’s goals and objectives. They are usually focusing on to expand their skills, abilities and experience. This is the major cause of employee’s high turnover as they do not have much to show their potential and talent and they are usually fed up with the normal routine work with no essence of exposure and development. This dissatisfaction is also results in poor selection procedure which is opted by Leah's bakery. This can be easily avoided by using effective training and development process.
The major reason while employee's leaving business corporate is the salary factor. Leah's bakery pays $6.50/hour to their retail clerk and $9.50/hour to shift supervisor. For instance, if minimum wages in other bakery and beverage industry is high and Leah's bakery is providing them low as compared to that of market price than it will lead to high labor turnover with no motivation.
Lack of recognition is the main reason why 25% of employees leave their jobs. This is generally because employee does not want to remunerate by good salaries and incentives (Deb, 2006). Apart from this, they want to get recognized by the way how they are performing the job and what compliment they are receiving from their customers.
According to a survey, 30% employees leave their job just because of their manager’s behavior. In Leah's bakery, the behavior of superiors might not be good enough with their subordinates and this is the only reason that in 2 years 240 employees have been employed which results in an 800% of turnover. In order to overcome this, managers and employee's in Leah's bakery have to communicate with each other and they have to come up with a productive solution which will increase employee's motivation level.
This is also a major cause for employees leaving the Leah bakery as they feel that, there are not enough development opportunities in the department or bakery in which they are working in. After working for some days or quarter of a year, they feel their duties are redundant and hectic. By getting dissatisfied, they look for some other types of job (Millmore, 2007). This is the only reason for Leah that she has seen that, over 240 employees have left the bakery in this 2 years period. It further indicates that, the labor turnover is quite high as it is almost 800%. This percentage is equivalent to employ a new set of employee's for 6 weeks.
Employee who are working are having no such connection with Leah's bakery as employees have to follow all the major decisions which are imposed by the manager. Therefore, it is clearly understood from the scenario that Leah is opting autocratic style of leadership and where all the prior decisions are taken by her only. This is also a major cause of employee's dissatisfaction as they are not treated as a part of the organization.
Enterprise have to provide modern tools to their employee's in order to function their task and duties effectively. Employee's high turnover may be due to traditional techniques which organization might be using for production process. However, this is also possible that, organization is using the latest technology and employee's not having specific knowledge to work on it.
Long working hours can lead to dissatisfaction for employees as they are not able to make a balance between their personal and professional life. Leah requires various positions for effective functioning namely 2 bakers for preparing pastries and breads, a cake decorator, retail clerk and a shift supervisor. Bakery might have a long working schedule which is not accepted by the employee's working there. This will increase the labor turnover and financial cost to business corporate as it requires more money, time and resources to fill the vacant position. Moreover, increasing rate of turnover has lower employee's morale in bakery enterprise just because employee's seeing their coworkers leaving the organization at regular interval of time.
Human resource management plays an effective role in both small enterprises and big organizations. It further helps in developing new strategies and assists in developing strong superior- subordinate relationship within business corporate.
Hiring the best candidate is the biggest favor which Leah can do for her bakery. This is possible with the effective interview procedure which includes summarized test procedure regarding the knowledge of bakery and other beverage elements. Interviewer has to determine that candidate is capable for performing their tasks and duties and whether candidates are satisfied with their work which is assigned to them. Moreover, assessments like personal interview training and development program will help Leah in retaining employees and increasing productivity for business enterprise.
For effective functioning, Leah has to determine the current workforce requirement within bakery. Further, in order to develop a specific skill, training and development program will be necessary to improve their skills and qualifications. This training and development program can improve employee’s efficiency Moreover, providing training to existing staff is much more beneficial as it reduces cost and time for hiring new staff from external sources of recruitment. This might be the strategy which Leah can implement in order to reduce turnover and improve employee's retention.
This plays an important role as Leah has a responsibility to determine the level of employee’s satisfaction within bakery. This is possible with the help of designing effective employee's surveys, exit interview strategy etc. Satisfaction of employee's plays a productive role as their behavior leads to increase in customer base. In relation to this, Leah's bakery is having a flat structure organization as there is no level of middle level management between top level and lower level of management. Owner is acting both as a leader and as a manager. This might be the major drawback as she is unable to handle activities together. To overcome this job satisfaction aspect, Leah has to determine the aspects of employee's dissatisfaction and address all these issues in practical life to motivate their employee's base.
Motivation is a method which influences employees within business enterprise to achieve their goals and objectives. Leah's bakery is facing problem of high labor turnover which is increasing cost for venture. Motivation also includes reward which is received by human resource on the basis of their performance. It is prior duty of Leah to motivate their workers for effective functioning and healthy result for business corporate.
Corporate can use Herzberg theory which focuses on two major factors which will help Leah to motivate employee's satisfaction level. This theory includes motivational and hygiene factors. Motivational factor consist of healthy working condition, environment, recognition, achievement, responsibility etc. Furthermore, hygiene factors are those which motivate employees through basic salary, various compensations and incentives. Basic pay gives manpower a good standard of living which motivates them in performing the task with best of their capability and efficiency in enterprise.
Leah can also use ERG theory of motivation in which Alderfer has categorized Maslow's hierarchy of needs in simple classes of needs. It constitutes:
This includes employees psychological and physical safety needs which will help employees in giving best performance to achieve corporate goals and objectives.
This focuses on developing strong interpersonal relationship with their colleagues and superiors. Maslow social and esteem needs comes under this category.
Employees require growth in Leah's bakery as this need focuses on self-development, personal growth and advancement within business enterprise.
HR manager within cited company can consider two types of reward systems namely extrinsic and intrinsic. Extrinsic rewards for employees within bakery are financial rewards which they receive according to their performance and efficiency to complete a particular task or order. These motivational rewards are target bonuses, basic salary, gifts, allowances etc. On the contrary, intrinsic rewards are considered as non-financial reward which involves good and healthy feedback from customer base, recognition, seniority, authority, responsibilities etc.
From the above study it is clearly evident that, Leah bakery has a high labor turnover which is affecting organization performance. This is because employees are not satisfied with the policies, rules and regulations opted by business enterprise. It is also due to inappropriate rewards and benefits given to employees without any sign of incentives and compensation. Organization has adopted a flat structure system where there is only manager and employees. Leah acting as a manager as well as a leader but she is unable to satisfy the needs and demands of their employees. Further, this report concludes ways to overcome situations so highlighted. Corporate can use better recruitment and selection procedure and can also give them proper training and development program which will help them to know the operation of business corporate. Job satisfaction plays a crucial role as Leah has to prepare effective performance appraisal for their employees. This report also focuses on various motivational theories which boost the morale of employee's and they will be able to work with best of their efficiency and capability to achieve goals and objectives of bakery enterprise. Motivation theories like Herzberg and ERG are studied thoroughly in the report.
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