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HRM 'ase (tudies ) 'ontents 2

&n HR function was conspicuous by its absence so the managing director engaged an
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 &n HR function was conspicuous by its absence, so the managing director engaged an
Case studiesindependent
0 25 introduction and 25 case
HR consultant to studies
find out how people matters were being dealt with, to  D O W N LO A D

examine the case for creating an HR function, and if one was needed to recommend
what it should look like.
The consultantDs findings on the present arrangements were as followsG
< Recruitment  ) each of the functions carries out its own recruitment, having agreed

with the Managing irector on the engagement of additional people and what they
should be paid. (ome use is made of recruitment agencies for administrative staff 
but sales representatives, production engineering staff, operatives and technical
staff are mainly recruited by advertisements. !nterviewing techni;ues, as
observed by the consultant, were crude to say the least.
< "abour turno#er 6 this is fairly highG *8 per cent for operatives and #0 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
;uality problems.
< !raining 6 there is no formal trainingK people are recruited with, it is hoped, the

re;uired skills and experience and learn the 'onrad way of doing things on the
 Fob. (ome supervisors carry out induction training conscientiously but the maFority
donDt. &gain, it was considered that this preFudiced the achievement of high-
;uality standards.
< Pay 6 operatives were paid the local going base rate Ano payment by resultsB and
staff were paid whatever it was believed necessary to recruit and retain them )
there was no formal grade and pay structure. 3ay was reviewed once a year,
generally to keep pace with inflation and in particular to ensure that key staff were
paid competitively. 'ash bonuses Ausually not more than #8 per centB were paid
to some staff as authoriEed by the 'hairman. There was no performance
management or appraisal system.
< $mployee relations 6  there was no recogniEed trade union but a large number of 
recently recruited employees were union members and there was a distinct
possibility that they might ask for recognition shortly. There were no formal
consultation or communication processes.
< Health and safety 6  this was left to works management. &ccident rates were fairly
high.

This resource is part of a r ange offered free to academics and"or students using
 Armstrong’s Handbook of Human Resource Management Practice , ##th edition, as
part of their course. $or more academic resources and other $R%% material, please
visit www.koganpage.com"resources and then click on &cademic Resources.
 
 

HRM 'ase (tudies ) 'ontents 4

!he task 

7n the basis of the findings summariEed above, prepare recommendations on what


should be done about HR !f this includes the appointment of an HR manager produce a
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should be done about HR. !f this includes the appointment of an HR manager, produce a

Case studiesrole
0 25profile and an and
introduction indication
25 caseinstudies
order of priority of the issues the role holder should  D O W N LO A D

address. !f it is not thought necessary to appoint an HR specialist, indicate how the


problems revealed by the study should be dealt with.

omments
This is a fairly typical case of a firm growing rapidly and coping in an ad hoc   manner or 
not coping at all where HR resources are non-existent. The case for an HR function is
;uite clear ) there are serious business concerns connected with ;uality, and the review
identified a number of problems with recruitment, labour turnover and training that were
contributing to these concerns. !mproving ;uality is not Fust a matter of putting ;uality
assurance and control systems in place. !t also depends on having people with the skills
and the motivation to make these systems work. This is a human capital issue.
+ut a business case has still to be made for establishing an HR function. This has to

spell out the added value that such a function can provide. Having made out the case, it is
necessary to look at the role. !t may be tempting to focus on the strategic business partner 
concept but too much should not be made of this. The emphasis should be on the practical
aspects of service delivery within the framework of a development programme in each of 
the main HR areas where it is re;uired, not on trying to build up the status of the function by
giving it a fancy title. &ny HR specialist appointed will have to earn recognition by providing
sound advice and the efficient delivery of services before being granted the status of a
strategic business partner.
'onsideration will need to be given to making the role holder responsible to the
Managing irector. but again, a business case is necessary, which might refer to the
enhanced contribution a head of HR can make with the scope directly to gain knowledge of 
the factors affecting business strategy, to provide advice on how HR can help at the top
management level, to have an e;ual status with colleagues and to be in a position to see
the needs of HR over the whole organiEation rather than in one part.
+ecause there is ;uite a lot to do, some indication of priorities will have to be given. This
is a matter of choice, but whatever choice is made, it will have to be Fustified in terms of the
likely impact it will make on improving organiEational performance. !t will need to be
remembered that it is inadvisable to attempt too much all at once. The capacity of line

This resource is part of a r ange offered free to academics and"or students using
 Armstrong’s Handbook of Human Resource Management Practice , ##th edition, as
part of their course. $or more academic resources and other $R%% material, please
visit www.koganpage.com"resources and then click on &cademic Resources.
 
 

HRM 'ase (tudies ) 'ontents 6

managers to absorb new ideas and carry out new practices in the short term is necessarily
limited ) they have other things to do. &lso, there is a limit to how much HR can do at any
one time.
 & role profile is re;uired, setting out the responsibilities involved in output terms, ie the
key result areas. !t should also list the competencies re;uired so that a person specification

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can be drawn up and structured interviews can be used in the selection process.
Case studies 0 25 introduction and 25 case studies  D O W N LO A D

+urther reading in  &rmstrongDs Handbook of Human Resource Management 3racticeG


hapters ,) - and 1,&

Case Study 1". Organi=atin and Re 3 HR

THE HR FUNCTION AT THAMES #UILDIN( SOCIET!

!he case

The Thames +uilding (ociety has a head office in 7xford that contains the operations,

marketing, product development, corporate planning, finance, !T, HR and legal functions.
The Head of HR is responsible for providing HR services in head office and the regions.
These services include recruitment at head;uarters, training AcentraliEed courses, mainly
for branch staffB, pay and benefits administration for the whole (ociety, and dealing
generally with employment issues at head office. There is no recogniEed trade union ) a
staff association exists but it does not have negotiating rights and does not exert much
influence. :ittle responsibility for people management is devolved to line managers, who
are expected to use the services of the HR function on any matter affecting the
employment of people, even first-level disciplinary problems. The Head of HR reports to
the 7perations irector.
There are #48 branches split into four regions. %ach region is controlled by a regional
director who reports to the 7perations irector. Regional offices are small but they include
a regional HR manager who reports to the Head of HR in the centre. Regional HR
managers are mainly concerned with recruitment and dealing with employment issues that
have to be referred to them by branch managers. Training and pay administration is
handled by head office.

This resource is part of a r ange offered free to academics and"or students using
 Armstrong’s Handbook of Human Resource Management Practice , ##th edition, as
part of their course. $or more academic resources and other $R%% material, please
visit www.koganpage.com"resources and then click on &cademic Resources.
 

HRM 'ase (tudies ) 'ontents 08

The number of staff in head office is Fust over 088. There are about #,488 staff in the
branch network.
The organiEation structure of HR is as followsG

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This resource is part of a r ange offered free to academics and"or students using
 Armstrong’s Handbook of Human Resource Management Practice , ##th edition, as
part of their course. $or more academic resources and other $R%% material, please
visit www.koganpage.com"resources and then click on &cademic Resources.
 
 

HRM 'ase (tudies ) 'ontents 0#

Head of HR

HR (ervices manager Regional HR managers AB Training manager 

Recruitment 7fficer 

HR 7fficer Ageneral HR mattersB


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HR &dministration 7fficer Apay and
benefits, HR information systemsB

The (ociety has been doing reasonably well in terms of sales and profits over the last
few years but there are signs of the beginning of a downward trend. The marketing and
product development functions at head office are effective Aa number of successful new
products have been launched recentlyB but sales at branch level have been
disappointing. (erious doubts have been expressed in the board about the ;uality of 
staff in the branches. !t is felt that inade;uate people have been recruited and that they
are badly trained and underpaid. Retention rates are getting worse. There is concern
about the leadership capabilities of branch managers and a belief that they are not
getting the HR help they need.
To address these issues, it was agreed by the +oard that the branch network should be
reorganiEed ) the regions were far too large and were difficult to manage. !t was therefore
proposed to replace them with six regions, with an average number of 8 branches per 
region Asome branches were closedB and an average of *08 staff in each region.
 & complete re-think was also needed of the role and organiEation of the HR function.
3rovidentially, the Head of HR was about to retire, so a new HR irector could be
appointed who would report to the 'hief %xecutive and would be given a brief to develop
proposals on what should be done about HR.

!he task 

ou are the newly appointed HR irector. /hat would you recommend and whyJ !f you
want to create new posts or functions, summariEe what they will be there to do and how
they relate to one another. +ear in mind that if your proposals include the appointment of 
more and better-;ualified HR specialists, you will have to Fustify this in terms of the
added value they will provide, taking into account the business needs of the (ociety.

This resource is part of a r ange offered free to academics and"or students using
 Armstrong’s Handbook of Human Resource Management Practice , ##th edition, as
part of their course. $or more academic resources and other $R%% material, please
visit www.koganpage.com"resources and then click on &cademic Resources.
 

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