A BUSINESS REPORT TO OPTIMIZE THE DELIVERY OF HR PROCESSES AT ROYALE FOODS
Executive summary
In this task, the main discussion is about various risks in the organization Royale Foods that hampers carrying out the management of human resources in a proper way. These are associated in the areas of logistics, IT management, marketing issues and so on.
In this respect, effective strategies are mentioned that can help the organization to deliver and optimize those risks. In addition to this, an implementation plan is also discussed and for this effective HRM theories are concerned. In the last, a risk register is developed to better understand the risks along with suggesting adequate mitigation steps to reduce the risks.
Australian Food Company named Royal Foods has been spreading its branches all over the world by delivering good quality of the food supply system and became popular in the sector of foodservice and the retail of the supermarket industry for more than 30 years.
Recently it has been facing some issues based on warehousing, logistics and related to marketing which has continuously affected the production and the reputation of the company.
Jess Fielding, the chief executive officer of Royal Foods has returned from a long vacation and has faced such kinds of issues. Aim of this report is to find out those issues and implement an effective plan to mitigate those issues along with a risk register to better understand the risks.
Primary Human resource issues within Royale foods
The team has recently found that the cost of the production in the company is a little bit higher than the other competitors of Royal Foods. In the market, there are so many companies with the same products as Royal Foods and this affects the customers of the company to choose the other products at a cheaper price Anagnoste (2017).
The leading product of Royal Foods are the breakfast cereals and cereals bars which is very costly in production and primarily the selling price will be higher than the other company.
The decision of producing such kind of products is very appreciative but the employees of warehousing have to work more attentively and with efficient ability to do the job. The flexibility of the employees is still not appreciative and hence it is required to reduce the cost of the product.
There are numbers of issues that have been arising around the work purpose and workplace on the basis of the conflict that has recently arisen in Royal Foods. The logistic issues are the main problem of the company and that affects the smoothly running strategy of the organization Brown et al. (2018).
The product quality of fresh goods is dependent on the logistic part of the company and the approval of the logistic team is required for any new products. A manager has to be sure about the supply system of the company and is always active to receive any decision related to delivery. The logistic department of Royal Foods has failed to do its duty.
The “Chief Marketing Officer” of this company, Jarka Cuperova has recently realized that there are some major issues about the marketing performances of the company. The function of the marketing is separated among the team based on the category of the product approved by the head office Caron et al. (2018).
The marketing techniques are very poor and frustrating and she has sent a mail to the head office describing the situation and willing to work with some people to whom she can trust. The customer survey of the marketing department reveals that the data collection, health issues create a massive mess for the production of Royal Foods.
Issues involved in the IT field
In Royale Foods, it has been reported that employees often do not have proper IT training and they are involved with effective IT-related work on a global scale Johnson et al. (2016). As a result of this, it has created serious issues in leadership qualities as well as in managing this department.
Proposal to Improvement in the delivery procedure in the Royale Foods
Royale Foods is a large factory of Dairy and is production-related with dairy in Svidnik, Slovakia. The factory produces Cheese, yogurt, curds which are the basic needs of day to day life and people want the products at a cheaper price Mc Carthy et al. (2018).
The company has to fix the issues of warehousing immediately by giving the employees proper training on the production purposes. The employees have to be more flexible on their jobs and they have to be ready to work in any purpose and any conditions.
The price of any product is dependable on the cost of the product so Royale Foods has to be sure after investigation that its employees have been finishing their jobs within proper time and perfections.
Jo, the team leader of the Royale Foods has been working for 15 year in the logistic department and she knows the matter very well to control the issues. She has taken some major steps with the help of the head of the department by using the corporate level strategy and business level strategy.
The business unit level strategy focuses on the competition strategy of Royale Foods for the competitors. Company has to be more concerned about the intimacy of the customers with the company and a company has to maintain this relationship with high priority.
By using Market level Strategy”, the company has to focus on the proper planning of the growth of the company by using many important steps. The regular investigation of the market can help management to realize the movement and demand of the production to the people. This strategy helps to develop the product and the service of Royale Foods Mialon et al. (2016).
“Human Resource Theory” is applied by the business owners and the management to administer the strategies for the employees. “The theory X and Theory Y” works on the motivation of human work and the management.
The first theory is the theory X which explains the importance of the rewards, supervisions and some related things. On the other hand the theory explains the role of motivation to the employees and the job satisfaction. Company has analyzed the theories and applied on the employees to handle the critical situation
Implementation plan involving responsibilities and outline costings
Royale Foods has some implementation plans after investigation about the international redundancy planning’s. The purpose of these planning’s are the strategic change of the business management for the new set up in the country where low cost can be applied.
The Corporate level strategy may be applied to set a proper goal of the company and reach the position where it wants to achieve. This strategy is related to the growth and stability of the company named Royale Foods. In this respect, “Theory X and Theory Y” by McGregor can be utilized or implemented and are applied by the management of Royale Foods.
The first theory is Theory X and through this theory, it can be explained that this is based on the typical worker of Royale Foods who has been working in this company for several years. The investigation reveals that the typical employees have no high ambition and they have some general tendency to avoid the responsibility.
The company has a proper plan for those employees to give proper training to them as they cannot avoid their responsibility and the individual goal is to be fulfilled. According to Theory X, The manager of Royale Foods thinks that the employees work on the basis of self-interest not for the profit of the company. The plan of the company is to solve the problems by using the strategies and the theories for the better improvement of the company (Ndraha et al. 2018).
| Possible risks | Impacts | Mitigation measures |
| Warehouse issues | This issue is based on mainly the production purposes and the working ability of the employees with the production cost
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The employees has to be given proper training to handle the modern machines and the salary facilities may be reconstructed by the company
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| Logistics | The logistics team has failed to the logistic shown its failure to observe the quality of the fresh product, health and safety purposes, working environment and so on.
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The quality of the fresh product will be checked, the safety of the employees and the workers are given priority at first by creating a proper working environment Rogers et al. (2018).
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| IT issues | the IT infrastructure of Royale Foods is failed to manage the efficient working of both the system hard and soft also Willcocks et al. (2018)
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IT management is to be reconstructed
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| Marketing issues | Marketing |
Red= high risk, Yellow= Medium Risk, Green= moderately low Risk
Slovakia’s dairy firm Royale Foods produces cheese, yoghurt to supply not only through Australia but also in India. The HR Director has come after returning from illness and the whole management team has proved his failure in every aspect of the company.
The company has been facing so many issues and the ways how they solve these are the main purpose of the management of Royale Foods. Theory X and Theory Y” by McGregor has been advised for the managers in the organization to follow in order to reduce the risk human resource management.
In this respect, suitable recommendations are made to reduce those risks. In addition to this, risk register is made and as per this risk register, main focus is given on marketing risks, risks related to logistics, IT related risks and warehouse issues. In this context, potential mitigation steps are also given for managing those risks and bringing productivity in the organization for the near future.
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