Best BU7039 Managing People Sample
Introduction
The occasional organizational challenges faced by many business companies all over the world leave them subject to company policy reviews and appropriate amendments.
In this discussion Arcadia, retail major from the UK will be taken into academic considerations to highlight their specific organizational challenges and their appropriate modifications in applying various management theories.
Literature review
Challenges in organizational behavior and its influences on Human Resource practices
Retail industries in the UK currently have been facing many serious challenges in the context of managing its staff and increase their productivity.
These could be identified as: payment related issues, shift in the customer loyalty, marketing cost and addressing the upheaval resulting from the Brexit situation (Bratton & Gold, 2017).http://Best BU7039 Managing People Sample
In the subsequent discussions these problems will be put into their context by applying standard models for organizational behavior and HRM.
Payment oriented issues
In the UK retail sector payment related dissatisfaction among its staff has been growing rapidly.
The payment issue has had a greater impact on the retail industry in terms of employee management and effectiveness in its operational features (Murphy & Turner, 2019).http://Best BU7039 Managing People Sample
Many models of contingency situation management can be applied in relation to this context.
Issues in workplace diversity and flexibility in working hour
For many workers of the retail industry the diverse nature of the human resources in the industry present a significant challenge.
This diversification nature of the workforce led to growing communication gap among many organizations.
The respective HR teams have been in the constant search to fix this issue for better workplace environment and productivity.
it is also identified that the companies have low flexibility in working hour. Most of the employees work under huge pressure in the UK that reduces their motivation.
Political factors
The other issue involving Brexit has certainly caused a lot of uncertainties in all of the industries in the UK and the retail sector has not been an exception.
This issue could be properly put into its context by understanding that the selling and labor markets in other European parts are intricately related to the retail industry’s interest.
Theories related to Human Resource practices
Elton Mayo’s model
This model basically lays out the premise for staff motivation and the concerned factors (Bendix & Fisher, 2017).http://Best BU7039 Managing People Sample
This model aptly describes that without the proper motivation and recognition (like pay increment), employees would not be able to put their best effort in any organization.
Taylor’s scientific management
This theory has a deep relevance in the context of the previously mentioned issues faced by the retail industry.
This theory proposes that scientific development of a company’s staff and their standard operations is essential to steer the course for an organization (Gassmann, Frankenberg & Sauer, 2016).http://Best BU7039 Managing People Sample
Fordism model
According to this approach a business can increase its productivity and profit generation by employing an affordable workforce (Vidal, 2015).http://Best BU7039 Managing People Sample
The Brexit issue has caused a massive stir in terms of hiring non-British workers and its implications have been profound on the retail sector.
Business cases examples
Arcadia has been facing issues on the two fronts of: demand for pay hike for its staff and the Brexit uncertainties (Arcadia, 2019).http://Best BU7039 Managing People Sample
These issues can be interpreted in a better way by applying the previously mentioned management models.
Payment issues in Arcadia
For some time now, some of the ground level company workers have been harboring a feeling of deep resentment in relation to their pay packages.
This is having an effect on their performances and finally on the business goals of the company.
As per the Elton Mayo’s model, the company needs to solve the problem to bring in an inspiring mindset among its staff.
Uncertainties due to Brexit
The ongoing political crisis revolving around the issue of Brexit has certainly limited the company’s ability to hire skilled immigrant workers.
This is a severe operational challenge to the company in terms of hiring experienced and comparatively cheap workforce to efficiently generate a higher profit margin for the company.
The main theme of Fordism suggests that securing an affordable employee base is a key to higher revenue collection.
Analysis and argument of the contemporary issues
The organizational problems that have already been highlighted in the context of Arcadia may be critically analyzed to understand their implications upon the HRM practices of the company.
The difficulties that Arcadia currently has been facing had some serious effects on the company’s HRM and HRD.
The organization has been unable to coordinate every level of its ground to its top management in terms of assessing the ongoing crisis in the company.
The HR division of the company have had to come up with these challenges with a little background of preparatory measures.
The implications of payment related issues and workplace diversity
The company’s payment policies have not been effective that has reduced employee motivation.
Interruption has been identified at the time of carrying out their operational activities. It has reduced turnover of the company by 4.5% to £1.8 billion in 2018.
Therefore, with the benefit of hindsight it can be said that the company HR division should have taken pre-emptive steps to avoid such difficulties.
The company HR team should have paid more critical attention to their unsatisfied staff to avoid the snowballing of this issue.
HR division needs to be very careful in terms of making new labor contracts. Further, it has also made the HR activities accommodate a policy of employee resentment pacification.
The importance and relevance of Elton Mayo’s model should have been gauged by the concerned HR team to mitigate such hurdles.
The implications of the Brexit on Arcadia’s HRM
The HRM practices in Arcadia have been deeply impacted by the effects of the Brexit and the company had to resort to several modifications for the same.
This political uncertainty that has its source in the current Brexit dilemma has caused the HR division to renegotiate the contracts of their non-British staff.
This has further limited the capabilities of the company’s HR activities throughout Europe.
The HRM practices that are currently being applied in the company follows the theme of short term contract with their foreign staff and effectively avoiding any employment lawsuit against Arcadia.
Conclusion
In this essay some of the current issues that have been affecting the operational activities of Arcadia were discussed.
Appropriate use of the suitable management models and theories has also been made to understand the current crisis prevailing in the UK retail sector.
Further the state of the HRM practices, in the aftermath of these issues, within Arcadia has also been critically analyzed with the proper reference to the stated models.
References
Arcadia (2019). Arcadiagroup.co.uk. Retrieved 14 October 2019, from https://www.arcadiagroup.co.uk/
Bendix, R., & Fisher, L. H. (2017). The Perspectives of Elton Mayo. In The Anthropology of Organisations (pp. 11-18). Routledge.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Gassmann, O., Frankenberger, K., & Sauer, R. (2016). Exploring the Role of Popular Management Theories for BMI Research. In Exploring the Field of Business Model Innovation (pp. 47-76). Palgrave Macmillan, Cham.
Murphy, C., & Turner, T. (2019). Tipping the Scales for Labour in Ireland? Collective Bargaining and the Industrial Relations (Amendment) Act 2015. Industrial Law Journal.
Vidal, M. (2015). Fordism and the golden age of Atlantic capitalism. inSage Handbook of the Sociology of Work and Employment, edited by S. Edgell, H. Gottfried, and E. Granter. London: SAGE, 283-305.
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