Analysis of HRM Issues at Royal Foods Assignment Sample  

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Executive Summary

Royale Foods is one of the leading food businesses in Australia that provides food products to retail markets and also to food sector. The issue that has been identified in the current research is poor human resource management of the company such as poor performance, negative mental state, conflict occurrence and also lack of resistance to change. Thus, the current research has analyzed the HRM issues witnessed at Royale Foods and also provides recommendation plan related to HR practices.

Introduction

The roles and responsibilities of human resource management in an organization include staffing, setting employment policies, retention, training, compensation and benefits, employment laws and also protection of workers. An HR department should adhere to legal statutes under all circumstances. However, when HRM department does not stick to its roles and responsibilities, it shall result in conflicts, poor performance of employees and also negative workplace culture. The purpose of current research is to illustrate on the HR issues witnessed at Royale Foods which is a food business based in Australia and provides food products to both retail markets and food service sector. There are also recommendations provided in terms of HR processes that should be implemented along with implementation plan and risk register.

HRM issues in Royal Foods

Compliance

One of the primary roles of HRM is to effectively take part in people management and as part of that compliance is one of the preliminary responsibilities that HRM is entrusted with. In the opinion of Frawley et al. (2020), management of individuals rests on employment policies that ensure their well-being. However, one issue related to people management witnessed at Royale Foods is compliance challenges as a result of which a majority of employees were not provided sick leaves, casual leaves and holidays that employees are entitled to. A number of employees have reported against not being able to avail the leaves that they are entitled to in the course of their employment. As a result of that, the employees were having mental drawbacks while working with this company that also hampered their performance and productivity. Royale Foods pays much of its attention to food quality. However, the lack of HRM effectiveness culminated in poor food quality due to lack of good performance of employees.

Conflict in teamwork

Another important area of human resource management is diversity and inclusion by means of which equality and fairness is encouraged and practices in workplace. As influenced by O’Neill and Mclarnon (2018), the objective of diversity and inclusion is to eradicate the social barriers prevalent among individuals and foster a healthy relationship among them to alleviate risks of discrimination. However, the issue that has been evidenced in Royale Foods is lack of diversity. Royale Foods pays much attention to recruitment and selection of people from different cultural backgrounds. However, there is lack of effective diversity management initiatives. One of the major hindrances faced is in terms of teamwork where workers are unable to communicate among themselves. The diversified background of people also results in varied opinion during decision-making and therefore, conflicts are common. This has hindered productivity and effective teamwork in Royale Foods to a great extent, where employees work in a negative workplace environment and there is also lack of effective decision-making.

Lack of visibility to change

HRM is also entrusted with tasks and responsibilities related to change management by fostering effective communication and making employees aware of the need for change. Royale Foods has recently changed its organizational structure by focusing on inclusion of functional organizational structure (Jayatilleke and Lai, 2018). However, the lack of HRM effectiveness can be witnessed due to prevalence of multiple teams where communication has been one of the most important factors. The HRM has not adhered to effective communication practice and thus, the needs of multiple teams have not been identified well. Furthermore, the lack of recognizing strength, skills and knowledge of each of the employees has also been difficult due to lack of communication from end of HR department. The employees also lacked clear visibility of change for dearth of transparency owing to which they were reluctant to take part in change procedure.

Delivery of HR processes at Royal Foods

Legal compliance

In every state or country, the HR must act in compliance with statutory rules and regulations meant for employees. As studied by Rousseau (2018), the statutory policies in Australia pertaining to employment policies include maximum weekly working hours, providing flexible working time to employees, parental leave, personal carer’s leave and annual leave. Thus, based on this it can be witnessed that HRM department at Royal Foods has not adhered to the legal statues. The process that must be recommended in this context is to adhere to weekly working hours where they should not be subjected to working for more than 40 hours a week. Moreover, a minimum of leaves should also be provided to them in accordance with Australian legal policies.

Diversity and inclusion

The second recommendation related to HR processes at Royale Foods is to focus on diversity and inclusion as conflicts due to communication barriers have been witnessed in the concerned company. As influenced by Puritty et al. (2017), education of leaders is one of the foremost pillars of diversity management at workplace. Therefore, it is important that HR managers at Royal Foods focus on providing adequate knowledge to leaders and managers in order to make then well acquainted with different cultural aspects. Furthermore, each of the teams should be formed with employees from different backgrounds, owing to which diversity shall be encouraged and they shall be made to understand each others’ cultural cues. Each of the team leaders at Royale Foods must be well equipped with cultural barriers and differences and they must act as coordinator between different team members to avoid conflicts.

7R’s of change

In order to constitute effective change management at Royale Foods, the HR department shall adhere to 7R’s of change management that will help employees understand various aspects of change. As studied by Domingues et al. (2017), when employees are well aware about factors of change, they are more likely to take part proactively in change. The primary factor that this model focuses on includes the people who initiated the change. An important factor also includes reason for change and the return that is likely to be anticipated. Furthermore, a detailed assessment of risks involved with it. This will make the employees well prepared with possible risks and thus, they might take the necessary steps for avoiding negative impacts of change.

Implementation plan

Objectives Resources Short and long term outcomes Budgets
To enhance the mental well-being of employees so that they perform efficiently As influenced by Ahammad (2017), compensation and benefits is also an important resource required to fulfill this objective. The employees working at Royale Foods should be provided with added rewards and incentives whenever they are made to work for extra hours. The short term outcome is to retain the employees who are about to terminate their employment with the company.

The long term outcome is to lower turnover rate of employees. It also includes owning a base of loyal employees.

$1200-1600
To alleviate conflict occurrence in teamwork As reported by Saeed et al. (2019), the purpose of training and development in HRM is to identify needs of employees and help them achieve those so that their careers needs are fulfilled and they succeed toward career growth and development. The resource required for this objective is training and development programs which would enable employees at Royal Foods gain betterment and development in their professional field and thus, look forward to working under challenging circumstances. The short term outcome would include effective communication among team members. This is because of lesser conflicts and employees will consider every challenging situation to be a stepping stone in their career.

In the long run, employees will be able to work in diverse teams with lesser risks of conflict occurrence. Additionally, the decision-making will also be more effective with clear precision on innovation and creativity.

$1500-1800

Table 1: Implementation plan

(Source: created by the author)

Risk register

Riks description Likelihood Impact Severity Mitigating action
There might be creation of a negative workplace culture The occurrence of this risk is very likely as employees are not provided with employment benefits. Thus, they work with frustration and negative mindset. Additionally, there is also conflict occurring in teamwork due to which the working culture and environment of Royale Foods is being hampered. As a result of this risk, there will be high turnover of employees. As influenced by Chiat and Panatik (2019), the performance of employees is also likely to decrease. Strong Communication

Diversity management

Identifying employee needs

Motivation through rewards and compensations

 

Employee benefits liability Likely This risk will result in monetary fine of Royale foods due to non adherence to legal policies Medium The Australian employment laws and policies need to be considered by HRM department of Royal Foods.

Table 2: Risk register

(Source: created by the author)

Conclusions

To conclude, it is to be stated that the HR department at Royal Foods is highly ineffectively that has culminated in higher risks of poor productivity and mental state of workers. The occurrence of conflicts and lack of diversity is evident of dearth of HR practices. Thus, the recommendation and implementation plan proposed in the current research shall help in mitigating the issues and constitute satisfaction and motivation of employees at Royale Foods. As a result of that, the retention of employees will be easier, contributing to its competitive advantage.

Reference List

Ahammad, T., (2017). Personnel management to human resource management (HRM): How HRM functions. Journal of Modern Accounting and Auditing13(9), pp.412-420.

Chiat, L.C. and Panatik, S.A., (2019). Perceptions of employee turnover intention by Herzberg’s motivation-hygiene theory: A systematic literature review. Journal of Research in Psychology1(2), pp.10-15.

Domingues, A.R., Lozano, R., Ceulemans, K. and Ramos, T.B., (2017). Sustainability reporting in public sector organisations: Exploring the relation between the reporting process and organisational change management for sustainability. Journal of environmental management192, pp.292-301.

Frawley, S., Doorey, D.J., Budworth, M.H.E. and Singh, P., (2020). Legal Compliance and Human Resource Practitioners: A Reasoned Action Approach. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 12503). Briarcliff Manor, NY 10510: Academy of Management.

Jayatilleke, S. and Lai, R., (2018). A systematic review of requirements change management. Information and Software Technology93, pp.163-185.

O’Neill, T.A. and Mclarnon, M.J., (2018). Optimizing team conflict dynamics for high performance teamwork. Human Resource Management Review28(4), pp.378-394.

Puritty, C., Strickland, L.R., Alia, E., Blonder, B., Klein, E., Kohl, M.T., McGee, E., Quintana, M., Ridley, R.E., Tellman, B. and Gerber, L.R., (2017). Without inclusion, diversity initiatives may not be enough. Science357(6356), pp.1101-1102.

Rousseau, E., (2018). Power, Mechanisms, and Denunciations: Understanding Compliance with Human Rights in International Relations. Political Studies Review16(4), pp.318-330.

Saeed, B.B., Afsar, B., Hafeez, S., Khan, I., Tahir, M. and Afridi, M.A., (2019). Promoting employee’s proenvironmental behavior through green human resource management practices. Corporate Social Responsibility and Environmental Management26(2), pp.424-438.

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