Hrm Ando Enterprice

A. COMPANY PROFILE

Ando Enterprise Plc (AEL) is a successful business consisting of three mayor divisions; Agriculture, Hotels and Leisure and Transport. The whole sales go up to Ð'Ј434 millions, getting Ð'Ј42.5 millions of profits.

A.1 DIVISIONS

- Hotels and Leisure: This is the largest and most profitable division. This division has 7 hotels spread trough out the popular resorts of East coast and islands. The hotel division staffs is shaped by both part-time and full-time around 1100 employees and during the peak holidays 1800 extra staff are contracted.

- Transport: This division is made up of several businesses, which are mainly different types of trucking operations. The workforce in this division is drivers, co-drivers, operations staff to support the activities and a highly specialist computer employees who are designing and will implement a system for allocating the work to the various companies.

- Agricultural: This division is fragmented into smallholdings which are spread over the islands. Basically this business produces a variety of crops for home consumption as well as exports.

A.2 PROFITS AND SALES

- Hotels and Leisure: Ð'Ј30 millions out of Ð'Ј400 millions on sales per annum.

- Transport: Ð'Ј11 millions out of Ð'Ј27 millions on sales per annum.

- Agricultural: Ð'Ј1.5 millions out of Ð'Ј7 millions on sales per annum.

B. AIM AND OBJECTIVE

The aim of this report is to analyse AEL in terms of Human Resource Strategy, recommending what kind of policies and functions should be implemented to increase the effectiveness of HRM in the organisation.

C. AEL ACTUAL SITUATION

Despite the fact that the company is still having profits, a percentage of sales have been dropping for the past three years, and one of the important cause could be the employment cost and this could be caused by a lack of a proper structure and a incompetent HR programme.

C.1 ACTUAL HUMAN RESOURCE PRESENCE IN AEL

At the moment the HR presence is only in the Transport division and in the Agricultural division, it is suppose that the organisation has not got a general HR department who control the whole organisations. Also, the HR presence is not a substantial team and seems like is not following the adequate strategy to increase the profits by the utilisation of this departments.

C.2 MANAGERAL GROUP

It is inexistent the communication between the personal manager and the HR department, therefore, the objectives that should be achieved are not followed in the same direction. Seems as the managers of each division are maintaining a conservative role, far of the possibility of somebody can interfere in their work and in their divisions.

C.3 MAIN PROBLEMS

The main problems which will be analysed to find a solution will be as a follow:

- The general employment cost

- The extra staff contracted

- The labour turnover in the hotel division (training cost, recruitment and customer service)

- Rates of pay, principally in the Hotel Division and in the Transport Division)

- The dissatisfaction of the Computer employees in the Transport Division

- The HR bureaucratic functions

- The unstructured Transport Division and the cost that this supposes

- The lack of communication between divisions and departments

D. THEORETICAL ANALYSIS PROCESS

The company will be analysed developing the concepts of HRM strategy and HRM functions which should be followed to solvent the AEL problems.

D.1 HRM CONCEPT

One of the several definitions could be as a follow:

“Human Resource Management is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices”

(Source: Bratton and Gold, Human Resource Management, 4th edition, 2007)

D.2 HUMAN RESOURCES MANAGEMENT FUNCTIONS

The key functions are:

- Planning: Preparing forecast of future HR needs in the light of an organisation’s environment, mission and objectives, strategies and internal strengths and weaknesses.

- Integrating: Linking HRM with the strategic management processes of the organisation and coordinate HR practices to achieve the desire’s goals.

- Staffing: Obtaining people with the appropriate skills and Knowledge to fill jobs in the organisation. This include, planning, job analysis, recruitment and selection.

- Developing: Analysing learning requirements to ensure that employees possess the knowledge and the skills to perform in their jobs.

- Motivating: Reward systems, HR practises include job evaluation, performance appraisal, pay and benefits.

- Designing: The design and maintenance work systems in order to attract and retain competent workforce.

- Managing relationships: employee involvement, participations schemes in the workplace; Cooperative relationships between the employer and the trade union.

- Managing change: Helping others to envision the future, communicating this vision, changing mental models and developing the capability to reorganize people and resources.

- Evaluating: Designing procedures to measure the value added of HR practices and the entire HR system.

Following this points we will try to develop the best HRM strategy for AEL.

D.3 MULTIDIVISIONAL BUSINESS ORGANISATION

An important aspect of this kind of organisation concerns the level to which strategies issues apply. It