HUMAN RESOURCE MANAGEMENT

ASSIGNMENT I- CASE ANALYSIS

Prepared By: -
Pawan Joshi
Ace Institute of Management, Kathmandu
EMBA Fall 2020
1. Discuss the relationship between corporate human resources structure and
operations at the plant level. What impact, if any, did that relationship have on the
situation described by Newcombe?

The relationship between corporate human resources structure and operations at the plant
level has not been clear cut. The policies and regulation of the employer has not been
observed well in the plant level. Most of the personnel operations has been centralized at
corporate level. There has been seen lack of confidence in employees mainly due to lack
co-ordination between human resources and plant operations. Since plant superintendent
and shift supervisor are largely responsible for daily operational task, they have failed to
evaluate people on the basis of their work performance. It seems they are more focused
on work and outputs rather than understanding employees’ work issues. The human
resources are not privy to the dissatisfaction and expectation of their plant degree worker.
The plant superintendent isn't always privy to the human resources rules of the
organization.

Many issues at the plant level have been observed as company fails to maintain good
relationship between human resources and plant level operations. All the policies and
benefits are centered to corporate level employee and plant levels have been completely
ignored. The performance of the corporate level employees is only evaluated and the
satisfaction level of them is only considered. Proper job evaluation of plant level
employees has not been observed. This causes dissatisfaction among employees who
were high performers and have been performing duties with full obligations. The
supervisors have not followed company policy but a single day absence of an employee
leads to termination. It shows that employees are evaluated on the basis of current day
performance rather than performance of overall period. The plant superintendent was
passing wrong information to the corporate human resources due to lack of understanding
for human resources policies.

1. How should Newcombe have handled this situation?

There should be proper investigation in the plant to identify the exact issue. AS a vice
president of human resources she should be neutral in the case and invite both party for
table talk. Either of the party found guilty should be given punishment or warnings based
on company’s guidelines and policies. If Johnson is found true, he should be reinstated to
his position which would emphasize that company values loyal, hardworking and capable
employees. There should be proper training for all staffs in order to make the aware about
rules and policies of the company. A 360-degree evaluation system could be
implemented so that there is no biased appraisal from either party. Performance
appraisals should be done at regular interval.
2. What, if any, disciplinary action should have been taken against the plant
superintendent (Braxton) at the time of the incident?

Braxton should be investigated and bring in for table talks. If found guilty the company
should definitely take certain disciplinary actions based on company’s policies and
guidelines. Doing this make other employees aware of doing anything beyond policy.
Brexton shouldn’t be allowed to work and make any decisions till the investigations lasts.
Brexton should have passed all the information and correctly in order to avoid this issue
but he failed to do so and company is losing one the of hard working, loyal and capable
employees. Hence, based on his performance and loyalty the company can decide to
terminate him or to keep him with no annual increment.

3. If Johnson’s allegations were true, what are the legal ramifications of Braxton’s
behavior?

After reading the case it seems that Johnson is true about Braxton. Braxton has asked
Johnson to sign a blank form and later he has filled wrong information in it. He can go
legally ahead to get justice and reinstate his position. Johnson can file a complaint and
request for investigation. Johnson could ask for compensation for loss from the company.
Braxton could be taken to court and might get jailed and allowed to paid penalties. Mount
Ridge might also be considered guilty and court can make them to pay penalties. Johnson
can request Department of Labor to involve in the case and can fight for his rights.

4. Describe Mount Ridge’s business strategy. What relationship between its business
strategy and its human resources practices?

Mount Ridge Engineering Systems designs, builds and operates standardized, coal-fired
utility plants. The main business strategies of Mount Ridge were:
 To build small power generating plants (35 megawatts and 55 megawatts).
 To sells the steam to industrial plant that utilizes steam in its operations.
 To sell the electricity to the local utility.
 To reinvest the profits for building future plant expansion.
 To remain nonunion by offering a good quality of work life.
 Here, Mount Ridge has very strong strategies but these we not equally aligned with
human resource management. Since, employ are regarded as partial owner of the
company, there should be well managed practices to manage and take care of them.
Human resources are an important part of a successful business strategy. They play a key
role in developing, reinforcing and changing the culture of an organization. It plays a
significant role in developing positive business culture and improving employee
engagement and productivity. But Mount Ridge’s HR practices have been applied within
corporate office only and plant operations don’t have any such practices. It takes strong
leadership and commitment to consistently maintain the link between HR practices and
the strategic plan of the business. When employees are encouraged to become involved in
various aspects of the business strategy it develops higher levels of trust and
respectability between employees and the management team. Had there been proper
practices at plant level the company wouldn’t have faced various issues like non-
performing supervisors, wrong reporting and termination of loyal and capable employees.

5. What strategic human resources issues will Newcombe likely face as the company
expands to the Northeast? How might this expansion affect the structure of the
organization and its human resource department?

As the company expands there will be increase in number of employees and so do

various HR issues. The Johnson issue is an example of lack of communication between
corporate office and plant employee. There might be many such issues. High
dissatisfaction of employees may lead to lack of interest in work, procrastination,
irritability, frequent absences, lack of effort, unionism and many more. HR department
should make sure that all the employees are following its guidelines and policies. There
should be 360-degree performance evaluation system in order to avoid any biased
decision.

As the company has good HR practices at corporate level it should focus now at plant
level. The new structure should make sure company considers followings:
 Compliance with laws and regulation
 Leadership development
 Workforce training and development
 Proper compensation and understanding benefit packages
 Retaining capable and talented employees