The Consolidated Global Mining Services Company Crisis

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Table of Contents

Introduction: The Case of Too Many Employees
Problems Identification: What Needs to Be Addressed
Strategies and Evaluation: Locating the Best Decision
Recommendations: What Can Be Done Further
Reference List

Introduction: The Case of Too Many Employees

The Consolidated Global Mining Services Company has been experiencing financial difficulties. The operating profit of the firm has been dropping fast. In addition, the number of customers has shrunk. As a result, the company became unable to hold the current amount of staff. To solve the overstaffing issue, the firm may have to fire some of the employees. However, the organization’s ethics does not allow it.

Problems Identification: What Needs to Be Addressed

Non-HR Issues: The Factors That Make the Problem Worse

Since the case states that the company is unable to manage its financial resources, a poor financial strategy is one of the key factors that lead to the company’s failure: “Getting working capital from the banks had become difficult” (Waight 2010, 144).

HR Issues: Staff Control and Related Concerns

HR managers have poor control over the actions of the staff. As a result, it seems that the firm is overstaffed. In fact, it actually needs better control over its employees: “Should we be looking at a more sophisticated way of managing our people?” (Waight 2010, 144).

A Crucial HR Issue: Defining the Main Problem

One might think that the lack of control over staff is the issue of the greatest importance for the firm now. However, there is a problem that is even more important. According to the case study, there is a serious problem with the use of information: “Regan’s main gripe was that the company didn’t seem to take information systems very seriously, so the whole area had been under-resourced for years” (Waight 2010, 144). Information management might be considered as unrelated to HR management. However, it is closely linked to HRM. The information management strategy helps use important data to create a solid resource planning approach. Without a good information management strategy, the company is unable to use its human resources successfully (Masum and Kabir 2013, 26).

The importance of information management or HR is very high. There are various types of data that can be received from the staff members. For example, the feedback from the employees is crucial in defining the HRM approach. The statistical data of the staff performance and satisfaction rates also provide a background for the choice of a good strategy. In fact, the concept of Human Resource Information Systems (HRIS) has recently been created.

HRIS helps improve information security and define the possible problems with the staff. Moreover, it shows what strategies can be used to manage the human resources: “HR professionals are considered to add value to organizations since HRIS can free up their time, whereby allowing greater involvement in strategic organizational decisions” (Zafar 2013, 107). HRIS requires a good knowledge of modern information technologies.

Since the Consolidated Global Mining Services Company does not have appropriate IT tools, its managers are unable to use HRIS. Therefore, human resources are not used properly in the firm. The reason for the company for failing might be not the overstaffing but the inadequate strategy of HR information management. Thus, the company may need to improve its HRIS. The Consolidated Global Mining Services Company may even start a completely new HRIS strategy.

The new HRIS approach will have to focus on the needs of both employees and the company. The staff’s efforts must be recognized. Thus, the performance will be improved. Gathering feedback will be required for the analysis. The analysis will show if the roles and responsibilities are distributed successfully. With the help of this step, the company will be able to move forward. An analysis of the employees’ performance will show the problem areas. As a result, Consolidated Global Mining Services will be able to build a good HR strategy (Awan and Sarvar 2014, 47).

Strategies and Evaluation: Locating the Best Decision

Strategies: A Proposition for Company’s Improvement

Centers of excellence model: keeping the quality standards high

The Centers of Excellence Model (CEM) will help the Consolidated Global Mining Services Company provide the staff with roles and responsibilities. The distribution of roles and responsibilities must be based on the needs of the company and the staff. CEM helps gain important knowledge from analyzing the current problems. Since the current problem has been a part of the company for quite long, it must be a part of the firm’s operations. Therefore, it should be solved on several levels. CEM will help fight the causes of the issue successfully (Lisowski 2013, 83).

Fact-based decision model: analyzing facts carefully

The fact-based model (FBM) will help bring order to the HRM department. In addition, it will help build a unique strategy based on the company’s experience. As a result, the approach will meet the unique needs of the firm. FBM will help address the employees’ and the company’s needs.

FBM will also help identify the specifics of the employees’ qualifications. Thus, roles and responsibilities can be distributed efficiently. As a result, the employees will be busy with the tasks that they can do perfectly. Thus, performance levels will rise greatly (Wills, 2016, 49).

Evaluation: Why the Strategies Were Chosen

Quality

CEM provides tools for a detailed analysis of the problem. Therefore, it is important to apply the strategy to solve the issue successfully. CEM helps get to the bottom of the problem. As a result, the root causes can be detected and removed.

FBM is also a high-quality model. It will definitely help solve the issue. The model will help arrange the factors that affect the staff’s performance and the company’s success. Thus, FBM should also be considered as high-quality.

Feasibility

The CEM strategy is quite doable. Since the Consolidated Global Mining Services Company is not very large, its main processes can be analyzed in detail. A careful analysis will lead to an understanding of the issue. Specifically, the information management (IM) tools can be defined. The IM tools will also be included in the firm’s design with the help of the model.

Likewise, FBM is also feasible. However, the current design of the company will have to be changed to perform it. Because of a poor information management strategy, the analysis of the staff data may not be accurate. Thus, it will be necessary to change the IM approach. Closer attention must be paid to the employees’ performance and feedback. The communication process must also be analyzed. Using the data retrieved from the analysis, one will be able to define the employees’ and the company’s needs. As a result, changes will become possible.

Fit

CEM is fit with the Consolidated Global Mining Services Company’s philosophy. The firm focuses on the needs of the staff. The firm also views the interests of its employees as its priority. As the case study shows, the organization values its staff and strives to meet its needs. Thus, the CEM framework can be used successfully.

FBM also seems quite fit with the company’s structure. However, the lack of IM strategies may become a problem. The FBM approach requires the active use of IM systems. The case, however, shows that the company’s IM tools are very old. Moreover, the IM strategy could be improved. According to the case, there is no HR information management system, to begin with: “Well, it seems to me that our enterprise resource planning is antiquated, to say the least. There’s not even an HRIS module” (Waight 2010, 144). Therefore, FBM can only be used after the IM system is improved.

Cost

CEM is not going to be very costly. FBM, however, is likely to cost a lot to Consolidated Global Mining Services. The update of the current IM system is rather expensive. Indeed, both software and hardware will have to be purchased. Afterward, the employees will need to be trained to use the new IM system.

Acceptability

Since CEM focuses on the needs of employees, it is likely to be accepted by them fast. The strategy is likely to have a great effect on the employees’ performance rates. The strategy will also affect the distribution of roles and responsibilities in the company.

FBM may be accepted slower. Since it is linked to IMS, the employees may find it difficult to use. However, the staff’s attitude can be changed. A new leadership strategy and values will help promote the model successfully. Still, it will take longer to introduce than CEM.

Reversibility

Since both strategies mean changing the company’s organizational behavior, they may be difficult to reverse. CEM reversing will take less than FSM, which becomes a part of the firm’s design.

Ethics

Both approaches are ethically appropriate. Since they are aimed at meeting the employees’ needs, they are socially acceptable. Thus, the Consolidated Global Mining Services Company may use both strategies without facing ethical dilemmas.

Recommendations: What Can Be Done Further

Getting Objectives in Order: Company’s Current Goals

The lack of order is the key problem of the Consolidated Global Mining Services organization now. The leader of the firm is incapable of setting priorities. As a result, the resources of the company are used in the wrong way. This includes human resources, which need better guidance.

The IMS also needs change. The HR experts will have to analyze feedback from the employees more actively. The current low performance may be the sign of low motivation rates. The employees may experience dissatisfaction with the company’s policies. Therefore, HR problems will have to be identified. The process can be completed with the help of an efficient IMS. Gathering feedback is another important objective.

Focusing on the Needs of All People Involved

Apart from employees, the needs of customers and company partners will have to be met. Consolidated Global Mining Services must change its values to include all people that depend on it. The firm should focus on meeting the needs of all parties involved.

Reference List

Awan, Abdul G. and Gulam H. Sarvar 2014, “Integrated role of HRIS & SHRM (SHRIS) in banking sector of Pakistan.” Global Journal of Human Resource Management 3 (1): 45-61.

Lisowski, Duane 2013. “Strategies for successful revenue cycle outsourcing.” Healthcare Financial Management 67 (9): 82-86.

Masum, Abdul K. M. and Mohammad R. Kabir 2013, “HRIS practices in universities: An exploratory study on the private universities in Bangladesh.” Global Journal of Human Social Science, Linguistics and Education 13 (7): 25-29.

Waight, Paul. 2010. “crisis control.” In Managing human resources, edited by Raymond J. Stone, 143-145. Milton: Wiley.

Wills, Kerry R. 2016. Applying guiding principles of effective program delivery. Chicago: CRC Press.

Zafar, Humayun. 2013. “Human resource information systems: Information security concerns for organizations.” Human Resource Management Review 23 (1): 105–113. Web.

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