Professional Documents
Culture Documents
Exercise 1docx 1994
Exercise 1docx 1994
Procedure:
Specification/s:
You must:
participate in three role-plays with the:
o Service Manager
o Sales Manager
o Operations Manager
submit a 12 page report on HR requirements and recommendations.
Appendices
JKL Overview
JKL Industries is an Australian owned company, selling forklifts, small trucks and spare parts to
industry. They also have a division which leases forklifts and small trucks.
The companys head office is in Sydney and JKL has branches in Brisbane, Melbourne, Perth, Adelaide
and Canberra.
Change
After 12 years in business, focusing on forklifts and small trucks, JKL has been offered the sales rights
to a range of medium and large trucks from an overseas supplier. This opportunity will provide JKL
with an advantage in range over its competitors.
Sales results over the past five years have indicated strong growth in forklift and truck sales which
have averaged 10% sales growth per annum. The rental market has been in decline for the past three
years due to the reduced costs of these vehicles and some taxation benefits to industries who
purchase these vehicles.
Taking the sales opportunity will, however entail some significant changes, including significant
changes to the current organisational structure. The company will reposition itself to focus solely on
retail sales and service and exit the rentals market in which forces such as competition and consumer
choice reduce potential profitability.
In accordance with the organisations values, JKL intends to (to the extent feasible) recruit from within
the company and upskill or reskill existing employees in rentals who wish to remain with the company.
HR role
HR will have a key role to play in the implementation of strategic and operational changes. The
significant changes to the organisation also provide an opportunity for HR to potentially restructure
and certainly rethink how it delivers services to internal clients. HR will need to consider company
strategic directions, the external business environment, and the needs of employees and managers to
implement the strategy effectively.
Options for service delivery
A number of HR service delivery options are available for discussion and analysis. The following cost
and benefits are presented for a number of possible HR service delivery options and strategies. All
figures are predicted for following financial year except where otherwise noted.
Financial Gain
(through efficiencies,
Chance of
Strategic Options Cost savings or direct revenue
failure/Likelihood of risk
without consideration of
costs)
Outsourcing basic HR $600,000 $800,000 for the 10% (0.1) Low risk
services. following financial year
Enhancing HR services with $100,000 $1,000,000 over next 5 10% (0.1) Low risk
respect to performance years
management to enhance
business partnering at all
levels.
Enhancing HR services with $150,000 $500,000 for the 20% (0.2) Low risk
respect to industrial following financial year
relations (IR) to enhance
business partnering at all
levels.
Task
JKL have requested that you, as the newly appointed Human Resources Manager, provide them with
options for the strategic delivery of human resources services to support the organisations plans.
Appendix 2 JKL Industrys industrial relations history
JKL Industries has not had a clear industrial relations policy or strategies in the past. There has been a
tendency to manage issues on an ad hoc basis rather than drive the business through long-term
industrial relations objectives.
Responsibility for industrial relations issues has been spread between various levels of management
including the Operations Manager, Sales Manager, Service Manager and Human Resources Officers
for each branch. This has led to issues of inconsistency and allegations of unfair work practices, with
team members confused as to their entitlements and unsure of how to resolve grievances and conflict
appropriately.
On several occasions the union has become involved in disputes when team members have been
unable to resolve issues with their line managers.
Morale in the workplace fluctuates and is often dependent on the division managers management
style and skill level. There have been instances of workplace conflict which have not been satisfactorily
resolved and have led to complaints of discrimination and unfair dismissal.
Employees have heard rumours of the forthcoming changes in the structure of the organisation and
the move into medium and large truck sales. There are concerns about possible redundancies but no
information from management has been forthcoming.
There has been a history of dissatisfaction within the organisation relating to pay and conditions with
some employees complaining they are not receiving the entitlements they should be.
The current management team has little understanding of industrial relations matters and has been
appointed to their current positions based on their abilities in sales or their technical skills.
They have limited understanding of Australian workplace agreements and a tendency to refer any
problems to the HR officers. This has led to conflict and dissatisfaction within the work teams and is
felt to be a contributing factor to the high turnover of staff in some departments. Management tends
to be operations focused and have little understanding of people management, performance
management or leadership skills; moreover, managers tend to resent any intrusion of HR into strategic
planning, recruitment and workforce planning, seeing these as business issues. HR is seen to merely
provide administrative assistance, but not to contribute to the achievement of business goals in more
direct or meaningful ways.
The HR officers have experience in understanding and interpreting Australian Workplace Agreements
from an administrative perspective. They have limited knowledge of strategic management and have
little control over or influence in implementing industrial relations policy. As they report directly to
the Division Manager, they are functioning more as administration assistants than as a strategic HR
resource.
While JKL Industries has policies and procedures relating to workplace behaviours and values,
employees are not provided with written copies of procedures nor are they trained in values,
behaviours, codes of practice or workplace cultural issues. Many employees are confused about their
rights and entitlements at work and are not clear on who they should speak to if they have a problem.
Conflict situations
Case 1
An apprentice mechanic complained to the union that he was left unsupervised for up to five hours
several days per week.
The union investigated the matter and found it to be substantiated. Management claimed it was a
temporary rostering issue caused by the resignation of senior mechanics and would be rectified. The
apprentice was satisfied with the response and the rosters were adjusted.
Case 2
Five sales consultants claimed their annual bonus was calculated incorrectly. Management asked the
payroll department to review the payments and was advised it was correct. The sales consultants felt
they had been misled by confusing contracts detailing the bonus arrangements and had, in fact earned
their bonuses. Management did not respond. Three sales consultants resigned as a result.
Case 3
The mechanics and apprentices in the NSW branch complained to management about excessive hours
of work. They were told that the business did not have the resources to hire extra staff and they would
have to work the overtime. The mechanics continued to do the overtime for two months and then
complained again. One mechanic refused to work more overtime and was dismissed summarily by the
Service Manager, Norm Johnston. He lodged an unfair dismissal claim and was reinstated and back
paid. No action was taken by the company with regards to the Service Managers performance or
behaviours.
Case 4
An administration assistant in the finance division complained to the HR Officer that she felt
uncomfortable working around one of the male accountants as he had asked her out on several
occasions. When she said no, she felt like he singled her out for the worst jobs in the office, was rude
to her in front of other staff and made comments in public about her weight. The HR officer told her
she was being overly sensitive and should be flattered to have been asked out. She was told to be
more of a team player. The administrative assistant then complained to the Finance and
Administration Manager and was told there was nothing he could do. She resigned from the company.
Case 5
Management decided to restructure the sales department which involved redundancies. They did not
involve the union or offer any type of counselling or personal meetings. Employees were informed by
letter and were paid the minimum payouts they were entitled to. There was no discussion with
remaining staff and morale became extremely low. Within two months, management had replaced
the team members made redundant with new workers.