Case 1- Why doesn’t this HR Department get

any respect?

Summary
Luke Robinson, a managing partner, was appointed by the new CEO Bernie Shargall to solve
several company issues related to human resource management. Under CEO Washington, the
HR department was mostly considered as an administrative department. After CEO
Washington’s retirement the new CEO did not have the flair to attract and retain its talented
employees. The HR department also did not receive a lot of attention from the company.
When Robinson joined the company, he had a one-on-one meeting with all the key
employees of the company from which he found that there were contradictory views about
the company. In addition, the employees at Loft were not accustomed to anyone from the HR
department. In response, Robinson had set up an HR ambassador program, where an
employee had to establish relationships with individuals in a particular department of a
company where they would have a representative to address any issues with the HR. He also
evaluated HR employees individually and collectively and replaced two under-productive HR
employees with individuals with significant experience. To address the problem faced by the
company, Robinson had meetings with executives where he had presented various findings
and an overview to address the issues, but his views were disregarded. During the year end,
bonus checks were issued inaccurately which had taken a month to sort through. The
following main problems were of concern to Robinson-

Problem Statement

1. There was a gap between the former CEO Washington and the new CEO Shargall in
terms of leadership capabilities.

2. The company faced lack of recruitment and retention of talented employees and the
current employees did not view Loft as a good place to work.
 3. The employees lacked morale and commitment to their job. They didn’t see any
future with the company.

4. There was negligence in day-to-day administration duties such as year-end bonus

check error.

5. The HR department being an internal service function was not much respected in the
company.

Solutions to the Problem

The following steps can be inculcated by the HR department to handle the existing problems
in the company.

1. Perform Administrative functions accurately : The HR department in any

organisation should be able to perform its basic administration functions such as
payroll management accurately so that it receives immense respect from the
management and other departments within the organisation. This will enhance the
confidence in the minds of people with regard to the performance of the HR
department. In this manner, the image of the HR department can change from a core
administrative function department to one more concentrated on other important
aspects such as employee performance, employee relations, etc.

2. Strategy Formulation: Strategies are usually formulated by the top-level

management in any organisation. The management of the organisation should allow
active participation by the HR Team in formulating strategies. The HR department is
a mediator between the management and employees of the organisation and so they
need to participate in formulating company strategies based on the core values of the
organisation. Simultaneously, they should check if the learning and development
activities, communication structures, organisational structure, work processes are well
organised and suggest changes or areas of development in accordance with the overall
goals of the company.

3. Increasing Employee Morale- High Employee morale is directly connected with the
higher productivity among employees. Some of the ways in which one can increase
employee morale is -
● Employee Recognition - Employees need to be recognised and praised for any
milestones achieved such as receiving a promotion or for any important life events
such as birthdays. The recognition given can be monetary or in a non monetary form
such as providing a bonus, praising an employee in front of the team, or providing
certificates. This in turn boosts employee motivation thereby influencing employees
to perform better in the future.
● Employee Engagement- Employees need to be engaged with the organisation in order
to avoid boredom at work and to avoid employees from staying aloof. Employee
engagement provides employees with a sense of belongingness with the organisation.
Engagement programmes such as organising games, events, picnics, celebrating
festivals will not only help the employees to engage with one another and the
organisation but will also increase productivity at work.
● Mentoring Programs - The management of a company should consider investing in
mentorship programmes which will help in providing guidance to employees with
respect to their personal and professional life. Mentors can provide guidance to
employees based on career development as well so that employees are well aware of
growth opportunities in the company. This helps in the overall growth of an employee
and avoids a feeling of being stagnant in career growth. Mentorship programmes help
in improving employee retention as well.
● Work-Life balance - Stress at work is an inevitable part of work life. Employees
should be exposed to a healthy working environment and a flexible work schedule.
● Empowering Employees- A lot of restrictions while conducting work can be a
significant reason for low employee morale. Employees should feel empowered by
being provided with few decision-making abilities so that they can exercise their own
decisions at work.

4. HR as an Advocate towards Employee Needs- Employees can voice out their needs
and concerns to HR personnel who can pass on the information to the higher level
management. This makes sure that employee concerns are heard and solutions to the
same are provided on time.

5. Leadership in Attracting and Retaining Employees- Leaders need to be aware of

their own behaviour which can help in attracting and retaining employees. In the case
study, the Ex-CEO, Washington had a flair for attracting and retaining employees
which was absent in the new CEO. Leaders should be able to listen to and address
problems of employees. They should value suggestions provided by employees so that
employees feel appreciated for their efforts. Asking for feedback from employees also
helps in employees feeling motivated to retain their positions in the organisation as
their views and opinions seem to be considered by leaders.