Question A

Organization: ABC Corporation

The following are the main human resource risks:

1. Absence of succession planning: ABC Corporation lacks a defined succession

planning procedure. This puts the growth of the talent pipeline and leadership gaps
at risk.

Consequences:

 Leadership void: Without a defined succession plan, the business may find it
difficult to fill important leadership positions, which could lead to a leadership
void and disturb continuity and strategic decision-making (Rothwell, 2019).
 Lessened organizational agility and resilience: In the absence of a talent
pipeline, the company may struggle to adjust to shifting market dynamics and
future leadership requirements.
 Lower employee morale: Lack of career advancement chances brought on
by poor succession planning can demotivate staff members and lower
engagement and retention rates (Bhatnagar, 2020).
2. Poor Performance Management: ABC Corporation does not have a strong
performance management system that includes performance evaluations, frequent
feedback, and clear goal setting.

Consequences:

• Reduced productivity: Employees may lack clear goals and feedback in the
absence of good performance management, which can lower employee
motivation, productivity, and the standard of their work (Aguinis, 2019).
• Talent attrition: High-performing workers who feel underappreciated may
leave their current jobs in search of better possibilities, which results in a rise
in turnover and the loss of key talent.
• Unfair reward distribution: In the absence of a fair performance evaluation
procedure, there is a possibility of biased decision-making in award
distribution, which could result in unhappiness, conflicts, and a poor
organizational culture (Mudor & Tooksoon, 2021).

2|Page
3. Absence of comprehensive staff development efforts, such as training, mentoring,
and opportunities for professional advancement, at ABC Corporation.

Consequences:

Lack of adequate development programs may prevent employees from acquiring the
information and abilities required to adapt to changing job needs, which could lead to
skill gaps and decreased competitiveness (Lado & Wilson, 2020).

• Limited possibilities for career advancement can result in dissatisfaction

among workers, a decline in engagement, and higher turnover rates as they
look for companies that provide opportunities for career advancement
(Farndale et al., 2021).
• Less innovation: According to Marques et al. (2020), the inability of a
company to build a learning culture limits innovation and makes it more
difficult for it to adjust to shifting market needs.
ABC Corporation may suffer serious repercussions if these HR hazards are
neglected or improperly managed for an extended period of time. These effects
include a lack of leadership, a weaker organization, lower employee morale and
engagement, lower productivity, talent churn, unequal pay distribution, skill gaps,
less opportunities for career advancement, and less creativity. These effects may
make it more difficult for the business to meet its strategic goals, harm its position in
the market, and prevent long-term growth and success.

QUESTION B

HR governance plays a crucial role in managing HR risks in organizations. It involves

the establishment and implementation of structures, processes, and tools to ensure
effective oversight, accountability, and risk management within the HR function. By
focusing on ethical behavior, compliance with laws and regulations, and mitigating
operational risks, HR governance contributes to the overall success and
sustainability of an organization.

First and foremost, HR governance makes ensuring that all legal and regulatory
standards are met. It creates policies and practices that are compliant with
employment laws, labor laws, and other pertinent statutes. Organizations can
prevent legal controversies, fines, and reputational harm by abiding by certain legal

3|Page
requirements (Helmreich, 2019). For instance, methods for managing and monitoring
compliance with anti-discrimination laws, wage and hour rules, and health and safety
requirements can be included in HR governance frameworks.

Second, HR governance encourages moral conduct and risk reduction in HR

procedures. It establishes moral guidelines that place a strong emphasis on honesty,
justice, and respect in all choices and deeds pertaining to human resources. To
encourage ethical behavior and reduce the risks associated with unethical activity,
such as fraud, discrimination, or harassment, HR governance frameworks frequently
contain codes of conduct, whistleblowing systems, and ethics training programs
(DeCenzo & Robbins, 2018). This lessens the possibility of negative legal and
financial repercussions while also preserving the organization's reputation and
fostering stakeholder trust.

Additionally, effective risk management in HR processes and activities is ensured by

HR governance. It recognizes, evaluates, and controls risks related to crucial HR
tasks like hiring and retaining employees, managing performance, fostering
employee growth, and ensuring worker safety. HR governance frameworks give
firms the ability to proactively address possible risks and put policies in place to
prevent or lessen their impact (Armstrong, 2019). These frameworks do this through
risk assessment and mitigation tactics. HR governance, for instance, can entail
creating risk management strategies, carrying out routine audits, and setting up
controls to monitor and reduce HR-related risks.

The strategic alignment of HR initiatives with business goals and objectives is

another benefit of HR governance. It makes ensuring that HR procedures are built to
help achieve strategic goals including luring and keeping top talent, encouraging
employee engagement, and raising organizational performance. The creation and
implementation of HR plans, policies, and programs that are in line with the overall
strategy of the organization is made easier by HR governance frameworks (Cascio,
2018). This increases the human capital's contribution to the organization's success
and guarantees that HR risks are handled in a way that supports the
accomplishment of strategic goals.

Finally, HR governance is essential for controlling HR risks in firms. HR governance

helps to manage HR-related risks effectively by assuring compliance with legal

4|Page
requirements, encouraging moral behavior, and putting risk management principles
into practice. It promotes the accomplishment of strategic objectives, maintains the
organization's reputation, and helps shield it from negative financial and legal
outcomes. The ability to address HR risks, improve organizational performance, and
foster a healthy work environment is improved in organizations that prioritize HR
governance.

QUESTION C

The following corrective actions and HR governance frameworks can be advised to

reduce the HR risks identified in ABC Corporation:

1. Insufficient succession planning

• Create a systematic process for succession planning: To identify high-
potential individuals, evaluate their suitability for important jobs, and create
tailored development plans to prepare them for future leadership
responsibilities, adopt a structured approach (Rothwell, 2019).
• Put in place initiatives for leadership development: Provide chances for
training, coaching, and mentoring to help people build the competencies and
leadership abilities needed for future leadership roles. Both internal and
external development projects may fall under this category.
• Create procedures for talent evaluation and supervision: Review and
refresh the talent pipeline frequently to spot any gaps and take prompt action
to close them. High-potential personnel should be followed up on and given
continual support and feedback.
2. Inefficient Performance Management:

• Establish a thorough strategy for performance management: Establish

precise performance objectives, ensure ongoing coaching and feedback, and
carry out periodic performance reviews. Training managers in efficient
performance management procedures is one aspect of this (Aguinis, 2019).
• Encourage a culture of feedback: To improve employee development and
performance, encourage honest and constructive feedback at all levels of the
business. To guarantee that expectations are aligned and continual progress,
promote regular communication between management and staff.

5|Page
 • Associating performance with rewards: Establish a just and open incentive
system that connects team and individual success to appropriate rewards,
pay, and chances for career advancement. Ensure that decision-making on
rewards is based on quantifiable performance standards (Mudor & Tooksoon,
2021).
3. Poor employee development initiatives:

• Create all-encompassing development initiatives: Make a comprehensive

employee development plan that includes coaching, mentorship, and
opportunities for both technical and soft skill training. Align development
programs with individual career aspirations and the organization's strategic
goals (Farndale et al., 2021).
• Encourage ongoing learning: Provide tools for self-directed learning, such
as online courses, access to pertinent literature, and internal knowledge-
sharing platforms, to encourage employees to take responsibility for their own
learning. Encourage a culture of learning that values innovation, curiosity, and
the exchange of knowledge (Marques et al., 2020).
Create paths for career growth: Establish frameworks for transparent career
progression that describe prospects for advancement inside the company. Help your
staff members define their professional aspirations and growth objectives by offering
advice and assistance. Regular career conversations, personal development plans,
and chances for work rotation or cross-functional assignments can all be part of this
(Lado & Wilson, 2020).

These corrective actions ought to be supported by HR governance frameworks, such

as:

• Explicit HR policies and procedures: Create and disseminate HR policies,

processes, and guidelines that specify requirements for employee
development, performance management, and succession planning.
• Committee or supervision for human resource governance: Create a
committee specifically charged with managing HR governance, or appoint
individuals to be in charge of monitoring the efficacy and implementation of
HR processes and practices. Accountability and routine review of HR risk
management strategies are thus guaranteed. Implement procedures to track

6|Page
 the effectiveness of corrective actions, such as measuring talent development
progress, assessing performance management outcomes, and conducting
employee satisfaction surveys.
• Regular monitoring and reporting. Regular reporting and analysis can
highlight problem areas and aid in the data-driven decision-making process.
• Continuous improvement and feedback loop: Encourage a continuous
improvement culture by asking employees, managers, and stakeholders for
their feedback. Surveys, focus groups, or recurring evaluations can be used
to pinpoint problem areas and enhance HR governance procedures.
ABC Corporation may effectively reduce HR risks and improve its HR practices by
putting these corrective actions and HR governance frameworks in place. These
steps provide a strong succession planning process, improve performance
management, and encourage talent development. Moreover, they foster a positive
work environment, enhance employee engagement, and support the organization's
long-term growth and success

7|Page