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Assignment # 02
Case study 01
Date: 02-11-2012
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Q1: Describe the HRM practices that were conducted at House Smart. What evidence is
there that the four key roles of an HR manager were applied? What impact did this have
on organizational growth and survival?
(a) The HRM practices were not very much followed in the company. Following are the few
(b) There was no evidence that the four key roles of HR manager were applied. The company
was not following any HR practices in their management, and Colin as a leader and as a HR
(c) As the HR practices were not followed and the key HR roles were also not applied this thing
damages the organization growth. Company was affected badly due to the HR roles were not
applied. The employees were not performing well and there was no job description available for
the employees. Lack of planning was there due to which they dont know what to do in specific
conditions. The reason the company was struggling for the survival was due to the HR problems
in the company. If the HR management was good then company may not go to decline. . Due to
these unsuitable HR practices and inefficient management, the House .mart Furniture Company
suffered bankruptcy and had to shut down its office in Hong Kong.
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Q2: Analyze the life cycle of the organization and compare it with the HR planning and
forecasting needs to encourage growth and sustainability. What influence would effective
HR planning have had on House Smarts latest expansion strategy?
The life cycle of the organization is simple one. Firstly the company was going very well. The
profits were high and the growth was substantial. Then the company decided to expand its
business by opening sales office in Hong Kong without any feasibility and proper study of the
environment. Due to which problems arise and the company growth decreases and there was
The HR planning which is the ongoing process of systematic planning to achieve optimum use of
an organization's most valuable asset - its human resources. The objective of HR planning is to
ensure the best fit between employees and jobs, while avoiding manpower shortages or
surpluses. There was a need of HR planning and forecasting to encourage growth and stability.
Because by HR planning the issues that arises in the company can be eliminated and by
forecasting the upcoming events and trends, difficulties and opportunities one company can
If HR planning was made it has a great positive effect on the latest expansion strategy of the
company because the main problem in the Hong Kong was the HR. if a proper way was followed
in selection and understanding the environment was made correctly the business may be going
smooth in Hong Kong. The idea of expansion was not bad but the way it was carried on and
especially mismanagement in HR ruined all the opportunity. Effective HR planning would have
impact on company in such way the target may be achieved very well due to assigning suitable
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Q3: Was the purpose of Colins plans evident? How did they fit with his strategic intend?
(a) No, the purpose of Colins plan was not evident. He just wanted expansion so overall purpose
was not clear. There was no goal set of business by expanding it. The way he takes decisions
(b) The strategic intends were also not very much fit with the purpose of the business expansion.
There was no linkage between the purpose and the actions that were made by Colin. The
decisions that were made by Colin were not depicting the actual results that he wanted to achieve
(c) To implement more effective strategic management the House Smart must do the following
things.
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Q4: Applying a SWOT analysis, consider what aspects of the internal and external
environment were considered when House Smart planned for its human resources. What
techniques would have assisted Colin and Jane when forecasting human resource needs?
Strengths:
Weaknesses:
No job description
No experience
Written communication was not good
Salary was high
HR department not exist
HR problems
Opportunities:
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Threats:
Aspects Considered:
Smart House doesnt consider much internal and external aspect when they planned for its
human resource. Because Colin doesnt follow the HR policies and also there was no HR
department in the organization. The aspects of internal environment that must be considered are
The aspects of external environment were also ignored. The aspects of external environment that
must be considered are competitors, related industries, technology, laws and regulations,
The techniques that must have been used by Colin and Jane while forecasting human resource
needs were:
Managerial judgment: (Sit together, discuss and arrive at a figure which may be future need)
Delphi Technique: (Calls for a facilitator to solicit and give expert opinion on HR needed)
Job analysis: (Finding out the abilities or skills to do the job efficiently)
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Q5: What assumptions did Jane make about House Smarts recently established HRIS?
What process did she ignore?
Assumptions:
Jane make following assumptions about the House Smart recently established HRIS.
Process ignored:
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Q6: What are some issues that House Smart should have considered when applying
Australian employment law to offshore locations? What consequences should Collin have
foreseen?
House Smart should have considered following issues when applying Australian employment
Consequences:
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Q7: Develop an HRM recovery plan for House Smart.
According to me the HRM recovery plan of House Mart should consist of the following
recommendations/things.
o There is need of developing a strategic business plan so that the company must know
that what we are going to do in the near future and what are our goals and objectives. It
us. So we need a strategy for developing, communicating and enforcing a set of policies
hired who have a desirable set of abilities and skills to perform the duties of the job.
o There is no job specification or job description for the employees. So employees
working in our organization but dont what is their actual duty it will demotivate them.
People like to have a clear understanding of their role in a company as well as the roles of
others.
o Some rules and regulations are required so that employees know what their limits are.
Managers and employees need to share a clear understanding of what is and what is not
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o Identification of strategic HR issues arising from the strategic analysis. Also identify the
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