The Human Resource Function of Harrison Brothers Corporation Swanking Chosen 1 . Background Harrison Brothers Corporation (HUB) is traditional department store that extends business field from clothing to home furnishing and home items recently to become the leading chain of department stores in the Northeast. Today’s customers are quickly changing needs to have something for both value and specialization. In addition, competitors such as superstores and giant discounters are increasing.
CEO of HUB clarified the company’s strategy; that is reposition of offering exciting brand names, excellent sales help, and frequent ales. Furthermore, CEO has been agonizing HER function since he felt the employee quality and performance would be important to get the strategic goal. 2. Problem Definition Main problem of Hob’s HER department is that organization model of HER department does not function as strategic business partner. In the short run, HUB does not keep a well-trained, highly motivated workers and there is a shortage of professional employees all the time.
In the long run, the HER department does not contribute to achieving the company’s strategic goal. 3. Cause of Problem (Analysis) ) Insufficiency of aggressive act to external environmental changes As competitors increase, the HER department has difficulty retaining competent employees. So, they spend most of time doing administrative role such as recruiting and training new employees. Even though sales employees are key to promote business, new employees who are wanting in ability are assigned to sales. “We get some employees who cannot effectively complete the cash register training.
Our training tries to expose them to selling techniques and how to properly interact with customer’ 2) Organization model of HER department which does not align with strategy Though the company is traditionally highly decentralized, HER functions are extremely centralized. So, there is a gap between the HER department and the other sales departments, and the HER department eventually cannot consider the business oriented strategy. Also, as independent HER department, there are 3 staffs except a trainer and a payroll clerk. So, they cannot deal with extension of business because of increasing administrative job. ) HER manager’s lack of strategic awareness Although HUB ask the HER manager to become a business partner, she focuses on internal issues such as amendment of HER process and managing HER team. Ex) As the results of questionnaire completed by HER (Exhibit 1. 4), the HER manager focuses on staffing and performance management, while store managers ask HER to focus on knowledge of business and managing change additionally. 4) Others Short term result principal makes difficulty training to sense customers’ sensitive changes. HER department has been recognized cost center. . Alternative Solutions 1) Restructuring HER policies which is suitable for strategy HUB should Induce professional employees’ long service through amendment of Compensation system AS WAS TO BE . Monthly term incentive . Minimum base pay . Long term incentive . Raise base pay Long term incentive : paying incentive to employees after 2 or 3 years in the light of personal and company performance. (Effects : inducing employees of ability, retaining them) To stabilization of livelihood, base pay should be raised below budget.
For the early maturity of newly market entry, HUB should prepare for system of reaction to changes such as holding regularly market trend seminars. 2) Establishing strategic suitable HER model HRS administrative role should be empowered to sales managers and HER apartment just should take a role of professional group and advice to sales managers. So, sales managers should be responsible for man-power management such as evaluation, recruiting, and termination. On the other hand, HER department focuses on consulting sales organizations to become a value-adding strategic partner.
Additionally, it also concentrates on structuring organization culture and managing sensitive changes. HER should have pay policy role, but valueless payroll function should be outsourced because payroll function is simple and repetitive if policy is definite. In addition, where new employee can learn selling techniques well is sales departments. So, the role should be decentralized to the sales departments. When all the HRS role and functions are newly defined, sales and operation managers should get involved to all the organization become more strategic.
HER Organization chart . HER manager . HER assistant 2 . Trainer . Payroll clerk (5 employees) (3 employees) HRS function . Recruiting & Interviewing . Structuring & Operating HER policy . Training new employees . Payroll (Moccasin’s view) . Structuring HER policy . Consulting . Structuring organization Cue True . Managing changes Sale’s function . Sales . Operating HER policy 3) HER manager Replacement Brenda should be forward deployed to sales department to systematically train as the future HER manager successor who fully understand management and whole organization.
HUB should assign the new HER manager who perfectly understands business and strategy from either external HER expertise or one of the sales manager. 5. Recommendation : Select the best alternatives Urgency Solving root cause Side-effect Strategic oriented 1st Solution 2nd Solution 3rd Solution The current superficial problem is shortage of professional employees and he root problem is that HER organization model is not align with strategy.
To solve the superficial problem HUB should push forward restructuring HER policies. Unless this problem is solved, it is meaningless to say the future of the company. Also, to solve root problem, HER organization model should be made a radical reform. When HER supports the company’s strategy, the company can be developed in one direction. On the other hand, HER manager replacement is extreme action and it could make whole organization increase tension. So, this action should be acted as a last resort.
