ray123456789
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Flat Metal Pressings. - A Case Study in HRP
The Flat Metal Pressings company is based in the West Midlands and produces flat metal pressings primarily for the automotive industry. The business employs around 500 people and operates a three shift system round the clock, Monday to Friday. It is non-unionised and generally the employee/employer relationships are good.
The factory was built at the beginning of the 20th Century and is beginning to show its age. There has though been some capital injected into the business of the past years to improve and update equipment. The state and layout of the buildings however inhibits effective working and productivity is low, partly for these reasons.
Flat Metal Pressings is owned still by the founding family but is effectively run by professionals recruited from outside, there being no family members available to fill senior roles. The business is just about profitable and making a less than satisfactory return on capital invested but is potentially capable of much more. A big problem is the vagaries {in this case vagaries infers lack of consistency} of the motor industry with its peaks and troughs in the demand for its products, which was exacerbated by the financial crisis and economic downturn of 2008 – 2011.
The senior management have good technical skills and so tend to focus on helping to solve technical problems. They lack people management skills and are unwilling delegators. There is no human resource planning and thus no potential senior managers being developed for the future particularly in general administration areas. The quality of junior management is poor in many areas. All the managers were selected on the basis of their technical competence and, as previously indicated, they lack both an understanding of ‘soft’ management skills and also the competences required to manage a complex business. For example they have difficulty understanding the monthly finance reports. The managers protect their individual functional areas without regard for what is happening elsewhere; for instance the Production Manager has no interest in cost control. The Sales and Marketing team obtain orders, give discounts and offer delivery times without regard to the production and profitability consequences. The HR Department are very transactional in that they largely manage the payroll and administer the recruitment and dismissal processes etc. The highly skilled technical department which develops the new die pressing equipment is 50 staff strong, mainly composed of technicians but with three specialist engineers and one senior manager in charge. All the managers have been in their positions for many years and, as a consequence, sixty percent of the company’s management are all within five to ten years of when they are likely to retire.
There is also a serious division between production and administration, the former believing that office people have a quiet and comfortable life and the latter regard those working in the factory as trouble makers and difficult to deal with. The HR Department is disorganised and has little credibility within Flat Metal Pressings. Labour turnover across the whole organisation is higher than comparable businesses and accidents, fortunately not serious ones, are increasingly common; there being no health and safety policies and procedures in place. New recruits tend to be of poor quality, wage and salary rates being slightly below the local average. Absence is high, particularly in the factory, with the unsocial aspects of shift work being partly, but not totally, to blame.
Questions
Students are asked to analyse the case study and to offer suggestions on how to improve the business from an HR planning perspective to help move Flat Metal Pressings into profitability.
Student should assume the role of a new HR Director who has recently been recruited into the organisation and is preparing a report to present to Board.
All academic source references must be shown throughout your report in order to achieve a pass grade.
The problem is a business one…. Use HR as a tool to resolve it!
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ray123456789
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I have no idea how to begin!
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