Interactive Management of Human Resources MyAssignmenthelp.com

Question: Discuss about the Interactive Management of Human Resources in Uncertainty. Answer: Introduction HRM initiative in big companies are often chosen or opted after the identification of some potential flaws in the inside operation of a company. The initiative is thus required to nullify the rising threat and improve the declining performances. These could be anything such as incapable performances of employees, inefficient performances of supervisors and the less capable manager. These are some of the instances, which initiate the necessity for the HRM to look on the issue and come up with some solid solutions (Armstrong and Taylor 2014). The chosen organization is an ABC lighting company in Sydney, which is not performing up to the expected level. The declining sales of the company in the recent past have forced the HRM to look into the subject matter and identify the correct reason behind the issue. The HRM of the respective company have tried to approach the higher management but could not find any appropriate reason. This is because the manager of the company is also not aware of the exact issue behind the recent declining sales of the company. However, the meeting with the CEO of the company did help in analyzing the main problem behind the declining sales. Nevertheless, the problem is in the approach of the manager, which is not open to some of the most advanced technologies, which are important for being competitive in the market. The main purpose of the assignment is tom develop a program to infuse the necessary changes in the manager, which are important for attaining the maximum competitiveness in the market. Moreover, it is also intend to analyze and evaluate the success of the manager development program. Business case is nothing but a project, which is undertaken with a view to provide maximum benefits to the organizations both in terms of customer service and in terms of its financial performance (Armstrong and Taylor 2017). Human capital investment and financial consideration Human capital investment is nothing but the expense, which the manager development program would consume. This affects the financial resources of the company especially when the targeted company has a small sized business. To those companies, which are small sized, they need to be more specific with their budget planning as minor changes in the expenses might incur some big losses to their overall benefits. In such situations, it is necessary that these companies use a portion of its past revenues and profits in the development program. This is safe under the situation of declining sales of the company. Using the percentage of sales is a useful method to be protected from the burden of a big investment costing on the development program (Aswathappa 2013). The chosen HRM initiative for the chosen ABC Company is A major manager development program. This is because of the fact that the ABC Company is suffering of some losses in business terms in recent past. The identified problem behind the losses is unavailability on the social media platform and absence of an e-commerce website. These are such factors, which are very important for a contemporary business. This is because the modern day business is also benefitted by offering some user-friendly atmosphere of shopping and connecting to the customers on the social media platforms. The particular assignment is thus intended to address the mentioned issues by communicating it effectively in the entire organization. This would help in attaining a maximum support from all the stakeholders of the company. The rising urgency in the ABC Company is related to the modernization of the existing business style. The reason behind the modernization is the declining sales of the company, which is majo rly the contribution of unavailability of E commerce website and the social media interactions. The HRM o the country has already taken some initiative to incept and introduce an E commerce website to respond to the rising urgency. This is because of the fact that the HRM is planning for a PR related activities, which they would use it to highlight the future changes. This is very important, as this would allow the company in coming closer to the customers with their new plans (Bamberger, Biron and Meshoulam 2014). Cost-benefit analysis Cost benefit analysis is a very important tool and widely used before incepting any new activities in the management to reduce a rising threat and attain the highest benefit. Jules Dupuit postulated the tool in 1840s. The tool became widely popular in the year 1950s. The name of the tool suggests that it is for measuring the cost to benefit effect of a newly added program (Berman et al. 2012). Following are the stages, which govern the measuring of cost to benefit effect of the newly added change: Brainstorming the costs and the benefits This section of the tool provides the brainstorming of the required areas, which needs financial supports. Moreover, this also allows the imagination of the benefits, which might be incurred from the tool (Bratton and Gold 2012). Costs monetary values assigning This is nothing but the giving of actual costing to the identified changes and the required resources. This can be done with the help of the first step, which was about brainstorming the total costing and the required resources that needs the identified expenditures. This is very important as it gives an utter idea about the costing of the manager development program in the mentioned company (Budhwar and Debrah 2013). Monetary values assignment to the benefits This is perhaps the most challenging task in the entire Costs-benefit analysis tool as because of the fact that benefit of the program is volatile, which is subject to vary. It depends on the market volatility and the counter actions of the changed or the developed format of the manager (Delahaye 2015). Comparing costs and benefits This is the last step of the tool, which helps in analyzing the total output of the development program. It helps decide whether the changes have outweighed the costs or vice-versa. The difference of costs and benefits can be calculated by using the following formula of Costs-benefit analysis (Flamholtz 2012): Total costs / total revenues (or benefits) = time length (the period of payback) Return on Investment Return on investment (ROI) is the widely used mantra in the modern day business, which has no such specific rule and calculation formula. Moreover, it is just calculated by comparing the outcome of the development program (Swart et al. 2012). This is an undeniable fact that ROI is very important for any of the activities, which the organizations conduct for the betterment of their socio-economic status. However, this depends on the organizational objective, which can be short-term objective or long-term objective that varies in and across different organizations. The easiest way to calculate the ROI is to check the profit number and compare it with the total incurred costs in the development program (Ulrich 2013). If the difference of both the term is in minus territory, the program can be termed as an unsuccessful venture. However, if the results are in the positive territory, the program is a success. Despite of the fact that there is no established formula of calculating the ROI, however, it still keeps utmost importance in different organizations across the globe. This is because of the fact that it supplies an utter significant way of judging the valuation of the investments. Moreover, it provides the power to analyze and evaluate the proposed program. ROI is very handful for the ABC Company, as this would provide a specific system to calculate the net outcome of the implemented changes. ROI is very important, as this would allow the ABC Company in having a control on the expenditures. Moreover, this would also help it from the high-budgeting issues in future. This is for the fact that the process encourage for returns, which is the real purpose behind the changes. Nevertheless, ROI would help the ABC Company in moving towards a more controlled way to be safe from the losses. Moreover, the purpose behind ROI is a calculative movement towards the change, which does not put any further strain on the Company (Gil-Aluja 2013). The evaluation of a development program can be evaluated with the help of many factors such as follows (Grant 2016): Analyzing the reflection of the manager development program on the manager such as by checking the changes, which the manager is making if it is there Analyzing the business proficiency by comparing the past sales to the present sales after the spending of a period post development program Analyzing the customer responses post the development program on the performance of the company Analyzing the sales figures, if it has soared then the development program is a success Analyzing the total effect of the development program on the financial performance of the company Evaluation can also be made with the help of two most widely used tools or processes such as Costs-benefit analysis and ROI (Stredwick 2013) Above-mentioned factors are very important because one of them provides a calculation method to judge the profitability of the development program and another provides a process to judge the profitable outcome of the development program respectively Apart from all the factors, which would be used for evaluating the effect of the changes, Costs-benefit analysis and ROI are the two most powerful in this context. This is because the changes are brought for generating the revenues by stopping the declining sales. Nevertheless, nothing could be better than the mentioned two methods in evaluating the changes of the program. This could be done by differentiating the organizational goals such as the short-term goals and the long-term goals. A comparative study of the financial behavior of the company and the respective returns on the investment over the mentioned period would let this know whether the program is successful. Business case summary The business case chosen was the development of the manger of the ABC Company, which is suffering a significant business loss because of its traditional style of doing business. The ABC Company is a lighting product company, which specializes in providing the cheapest pricing to the several kinds of lighting products. The company is well known for its customer service standard and the post sales service. However, the company is facing stiff competition from some of its competitors in Sydney, which is affecting its overall profit and revenues (Hendry 2012). This is because of such reasons that the HRM of the company had a meeting with the manager to know exactly the reason behind the failure. However, the manager is itself not aware of the main reasons behind the declining sales of its products. Hence, the human resource personal and the manager of the company had a meeting with the CEO of the company. They had a long meeting. After analyzing the widely spread pattern of doing busines s of other companies and their relevant success with some other tool had then enabled them in reaching to a conclusion. It was identified that the main problem behind the declining sales were its absence on the e-commerce platform and its less connectivity with the media personals (Phillips, Stone and Phillips 2012). This is because of such reasons that the manager needs to be developed on the finding tools. This is helpful in meeting up with the proposed changes. The developed manager can efficiently help its followers on how to use the e-commerce website and to interact with the media personals (Sparrow, Brewster and Chung 2016). This is very important for the company that the manager is developed with all kinds of expertise, which could encourage the manager for taking efficient and competitive ways. The traditional form of managerial expertise is needed to be mixed with the advanced business tools and platforms, which are a good source for the generation of high sales. This is n ot the only reason behind the opting of the e-commerce platform and social media interaction as these tools have more in store to provide to its inhibitors. Following are some of the benefits, which the e-commerce and social media interaction can provide to the ABC Company apart from just increased sales (Stahl, Bjrkman and Morris 2012): E-commerce helps connect to those customers who rarely visits to the shops but are active users of internet E-commerce would also help the ABC Company in analyzing the cost-effective pricing to its lighting product, which could also prove its superiority on the e-commerce platforms E-commerce is an easy way to interact to a large number of customers in and across the globe, which is never possible by being just confined to a shop Social media interaction by means of Public Relation activities are a good source to promote the product in front of a large customer base such as those who have participated in the campaign and those who are watching the campaign on the TV or other media resources The inception of e-commerce platform for providing the shopping options to the customers on the mentioned platform would certainly help the ABC Company in enlarging its customer base and enhancing its sales figures. This is very important from the perspectives of the ABC Company as the company has some unique features, which its competitors do not have (Storey 2014). The cheapest pricing of the lighting products is a feat, which its competitors have not been able to achieve. The ABC Company is directly involved in having imports from the Chinese market. The Chinese market is very cost-effective in terms of raw materials. This is because of the fact that the costing of the lighting products is cheaper and hence the selling prices are cheaper. The post sales support and the cheapest pricing to the lighting product were some of its unique strengths. Moreover, its connectivity to the e-commerce website and the integrated marketing communications might certainly take the company to anothe r level (Stone 2013). Critical reflective analysis The irrespective of the kinds of the development program takes place; its success depends hugely on outcome. The outcome can be categorized as short-term goals and long-term goals. The desired outcome can be measured both on short-term evaluation of the program or on the long-term evaluation of the program. However, this is an undeniable fact that the proposed outcome depends hugely on the customers responses. It is not necessary that the real outcome match up with the expected outcome. The variation is evident; if it is more than the anticipation then it is a huge success. However, the positive territory of the outcome would certainly prove the development program, a successful campaign. Then the expenditures on the development of manager, the inclusion of the e-commerce website platform and the integrated marketing communications would be justified. However, it is very difficult to predict the clear cut success to the campaign. It can also be a loss to the company as well if it doe s not come out as expected. The high investments on the implemented changes would then be a constraint on the ABC Company. Nevertheless, the entire campaign is worth praising. The used tools to measure and assess the success of the development program are very handy and widely popular. The mentioned tools are effective only if the outcome is known. This is the main problem with the development program as it is hard to predict the positive outcome of the program at the very beginning. It is also not easy to predict after the completion of the program. It is only justifiable when the actual results prove to be as expected. However, the actual results would certainly take some high amount of time. I am personally not a very big fan of such tools as these tools are only effective if the results figures are known. However, I am not denying the importance of the tools; I am just telling that these tools are only effective when outcomes are evident. Nevertheless, I personally support the development programs, as these are some good ways to learn something new and challenging. The high-end working at the workpla ce should be associated with the lifelong learning experiences. This is necessary to be competitive in the market and to be equaled responsive to the changing market as like other competitors. The gradual and the regular learning processes for the managers are a good source for the motivation of employees, as the modernized manager would certainly find different ways to motivate its followers. Conclusion HRM initiatives are something that tries to find out the possible solutions to the identified problem related to the organizations and the management. This is done with the help of some necessary tools and processes that governs a smooth flow of the entire operation. In the given assignment, there was problem related to the manager of the ABC Company as the declining sales had attracted everyone towards the possible causes. The meeting with the CEO had then helped by supplying the necessary information regarding the problem. The issue was related to the style of their business, which was more traditional and less modern. The business had its no presence on the e-commerce platform and on the social media. However, the assignment has supplied some necessary tools and processes such as Costs-benefit analysis and ROI, which could actually initiate the new form of business for the ABC Company. References Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Armstrong, M. and Taylor, S., 2017.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Aswathappa, K., 2013.Human resource management: Text and cases. Tata McGraw-Hill Education. 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