Human Resources Management Problems of HP

(http://www.summittraining.co.uk/news-detail.)

Some problems about the HP employee reward system. They complained about unfair salary. In payment matters employees are principally concerned with purchasing power, fairness and recognition of effort and skills. HP should concerned with recruitment, retention, motivation and minimizing the wage budget. Employers are restricted in pay matters by the law and the realities of their product markets.

(http://en.allexperts.com/q/Human-Resources-2866/Reward-systems.htm)

• Causes

Lack of specialist skills and experience are the two factors for these recruitment difficulties in the HP Company. In response, HP is increasingly employing people without all the necessary skills or experience, but who they judge have the capacity to grow into the role. This is the most popular initiative taken in response to recruitment difficulties. Inadequate training leads to employee lack of knowledge. The knowledge includes HP special working skill and soft skill.

Understand why recruitment problem occur. Finding and retaining employees for tank wash facilities grow more difficult as the unemployment rate continues to fall, said Ralph Nappi who is HP Company HR department manager. "When you hire someone, you still have to watch that person because of possible litigation tactics such as false charges of discrimination because of age, race, or sex," he said. "And most importantly, these are the people dealing with your customers, the most important thing you have."

The processes of recruitment and selection take place within a frame work of external and internal influences. External direction through legislation and published codes of practice, suggests that approaches will be standardized. However, other factors in both external and internal contexts result in variations in both philosophy and practice.

(Wright, P. M., & McMahan, G. C. (1992), “Alternative theoretical perspectives for strategic human resource management”, Journal of Management)

External labour market factors. When organizations choose to rcruit externally rather than internally, the search takes place in local, regional, national and international labour markets, depending on numbers, skills, competences and experiences required, the potential financial costs involved and the perceived benefits involved to the organization concerned. External recruitment often poses problems for organizations. The main causes cited are:

A lack of the specialist skills required;

1. A lack of experience required;
2. Applicants want more pay than can be offered;
3. No applicants.

(Wright, P. M., & McMahan, G. C. (1992), “Alternative theoretical perspectives for strategic human resource management”, Journal of Management)

Recruitment difficulties are most frequently reported in the voluntary, community and not-for-profit sector and by larger organizations. Initiatives aimed at addressing these difficulties include:

1. Appointing people who have potential to grow but do not currently have all that is required;
2. Increasing starting salaries or the benefits package;
3. Taking account of a broader range of qualities, such as personal skills instead of qualifications;
4. Redefining the job;

Appointing people who do not exactly match what the job requires.

(Wright, P. M., & McMahan, G. C. (1992), “Alternative theoretical perspectives for strategic human resource management”, Journal of Management)

Removing the benefits for those who successfully solve problems would just have compounded the problem. And releasing the architect without an explanation wouldn't have reconditioned the rest of the staff. What we needed to do was identify a way to distinguish between those crises that occurred as part of the normal operation of the system and those manufactured by the parties involved. Of course, that’s easier said than done. Without getting into the daily details of our employees’ work hours, it can be difficult to identify manufactured vs. natural problems. An employee looking to score his next big challenge can easily fool traditional tools like change management, time boxing, and time management. Independent risk assessments can help a bit, but failure to mitigate dangerous risks cannot really be taken as a sign of crisis-inducing behavior.

(http://articles.techrepublic.com.com/5100-10878_11-5035227.html)

• Impacts

“low-road” practices including short-term contracts, lack of employer commitment to job security, low levels of training and unsophisticated human resource practices were negatively correlated with corporate performance. In contrast, they established a positive correlation between good corporate performances and “high-road” work practices “high commitment” organizations or “transformed” workplaces. They also found that HR practices are more likely to make a contribution to competitive success when introduced as a comprehensive package, or “bundle” of practices.

(http://www.hrmguide.co.uk/conclusion/impact-of-hrm.htm)

“What's needed is for management to adopt a holistic approach. At the moment, front-line operatives and managers move between employers, looking all the time for better pay, conditions and hours, but they invariably face many of the same problems wherever they go. To combat this, individuals must look to themselves and assess what their own personal contribution can be. If they can change their beliefs and challenge their limitations with genuine support from their senior management team, they will be much happier in their working environment. The truth is that, if people feel undervalued and are not supported or feel unable to make a contribution at work, their performance will be average at best,” maintains Watson HP’CEO.

(http://www.summittraining.co.uk/news-detail.)

Employee relationship of HRM practices has a significant impact on employee skill and motivation level of human resource effectiveness. Team participation has a significant impact on employee skill, behavior and motivation level. The rest variables have no significant impact effect. Team participation of HRM practice has a significant positive impact on the subjective firm performance and a negative impact on the growth rate of sales.   Team participation of HRM practice contributes to firm performance through the mediating effects of employee motivation level of human resource effectiveness, but no direct or mediating effect on the growth rate of sales.

(Storey, J. 1992. Management of Human Resources. UK. Blackwell Publishers.)

A trainer contracted by an agency to demonstrate how to conduct searches in a proprietary legal database may not know all of the keystroke equivalents for "point and click" mouse/icon instructions. Without this knowledge, training is likely to be inadequate for users who cannot use a computer mouse, such as those who are blind, have low vision, or have disabilities affecting manual dexterity. The same trainer is likely to be unfamiliar with screen readers and how they affect usability of the proprietary legal database.

Good training and development will get employees working together as teams to identify and correct quality production and service problems.

(http://www.usdoj.gov/crt/508/report/train2.htm)

• Current strategies

1. Key stages in the recruitment and selection process

The key stages of a systematic approach can be summarized as: defining the vacancy, attracting applicants, assessing candidates, and making the final decision. Another way of expressing this is as a series of questions: Who do we want? How can we attract them? How can we identify them? How do we know we have got it right? And who should be involved in the process?

Who do we want?

-Authorization

When someone leaves a job they are not automatically replaced. Securing authorization ensures that the need to start the recruitment process is agreed by management as being compatible with the organizational objectives: that is, necessary, timely and cost-effective. And the same time, it provides an opportunity to consider options other than recruitment and selection, for example: restructure workloads and redeploy existing staff; delay recruitment to save costs; cover vacancy with temporary workers or overtime.

     The traditional approach to defining the job and the person involves writing a comprehensive job description of the job to be filled. This enables the recruiter to know exactly what the purpose, duties and responsibilities of the vacant position will be and its location within the organization structure. The next step involves drawing up a person specification that is based on the job description, and which identifies the personal characteristics required to perform the job adequately.

How can we attract them?

-Recruitment methods:

Informal personal contacts, such as word of mouth and speculative applications;

Formal personal contacts, such as employee referral schemes, careers fairs and open days;

Notice boards, accessible by current staff and/or the general public;

Advertising, including local and notional press, Specialist publications, radio and TV

External assistance, including job centres, careers service, employment agencies and “head-hunters”

How can we identify them?

-Short listing

It is extremely unlikely that all job applicants will meet the necessary criteria, and so the initial step in selection is categorizing candidates as probable, possible or unsuitable. This should be done by comparing the information provided on the application form or CV with the predetermined selection criteria.

(Julie Beardwell, Tim claydon, (2007), Human resource management a contemporary approach, 5th edition, Pearson education limited)

 It includes selection techniques and interviews or telephone interviewing.

-Making the decision

“similar to me effect”, where interviewers enhance the ratings of those who look like themselves, respond in a similar way, or appear to have equivalent experiences; “halo effect”, where one aspect of the candidate’s qualities influences all other aspects and so boosts their overall rating; “horns effect”, where over-attention to some negative aspect reduces a candidate’s overall rating.

How do we know we have got it right?

There have three fundamental principles: effectiveness, efficiency and fairness. Effectiveness is concerned with distinguishing accurately between suitable and unsuitable candidates. Efficiency is concerned more with the costs of the exercise, and measures here may include average cost per recruit, average time lapsed between various stages, percentage of offer-acceptance rate.

Who should be involved in the process?

-line managers

A key feature of HRM is the extent to which activities once seen as the remit of HR specialists are devolved to others, particularly line managers and supervisors.

-peers

Employees can be involved at various stages in the recruitment and selection process. The most popular level of involvement is to encourage existing employees to introduce candidates to the organization.  

-recruitment agencies  

Recruitment agencies can be used to fill temporary and permanent positions. Their involvement in the recruitment and selection process can vary from supplying “temps” to address short-term needs, to undertaking recruitment administration and initial stages of selection.    

-outsourcing

Outsourcing is the term used to describe the transfer of a distinct business function from inside the business to an external third party. Outsourcing of parts of the HR function has become more common.  

(Julie Beardwell, Tim claydon, (2007), Human resource management a contemporary approach, 5th edition, Pearson education limited)

The most appropriate recruitment and selection techniques will continue to be those that balance the requirements of organizations with those of current and prospective employees, and the approach adopted is likely to be determined, at least in part by external circumstances. If predictions about the demise of “jobs for life” and the growth of ‘portfolio careers’ are true, then the experience of recruitment and selection may become an increasing feature in all our livers, regardless of the techniques involved.  

(Julie Beardwell, Tim claydon, (2007), Human resource management a contemporary approach, 5th edition, Pearson education limited)

2. HP’s life-long learning

An agile and changing business can only succeed if its workforce is equally dynamic, flexible and knowledgeable. It calls for employees who are open to continuous learning – a workforce that is given every opportunity to learn, grow and develop skills to drive the company toward achieving its business goals. A key aspect of HP’s employee development philosophy is our commitment to the support of life-long learning. As a premier IT supplier we possess advanced e-Learning tools that enhance learning opportunities for all our employees, wherever they are, through our own ”virtual class rooms” and our customized business and employee learning solutions. Our industry-leading learner site allows our employees to pick-and-choose training courses according to business need and/or personal interest. Learning at HP is flexible, fast and rewarding. HP encourages employee planning and building of individual development paths which are discussed and agreed upon their respective managers.

(Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, chapter26, learning and development, Pearson education limited)

The emphasis has moved from training to learning, with individuals taking ownership of their own learning needs. To be effective learners we need to understand the nature of learning and our own strengths and weaknesses. The emphasis on formal development programmers is declining in favour of greater interest in approaches to on- the-job development, such as coaching mentoring, peer relationships and self-development. There has been an upsurge of interest in e-learning. However the extent to which employees take advantage of such opportunities will be affected by the context and the support available. Evaluation of development is critical but difficult. It is most effective when built into the design of the development activity rather than tagged on at the end.

Approaches to learning and development

1. education and training courses
2. learning on the job
3. open, distance and e-learning

(Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, chapter26, learning and development, Pearson education limited)

Career development

HP’s employees need career development in order to long-term development. Career development has five stages.

1. Occupational choice: preparation for work
2. organizational entry
3. early career- establishment and achievement
4. mid-career
5. late career

(Gary Dessler (2000), “Human Resource Management ”, 8th ed, Prentice Hall)

The organization’s task in the late career stage is to encourage people to continue performing well. This is particularly important as some sectors are experiencing skills shortages and there are moves by some companies to allow individuals to stay at work after the state retirement age. The availability of flexible work patterns, clear performance standards, continued training and the avoidance of discrimination are helpful at this stage, combined with preparation for retirement.

(Gary Dessler (2000), “Human Resource Management ”, 8th ed, Prentice Hall)

Establish assessment and development centre

Assessment centre for internal staff have traditionally taken the form of pass/fail assessment for a selected group of high-potential managers at a specific level. They were focused on organizational rather than individual needs. Recently changes to some of these centre have moved the focus to the individual, with less limitation on who is allowed to attend, these ‘development centre’ assess the individual’s strengths and weaknesses and provide feedback and development plans so that each can make the most of his or her own potential. The outcome is not pass/fail but action plans for personal and career development.

Whatever career activities are in place in the organization it is important to ensure that:

1. There is a clear and agreed careers philosophy communicated to all in the organization.
2. Managers are supported in their career development responsibilities.
3. Career opportunities are communicated to staff.
4. There is an appropriate balance between open and closed internal recruitment.
5. The reasons for the balance are explained.
6. Knowledge, skills and attitude development are rewarded as well as achievement of a higher organizational level.
7. Attention is given to career development within the current job.

Although all of these activities focus on careers within an organization, most are still appropriate for employers providing development leading to employability rather than long-term employment.

Although all of these activities focus on careers within an organization, most are still appropriate for employers providing development leading to employability rather than long-term employment.

 (Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, chapter27, career development, Pearson education limited)

Perhaps the most outstanding challenge is to come to terms with the fact that careers have changed due to a changing organization structure and competitive demands; individuals in our current labour market have a greater say in there are equally legitimate. It is a sad reflection that in most research career development activities are not found to have a high profile.

(Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, chapter27, career development, Pearson education limited)

3. Solve the equity problems with reward system

There are four main elements of payment are basic rate, plus sage, benefits, premier, overtime, incentives and bonus. Procedural equity is essential to the design of successful payment systems.

HP Organizations must attract, motivate, and retain competent employees. Since achievement of these goals is largely accomplished through a firm’s reward system, organizations must strive for reward equity. Reward must be fair to all parties concerned and be perceived as fair. When chief executives are paid millions of dollars in one year and receive huge bonuses along with golden parachutes, serious questions arise as to what constitutes fairness within an organization.

(Noe, Hollenbeck, Gerhart, Wright (2002), “Human Resource Management”, 4th ed, Mcgraw.Hill.)

External equity exists when a firm’s employees are paid comparably to workers who perform similar jobs in other firms.

Internal equity exists when employees are paid according to the relative value of their jobs within an organization. Job evaluation is a primary means for determining internal equity.

(Noe, Hollenbeck, Gerhart, Wright (2002), “Human Resource Management”, 4th ed, Mcgraw.Hill.)

Employee equity exists when individuals performing similar jobs for the same firm are paid according to factors unique to the employee, such as performance level or seniority. Team equity is achieved when more productive teams are rewarded greater than less productive groups. Performance levels may be determined through appraisal systems.

(Noe, Hollenbeck, Gerhart, Wright (2002), “Human Resource Management”, 4th ed, Mcgraw.Hill.)

Individual financial compensation

Compensation theory has never been able to provide a completely satisfactory answer to what an individual is worth for performing jobs. While no scientific approach is available, a number of relevant factors are typically used to determine individual pay. These determinants are shown in figure.

The organization, the labor market, the job, and the employee all have an impact on job pricing and the ultimate determination of an individual’s financial compensation.

Managers tend to view financial compensation as both an expense and an asset. It is an expense in the sense that it reflects the cost of labor. In service industries, for example, labor costs account for more than 50 percent of all expenses. However, financial compensation is an asset when it induces employees to put forth their best efforts and to remain in their jobs. Compensation programs have the potential to influence employee work attitudes and behavior, encouraging workers to be more productive. Improved performance, increased productivity, and lower turnover are sought by all managers, which accounts for the serious attention compensation receive from top management.

(R. WAYNE MONDY,SPHR ROBERT M.NOE, SPHR in collaboration with SHANE R. PREMEAUX, (1996), HUMAN RESOURCE MANAGEMENT, sixth edition, prentice-hell international, inc.)

• Recommendation

Middle level employee training

Middle level employees training is the most important part of training in the HP Company.

Training courses can helping to fulfill their new roles. Orientation is training focused on effective teamwork problem-solving skills, practice and feedback
Employee feedback

Positive:  for correct task performance

Corrective:  what is wrong and how it can be corrected

Rewarding calm

Our goal was to reward those employees who consistently suppressed crises through controlled and intelligent work. We hoped that by providing constant, low-level reinforcement we could encourage people to turn away from creating disasters.
(http://articles.techrepublic.com.com/5100-10878_11-5035227.html)
   Over time the steady positive reinforcement and occasional restaurant gift certificates (coupled with a slightly shorter work day) for particularly brilliant work efforts started to pay off. People went back to the previous system. The new architect rapidly became dissatisfied with his position, since praise was being awarded to those who avoided what he felt he could do. Although we tried to mentor him to the new system, he eventually left for another organization.
(http://articles.techrepublic.com.com/5100-10878_11-5035227.html)
   There’s nothing wrong with rewarding those who step up during a crisis. However, if you fail to similarly reward and support those who work hard to avoid problems and crises, you can create a situation where employees will naturally gravitate towards becoming crisis oriented. Even with good processes and reasonably talented leadership in place, this can cause a steady degeneration in productivity and morale.

(http://articles.techrepublic.com.com/5100-10878_11-5035227.html)

The more importance is equity about reward.

Whatever methods are used to determine pay levels and to decide what elements make up the individual pay package, employers must ensure that they are perceived by employees to operate equitably. It has long been established that perceived inequity in payment matters can be highly damaging to an organization. Classic studies undertaken by J.S. Adams（1963）found that a key determinant of satisfaction at work is the extent to which employees judge pay levels and pay increases to be distributed fairly. These led to the development by Adams and others of equity theory which holds that we are very concerned that rewards or outputs equate to our inputs and that these are fair when compared with the rewards being given to others. Where we believe that we are not being fairly rewarded we show signs of dissonance or dissatisfaction which leads to absence, voluntary turnover, on-job shirking and low-trust employee relations. It is therefore important that an employer not only treats employees equitably in payment matters but is seen to do so too.

While it is difficult to gain general agreement about who should be paid what level of salary in an organization, it is possible to employ certain clear principles when making decisions in the pay field. Those that are most important are the following:

(1)  A standard approach for the determination of pay (basic rates and incentives) across the organization;

(2)  As little subjective or arbitrary decision making as is feasible;

(3) Maximum communication and employee involvement in establishing pay determination mechanisms;

(4)  Clarity in pay determination matters so that everyone knows what the rules are and how they will be applied.

(Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, Pearson education limited)

References:

1．http://www.hp.com/hpinfo/abouthp/histnfacts/index.html

2. Julie Beardwell, Tim claydon, (2007), Human resource management a contemporary approach, 5th edition, Pearson education limited

3. Derek Torrington, Laura hall & Stephen Taylor, (2002), Human resource management, fifth edition, Pearson education limited

4．http://h10055.www1.hp.com/jobsathp/content/informations/trainingdevelopment.asp?Lang=ENen

5．http://www.avenueconsulting.co.uk/human-solutions.html

6．http://www.pksell.com/diannao_pinpai3_HP.html

7．R. WAYNE MONDY,SPHR ROBERT M.NOE, SPHR in collaboration with SHANE R. PREMEAUX, (1996), HUMAN RESOURCE MANAGEMENT, sixth edition, prentice-hell international, inc.

8. http://articles.techrepublic.com.com/5100-10878_11-5035227.html

9. Gary Dessler (2000), “Human Resource Management ”, 8th ed, Prentice Hall

10. Noe, Hollenbeck, Gerhart, Wright (2002), “Human Resource Management”, 4th ed, Mcgraw.Hill.

11. Vanek, J.(1970), “The general theory of Labor-managed market economics”, New York: Cornell University Press

12. Storey, J. 1992. Management of Human Resources. UK: Blackwell Publishers.