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HRM has expanded over the years from being the personnel department, which were only concerned with recruiting staff and keeping employment records. Now they have changed and become HRM practitioners, which are now concerned and deal with the employees throughout their entire employment cycle i.e., establishing, maintaining and terminating staff. Organisations change the way they manage their human recourses, as humans need change. As humans are the organizations main resources they cannot run without them and therefore they are forced to satisfy their needs and motivate them.
The change that is occurring at the organization tripac a car part manufacturer is downsizing and outsourcing. Tripac has downsized its entire staff including their HRM department and then has outsourced its staff via an employee-leading firm. During a change there are pressures, which are placed on organisations to change their HRM polices and procedures. These pressures include a change in attitudes, technology changes and changes in legislation. When technological changes occur the organization is forced to update their systems along with their skills. A change in legislation includes Industrial relations/employee relations, equal employment opportunity, affirmative action and occupation health and safety. The organization including their HRM need to be aware of these legislations as they could face legal penalties, for that reason they are forced/pressured to change the way they operate. An example of how HRM processes and procedures may change in an organization is when recruiting, due to the pressures of change it now has to consider the changes in employment packages and also legal requirements, i.e. EEO. Training can also change due to the change, that is when a change in technology occurs, staff need to be trained for the new skills required.
One source of change in Human resource management is a change in attitudes. The changes in workplace attitudes, forces an organizations HRM department to change these changes include industrial democracy and flexibility. Industrial democracy has changed employee participation in the workplace, which has made it a more decentralised structure in the workplace both directly and indirectly. Another area of change in workplace attitudes is flexibility, which refers to the staff and their ability to be flexible in the way they work.
Due to those changes mentioned an organization may change by for example management now needs to provide staff with specific needs. The structure and activities are also affected by the change. For instance the legislation of occupation health and safety, the organization may develop a safety department or person to be responsible for that area.
And also in relation to the change management styles and skills will too become affected. For example if management were autocratic it will need to change to become a participative or consultative style of management, and naturally with a new style of management new skills will develop or old skills will develop. I.e. a participative/consultative management will need to have good communication and negotiating skills, in order to involve staff. Employee involvement may improve as a result of the change as the employees are more motivated. They will feel more like part of the organization and also there may be an increase of positive attitude due to the management style change, which may mean that management is more approachable
After the change has occurred the effectiveness needs to be evaluated. The change in human resource management could be measured by such factors as productivity, the number of staff absences, profit and losses, and motivation and employee participation. The success of the change is measures by the key performance indicators qualitative and quantitative. It is important to produce both quantity and quality. For instance and organization concentrating purely on quantity without quality may result in having large amounts of rejects, and therefore will require rework, which is time and cost consuming.
The organization Tripac have used the indicator of productivity to show that the change has been successful. The indicator shows that they have made more than one million dollars within the change (outsourcing) and also their output has increased up to almost fifty percent. Tripac could also use benchmarking to compare its own outcomes with those that have also been in a similar situation. Tripac uses both qualitative and quantitative measures, as evidence it shows that their produce rejection rates have fallen thirty seven percent while their out put has risen.
Tripac has had a change in their human resource policy. They have outsourced its entire workforce, and no longer have a human resource department. There were pressures that were not in favour of this change aft Tripac. The union disagrees with outsourcing as they argue that the organization treats them as ‘second class labour’, that is they never get to see their employers. The disagree with the concept as the staff now do not receive extras that permanent staff receive, such as holiday pay, annual leave and sick pay.
The change was brought about at Tripac when they started loosing money, and by following the trend of the U.S, it outsourced its staff so they could now concentrate on producing instead of its human resources. As a result of this change their looses became profits. Certain activities have changed due to the change. The major change would be the recruiting, maintaining and terminating of staff, on account that it is now done by the employee-0leasing firm (Elblue) which acts as Tripacs HRM. The structure has also changed, as now the staff structure is now a more flexible workforce compared to before.
Overall the change at Tripac was effective and successful as it achieved its objective of turning its losses into profits.
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