BUSM4499 Human Resource Management - Task 3 Case Studies Assignment Solution

Introduction:

Employees are the main drivers of the entire organizational functions. Hence, high levels of devotion, loyalty and motivation of the employees guarantees the success of an organization. As such HR management’s policies and practices are of significant value for developing and maintaining the components of productivity among the employees. Whereas incompetent HR management will inversely affect the employee’s productivity, thus the organization’s overall performance would be affected. 

The mentioned cases illustrate incompetent and biased HR management practices resulting in low morale and unsatisfied attitude among the employees. Even due to the same inefficient HRM policies employees are indulged in unethical practices. To be clear with the impact of HRM on the employee’s performance and the organization’s reputation, components and the concepts of HR management will be highlighted in the following report. 

Moreover, the effectiveness of the HR management and its policies are influenced by the organization’s strategic planning which outlines the action plan for its managers in their concerned segments. In the mentioned cases the influence of leadership on its HR management practice will be analyzed through evaluation of public reports, employees/stakeholders opinions and feed backs.  

Hospitality Industry: 

The impact of human resource mismanagement can have a profound negative effect on the organizations (Long, Ajagbe, Kowang 2014). HR management’s poor practices are quite common even in large scale organizations, however they are only exposed when revealed by any of its stakeholder. 

The HR management’s main role in an organization is to uphold the productivity of the employees by looking after their due rights. However, the operational procedures of the two well known restaurant brands Rockpool Dining headed by Chef Neil Perry and Blumenthal Dinner managed by Heston Blumenthal, illustrates negligence and poor performances of their HR management procedures. Both the restaurants are making good business, but are accused of under paying their staff.  Even Heston Blumenthal taking unethical advantage of its registration at tax free region ‘Nevis’ a Caribbean island, is saving huge amount in taxes, but its working staff are not being paid as per the deserved pay rate. 

As most of the working staff in the mentioned restaurants are immigrant workers, it is also observed that taking undue advantage of the Australia’s Immigrant Work Policy, both the restaurants are unethically persuading their employees for unpaid longer working hours. 

Impact of HRM incompetency:

The progress and success of an organization is based on the devotion and motivation of its employees. Satisfied employees are more productive and more supportive of their organization (Gilmartin, Langner, Battaglia 2016, p. 560). HR managers implement policies, training and development programs to enhance the employees job satisfaction and contribution for the organization and its goals.

While it is the duty of the employees to work according to their terms of reference, it is also an undeniable fact that the employers have a corresponding responsibility to provide adequate protection to their employees (Shaharuddin et al, 2013). Employees when denied or refrained from their due rights, awards or compensations develops unsatisfied attitude which refrains them from contributing justified energy for the organizational tasks. 

The employees of Blumenthal and Rockpool being underpaid and the management taking advantage of their immigrant status illustrate unethical HR management being practiced in both the organizations. When employees feel underpaid, they are dissatisfied and may withhold effort for the organization (Benardin 2007, p. 300). employees of both the restaurants through personal statements has expressed their job insecurity and disloyalty for their respective employers. They would not be able to work devotedly and produce the best for their respective organizations. 

Not only the products served, it’s the hospitality that does matters in the restaurant business. In service organizations, customer retention and defection are highly dependent on how frontline employees deal with customers (Robbins et al 2009, p.81). The serving staffs of both restaurants being denied of their deserved rights are in a condition of distress, as such they might not entertain the visiting customers as desired, affecting customers loyalty. Thus, decline in business in the long run.