Problems And Issues Faced By Human Resource Department.

Ajit Menon BBA 4546/09 Kushagra Verma BBA 4512/09 Kanwar Ajeet Singh BBA4508/09 Avi Batra BBA 4501/09

What is Human Resource??

Purpose and Role of HR

“An organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk.”-Kishore Biyani.

Basic HR Functions

• Recruitment, selection.• Organizational design and development.• Business transformation and change management.• Performance, conduct and behavior management.• Industrial and employee relations.• Human resources (workforce) analysis and workforce

personnel data management.• Compensation, rewards, and benefits management.• Training and development.

What Are The Problems Faced By Human Resource Department?

In simple words, here are a few:• Employing suitable staff .

• Retaining and training them.

• Firing staff who are unsuitable or who they can no

longer afford.

Employing Suitable Staff

An employee with performance problems is not just a manager’s problem. It’s a problem for the whole staff.

Training and Retaining StaffObjectivesFor organizational aspirations, these were the objectives:• To minimize the attrition of those employees whose

performance was valued.

• To improve the productivity levels of employees across the board.

• To build a culture where “right attitude” is a strong desirable: Of the three recruitment/promotion requirements of knowledge, skills, and attitude, we would award the most weight to attitude, then to knowledge, and finally to skills. This would be a major shift from stressing skills and knowledge and thinking of attitude as “nice to have.”

Firing Unsuitable Staff

Every now and then we hear about a people getting fired or a company laying off its employees.

Why do Employees get FIRED

The 4 most obvious and basic reasons would be:• For breaking laws.• Non performance.• Economical problems.• Strategy changes by the company.

Top 3 Issues Faced

#3: Starting a business while employed by a potential competitor, or hiring employees without first checking their agreements with the current employer and their knowledge of trade secrets.

#2: Promising more in the business plan than can be delivered and failing to comply with state and federal securities laws.

#1: Thinking any legal problems can be solved later.

CASE STUDY

About Hyundai

Hyundai Motor Co., formed in 1967, was a part of the large South Korean Chaebol - the Hyundai Group - until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles. 

Certain Problems Faced by Hyundai• In the 90s, the company started aggressive overseas expansion programs. By

the late 90s, when Southeast Asian crisis struck, the company like all the other chaebols, faced serious financial problems. As a result the company had to cut its labor force.

• The slump in the South Korean economy in late 1990s was bound to have an effect on Hyundai also. The automobile segment was among the first to be hit by the downslide in the economy. The domestic automobile sector had negative growth of almost 55% in 1998 compared to the previous year.

• Hyundai was responsible for almost 50% of total automobile production in South Korea and was therefore badly hit. The domestic sales of the company fell by 55% in the year 1998 and its exports crashed by 74 percent to only 15,056 units . Hyundai recorded a 200 billion won loss in 1998.

• There was also mounting pressure from South Korean government to undertake strict economic reforms and restructuring measures.

Aggressive Unions

Since jobs were being cut, social unrest and a feeling of insecurity among the labor class was rising. The unions resorted to extreme measures in an effort to establish their authority. Although, all over South Korea, companies were facing labor unrest, Hyundai was among those that were hit the most.