Table of Contents
Introduction
Reyes Fitness Company is a U.S. based growing company in the SouthEast. Currently, the company’s performance is standing out because it has met almost all its goals; however, there is a huge problem when it comes to the employees (Goetsch & Davis, 2014). For instance, reduced member retention rates, poor employee social skills among others. With this at hand, the company badly needs a Human Resource Manager. An HR score is already designed, it is expected to present the new goals of the HR while laying structures on how these goals can be realized and how they contribute to the aims of the organization. The major goal of the organization is to attract families by offering a wide variety of fitness offerings such as personal training, cardio exercises, free weights, circuit machines among others. It is a place where the entire family can enjoy social activities and fitness.
According to SWOT analysis for the functions of an HR, the office is expected to measure the current employee performance, and the business likened to competitors. The HR should embark on new ways of having employees offer better customer service and communication to potential and current members (Dulebohn & Johnson, 2013). The HR will get into the trouble of finding good measurable outcomes, possible causes of employee dissatisfaction, sticking to the change and trying to maintain the motivation of employees throughout the process. To emphasize what is mentioned through the company’s goals, the employee development is essential. As a way of developing these employees, they should attend training seminars with tuition reimbursement available for courses in the college-level. The company should encourage a broadband structure to evaluate skills among the employees. A broadband pay structure Can withstand a changing market and staggering pricing conditions (Dulebohn & Johnson, 2013).
The structure is as a result cheap administer and manageable and provide non-promotional income opportunities for workers. Employees can be made more equipped through advanced training. Through the use of instructional media, employees will capture skills such as management strategies like a goal -setting to help them for the future and boost their focus. Through training, people come together to share ideas and improve efficiency while announcing more opportunities for the people. When the idea blog is made more available to the employees, it will assist in floating information for others to brainstorm and contribute towards the same (Goetsch & Davis, 2014). Day-to-day actions with strategic business objectives provide clarifying accountability and providing visibility related to performance expectations. Making career decisions and checking the individual performance is made easy because every step is documented during employee development (Over et al., 2014). The focus for skill development and choices for learning activity are established thus adding value. The new structure of payment would contribute towards creating documentation to support decisions, for legal purposes and mitigate disputes in times of resignation or retirement.
Recommended Action Plan
An action plan is a tool or a heroic act that helps to turn our dreams into reality; it makes the organization’s vision to be made concrete. It is a roadmap for the group to meet its objectives; it consists of some actions, changes or steps to be brought about in the group. Every step or action to be sought include what actions will occur, who will carry out these changes, by when, the resource needed and communication (Goetsch & Davis, 2014). It is important for this organization to develop an action plan because it will lend credibility to the group, ensure no details are overlooked, for accountability, efficiency and understand what is and that which is impossible for the organization to carry out.
The organization seeks to empower the office of the Human Resource manager who will consequently deal with the various problems seen within the human resource such as low productivity.
What action of change will occur: meeting shall be held between the senior management and the human resources team to discuss matters concerning the same. Strategies shall be laid during the meeting, on the expectations, roles to be played by every department as a way of assisting the HR. Ways of mitigating the current problems among workers shall be discussed to bring a temporary solution to the problem as we await the long-term effects (Over et al., 2014).
Who will carry it out: the human resource department is entrusted with the role only that they needed a wake-up call since things happened while they watched. Regardless of the number of people in the department and the kind of titles and offices they hold, the problems will still be present because no strategies are put in place. After the normal head count of the staff in the department with their titles, we move to a more operational phase where systematic approaches are laid down (Dulebohn & Johnson, 2013).
Action should commence as soon as possible because the company is losing most of its intelligent minds to its competitors. The action plan will be initiated in stages, but results should be seen from the third to fifth month. Proposals were divided into several groups to identify and address various needs that can be characterized and grouped (Over et al., 2014). From these groups, solutions were sought differently and highlighted to develop skills internally through individual and collective initiatives.
Resources needed: the company shall incur some costs such as facilitating training and seminars that will regularly be conducted. Support of the superior office is greatly required for the human resource office to carry on with its duties without many difficulties. Good communication needs to be instilled among employees in the country for purposes of enhancing communion and awakening the team spirit. When team players work together, they will be able to achieve great things especially their goals and beyond (Dulebohn & Johnson, 2013). This is well known as the operational phase which goes on with an in-depth analysis of the proposals and solutions based on skills objectives while considering demography and staffing needs. Results will be shared with the divisional heads and communicated to senior administration.
Metrics for Evaluating the Results of the Transformation
Cost Per Hire
Cost-per-hire (CPH) is one of a fascinating metrics which is simple to understand though it is tedious and consumes much time to calculate. The formula to calculate CPH is as shown:
Internal costs refer to the capital, internal staff and organizational costs of the recruitment function (Coghlan & Brannick, 2014). The total costs include salary costs of time spent, referral program costs and in-house talent acquisition team salaries. It may include resource allocation from one team to another for purposes of recruitment even if money stays in the company.
External costs are an expense that is incurred by external vendors or individuals during recruiting. They include external agency fees, assessment centers, job board posting and aptitude test providers, relocation expenses, application tracking system, drug testing/background checks and employer branding activities (Coghlan & Brannick, 2014).
Total number of hires
The total number of hires can be measured using different methods across different companies. Companies include both internal and external hires both part-time and full-time. Calculating the CPH is not difficult once the company learns how to do it all they have to do is give extra care to small and hidden expenses whether external or internal to enhance visibility in recruitment (Over et al., 2014). CPH is like a piece of a puzzle, extremely useful but not when used on its own. Companies should consider several metrics and choose the one that works best for them.
Revenue Per Employee
To measure the effectiveness of an HR leader, the Revenue Per Employee (RPE) metric is the best to use because all the other subsections have metrics. To get the RPE, take the revenue generated by the company and divide it by the total number of employees. After getting the results, a comparison is made for a year with another to get the trend, whether the revenue is going upwards or downwards. In this case, the company should use the RPE because it is all about the business and there is no other better measurement; the rest is a squishy mess that leaders do not care to comprehend (Coghlan & Brannick, 2014). RPE is a good solution because it is well known that an HR leader influences the largest cost center in almost all the companies. Whenever math to get the revenue is done, the HR leader has his/her eyes on the denominator which is the expense side of the equation. The HR has a responsibility and the power to alter the denominator through influencing working personnel.
Absent Rate
This metric is used by organizations whose staffing and operations may be impacted significantly by the employee absences. It is described as the percentage of total expected workdays during the period of reporting. In this measure, absenteeism refers to the absences that the HR has no authority over for instance parental leave, sick leave, compassionate leave, carters leave and no-shows among others (Coghlan & Brannick, 2014). Absent rate is the percentage of workdays that an employee is not present for unavoidable reasons in a period. In this case, if the rate of absenteeism is too high, it will lead to productivity losses for the company.
Risks of not Implementing the Changes
Changes initiated by the company may not be friendly to all because they are directly touching on the human resource. Those who found grace in doing the wrong thing cried out loud and wished they had followed the proper channels (Cummings, & Worley, 2014). There will be resistance from the members of which the management should be aware of before it happens. If the proponents and other officials are not present, the project is put on hold which contributes to slowed projects taking longer than usual. The workers might come together and plan to paralyze an exercise primarily processing where before the final product, several stages are passed through. They can paralyze the activity by unavailing a single product in the process (Cummings, & Worley, 2014). This is a form of an unexpected obstacle which the management has to counter if at all the changes made sticks. Due to various issues happening around, the project and other processes that depend on the activities crippled will fail indefinitely. Other risks related to the changes include expenses not reduced, efficiencies not gained, revenue not increased, market value not increased, waster not reduced and market share not increased.
Significance of the Strategic and Administrative Role of Human Resources Necessary for Transformation
It is important to attest that nothing is harder to implement, nor more doubtful of success, nor more dangerous to handle than initiating a new order of doing things. Changes are not appreciated in an organization, and at times they kill the morale of employees with some resigning, while others take longer than expected thus taking more time regarding implementation and emotional upheaval (Acimovic & Goentzel, 2016). Some organizations have not even attempted change because they feel they do not have what it takes to implement them successfully. It is important to take note of period of transformation, how long it will take to be precise because it allows those in charge of the transition to access the success of the project during every critical stage (Acimovic & Goentzel, 2016). Time is necessary because provides an opportunity to motivate teams and individuals and steer them towards the desired goals.
The employees should be called for a meeting to discuss the changes before they are implemented. The management will then table the benefits of adopting the new system and try to convince them that it is the best way to go. Members should then be allowed to react to that news in whichever manner because to some it could be emotional especially those whose privileges will exist no more. In case of issues they have with the change, they air them, and at times they are good ideas which are incorporated (Cummings, & Worley, 2014). It is hard to implement any change without the support of the workers hence engaging them is important. Some changes are often money oriented, and therefore the company must be willing to offer support in every department to ensure they have what they need. The senior management should make sure all necessary resources are availed to them, and a close follow-up made (Acimovic & Goentzel, 2016). The top management should lead from the frontline, showing that they are part of the change and not just initiators.
Summary
Changes are hard to implement, but at the same time, they are inevitable. If the business climate requires a particular change to be endorsed, then every organization in the same business line will change regardless of whether they need it or not. The most important thing is to integrate the current resources into a future vision to make the most out of what is being invested in. The management should have a well thought out plan before initiating change in an organization considering the amount resistance they are likely to face among others. The day-to-day operations should not stop because changes are being implemented in the organization. Processes should run as usual without adverse effects that are noticeable by the external world. The HR has a significant role to play during the implementation process because the department will handle every uproar from the workers. The department should be prepared to bring workers back to order and allowing those who are undergoing emotional upheaval to heal.
Apendix
SWOT Analysis
| HR Domains and Roles | Strength, Weakness, Opportunity or Threat? | Comments/Description on Your Finding of the Strength, Weakness, Opportunity or Threat |
| Human resource development and succession planning | Strength | Development and successful training would help address uncertainty. |
| Risk management, safety and security | Threat | Risk, safety and security remain as a threat to business especially if they are not well managed. |
| Talent acquisition | Opportunity | Talent acquisition as an opportunity helps take advantage of one’s strengths. |
| Total rewards | Strength | Rewards would motivate employees hence achievement of set goals and objectives. |
| Employee and labor relations | weakness | The relations might end up being strained, hence low productivity by the employees. |
| Strategic leaders | Opportunity | Strategic leadership is essential for addressing weaknesses |
| Credible activists | Strength | Credible activity would help capitalize on the available opportunities |
| Business expert | Opportunity | Expertise is necessary for development of business goals and strategies as well as a better way of achieving them. |
| Culture and change champion | Threat | The might end up with a negative impact |
| HR innovators and integrators | Opportunity | Innovation and integration helps deter threats. |
| Proponents in HR and organizational technology | Opportunity | Would help address complex situations as well as the rapidly changing business environment. |
Action Plan
What action of change will occur: meeting shall be held between the senior management and the human resources team to discuss matters concerning the same. Strategies shall be laid during the meeting, on the expectations, roles to be played by every department as a way of assisting the HR.
Who will carry it out: the human resource department is entrusted with the role only that they needed a wake-up call since things happened while they watched. Regardless of the number of people in the department and the kind of titles and offices they hold, the problems will still be present because no strategies are put in place.
Time: Action should commence as soon as possible because the company is losing most of its intelligent minds to its competitors. The action plan will be initiated in stages, but results should be seen from the third to fifth month. Proposals were divided into several groups to identify and address various needs that can be characterized and grouped (Over et al., 2014)
Resources needed: the company shall incur some costs such as facilitating training and seminars that will regularly be conducted. Support of the superior office is greatly required for the human resource office to carry on with its duties without many difficulties. Good communication needs to be instilled among employees in the country for purposes of enhancing communion and awakening the team spirit.
We can do it today.
- Acimovic, J., & Goentzel, J. (2016). Models and metrics to assess humanitarian response capacity. Journal of Operations Management, 45, 11-29.
- Coghlan, D., & Brannick, T. (2014). Doing action research in your own organization. Sage.
- Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.
- Dulebohn, J. H., & Johnson, R. D. (2013). Human resource metrics and decision support: A classification framework. Human Resource Management Review, 23(1), 71-83.
- Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
- Over, P., Fiscus, J., Sanders, G., Joy, D., Michel, M., Awad, G., … & Quénot, G. (2014, November). Trecvid 2014–an overview of the goals, tasks, data, evaluation mechanisms and metrics. In Proceedings of TRECVID (p. 52).