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A Case study on The HRM Function/Environment

Mount Ridge Engineering Systems


EMBA

Background
Designs, builds and operates standardized coalfired utility plants Sells
steam to the industrial plant electricity to local utility

Present 5 plants(approx. 45 workers per plant), 39 corporate staffs, 183 plant staffs Fast growing successful company

Business Strategy/Goals
Cost leadership efficient plants Low cost production competitive advantage Aggressive expansion plans 9 plants, 650 employees in next 2-3 years time No employee profit sharing plan Remain non union maintaining quality work life and attractive benefits

HR Practices
HR Director Joyce Newcombe Complete HR system developed
Employee benefit packages Employee handbook Job description Salary program Supervisors manual, other personnel policies

Philosophy- to place great value to company-client relationship, company-employee relationship Annual employee appreciation dinner Personnel operation centralized to corporate headquarters

HR ISSUES
relationship between corporate human resources structure and operations at the plant level weak/loose Getting management to understand legal and governmental regulations affecting HR Supervisors not following company policy No actual implementation of the HR policies at plant level Insufficient or out of date HR policies

Typical Case : Edison Plant


Eastern region of Kentucky 45 employees Larry Braxton Plant superintendent Bud Johnson auxiliary operator, sometimes performs job of equipment operator, solve problem no one else can handle

HR Problem: Edison Plant


on going argument between Braxton and Johnson Johnsons promotion to equipment operator Assignment beyond job description or employee handbook Johnson- dissatisfied with annual evaluation didnt follow personnel regulations before taking leave No proper termination policy

Causes of Problem
Rapid expansion preventing proper dissemination of human resource policies Lack of comprehensive human resource training program Lack of proper human resource related internal controls Lack of awareness regarding legal and governmental regulations affecting HR procedures

Recommendations
Setup training program for plant supervisors for better human resource practices and company policies Re-design the termination process and procedure Maintain a HR officer in each plant Setup an audit and supervising mechanism Setup a communication channel to file in complaints Make plant management aware legal and governmental regulations affecting HR

THANK YOU !

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