Human Resource Management As A Discipline Management Essay


This report is based on an organisational scenario which contains various components. As a Human Resource Management Generalist Consultant I have provided some observations and suggestions to the current situation on this report which requires knowledge of “Human Resource Management as a discipline and organisational development as a process”. Therefore, the Scenario based on this organization whose aim is to expand its global presence from their own assets rather than engage in borrowing from banks where it implies that, with Florida being a ‘Right to work’ state, the company did not need to give a reasons for reducing their workforce by 20% over the past two years even though the management did meet with employees on several occasions explain their approach that has to become more autocratic and task rather than people focused.

It happened that, after three months, a period of loss and dejection emerged where it resulted to de-motivation, decline in performance and an increase in absenteeism and turnover by 6% above the usual level. The employees complained much more about such issues as increase in stress, dissatisfaction with company policies and training. On training they referred to, First; there was not enough training to keep the component developers up to date with emerging technology. Second, they complained about the quality of the training being offered.

Due to Interact’s conservative approach to financial issues, lack of expansion into a new markets as well as reducing handling of Human Resource Management have recently voted to establish a group of representatives’ whose role would be to take employee concerns to management so as to equitably discuss these issues and come to a resolution.

As a Human Resource Management generalist consultant, Firstly, I have explained to managers the meaning of performance and some of the key aspects of effective performance with reference to the performance cycle and the three key aspects of managing individual performance with examples based on each aspect.

Secondly, they also need to provide an effective training to the employees, where I have identified learning and training need as a part of this activity and model for people development strategy that linked to business strategy and the four steps of models.

Thirdly, Due to Interact’s leadership style that has become more autocratic and task focused, I have explained the relevant concepts and the impact that this may have had on such areas as Motivation and Performance.

Fourthly, I have also suggested to Management in regarding their perception that employees need to work harder and longer in order to retain their job, increased levels of stress and the resulting in higher levels of absenteeism and turnover.

Fifthly, it has been recognized that there is currently a problem with absenteeism, based on this issue there are some actions I suggested to management to try and improve this with the recommendations for this action.

Lastly, it has also been recognized that there is an increase in employees’ turnover, where I have used some relevant concepts or theories and I have outlined the five key reasons on why people leave an organization.

It may be somewhat obvious to conclude that on crucial issues like this of Interact Company management, there is one impact of this was to make heavy demands on the Human Resource Management which is concerned with how people are managed and how you will train them, individual performance, how to overcome turnover and absenteeism and how you will use your style in leading the employees. Along with some considerations that they should try to consider meeting with group of representatives so that they know what the problem is and how to solve the problems in Interact company.

Performance is the key issue for Interact Communication Company. Performance refers as accomplishment of a given task measured against preset standards of accuracy, completeness, cost, and speed. With reference to the performance cycle managers need to consider the aspects of effective performance and the three key aspects of managing individual performance with examples on each aspect as follows:-


Figure 1.1

Performance Management is often seen as a tool to measure the performance of individuals, especially top management, to assess whether they are achieving set goals. 

These elements are described below:-

Setting goals and objectives

The first element of the cycle is setting goals and objectives. This phase includes supervisor-employee meetings and discussions about the goals and objectives that will be measured during the review period.

One of the most important parts of the performance management process is the communication of these goals and objectives. If the representative is a new employee, the goals and objectives are clear; the efforts are focused on the employee meeting goals to be effective at their new position.

Whereby, getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.

Also, meetings are important and the purpose of the meetings is to come to an understanding of the primary functions and the levels of performance expected for “Good” performance. The supervisor and the employee work to resolve any items that are unclear. Any activities included in the development plan are also discussed. Employee input is encouraged.

However, management retains the authority and responsibility for determining the content of the work plan. These goals and objectives become the road map for success for the manager and employee.

Providing Ongoing Feedback

The second element of the cycle is ongoing feedback. Managing includes day-to-day supervision, training, reinforcing, tracking actual performance, and discussing employee progress toward achieving the performance expectations of the goals and objectives. Supervisors must provide feedback related to these day-to-day findings in order for the representative to be aware of their performance.

Ongoing feedback provides opportunities for the team member to improve. This feedback does not have to take up a lot of time, but it should be specific, timely and consistent.


Using the Performance Management Cycle managers and supervisors must observe behaviors and then coach to improve performance. Coaching is best done in a one-on-one setting using self discovery dialog. By coaching throughout the review period supervisors provide opportunities for team members to reach and exceed their performance goals and objectives.

Performance Reviews

At the end of the review period, the supervisor and team member meet to discuss each performance-expectation and the employee’s actual performance and results. This is the annual performance review. Also, an effective manager will, from time to time, find it useful to summarize employee performance. This helps the manager look at and compare performance over time or across a set of employees. Organizations need to know who their best performers are. A performance rating is assigned for each principal function based on the comparison between the performance expectation and the employee’s actual performance. An overall evaluation is also assigned. New goals and objectives are created based on the level of performance displayed during the review period.


I would like to suggest that in order for the Interact managers to succeed in managing performance, managers have to speak and practice effective performance management all their lives, executing each key component process well. They not only set goals and plan work routinely; they have to measure progress toward those goals and give feedback to employees. They have to set high standards, but they have to develop the skills needed to reach them. And they have to use formal and informal rewards to recognize the behavior and results that accomplish their mission. All four components working together and supporting each other achieve natural, effective performance management.

With reference to the performance cycle which is shown above; Individual Performance Management refers as to empower employees to use their skills and knowledge to perform their jobs in a productive manner.

 It also provides management with an acceptable and agreed upon process to review and assess employee’s performance to ensure that the organization achieves its goals.

Managing Individual Performance:

Performance management process is a cycle, with discussions varying year-to-year based on changing objectives.

The cycle includes Planning, Checking-In, and Assessment.

To begin the planning process, you and your employee review an overall expectation, which includes collaborating on the development of performance objectives. Individual development goals are also updated. You then develop a performance plan that directs the employee’s efforts toward achieving specific results to support organizational excellence and employee success.

Goals and objectives are discussed throughout the year, during check-in meetings. This provides a framework to ensure employees achieve results through coaching and mutual feedback.

At the end of the performance period, you assess the employee’s performance against expected objectives, as well as the means used and behaviors demonstrated in achieving those objectives. Together, you establish new objectives for the next performance period.

There is a need to provide effective training which seen as a critical activity by Interact’s employees. The best learning and training needs that would be at the heart of this activity will be ; Firstly, Let’s see the meaning of Learning that refers as acquiring new knowledge, behaviors, skills, values, preferences or understanding, and may involve synthesizing different types of information while Training refers as a learning process that involves the acquisition of knowledge, sharpening of skills, concepts and rules.

Now there is a systematic training cycle below that was developed so as to help organizations move away from ad hoc non-evaluated training and replace it with an orderly sequence of training activities, but this approach has been less prominent of late.


Rubus Associates use a 5 stage systematic approach to learning and development.



Figure 1.2

In the figure 1.2 The “systematic training cycle” was developed so as to help organizations move away from ad hoc non – evaluated training that was replaced with an orderly sequence of training activities. This cycle does not retain some of the value and it has been described as an adaption of such model so as to make more applicable to today’s environment. The model is set within an external environment and within an organization strategy and a Human Resource development strategy.

Identifying training needs is an important activity that relates to the overall performance of the business

Analyze and identify the training needs i.e. to analyze the department, job, employee’s requirement, who needs training, what do they need to learn, estimating training cost, etc. The next step is to develop a performance measure on the basis of which actual performance would be evaluated.

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.Design and provide training to meet identified needs. This step requires developing objectives of training, identifying the learning steps, sequencing and structuring the contents.

Deliver training – This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & objectives.

Assessment/Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program.

Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices.

There are some of the models that identify people development strategy that is linked to the business strategy, here are the four of the models:-

FIT MODEL —- This model represents the growing recognition of the importance of people in the achievement of the organizational strategy. They should be seen employees as the key in the implementation of the declared organizational strategy and human resource strategy that concentrate on how the human resource strategy can be designed to ensure a close fit.

DIALOGUE MODEL —- this takes the relationship one step ahead, it has the two way communication and some debate. On what demanded in the organisation’s strategy may not be seen as feasible and alternative possibilities need to be seen. For the debate is usually limited

THE HOLISTIC MODEL —- people of the organization should be recognized as the key to competitive advantage rather than the way of implementing organizational strategy. It is said to be that there is no strategy without human resource strategy. For interact company should come up with mutual development and some form of integration apart from slavish response to a predetermined business strategy.

HUMAN RESOURCE – DRIVEN MODEL —- it provides more extreme form that places human resource strategy in prime position. Here, the problem is if people are the key to competitive advantage then they have to build on people strengths. Apparently, as the potential of the employees will undoubtedly affect the achievement of the planned strategy and it would be sensible to take account of the developing strategic direction. This model identified as a shift from human resource as the implementers of strategy to human resource as a driving force in the formulation of the strategy.

For Interact’s communication company their leadership style is autocratic and task focused rather than people focused, but this is not a good leadership style for the company which is so stressed up by reducing their workforce.

Autocratic leadership can be said to be synonymous to dictatorship where only one person has the authority over the followers or workers. Their decision has to be taken as the golden rule and should never be questioned. They plan out everything and order their subordinates to work according to their rules.

For instance, the Interact Company has an autocratic leader as the employees in the company have to work as per the rules set down by leader. They would not be expected to make any contribution from their side, which may actually help in enhancing the productivity of the company. In short, the autocratic leader has full control of those around him and believes to have the complete authority to treat them as he wants.

Advantages of Autocratic Leadership Style

Though autocratic leadership style is tyrannical, it has proved to be very efficient during certain situations and conditions. Autocratic leadership works positively during emergency and stressful situations. When such situations arise in a company or organization, most people are confused and are not able to reach a common solution. During such times, having an autocratic leader would be great as he would take the reins in his hand and would direct the workers or employees to move forward.

For instance, there is a terrorist attack at some place and the soldiers have to rescue innocent people from there. If many people try to give solutions, it may take time and the mission may end in failure. In such situations, having one autocratic person to command the rest of the group on how to go about with the mission can lead to success.

Another situation where the autocratic leadership style proves appropriate is while doing group projects. Many group projects tend to fail because group members depend on each other to make decisions. Such situations demand the need of an authoritative leader who can make decisions for the group. The leader should determine the ways in which the project would be done, divide the job among the members, and also set a deadline for completion of the project.

Disadvantages of Autocratic Leadership Style

Autocratic leadership may have its benefits; however, in most cases it is seen as something that is undesirable. Autocratic leadership style promotes a one sided conversation and due to this the creative and leadership skills of the employees become restrictive. As the leader would have all the authority, there is a chance that he would exploit his employees.

There have been cases where an authoritative employer has fired employees because they showed the courage of disagreeing with him. It is also said that having an autocratic leader hinders workplace communication and socialization.

Though there have been cases where adopting an autocratic leadership style has led to the success of the company, it is very rare for such leaders to remain popular among the employees and workers. It can be said that autocratic leadership can be accepted when the need arises, while a good leader would be a person who respects the opinions of his employees while making a decision. It is very important to have a cordial work environment, where everyone is friendly. It can also give rise to disagreements and conflicts, if a group or company is led by an autocratic leader.


I would suggest that, the Interact Communication Company should use a Democratic/Participative leadership style that involves the leader including one or more employees in the decision making process (determining what to do and how to do it). However, the leader maintains the final decision making authority. Using this style is not a sign of weakness; rather it is a sign of strength that your employees will respect.

This is normally used when you have part of the information, and your employees have other parts. Keep in your mind that a leader is not expected to know everything; this is why you employ knowledgeable and skillful employees. Using this style is of mutual benefit where it allows them to become part of the team and allows you to make better decisions.


To understand leadership motivation and apply it daily, there is a need to understand its five key concepts in motivation theories. You should know them and put them into action to greatly enhance your abilities to lead for quality results.

Expectancy has an impact on motivation: McGregor in 1960 model and his argument said that if you treat employees as responsible and self-motivated than they will obvious act in a responsible and motivated way. Also, Vroom’s (1964) expectancy theory of motivation recognizes that in the process of motivation to the maximization to which the individual feels that they can truly achieve the goal will have an influence on whether they are motivated even to try to achieve the goal.

The leader has high expectations of the followers and the followers are capable of achieving the target if the leader expresses the belief in them.

Importance of the work itself: Maslow (1943), Herzberg (1968) and Hackman and Oldham (1976) for instance, use the same way in which the individuals are motivated to seek and may achieve satisfaction through their jobs.

It is important to identify how opportunities for achievement, autonomy, challenging tasks, recognition, responsibilities and opportunities for development may all be motivational this was addressed by Herzberg (1968).

Social influences on motivation: Motivations are socially or culturally described, and to the extent the transformational leader ties into this as they reinterpret the world for their followers. Despite that, there are some of the negative aspects based on leadership and motivation theories that some people have less internal energy and drive than others and less need for growth.

Therefore, individuals with high levels of energy and drive may easily satisfy these outside the working environment while trying to motivate people externally where the great power for motivation comes from within and is therefore under the control of the individual rather than another.

Social needs are important: Maslow (1943) described the need for affiliation as a motivational factor. They all use “Concern for people” in some form as one of the key aspects of their leadership models. The post-heroic leadership concept, it concerns with those who may have been excluded in the past and also on the impact of their leadership on individuals. Additionally, this perspective based on the importance of learning and acting collectively.

Recognizing different people are motivated by different things: this is also indentifies that different individuals value different things and also have different motivational needs. In the process of motivation, only those things that the individual values will lead them to act. There is an assumption that all employees have to be prepared, to be involved, to share information and to develop themselves in line with the need of the organization.

Due to the history, people are afraid of change. Yet they can declare that, most important changes, improvements, and progress the world has known were the result of someone is desire for change.

In order to succeed in correcting, improving or changing one or a group of person’s performance in a significant and measurable way; each person must be made conscious of the need for such an approach in order to assure their endorsement of the improvement process. Whereby, the importance of dealing with training professionals to achieve your short, medium and long term job performance objectives.

Leadership & Performance; in cooperation with organizations well known to create excellent training programs, to produce measurable results, able to make a measure for each individual, organization and company.

Figure 1.3 below shows The Performance Leadership System focuses on three interdependent areas of capability

What is done

How improvements are sustained

How things are done

In terms of organisational capability what to be done


Organisational Development

This part is focused on the development of core processes and associated tools and techniques that are fundamental to a performance-leading organisation.

In terms of people capability how things are done

People Development

This part is focused on the development of core competencies, attitudes and behaviors that are fundamental to leading, managing and performing in a performance-leading organisation.

This is how improvements are sustained in terms of knowledge sharing, innovation and continuous learning

Knowledge Development

This part is focused on the development of core business intelligence to underpin the quality of all decision-making in a performance-leading organisation.

In order to achieve this by continuously developing conditions for success in three interdependent ways.

One, develop the organisation using best practice techniques to make us more efficient and effective by:-

Signifying strategic priorities, to build a shared sense of vision and purpose throughout the organisation

Driving performance management, to know that accountabilities are being effectively delivered

Systematically build new capabilities, to continually improve on what you are doing

Two, develop people using high performance techniques to help them achieve their full potential. Building on existing skills, attitudes and behaviours, by:-

Developing their strategic capabilities, to more effectively translate strategy into ongoing operations

Developing their cultural and relationship skills, to develop robust productive relationships Finally, they have to develop their knowledge using a comprehensive approach to business intelligence to support decision making, innovation and continuous learning.

The employees complained about their concerns regarding the perception that they need to work harder and longer in order to retain their jobs, increased level of stress, resulting in higher levels of absenteeism and turn over. In order for the Management of the Interact Company to overcome absenteeism and turn over for the employees they have to do the following;


Absenteeism, as the term suggests, simply means failing to show up for work when you are scheduled to be there. The effects of absenteeism in the workplace are directly proportional to decreased productivity. The company, eventually, is at a loss trying to cover up the indirect cost involved to hire temporary staff, and pay employees for overtime.

As absenteeism in the workplace is a fast emerging problem across the globe, it’s a challenge to come up with solutions on how to reduce absenteeism in the workplace.

My first suggestion is that; your absenteeism goal should be 3% instead of 6% per annum. Although it probably will require some serious commitments on your part, it certainly is an achievable goal.

But before we begin any analysis, a definition of “absence” must be established. For the purpose of this report, an absence refers to time an employee is not on the job during scheduled working hours, except for a granted leave of absence, holiday or vacation time. Using the standard rate of absenteeism is calculated by dividing the number of working days lost through absence in any given period by the total number of available working days in that same period, as follows:

Absenteeism Rate = Number of lost working days due to absence / (Number of employees) x (Number of Workdays) x 100

For Example:

I. Average number of employees in work force 100

ii. Number of available workdays during period 20

iii. Total number of available workdays (i x ii) 2,000

iv. Total number of lost days due to absences during the period 93

v. Absenteeism percent (iv [divided by] iii) x 100 4.65%

Individual Frequency = (Number of Absent Employees/Average Number of Employees)*100

It reflects the incidence of absence and is usually expressed as the number of separate absence in a given period, irrespective of length of absences

I would like to think of absenteeism as a disease that appears whenever a company fails to inoculate itself through the use of sound management practices. To cure excessive absenteeism, one has to know the exact causes and then examine the available, workable and proven solutions to apply against those causes

Numerous studies have concluded that under trained supervisors is one of the main causes of absenteeism. Therefore, any company experiencing absenteeism of greater than 3 percent should consider supervisors as a potential contributor to the problem like that of Interact Company.

Given that this may be the case, you should check the percentage of employee absenteeism by supervisor to see if it is concentrated around one or two supervisors. If it is, you will have to begin to uncover the obvious–undertrained supervisors. If, however, it reveals that the rate of absenteeism is almost equally distributed throughout the factory, you will need to investigate other possible causes.

What are the real causes for absences?

One way to determine the causes of absenteeism is to question your supervisors about their employees’ excessive absenteeism, including what causes it and how to reduce it. Of course, if your supervisors have made no efforts to get to know the employees in their respective departments, they may not be able to provide reasons. However, just the act of questioning may get the ball rolling and signal to your supervisors that their involvement is important.

Workplace Factors

Stress: The pressure at work sometimes takes a toll on the employees. This results in increased levels of stress. The employees then resort to excuses that can help them stay away from work.

Work Routine: Doing the same job over a period of time can get monotonous. The employees find the job functions boring. They rather choose time off to do something interesting than come to work.

Job Satisfaction: If employees do not find their job challenging, dissatisfaction creeps in. That leads to more absenteeism in the workplace.

Cost of Absenteeism

Absenteeism may have repercussions, which include:

Decrease in Productivity

Employees may be carrying an extra workload, or supporting new or replacement staff

Employees may be required to train and orientate new or replacement workers

Staff morale and employee service may suffer

Financial Costs

Overtime or agency cost for replacement workers

Cost of self-insured income protection plans

Premium costs may rise for insured plans

Administrative Costs

Staff time will be required to secure replacement employees or to re-assign the remaining employees

Staff time will be required to maintain and control absenteeism

Dealing with Absenteeism in the Workplace

They have to design a comprehensive leave policy that is in alignment with the company’s values and objectives.

For the workplace communication, while dealing with sensitive issues like absenteeism should be clear and transparent. Employees should be made aware of the adverse effects of unauthorized time off.

They should monitor the attendance of all employees. The departmental heads should maintain an attendance sheet on a regular basis.

Acknowledge regularity and punctuality, and reward appropriately.

Try to know the reason behind an employee’s leave of absence. Face to face conversation might help.


There is currently problem with absenteeism in the organization; some of the following measures will help the management of the Interact Communication Company to improve the problem with absenteeism as follows:-

It is important to understand the true nature of the causation of absence which can lead from a complex interrelationship factors. You should get apparent policies and procedures concerning work absence. Personnel should be aware of who to get hold of, how contact must be made (by way of example, whether or not text messaging, emailing as well as phoning is appropriate) and when notification regarding absence needs to be made (one example is, by 9:00am on the day of absence).

Right now there should likewise be clarity in regard to requirements for healthcare records and also techniques for dealing with recurring absenteeism. Fairness plus uniformity are important. If you want individuals to regard the system, it has to be worthy of his or her respect.

Help make allowance regarding non-medical leave and variable working plans that will enable people to balance their particular private life as well as work without relying on to “sickies”. For instance, studies have been proven that sick leave soars during summer break, when parental responsibilities compete with work obligations.

Where appropriate, allow for dads and moms to perform from home as necessary during these cycles might help them to keep an eye on their children and teenagers while also making sure the work will get performed. Breaks – people can only work so hard for so long. Burning your employees out by overworking them is not good incentive for continuing to work at their peak abilities.

Make available tangible help to those with an injury or health issues that needs more than a day or two off work. Send a card from the whole staff. Make a call and see if there’s anything at all that the organisation are capable of doing that may help.

Let the individual to realize that they will be missed and also appreciated. Almost everyone will feel somewhat insecure anytime they are ill or sore and a kind word can make a world of good. Pragmatically, it is also likely to enhance the person’s wish to come back to work.

Have a constructive operating atmosphere. Other employees are much more likely to think about taking a “mental wellness day” if they dread going to work. Comfortable jobs are usually those wherein personnel are paid attention to, workloads are usually possible and also reasonable, and also support is encouraged. If the business office is a comfortable location, your workforce will wish to be in it.

Turn on superiors as well as managers to the very best strategies to managing and cutting down sick time. Help them understand that focusing on LTIs (lost time injury) by itself will never obtain the outcomes they need. Supervisors whom extend caring, aid and trust to individuals have a tendency to get more desirable outcomes against those people dedicated to achieving their own KPIs (key performance indicators) at any expense.

You should help make allowance regarding non-medical leave and variable working plans that will enable people to balance their particular private life as well as work without relying on to “sickies”. For example, studies have been proven that sick leave soars during summer break, when parental responsibilities compete with work obligations.

Where appropriate, allow for dads and moms to perform from home as necessary during these cycles might help them to keep an eye on their children and teenagers while also making sure the work will get performed. Breaks – people can only work so hard for so long. Burning your employees out by overworking them is not good incentive for continuing to work at their peak abilities.

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Table 1.4 shows how you can manage absence and attendance by The Rhodes and Steers process model of attendance

Labour Turnover is the movement of people into and out of the company. Also it is usually convenient to measure it by recording movements out of the company on the assumption that a leaver is eventually replaced by a new employee.

There are two formulae common use for measuring labour turnover as follows:-

Wastage rate that expresses the number of separations during the period (usually one-year) as a percentage of the average number employed during that period.


Number of separation during period ⁄Average number employed during period x 100

The labour stability index shows the percentage of the employees who have had at least one year’s service.


Employees with at least one year service / Number of employees employed one year ago X 100

The rapid changes in technology and business conditions have generated numerous reasons, real and perceived, for employees to leave their jobs at regular intervals. Here are some of the most often given.

Employees feel unrecognised and unappreciated. Employees believe they are not only expendable pawns in the greater game, they believe they don’t even receive a simple “Thank You” when they’ve performed admirably. The lack of appreciation is also often displayed in the level of compensation offered.

Employees believe there is little hope for career advancement or career growth. Unlike some years ago, they feel that there are distinct “classes” of employees and many jobs offer little opportunity to advance with their employer or with their career while they remain in this job.

Employees believe that their current position is not what it was represented to be during the interview phase.  Many employees believe they received an unrealistic or incorrect job description when they applied for their position. Many employees have responded that this was a critical reason they began to test the market again as they felt a general lack of trust in their employer.

Employees are overworked and totally stressed out at their jobs. Many people perceive an overwhelming lack of respect for themselves and their work/life balance issues. It is ironic that this perception is one of the primary reasons for leaving employers when so many are publicizing the fact that work/life considerations are a priority for them. Employees, apparently, have decided that, in many cases, this is more rhetoric than fact.

Employees perceive a serious lack of coaching and/or mentoring from their employers. Some experts believe this is a classic case of a “perfect storm” situation. The rapidity of technological changes and the focus on short-term success has caused increased competition for the best jobs and the requirement for ever more talented employees.


I would suggest that, it is interesting to note that compensation is not a component of the five primary reasons people leave their jobs and move on. Employees at all levels have a better understanding of compensation budgets, what their expertise may be worth, and, how to use sophisticated, effective professionals, so as to assist in their search for new employers. As a result, people are more comfortable with income issues. They do, however, have concern for the issues listed above which have become paramount to their job satisfaction.


The main purpose of producing this Report is to help the CEO with the management of Interact Company in USA to expand its global presence by firstly go through the management effective performance, and how to manage individual performance within the organization and try to cope with different culture without forgetting the Human Resource Management strategies, and how to deal with team based on task and process strategies.

Secondly, they need to develop a plan and budget right in the beginning, that means looking at the business strategically and figuring out where they want it to be within the next three, five and ten years.

Thirdly, they need to determine where the international business fits into the existing operations, and carefully allocate resources, talent and opportunity to that new facet of their company.

Fourthly, they need to provide effective training and learning needs that linked with people development strategy and also applying the models or approaches for business strategy.

Fifthly, Due to leadership style they have I would like to say it is better to change the style from Autocratic leadership to Democratic because it will be easier for employees to be heard and make suggestions than that of Autocratic.

Sixthly, regarding absenteeism and turn over for the employees I think they should know they cause of this and try to figure out on what to do next because in order to cure excessive absenteeism, one has to know the exact causes and then examine the available, workable and proven solutions to apply against those causes the same as for turnover. The use of relevant concepts for employees’ turnover is important so as to know the proper ways of reducing such problems.

High turnover can be a serious obstacle to productivity, quality, and profitability at firms of all sizes. For the smallest of companies, a high turnover rate can mean that simply having enough staff to fulfill daily functions is a challenge, even beyond the issue of how well the work is done when staff is available. Turnover is no less a problem for major companies, which often spend

Lastly, they should know that most of the cultural interaction in follows certain rules. There are guidelines for almost every type of interaction, but these guidelines are not extensive. Business interaction is similar to that of everyday interaction with the exception that patience is a required asset. They should be aware of the cultures in the work place and how to deal with employees from different part of the world by improving best performance and all that I have mentioned above.


The number of companies operating internationally is growing constantly. The world is opening up for foreign firms and new destinations in the company´ business are increasing. Because of high competition the companies operating abroad are faced with a much larger task than before. When going international the challenges the company must handle are new and unfamiliar.

Also they should go a step further and conduct mini reviews on a monthly basis for the employees.  This gives the employee an opportunity to correct any behavior or performance issues, helps facilitate ongoing feedback, improves morale and helps you achieve your goals quicker.

Apart from that, they should know absenteeism and turnover is a problematic issue for many companies and often difficult to understand, and also working with different people from different cultures it can be hard to cope with that but should inform the personal about the manners and customs in that new culture. If the first impression becomes negative, this can be hard to shake.

They should understand and put in practice that Human Resource Management is a way of management that links people-related activities to the strategy of a business or organisation. HRM is often referred to as “strategic HRM”. These are some of the goals that should be followed to make a successful business for the Interact Company.

To meet the needs of the business and management (rather than just serve the interests of employees)

To link human resource strategies / policies to the business goals and objectives;

To find ways for human resources to “add value” to a business;

To help a business gain the commitment of employees to its values, goals and objectives

So in order for the company to be successful the company needs to protect their intellectual property and develop a strategy from country to country on how to do that successfully using copyright laws etc apart from that also for turnover and absenteeism problems it is wisely for employers to understand and respect these concerns. If they can address these issues effectively, they will enjoy fewer turnovers and a more productive staff.

Reference and Bibliography:

Fombrun C, Tichy, N.M and Devanna, M.A (1984) Strategic Human Resource Management, New York

Beaker B, Huselid M. and Ulrich (2001) The HR: Linking people, strategy and performance: Boston, Harvard Business School Press

Torrington, D.P, Hall L.A and Taylor S (2002) Human Resource Management (5th Edition) Harlow Pearson Education

Maund, L (2001) An introduction to Human Resource Management: Theory and Practice

Derek Torrington, Laura Hall and Stephen Taylor, Human Resource Management (6th Edition) Prentice Hall

Armstrong, M. and Baron, A (1998b) Performance Management – The New realities London

Hofstede, Geert (1977). Culture and Organizations: Software of the Mind New York: McGraw-Hill.

Newstrom, John W. & Davis, Keith (1993). Organizational Behavior: Human Behavior at Work. New York: McGraw-Hill.

Tannenbaum, R. & Schmidt, W. How to Choose a leadership Pattern. Harvard Business Review, May-June 1973, No. 73311

Performance Management 2nd Edition by Herman Aguinis

Performance Management: A pocket guide for employees by James Rollo

Fast Track to Success: Managing People and Performance by David Ross ISSBN: 97802732884

Employment Relations 3rd Ed Ross July 2008 ISBN13: 9780273710080

Grow your own leader, by William Byham, Andrey Smith, Mathew Pause, March 2002 ISBN 13: 9780130093981

Motivation, Emotion and Leadership: The silent side of Management by Richard C. Maddock, Richard L. Fulton

Management by Motivation by Saul W. Gellerman, also Training Strategy by Martyn Sloman.

Website:, Human Resource Management, retrieved on 20th September 2010 and Employment, retrieved on 1st October 2010 Resource Management, retrieved on 2nd October 2010 study on Absenteeism of employees retrieved on 10th October 2010 of employee’s absenteeism, retrieved on 15th October – absenteeism, retrieved on 17th October 2010 with employee absenteeism, retrieved on 20th October 2010 and Development, retrieved on 23rd October 2010

www.hrmguide-net/Human Resource Management, retrieved on 27th October 2010, retrieved on 28th October 2010 and Employees, retrieved on 30th October 2010 tips dealing with employee’s turnover, retrieved on 30th October and Leadership in management effectiveness, retrieved on 31st October 2010

Newspapers:, “Effective performance”, “Human Resource Management”., “Absenteeism and Turnover problems”, “Essential Theories of Motivation and Leadership”. “Management”. newspaper, Human Resource Management


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