Introduction
Background to the study
Centux International is a private limited company that is involved with international operations. The firm’s headquarters are located in the City of London. The firm’s human resource consists of managerial and professional staff. In the recent past, the firm has been experiencing problems in its operation. One of the major issues facing the firm is a lack of efficiency in its operation. In addition, the firm has been witnessing an increase in the rate of employee turnover. The level of stress and burnout among the employees has also been on the increase.
The efficiency of operation is an important element in the operation of a firm. Firms that have ventured into international operations should have a high efficiency of operation. This will enable them to attain a high competitive edge in the global market. One of the ways in which a firm can attain competitive advantage is through the development of a good working environment. This can be achieved through the formulation of effective human resource management strategies. According to John and Jeffrey (2007, p.42), human resources has become one of the most complex elements of management in the recent past. This is due to the fact that there are constant changes in the working environment. This paper is a report relating to a case study of Centux International.
Aim
The aim of the report is to identify the problems facing the firm and analyze the alternative working patterns and practices that the management of the firm can implement to replace the traditional working pattern.
Scope
The report analyzes the causes of the problems facing the firm. These include a lack of flexible working environment, inefficient international communication, and lack of sufficient staff. The various strategies that the management of the firm should consider are analyzed. These include recruiting more employees and adjusting the working pattern through strategies such as working on a part-time basis, job sharing, compressed hour working strategy, and adopting a 24-hour working system. Finally, a set of recommendations that the management should consider are outlined. The report does not consider that the firm will incur in implementing the fore mentioned strategies.
Case study of a firm in the City of London: Causes of the problems facing the firm
Lack of flexibility in the working environment
In its operation, the firm has adopted a traditional mode of operation. This is evident from the fact that the firm’s work schedule is fixed to fit an eight-hour working schedule from 9.00 am to 5.00 pm per week (Monday to Friday). Employees of an organization have got other personal responsibilities to attend to such as caring for their families. This makes them demand a flexible –working- work-life balance. According to and Adrian (2006, p.13) ‘flexible working’ refers to a working pattern that is in line with the employees’ needs. On the other hand, work-life balance refers to the process of implementing policies that enables an employee to combine his or her employment with the various aspects of their life. Lack of flexibility in the organization is one of the reasons why working mothers are leaving the organization to seek employment in firms that have flexible working conditions. According to Clinton (2009, para.12), a flexible working environment is one of the factors that is resulting in increased employee attraction and retention within a particular firm.
Lack of flexibility within the working environment in relation to working hours is resulting increased level of stress and burnout in the organisation. This can be associated with the fact that the employees are not able to meet their personal responsibilities effectively. This is due to the fact that the firm has adopted a rigid working model. According to Katharine, Beth, Eric and Judith (1990, p.300), lack of job satisfaction is one of the major causes of stress in the work environment.
Considering the fact that the firm is an international organisation, the volume of work load handled by the employees is enormous. In addition, the employees are required to work on a fixed duration of time. This means that they have to meet the deadlines within limited time duration. This has an effect of increasing the level of stress among the employees and hence burnout results. According to Elizabeth (2008, para.1), burnout refers to a decline in the employees level of motivation. The effect is that there is a reduction in the level of productivity amongst the employees.
Inefficiency in international communication
Lack of flexible working hours is making the firm to be inefficient in its international operation. This is due to the fact that the firm cannot be able to keep an efficient communication within the different time zones. Lack of good communication in international operation can have adverse effects on a firm’s operation and the productivity of the employees. According to Jean (2007, p.79), communication flow is an important element in international business. This is due to the fact that communication enables approval of business transactions between business partners. Delays in communication can result into substantial costs for a firm. Jean (2007, p.79) asserts that through effective global communication, tasks are completed in time and hence increased efficiency of operation. In addition, for a firm’s level of profit to grow and maintain a competitive edge, it is paramount that the firm respond to the demands of the customers and the employees effectively. According to unified communication transform business communication (Anon., 2005) there should be no communication obstruction for a firm to maintain a competitive edge. In addition, ineffective communication between business partners can result into an increase in the level of frustration amongst the employees. This is due to the fact that the employees cannot be able to continue with there activities without timely approval. This culminates into a slow down in the execution of tasks. In the event that there is an increase in the level of employee frustration, stress results reducing their productivity.
Scarcity of employees
The organisation has not been effective in its operation due to lack of enough administrators especially during the critical hours. Despite the fact that the firm has a large office space, the space has not been utilised to the maximum. This limits the capacity of the firm to meet the demands of its clients.
Options available for the firm
Recruit more employees
The employees of the organisation are experiencing increased level of stress and burnout. This can be minimised by incorporating frequent leave for the employees. To implement this strategy, the firm should recruit more employees. Recruiting more employees will enable the firm to effectively utilise its office space. In addition, recruitment will ensure that the firm has a sufficient number of employees at all times. The effect is that the firm will be able to meet serve its clients effectively. This is due to the fact that the management of the firm will be able to eliminate employee scarcity in the organisation. Recruitment will also enable the firm to meet its future challenges. According to Alan (2007, p.301), this is due to the fact that the firm will be able to increase its human capital by acquiring employees with relevant skills. This will ultimately result into increased firm’s efficiency of operation.
For the recruitment to be comprehensive, the management of the firm should consider utilising the services of selection agencies, head hunters and recruitment consultants. This will enable the organisation to increase the scope of its labour market. In addition, using the services of these agents will enable the firm to acquire qualified employees. This is due to the fact that these firms conduct comprehensive recruitment and selection.
Adjustment of working hours to incorporate flexible working-work-life balance
To ensure that the employees are satisfied in the organisation, and meet their personal responsibilities, the personnel manager should adjust the personnel policies. One of the strategies that the management of the firm can integrate is adjusting the working hours to create a flexible work-work-life balance. This can be achieved through incorporating a number of models. These include the following;
Compressed hour’s strategy
In this strategy, the personnel manager sets a number of hours that the employee must attain per week. This means that the employees have the freedom to compress these hours into a few working days. However, the management must ensure that the employees attain the set number of hours. For instance, if the number of hours that an employee is required to work per week are 35, the employee may decide to compress these hours into 3 working days. This will give them an opportunity to fulfil their personal obligations.
Working on a part time basis
According to flexible working and work life balance (Anon., 2009), part time working refers to an employee working a few number of hours compared to a full time employee. Full time working requires an employee to work a total of thirty five hours per week. Through this strategy, the management of the organisation will be able to reduce the number of the professional employees leaving the organisation due to increased personal responsibility. Part time working basis can be incorporated in the organisation by dividing a week into a set of 3 working days with a one day of hand over.
Job sharing
Alternatively, working on a part time basis can be incorporated by incorporating the concept of job sharing. This can only be achieved if the firm has a sufficient number of employees in the organisation. According to David (2006, Para. 1), job sharing involves splitting a full time job between two employees. These employees must have the same capacity to perform the tasks. The management of the firm can incorporate this strategy by splitting a day’s work into two phases basing on the number of hours. For example, one of the colleagues may opt to work during the morning hours while the other in the afternoon hours.
Adopt a 24 hour working system
To cater for communication disruption, the management of the firm should adopt a 24hour working system. This will enable the firm to communicate between the different time zones. According to a survey by the 24 working society (2005, p.1), increased international competitiveness is making firms to adopt a 24 working system. The 24 hour working system has been enhanced by the fact that firms are increasingly adopting the flexible working environment. In addition, this system is enhanced by incorporation of the concept of part time working. The 24 hour working system is not only resulting into increased flexibility in the work environment but also efficiency of communication in international operations.
Conclusion
Flexible working environment is a key element for a firm’s success. This is due to the fact that the employees are able to balance work with their personal responsibilities. The effect is that there is increased employee satisfaction which culminates into improved performance. This results from the fact that there is a reduction in the level of stress and burnout among the employees. There are various ways in which a firm can attain a flexible working-work-life balance. By recruiting more employees, the firm will be able to operate efficiently since it will have the right number of employees with the necessary skills at all times. In addition, recruitment will enable the firm to develop a competitive edge in terms of human capital.
The firm can also attain a flexible working-work-life balance by adjusting the its working hours model. This can be implemented by integrating various strategies such as compressed hour working strategy, working on part time basis, job sharing and the 24 hour working system. Adopting the 24 hour working system is an important aspect in international business. This is due to the fact that it enables the firm to communicate in the different time zones.
Recommendations
The management of Centux International should consider the following recommendations.
- Recruit more employees by incorporating the services of recruitment agencies so as to reduce employees work load.
- Adjust the working hours by incorporating part time working strategy.
- Incorporate 24 hour working system to solve the communication obstructions.
Reference
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