Human Resource Management of Stakeholders

 

Assessment Brief: 
Students are required to complete the questions at the end of the Case Study. Use a Question and Answer format. 
 
Questions:  

When responding to the questions below please consider the theory / key concepts that have been covered during your studies so far. Be sure to integrate the key concepts into your responses using academically reliable sources.  Your responses should demonstrate further reading / research on the key topics. 
 
1. Identify the key stakeholders and their likely reactions to the situation at Oz Newspapers. 
 
2. What are the HR issues raised in this case? Explain how you would deal with them, supporting your assertions with research. 
 
3. What are the key environment factors at play in this case? Explain how these environmental factors impact HR practice at Oz Newspapers. 
 
4. Describe the role that the HR manager will need to take to support the company’s plan.   

 

1. Identify the key stakeholders and their likely reactions to the situation at Oz Newspapers. 

The key stakeholders that are identified in the proposed case study of Oz newspaper are the readers (i.e. customers), employees, and trade unions. As the proposed case is related to the organizational changes in the Oz newspapers due to high labor, printing and distribution cost which make the company to use technology for making operations more competitive. After the changes have been proposed in the organizations it is the general human tendency to resist to change(Fijalkowska, 2017). The major resistance that is faced by the organization is from the part of labor as the company is focusing on reducing the headcount, by making a massive push in the organization by making all things digital.Secondly the company has to face trade unions as the unions will resist the loss of 500 jobs due to the closing of a plant in South Australia and NSW.Thetrade unions are resisting because presently they are getting high pay for the job which is not possible for them to get it from anywhere(Doppelt, 2017). But the organization has to adapt these changes due to the changing scenario of the world otherwise the customers will be lost by the company, due to lack of digitalization. 

2. What are the HR issues raised in this case? Explain how you would deal with them, supporting your assertions with research.

As change is always seen as the positive aspect for development. But organizations have to adopt a clear vision of changes for making changes. The major issued that are raised due to the change policy is related to HR. as HR is seen as the linking pin between the management and the employees. The major HR issues that are raised in this case due to the change implementation are:

•    Resistance of employees 
The resistance of employees is faced by the HR manager due to the change as the headcount will be cut down which will lead to the loss of work productivity and insecurity among employees.

•    Communication breakdown with employees
Secondly, the HR manager has to face the problem of communication breakdown, as the decisions are taken by top management and then it will trickle down to employees(Singh, 2015). So employees in this situation create a negative image that HR know the change policies but it will be delivered by them very late, which led to employee oppression and lack of trust. 

•    Loss of reputation in the market
Another issue that is raised in this case is the problem of job loss as the company plan to close their plant in two zones which lead to problem for employees as they have to care for their families and children and this sudden change leads to severe drawbacks which are faced by the company in terms of loss of reputation in market(Liang, 2016).

3. What are the key environment factors at play in this case? Explain how these environmental factors impact HR practice at Oz Newspapers.

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The key environmental factors that are seen at play in the case includes the legislation and the industrial relations policy. The government FWA legislations is encouraging employees and unions in terms of flexing their muscles, which will create problems for OZ Newspapers. As in Australia range of employment legislation are there for protecting and safeguarding the rights of employees and workers. InSouth Australia, the Fair Work act 1994(SA) is there which protect the workers from unfair discrimination at workplaces in termsof being unfairly dismissed, retrenched or demoted. In addition to that, the Equal Opportunity act of 2010 is there which protect the employees against unfair practices(Humanrightscommission.vic.gov.au, 2018).

These factors impact HR practices as adhering to such regulations by a company lead to extensive fines if it in worst scenario it leads to the shutdown of the company. In addition to that the company, if proposed in legislation has to pay compensation to the employees in case of immediate termination(Epstein, 2014). From the future point of view, these decisions of firing will result in loss of reputation of the company in terms of hiring new candidates as workforce demographics will be seen as the part of environmental factors that need to be considered in mind by the HR. 

4. Describe the role that the HR manager will need to take to support the company’s plan.

In the present case, major problems have been faced by the HR manager on the part of employees due to the change management policy in terms of reducing labor cost by shut down of plants and labor firing. In this scenario, HR has to react in a calm manner because terminating an employee is considered as the evil job of HR(Bradley, 2016). For declaration of this, the HR has to arrange the termination meeting with the union leaders in which the records of terminated employees are there. Each departing employee will betreated with dignity and respect and HR should comfortable answers related to the pay and benefits that will be provided to the employee at the end of job like insurance, provident funds etc. the HR should be deal confidently with the employees as sometimes these leads to anger on the part of employee due to stress and frustration(Benn, 2014). For that, the time will be provided to the employee and then the message will be repeated.

References

Singh, H., & Singh, B. P. (2015, August). HR Challenges & Issues in Insurance Industry: An Empirical Study. In IT Convergence and Security (ICITCS), 2015 5th International Conference on (pp. 1-5). IEEE.
Liang, H. R., Liang, H. L., & Sun, C. K. (2016). Coping with negative work experience and work-related family issues: Spirituality as a buffer against emotional exhaustion and work-family conflict. Asian Business Research, 1(1), 42.
Epstein, M. J., &Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
Humanrightscommission.vic.gov.au. (2018). Workplace & Employee Rights, Employment Regulations. [online] Available at: https://humanrightscommission.vic.gov.au/the-workplace/workers-rights [Accessed 24 Apr. 2018].
Bradley, G. (2016). Benefit Realisation Management: A practical guide to achieving benefits through change. CRC Press.
Benn, S., Edwards, M., & Williams, T. (2014). Organizational change for corporate sustainability. Routledge.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Fijalkowska, A. P., Hjartåker, K. S., &Nesheim, T. (2017). Lay off employees or terminate consultant contracts? Responses to an external shock in three firms in the Norwegian petroleum industry. Employee Relations, 39(7), 1083-1099.

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