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HUMAN RESOURCE MANAGEMENT PRACTICE Case Study

The perceived areas where Ando Enterprises (AEL) needs change are in recruitment, retention, motivation in addition to training and development. Each division has its own HR policies and procedures which to a large extent is responsible for repetitive expenditures. Thus, keeping a centralized approach, each of the divisions has to be handled strategically to minimize costs and keep the staff motivated.The roles of the top management have to be redefined. A centralized approach at AEL is essential in some areas. Strategic HR has led to redefining the roles of the top management. They offer ‘transformational leadership’ and they share their vision for future success with other employees. Certain issues are too complex for the top management to comprehend and it is easier for the local managers to respond fast to it. This is confirmed by Thornhill and Saunders (1998) who contend that middle managers play a vital role in any organization because they are the ones who interact most frequently with the employees. They are thus expected to have the ability to inspire, encourage, motivate, enable and facilitate change by allowing the employees to become committed to the organization. When middle managers are allowed to use discretion and take decision, it prepares them to be future managers at top management. Besides, the cost to company is reduced with such a practice, contends Budhwar (2000). Hence the first step that AEL needs to take is to decentralize certain areas of HR while keeping the framing of policies with the top management.The role of new personnel is not to shake the HRD but to give the right direction. Today the HR personnel may not be in a position to understand the employee and his problems as there is no regular interaction between them. The HRD can take the lead role in framing policies but this too has to be done in

HUMAN RESOURCE MANAGEMENT PRACTICE Case Study