The Bk Steel

THE BK STEEL

Foundation Course in Human Resource Management

January,2015

Prepared By

A.D.K.S Weerarathne

FCHRM/15 /WD / 01/ 20

INSTITUTE OF PERSONNEL MANAGEMENT SRI LANKA

43,Vijaya kumaranathunga Mawatha,

Colombo 5

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TABLE OF CONTENTS

PAGE NO

Acknowledgment 3

Case 4

Answer for the question No 1 5

Answer for the question No 2 11

Answer for the question No 3 18

Answer for the question No 4 20

Answer for the question No 5 23

Appendix and references 26

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ACKNOWLEDGMENT

First of all I like to extend my heartfelt gratitude to my family members for the guidance

given to me and I would also like to thank each and every other individual who gave me

their best support. And a special thanks to the lectures of FCHRM for their valuable time

spent teaching me and giving me the right guidance to make this project report a success.

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ANSWER FOR THE QUESTION NO. 01

1. As a HR student how do you see the problem? What would have been the

role of the personal department, including the personal manager in

preventing the loss of loyal and senior workers? Explain your answer in

detail giving examples and the theories you learnt in the class room.

Introduction about the organizationThe BK steel is a single owner company engaged in aluminum and steel productions and

designs for office and house hold constructions. It’s a medium scale establishment having

its main factory in Colombo,Gampaha,Kadawatha,Battaramulla and Panadura.

Organization structure of BK steel:-

MD

Personal and Administration Department Production Department

Personal and Administration manager Chief technician

Clerks Senior supervisor

Junior supervisor

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For the improvement of the organization the personal manager of BK steel’s needs to

analyze regarding the loss of loyal and senior workers issues and wants to get proper

solutions regarding these issues. First of all personal manager wants to do a proper HR

planning to achieve his goals and objectives in the organization.

Human resource planning is also known traditionally as man-power planning. It is the

process of forecasting the organization’s future demand for human resources against the

future availability of employees within the organization and determining how the gap

between these two will filled. The long term success of any organization depends on

having the right people in the right jobs at the right time. The strategies employed by the

organization to achieve this objective will be meaningful only when people with

appropriate talent, skill and desire are available to carry out the strategies.

Poor human resource planning can cause substantial problems in the short term. Without

a proper HR planning, larger companies would struggle to meet demands of their position

with an adequate workforce and knowledge would not be spread across the company in

an efficient manner.

HR planning concerns include the size of the workforce and the skills of the workforce.

Some types of HR planning are most concerned with whether the business has enough

employees; this is common in rapidly expanding companies. Other plans focus on the

skills that employees bring to the table and how employees can be best used in specific

project. Employee skills become increasingly important as the business becomes more

interested in growing its market and increasing product of service value.

A large part of HR planning involves training or retraining. New employees must be

trained with the proper skills to the business, and when a new method, program created

all employees must be retrained in it.HR planning includes ways to create training

programs, schedule training seminars and publish online training application for

employees to learn these new skills.

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Uses of proper HR planning

Staffing Requirements

By identifying its short term and long term goals and the corresponding work activities,

the company can project its future human resource requirements. This includes

identifying the skills, abilities and knowledge required to meet its goals. If there is an

identified gap then the organization can create action plans to recruit and retain talent.

The company can implement strategies such as recruitment, training or retraining,

organizational restructuring and succession planning.

Response to work force issues

Effective HR planning allows the organization to respond to environment factors such as

legislation, changing demographics, globalization, world economy and technology.

Through environment scanning the company can anticipate changes that will affect its

workforce and plane according to it

Continuous Evaluation

The human resource plan has measurable and assessable outcomes that make it possible

to monitor The. It usually includes milestones or benchmarks to measure success at

different stages. Metrics are essential as a form of assessment. If the future turns out to be

different than anticipated the plan must be flexible enough for the company to manage

changes. Ongoing and regular evaluation allows the organization to make adjustments to

address immediate and long term issues.

Consideration

The human resource plan links HR management to the company’s strategic plan. It

becomes the foundation not only for recruitment but also for other human resource

functions such as training, leadership development, succession planning and

performance management.

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If the personal department considers on proper HR plan, they will be able to achieve their

goals and objectives .For that proper HR plan they need to build a good HR team with

good communication, strategic, conceptual and technical skills. So that as a HR student I

can recognize, a poor recruitment and selection process as the problem of this

organization.

Recruitment -Refers to the process of attracting, screening, selecting and

onboarding a qualified person for a job. At the strategic level it may involve the

development of an employer brand which includes an “employee offering.”

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Selecting – Is the process of selecting a qualified person who can successfully

do a job and deliver valuable contributions to the organization. The term can be

applied to many aspects of the process, such as recruitment, selection, hiring and

accusation. However, it most commonly refers to the selection of workers. A

selecting system should depend on job analysis. This ensures that the selection

criteria are job related.

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Selection process

Selection is the process of putting right men on right job. It is a procedure of matching

organizational requirements with the skills and qualifications of people. Effective

selection can be done only when there is effective matching. By selecting best candidate

for the required job, the organization will get quality performance of employees.

Moreover, organization will face less of absenteeism and employee turnover problems.

By selecting right candidate for the required job, organization will also save time and

money. Proper screening of candidates takes place during selection procedure. All the

potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of

employment process. Recruitment is considered to be a positive process as it motivates

more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing

of data. While selection is a negative process as the inappropriate candidates are rejected

here. Recruitment precedes selection in staffing process. Selection involves choosing the

best candidate with best abilities, skills and knowledge for the required job.

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The Employee selection Process takes place in following orders:-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet

the minimum eligibility criteria laid down by the organization. The skills,

academic and family background, competencies and interests of the candidate are

examined during preliminary interview. Preliminary interviews are less

formalized and planned than the final interviews. The candidates are given a brief

up about the company and the job profile; and it is also examined how much the

candidate knows about the company. Preliminary interviews are also called

screening interviews.

2. Application blanks- The candidates who clear the preliminary interview are

required to fill application blank. It contains data record of the candidates such as

details about age, qualifications, reason for leaving previous job, experience, etc.

3. Written Tests- Various written tests conducted during selection procedure are

aptitude test, intelligence test, reasoning test, personality test, etc. These tests are

used to objectively assess the potential candidate. They should not be biased.

4. Employment Interviews- It is a one to one interaction between the interviewer

and the potential candidate. It is used to find whether the candidate is best suited

for the required job or not. But such interviews consume time and money both.

Moreover the competencies of the candidate cannot be judged. Such interviews

may be biased at times. Such interviews should be conducted properly. No

distractions should be there in room. There should be an honest communication

between candidate and interviewer.

5. Medical examination- Medical tests are conducted to ensure physical fitness of

the potential employee. It will decrease chances of employee absenteeism.

6. Appointment Letter- A reference check is made about the candidate selected and

then finally he is appointed by giving a formal appointment letter.

By considering all these facts we can come to a conclusion that the personal department

of the BK steel company had made a bad decision in junior supervisor post selection. The

most important skills for a junior supervisor are a good employee relationship,

communication skills and leadership skills. But these basic and important skills are

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cannot be found from the junior supervisor of BK steel. The Company productions have

been reduced and the labor cost has been increased. And also an impact has been

happened in the expansion in the size of the business.

ANSWER FOR THE QUESTION NO. 02

2. If there was a well-qualified and experienced Human resource manager

instead of a personal manager, how he would have behaved to prevent

labor turnover, before the interference of MD. Explain your answer in

detail.

Human resource management is a function in organizations designed to maximize

employee performance in service of an employer's strategic objectives. HR is primarily

concerned with the management of people within organizations, focusing on policies and

systems HR departments and units in organizations typically undertake a number of

activities, including employee recruitment, training and development, performance, and

rewarding.HR is also concerned with industrial relations that is, the balancing of

organizational practices with requirements arising from collective bargaining and from

governmental laws.

HR is a product of the human relation movement of the early 20th century, when

researchers began documenting ways of creating business value through the strategic

management of the workforce. The function was initially dominated by transactional

work, such as payroll and benefits administration, but due to globalization, company

consolidation, technological advances, and further research, HR as of 2015 focuses on

strategic initiatives like talent management, succession planning , labor relations and

diversity and inclusion.

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HR duties may be performed by trained professionals. In larger companies, an entire

functional group is typically dedicate to the discipline, with staff specializing in various

HR tasks and functional leadership engaging in strategic decision-making across the

business. To train practitioners for the profession, institutions of higher education,

professional associations, and companies themselves have created programs of study

dedicated explicitly to the duties of the function. Academic and practitioner organizations

likewise seek to engage and further the field of HR, as evidenced by several field-specific

publications. HR is also a field of research study that is popular within the fields of

management and industrial physiology, with research articles appearing in a number of

academic journals, including those mentioned later in this article.

In the current global work environment, most companies focus on lowering employee

turnover and on retaining the talent and knowledge held by their workforce. New hiring

not only entails a high cost but also increases the risk of a newcomer not being able to

replace the person who was working in that position before. HR departments also strive

to offer benefits that will appeal to workers, thus reducing the risk of losing corporate

knowledge.

Personal management vs. Human resource management

The major difference between personal management vs. human resource management is

that personnel management is the traditional approach and human resource management

represents the modern approach toward managing people in an enterprise.

Personnel management is a predominantly administrative record-keeping function

that aims to establish and maintain equitable terms and conditions of employment.

Human resource management integrates the traditional personnel management

functions to corporate goals and strategies, and performs additional people-centered

organizational developmental activities.

Significant difference excites between personnel management and human resource

management in terms of scope, approach, and application.

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The Scope of Services

Human Resource Management is broader in scope than Personnel Management.

The scope of personnel management includes functional activities such as

manpower planning, recruitment, job analysis, job evaluation, payroll

administration, performance appraisals, training administration, and related tasks.

Human resources management includes all these activities plus organizational

developmental activities such as leadership, motivation, developing

organizational culture, communication of shared values, and so forth.

The human resource management approach remains integrated to the company’s

core strategy and vision. It seeks to optimize the use of human resource for the

fulfillment of organizational goals. This strategic and philosophical context of

human resource management makes it more purposeful, relevant, and more

effective compared to the personal management approach.

Difference in Approach

The personnel management approach tends to attach much importance to customs

and established practices, whereas the human resources approach gives

importance to values and mission.

The personnel management approach also concerns itself with establishing rules,

policies, procedures, and contracts, and strives to monitor and enforce compliance

to such regulations, with careful delineation of written contract. The human

resource management approach remains impatient with rules and regulations. HR

managers tend to relax rules based on business needs and exigencies, and aim to

go by the spirit of the contract rather than the letter of the contract.

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Different between personal management and Human resource management

Advantages of human resource management

Valuable:- High performance work systems increase value by establishing ways

to increase efficiency,decrease cost, improve process and provide something

unique to customers.

Rare :-High performance work system help to organizations development and

improve abilities that are not equally available to all organizations.

Difficult to initiate:- High performance work systems are designed around

teamprocess and capabilities that cannot be transported,duplicated or copied by

rival firms.

Organized:-High perfomance work systems compined the talents of employees

and rapidly deploy them in new assignment with maximum flexibility.

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Employee turnover

Employee turnover refers to the number or percentage of workers who leave an

organization and are replaced by new employees. Measuring employee turnover can be

helpful to employers that want to examine reasons for turnover or estimate the cost-to-

hire for budget purposes. Blanket references to turnover can be confusing; therefore,

specific definitions and calculations for employee turnover may be useful to human

resources practitioners.

Reasons of employee turnover:-

1. Rude behavior. Studies have shown that everyday indignities have an adverse

effect on productivity and result in good employees quitting. Rudeness, assigning

blame, back-biting, playing favorites and retaliations are among reasons that

aggravate employee turnover. Feeling resentful and mistreated is not an

enticement for a good work environment.

2. Work-life imbalance. Increasing with economic pressures, organizations

continue to demand that one person do the work of two or more people. This is

especially true when an organization downsizes or restructures, resulting in longer

hours and weekend work. Employees are forced to choose between a personal life

and a work life. This does not sit well with the current, younger workforce, and

this is compounded when both spouses or significant others work. 

3. The job did not meet expectations. It has become all too common for a job to

significantly vary from the initial description and what was promised during the

interviewing stage. When this happens it can lead to mistrust. The employee starts

to think, “What else are they not being truthful about?” When trust is missing,

there can be no real employee ownership.

4. Employee misalignment. Organizations should never hire employees (internal or

external) unless they are qualified for the job and in sync with the culture and

goals of the organization. Managers should not try to force a fit when there is

none. This is like trying to force a size-nine foot into a size-eight shoe. Neither

management nor employee will be happy, and it usually ends badly. 

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5. Feeling undervalued. Everyone wants to be recognized and rewarded for a job

well done. It’s part of our nature. Recognition does not have to be monetary. The

most effective recognition is sincere appreciation simply a nice thing to do but an

effective way to communicate appreciation for positive effort, while also reinforcing

those actions and behaviors.

Reasons for employee turnover in BK steel:-

Broke communication

Resource management

Poor leadership

Moral drop

Lack of motivation

Motivating the Employees in tough time

Praise and recognize hard work.-There are plenty of simple but effective ways

employers can recognize hard work, including emailing an appreciative note. Encourage

other employees to follow your lead. Organize recognition events to honor bigger

accomplishments at luncheons, banquets or company picnics.

Help employees fulfill career goals.-Sit down and find out what employees want to get

out of their jobs and the company in general. If the employee wants to take on more

responsibility or move into a different department, investigate the possibilities and get

back to them with options. Offer clear paths each time. If advancement requires a degree,

tell them about tuition assistance or scholarships the company may offer.

Move dissatisfied employees.-Some employees can’t be motivated and their discontent

can draw a disproportionate amount of time and energy away from managers. They can

also bring down the morale of an entire unit. Ask how you can help improve their work

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experience. Offer to move them into another work area, a different department or even a

different company.

Plug leaks.-Intercept rumors immediately since they can grow into unsubstantiated

concerns that can lower productivity.

Plan ahead.-Set long term goals with employees to show they have a future role with the

company.

Get out of the office.-Many companies sponsor community service days that allow

employees to get out of the office to do something that makes them feel good. Churches

and charities can help find suitable service projects.

Keep your own worries to yourself.-As a manager, you have two difficult jobs:

empathize with employees and deal with your own stress. It’s important to keep your

feelings private since your own apprehension can panic employees.

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ANSWER FOR THE QUESTION NO. 03

3. By avoiding the training theses five junior supervisors have done misconduct.

Explain what you mean by the term “Misconduct” and explain the impact of

these “supervisors misconduct” to the business.

“Misconduct” means some form of wrongdoing. Usually it will involve deliberate

wrongdoing, but there may be circumstances where an employee acts so carless that it

amounts to serious misconduct.

“Serious misconduct” involves serious wrongdoing. Where, after a fair process, it is

established that an employee’s actions amount to serious misconduct, an employer may

terminate the employee’s employment without notice.The misconduct must be

sufficiently serious that it undermines the trust and confidence that the employer has in

the employee (e.g. theft, sexual or other assault, or the use of illegal drugs at work).

Sometimes employment agreements list conduct that the agreement says amounts to

“serious misconduct”. If an employee engages in misconduct that is listed, that doesn’t

necessarily mean that serious misconduct has automatically occurred. In every case the

employer must consider all the facts and the employee’s response before it decides

whether serious misconduct has occurred. When this is done, what looked like serious

misconduct may not be so serious after all.

Also note that minor misconduct cannot become serious misconduct just because it is on

the serious misconduct list.

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Employee Minor/Major Misconduct

a. The company believes that a disciplined workforce is a prerequisite for productivity

and good workplace relations.  Therefore, employees are urged not to commit any act that

would be construed as misconduct and could result in disciplinary action.

b. Any employee who commits any act of misconduct may be suspended from work for a

period of two (2) weeks and shall be paid at no less than half wages.  The company

would carry out investigations and, if necessary, conduct an inquiry into the allegations.

If further suspension is required, the employee would be entitled to full wages.

c. Misconduct committed by employees may be minor or major. Generally the

commitment of a minor misconduct will not justify the punishment of dismissal unless it

is committed repeatedly. On the other hand a single act of major misconduct may justify

the punishment of dismissal. 

Impact of supervisor Misconduct of the business

Loss of production

Loss of revenue

Financial loss

Breakdown of work

Poor employee relations

Job dissatisfaction

Loss of time

Poor motivation.

ANSWER FOR THE QUESTION NO. 04

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4. If you are the personal manager/ HR manager in the BK steel what are the

steps you follow in order to punish these supervisors.

A disciplinary procedure is sometimes the best way for your employer to tell you when

something is wrong. It allows them to explain clearly what improvement is needed and

should give you an opportunity to put your side of the situation.

Employer must put their disciplinary procedure in writing, and make it easily available to

you (for example, by giving details in the staff handbook). It should include the rules,

what performance and behavior might lead to disciplinary action and what action your

employer might take.

Formal procedure

When taking formal disciplinary action, the employer should comply with the Statutory

Procedures by ensuring that the following steps are taken at all stages of the formal

disciplinary process.

Step 1: Statement of grounds for action and invitation to meeting:

The employer must provide to the employee a written statement of the alleged

misconduct which has led to the consideration of formal disciplinary action or dismissal.

The employer should invite the employee to a hearing to discuss the issue.

Step 2: Hearing:

Prior to the hearing the employer should supply any information relevant to the allegation

allowing the employee sufficient time to consider the detail and prepare their defense.

After the meeting the employer should inform the employee of the decision and offer the

right to appeal.

Step 3: Appeal:

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If the employee wishes to appeal he or she will inform the employer within five working

days. The employer will invite the employee to a further hearing to discuss the appeal.

The final decision will be communicated to the employee.

ANSWER FOR THE QUESTION NO. 05

5. Draft a sample show cause notice or charge sheet to be given to these junior

supervisors and explain the types of punishments you recommended for such

misconduct.

Sample of show – Cause notice

Date- 15th January 2015

Mr. XYZ (Employee NO.232)

Operation Department

BK steel

Dear Mr. XYZ

REQUEST FOR EXPLANATION

We have received a complaint that you have gone to see the match at

Khettarama instead of supervisory skills training workshop which has been

organized and officially informed you.

You are hereby required to give an explanation within 5 days as to why

disciplinary actions should not be taken against you. Should you fail to give

an explanation within a period stipulated, it shall be demand you no

responsible explanation to offer and as such, the company shall proceed to

take disciplinary action deemed necessary and appreciate. Thank you.

Yours faithfully,

Human resources manager

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Punishments for misconduct

Oral warnings/Reprimand.

Written warnings

Fines

Suspending

Transfer

Withholding in increments.

Demotion.

Dismissal.

Selecting of appropriate punishment

When selecting the appropriate punishment for these junior supervisors, the

management should consider the following:-

Gravity of the offence.

Past record of the employee

Length of service.

How courts will interfere.

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References.

www.google.com/search?q=human+resource+planning+process&ie=utf-8&oe=utf-8

http://WWW.answer.com/topic/industrial-relations

http://www.businessdictionary.com/definition/human-resources.html

http://en.wikipedia.org/wiki/Human_resources

https://www.google.com/search?

q=human+resources&ei=moAjVd_bJ4a8uASrwIHoBA#q=misconduct

https://www.google.com/search?

q=human+resources&ei=moAjVd_bJ4a8uASrwIHoBA#q=human+resources+jobs

www.google.com/search?

q=human+resources&ei=moAjVd_bJ4a8uASrwIHoBA#q=human+resources+job+descri

ption

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Thank you…..

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