Term Paper: Harvard Business Review Case Named

Pages: 5 (1405 words)  ·  Bibliography Sources: 5  ·  Level: College Senior  ·  Topic: Business  ·  Buy This Paper


[. . .] Delarks could also contract a HR consultant firm that would best help them in employee motivation and loyalty.

The other move was for the company's CEO to come out clearly and tell the staff what they want to hear as well as assure them that their jobs are safe.

Alternatively the company could increase the salaries of its employees the same way they did for the CEO after the layoffs.

Advantages of each alternative

Re-calling back some former employees has the advantage of reassuring everyone else that indeed the company valued and will value its' employees for their contribution, this move would go a long way in boosting the employees morale, motivation and loyalty. Re-calling back valuable employees like Mrs. Gracia would also guarantee the company of its' improved performance.

Contracting a HR consultancy firm to aid in employee motivation and loyalty would definitely work since they are professionally trained for such tasks.

According to Russ-Eft and Preskill (2001, 77-89), employees are likely to believe in the word of mouth coming from the CEO, if he comes out to reassure them of their job security.

Swanson (2001, 299-312) in his studies noted that salary increment can easily work the magic for employee motivation and loyalty and this would reduce the turnover rate.

Disadvantage of each alternative

Re-calling back employees such as Mrs. Collier who was a low performer would negatively affect the company's profitability, as for managers like Mrs. Gracia; re-calling them back would expose the company as being too much reliant on individuals rather than in the team spirit and this would also mean that its human resource development is inefficient.

Contracting a HR consultancy firms is expensive and it usually results to an increase in expenses for a company.

The re-assurance from a company's CEO would be a disadvantage to him or her since he can't act against promise earlier made and when situations call for drastic measures to be taken like layoffs, the boss's hands would be tied. Swanson and Holton (1999, 12-23) suggest that promises are blunders since no CEO can promise profitability five years to come as the business World is filled with uncertainty.

Salary increment will also be an additional expense to the company.

Conclusion and recommendation

After a critical analysis of this Harvard Business Review it is evident that the main cause of the problem was lack of effective communication from the management and especially the company's CEO. If the employees had been earlier informed about the impending layoffs, even if affected this would have meant that they were valued by the company for their contribution and most importantly they were respected irrespective of their various positions. Such a move would not have resulted to a discontent like the one that was witnessed after the layoffs.

A recommendable action that could have solved the problem was contracting a HR consultancy firm, which is cheaper than all the alternatives and the company would be assured that the HR firm would use their professional skills to boost the employees' moral; motivation and most importantly make employees loyal to the company once again.

Follow-up and evaluation

The HR consultancy firm is also still in the best position to evaluate the effectiveness of their service, but mean while a decrease in employee turnover and high morale among the staff would be a signal that the recommended action was successful.

The company on the other hand is supposed to undertake corrective measures such as creating an effective channel of communication that will reach each and every member of the organization; this will ensure the success of the recommended action.

Work Cited

Chalofsky, N.E. (1998). Professionalization comes from theory and research: The "why" instead of the "how-to." Academy of Human Resource Development, Baton Rouge, L.A.

McLean G.N., (2006) A Focused Study in Transitioning Societies in the Developing World, In Advances in Developing Human Resources National Human Resource Development

Russ-Eft, D., and Preskill, H. (2001), Evaluation in organizations: A systematic approach to enhancing learning, performance, and change. Cambridge, MA: Perseus Press.

Swanson, R.A. (2001). HRD and its underlying theory, Human Resource Development International,

Swanson, R.A., and Holton, E.F., (1999) Results: How to… [END OF PREVIEW]

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