HR Realigning HR Practices at Egan's Clothiers Case Study

Pages: 7 (2209 words)  ·  Style: MLA  ·  Bibliography Sources: 10  ·  File: .docx  ·  Topic: Business - Management

¶ … organization is fragmentized into several sub-organizations which work coherently to optimize the performance of the organization. Human Resource Department is viewed as sub-organization of relevance and importance in this respect. It is the Administration and Human Resource Department whose effective correspondence and correlation can improve all the activities under process within organizational structure. According to Karmarck A.M (author of Economics and Real World), the Human Resource Department and its functioning is the reflection of the organization's vision, and it is the HRD which handles the responsibility of introducing new faces into the organization, and training them so that maximum output can be extracted from them.

According to Karmarck, the economy of the organization is not counted upon its earning, rather its major criterion is the labor recruited by company. The labor cost and training are the subsequent steps that have to be looked after in the next step. The HRD is assigned to offer required professional training and learning sessions to the recruits, so that the recruits can practice their proficiency in competent manner. The organization is supposed to monitor and evaluate the performance of the recruits on the basis of performance and skills, and certain training sessions should be prescribed to the recruits. The salary and monetary compensations offered to the recruits and other employees should have variable grounds, the salary packages and other benefits offered should be on the basis of the department, performance, expertise and experience.

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At parallel, continuous inspection and observation should be conducted to ensure that the recruits and departments are performing their tasks with complete understanding and coherence. Performance management is an important assignment, and the organizational heads should ensure that the departments are working in harmony so as to obtain maximum results. The momentum of research, production, sales, marketing and profit should be exhibiting positive trend, rather than bearish spell.


Case Study on HR Case Study Realigning HR Practices at Egan's Clothiers Assignment

Egan's Clothiers Inc. started its operation in 1958. The company was started by Gene Egan and Pat Pollock. The company experienced tremendous rise in its business activities, and by the end of 1980s the company established many of its outlets across New York and New Jersey. The company offers variety of products ranging from sportswear, dress wear to related fashion accessories. By 1999 the company has workforce of more than 2400 people, majority of which are sales person.

The company has been recording profit since it started gaining momentum during 1980s. However from 1997 to 1999 company was earning lower percentage of profit. The revenues climbed significantly during this period, however the increase in the expenses is the reason the low profits. The Financial Report of the company for the year 2000 revealed that major chunk of company's money was being spent on the incomes and training of its employees. The company has policy of recruiting people with experience, and after recruitment the employees are trained, because the company believed that investing on the employees and their skills will bring rewards to the company. The company also introduced a certain performance grading criteria, and employee record software was also installed in all the outlets of the company. The company was offering lucrative pay scales to its employees, and the salary package varied significantly from the other companies.

However even after investing major chunk of money in the employees and the skills development, the results were not outstanding. The external sources revealed that the internal departments of the organization had certain complaints and reservations for each other, and this was another reason for company's poor financial results. The company has throughout stressed more on the employee's expertise, and emphasis on the production and quality standard is partial.


The management of the Egan's Clothiers Inc. needs to prioritize their agenda according to the need of time, rather than taking a particular course of action purely on the grounds of expectations and hope. The sincere efforts of the management towards bringing reforms, and upgrading the company's economic and production activities is laudable but those efforts should be concentrated and focusing towards each and every possible aspect related to the organizational structure. The company has considered Human Resource as fundamental for implementation of all the activities and plans, but it is to be realized that organizational affairs are never handled by investing into particular department of it, rather all the other departments need to gain momentum at parallel.

The company has been investing millions into Human Resource and its development. The company has very stern practice of recruiting only experienced individuals, the company launches training sessions at regular interval for its employees. The employees are provided with wide opportunities of flourishing within the existing setup. The employees are paid affluently by the employers. The company under these circumstances is definitely going to expect profit, irrespective of how much revenue the company has generated for itself. The company is leaving itself without any substantial monetary assurance or gain because what ever the company earns is shared in between the employees.

According to Karmarck findings, ' the company should be investing 30-40% of income on the employees and human resource development, 20-30% should be spent on enhancing production activities, and the remaining should be either pursued for the long-term investment or saving purpose, or shared among the partners and shareholders' (Economic and Real World).

The company that invests all of its earning on the its employees and salary packages should be ready for 'enlistment to defaulters list' (DeGarmo.,Engineering Economy).

The flaws into the company's management are discussed as follows,


The company has taken concrete steps in providing employees with ample opportunity to grow and excel. The employees are trained after regular interval, with the hope that their sincere practices with gather more customers for the company. The company introduced computerized system for managing employees data and corresponding activities, the software was accessible from all the outlets of the company, and acted as an interface between different employees, so that they can easily come across each other. The software was also introduced so that the employees can be informed about their performance evaluation. Such a scheme provided transparent medium for promoting the employees. However all these schemes, including the software installation and training sessions have made company spent more than required.

Recruiting experienced individuals on higher wages, and than again making them undergo training sessions is more to termed as futile exercise. The company has two visible options,

Either to recruit fresh graduates on reasonable wages, and train them to optimize their performance.

Recruit experienced individuals, make them achieve higher targets in exchange for good salary packages.

Installation of software for the employees scattered in 34 outlets is not fruitful exercise. The company should have rather convinced the employees to correspond via Internet or Intranet facility rather than investing more than a million in this project.

Training sessions should be conducted not for all, but only for those employees who are bring fame and reward to the company.

It is better to recruit the employees on the contract basis, or rather introduce performance criteria for hiring.

The salary packages should be introduced in comparison with the market offerings. It is not in the interest of the company to offer high wages without receiving substantial gains from the efforts of the employee perfectly salary package should be devised offering reasonable wages, with handsome share of commission and rewards purely on the performance basis.

PROMOTION WITHIN The professional environment varies significantly from organization to organization. The recruited employees are pioneer for establishing conducive working environment. However if the same employees stay in for longer, and promoted after regular intervals will contribute little towards the reforming and modifying the company's atmosphere. It is therefore advisable for the company management to establish external recruitment policy, so that the newcomers can bring new dimension to the ongoing business and promotional activities.

Promotion Within provides employees with feeling of ease and comfort towards their profession and assignment. Therefore the company should discourage practicing Promotion Within policy, and only if the employee's performance is found up to the mark, then the promotion scheme should be applied.

The best way to optimize and extract maximum output from the employees is to created competitive workplace environment, this can be achieved if external recruitment is adopted. The company should encourage external recruitment, so that the old employees find it necessary to perform so that their job and contract remains secure. This policy can create unrest among the employees but if the management takes some precautionary measures, such that the sense of professional rivalries should be replaced by professional adventurism, the unrest can be controlled and monitored.

The promotion scheme should be applied after gap of certain years, and the promotion criteria should be performance rather than the experience of the employees. This policy will decelerate the promotional activities of the employees, and in this manner company's spending on offering luxury and high wages will reduce.


The organizational activities can never be practiced by relying on the… [END OF PREVIEW] . . . READ MORE

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APA Style

HR Realigning HR Practices at Egan's Clothiers.  (2006, November 26).  Retrieved June 4, 2020, from

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"HR Realigning HR Practices at Egan's Clothiers."  26 November 2006.  Web.  4 June 2020. <>.

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"HR Realigning HR Practices at Egan's Clothiers."  November 26, 2006.  Accessed June 4, 2020.