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A Case study on The HRM Function/Environment

Mount Ridge Engineering Systems

45 workers per plant). builds and operates standardized coalfired utility plants • Sells ▫ steam to the industrial plant ▫ electricity to local utility • Present – 5 plants(approx. 183 plant staffs • Fast growing successful company . 39 corporate staffs.Background • Designs.

650 employees in next 2-3 years time • No employee profit sharing plan • Remain non union – maintaining quality work life and attractive benefits .Business Strategy/Goals • Cost leadership – efficient plants • Low cost production – competitive advantage • Aggressive expansion plans – 9 plants.

HR Practices • HR Director – Joyce Newcombe • Complete HR system developed ▫ ▫ ▫ ▫ ▫ Employee benefit packages Employee handbook Job description Salary program Supervisor’s manual. other personnel policies • Philosophy. company-employee relationship • Annual employee appreciation dinner • Personnel operation centralized to corporate headquarters .to place great value to company-client relationship.

HR ISSUES • relationship between corporate human resources structure and operations at the plant level – weak/loose • Getting management to understand legal and governmental regulations affecting HR • Supervisors not following company policy • No actual implementation of the HR policies at plant level • Insufficient or out of date HR policies .

Typical Case : Edison Plant • Eastern region of Kentucky – 45 employees • Larry Braxton – Plant superintendent • Bud Johnson – auxiliary operator. sometimes performs job of equipment operator. solve problem no one else can handle .

HR Problem: Edison Plant • on going argument between Braxton and Johnson – Johnson’s promotion to equipment operator • Assignment beyond job description or employee handbook • Johnson.dissatisfied with annual evaluation – didn’t follow personnel regulations before taking leave • No proper termination policy .

Causes of Problem • Rapid expansion preventing proper dissemination of human resource policies • Lack of comprehensive human resource training program • Lack of proper human resource related internal controls • Lack of awareness regarding legal and governmental regulations affecting HR procedures .

Recommendations • Setup training program for plant supervisors for better human resource practices and company policies • Re-design the termination process and procedure • Maintain a HR officer in each plant • Setup an audit and supervising mechanism • Setup a communication channel to file in complaints • Make plant management aware – legal and governmental regulations affecting HR .