Organizational Culture: Great Cups of Coffee Company (GC3) is looking to improve its competitiveness in the market by adopting a few strategies and changes in different departments within the organization. The success of the organization highly relies on the HR function that suggests a few areas that need to be improved. The proposition of the HR manager stems from some of the identified issues within the organization that is heavily influencing the profitability and performance of the company. With an appropriate budget designed to ensure the improvements are actualized sufficiently, the turnover rate would substantially improve as well as the success of the company.
According to the HR department, GC3 operates on a low turnover rate. It floats around 125 percent for the freelance and entry-level posts. There is also the problem of segmentation of the market which has seen the company suffer from the inability to keep upscale store managers and great difficulty in acquiring hourly workers for some stores. Other concerns include the lack of active organizational culture for stores in specific areas and shifting its expansion strategies (acquisitions) to focus on attaining and maintaining a sustainable competitive position. To address these issues, procedures such as training of workers, hiring plans, and working on unique organizational culture for stores in different locations.
As outlined in Appendix I, the areas of concern and proposed strategies have been allocated appropriate financial resources – store employee salaries and benefits, training, and advertising and recruiting. Employee turnover is a significant concern for all organizations especially for a company in a competitive and sensitive industry like GC3. The initial phase of the training program is expected to incur substantial costs. However, after successful training, employee retention and high productivity will be guaranteed. The implications of practice will see low turnover rates in some of the affected stores and improved employee performance including the struggling part-time and entry-level positions.
The company is embarking on a strategy that aims at improving its online presence according to the marketing department. The adoption of digital marketing in particular reference to social media and website usage and marketing requires appropriate knowledge and skills among users of such platforms. Training is aimed at addressing the skill gap between the current status of employees regarding digital marketing and the skills they are required to possess. By acquiring these sets of skills and knowledge, they will increase their contribution to the business. It would also immensely impact the profitability level and competitiveness of the company.
Regardless of the expected benefits accruing from adequate training, there is the issue of insufficiency of financial resources as revealed by the proposed budget. For instance, there is just a mere 2 percent increase in employee training expenditure from 2017 to 2018. Currently, the company incurs $200,000 on the exercise alone, a figure that has also been on the rise from the previous fiscal years. An increase of just $4,000 would not be sufficient to engage the Chicago Group – an employee training and development expert – for the training needs of the company. The company’s finance department needs to pump more funds into the HR department to ensure the training programs are actualized.
The HR department also proposes an improvement in the organizational culture of the firm. Currently, GC3 uses the same culture across its stores despite the existing notable differences between the regions the company operates in. Having an ideal organizational culture impacts employees in several ways including improved performance, employee happiness, job satisfaction, and increased employee engagement. The idea behind corporate culture and how to go about it as suggested by the HR manager is to ensure organizations in different areas of operations such as Chicago, New York, Pittsburg and the like to create an organizational culture that aligns with the general culture of the respective city. It is the role of the leaders to develop and promote ideal cultures at the stores.
Another critical area that needs to be addressed includes hiring strategies. The challenges the company is facing could be as a result of not attracting and retaining the best talent. There is a need to transform its approaches to hiring for purposes of making sure the firm attracts not only the best talents and skills in the market but individuals who are enthusiastic about working for the organization. The approach is likely to come at a cost, but the financial results will be worth it. The costs involved in replacing lost employees will be saved and channeled to other demanding areas.
Appendix I shows the budgetary needs to roll out human resource plans for purposes of putting the company on its strategic path towards its desired future. Although at the beginning the programs might be costly to GC3, the results of the programs are almost immediate and might be realized in the same year. Some of the benefits to be achieved include improved sales, higher productivity rates, increased employee morale and satisfaction, improved customer service, higher profitability, and a low turnover rate among others.
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