Harrison Brothers Corporation Kwanghun Cheong Essay

1. BackgroundHarrison Brothers Corporation (HBC) is traditional department store that extends business field from clothing to habitation furnishing and home items recently to become the leading chain of department stores in the Northeast. Todays customers are quickly changing needs to have something for both(prenominal) value and specialization. In addition, competitors such as superstores and giant discounters are increasing. CEO of HBC clarified the companys scheme that is reposition of offering exciting target names, excellent sales help, and frequent sales. Further much, CEO has been agonizing HR function since he felt the employee quality and performance would be important to get the strategical goal.2. Problem DefinitionMain problem of HBCs HR department is that organization good example of HR department does not function as strategic business partner. In the short run, HBC does not keep a well-trained, highly motivated workers and there is a shortage of professional emp loyees all the time. In the wide run, the HR department does not contribute to achieving the companys strategic goal.3. Cause of Problem (Analysis)1) Insufficiency of aggressive act to external environmental changes As competitors increase, the HR department has difficulty retaining competent employees. So, they spend most of time doing administrative role such as recruiting and training new employees. Even though sales employees are key to promote business, new employees who are wanting in ability are assigned to sales. We get some employees who cannot effectively ace the cash register training. Our training tries to expose them to selling techniques and how to properly interact with customer2) Organization model of HR department which does not align with strategy Though the company is traditionally highly change, HR functions are entirely centralized. So, there is a gap between the HR department and the other sales departments, and the HR department eventually cannot consider the business oriented strategy. Also, as independent HR department, there are 3 staffs except a flight simulator and a payroll clerk. So, they cannot deal with extension ofbusiness because of increasing administrative job.3) HR motorbuss lack of strategic awarenessAlthough HBC ask the HR manager to become a business partner, she focuses on internal issues such as amendment of HR process and managing HR team. Ex) As the results of questionnaire completed by HR (Exhibit 1.4), the HR manager focuses on staffing and performance management, while store managers ask HR to focus on knowledge of business and managing change additionally.4) OthersShort depot result principal makes difficulty training to sense customers sensitive changes. HR department has been recognized cost center.4. Alternative Solutions1) Restructuring HR policies which is suitable for strategyHBC should get under ones skin professional employees long service through amendment of Compensation systemAS WASTO BECompensa tion system. Monthly term incentive. Minimum shank pay. Long term incentive. Raise base payLong term incentive paying incentive to employees after 2 or 3 years in the light of personal and company performance. (Effects inducing employees of ability, retaining them) To stabilization of livelihood, base pay should be raised below budget. For the early due date of newly market entry, HBC should prepare for system of reaction to changes such as holding regularly market trend seminars. 2) Establishing strategic suitable HR modelHRs administrative role should be empowered to sales managers and HR department just should take a role of professional gathering and advice to salesmanagers. So, sales managers should be responsible for man-power management such as evaluation, recruiting, and termination. On the other hand, HR department focuses on consulting sales organizations to become a value-adding strategic partner. Additionally, it also concentrates on structuring organization culture and managing sensitive changes.HR should have pay constitution role, but valueless payroll function should be outsourced because payroll function is simple and repetitive if policy is definite. In addition, where new employee can learn selling techniques well is sales departments. So, the role should be decentralized to the sales departments. When all the HRs role and functions are newly defined, sales and operation managers should get involved to all the organization become more strategic.AS WASTO BEHR Organization chart. HR manager. HR assistant 2. Trainer. Payroll clerk(5 employees). HR manager. HR assistant 2(3 employees)HRs function. Recruiting & Interviewing. Structuring & OperatingHR policy. Training new employees. Payroll(McCains view). Structuring HR policy. Consulting. Structuring organizationCulture. Managing changesSales function. Sales. Sales. Operating HR policy. Training new employees3) HR manager relieverBrenda should be forward deployed to sales department to sys tematically train as the future HR manager successor who fully understand management and solid organization. HBC should assign the new HR manager who perfectly understands business and strategy from either external HR expertise or one of the sales manager.The flowing superficial problem is shortage of professional employees and the root problem is that HR organization model is not align with strategy. Tosolve the superficial problem HBC should beseech forward restructuring HR policies. Unless this problem is solved, it is meaningless to say the future of the company. Also, to solve root problem, HR organization model should be made a origin reform. When HR supports the companys strategy, the company can be developed in one direction. On the other hand, HR manager replacement is extreme action and it could make whole organization increase tension. So, this action should be acted as a last resort.