Reference no: EM132777077

Question: Starter Case Study: Human Resource Management

In 1960, Northstar was one of five steel producers located in Oldstown, which, in all employed some 26% of the town's mill-ageeligible adult population. Today, it is the sole surviving steel producer, employing some 2% of the eligible adult male population. Traditionally, Northstar supplied the shipping industry but today it owes its survival to a gradual shift to smaller batch production, providing specialist products in niches of the market not covered by major Far Eastern steel producers.

As a result of this shift, Northstar has been forced to redefine the manner in which it manages its human resources. Most recently, senior management has begun to explore the possibility of adopting an employee involvement programme (EIP). It is hoped that such a programme will encourage commitment, facilitate further multi-skilling and ultimately enhance the quality of the products produced. Theoretically, the success of an EIP is predicated on both parties' adopting co-operative norms of power-sharing to a lesser or greater extent.

Work at Northstar has for many years been characterised by employee defiance of many of the rules imposed by the company (and in many cases, by the union as well). Workers 'know their jobs', and have committed their lives to making the world's best steel. However, they have also found time to redefine the work area to meet their own needs and norms.

A workplace survey revealed that workers tended to see supervisors as incompetent, 'lacking family values' and big drinkers, and senior management seemed to be held in even lower esteem.

Moreover, workers 'make their own tea breaks', engaging in recreational activity on company time - a practice that supervisors turn a blind eye to, within certain parameters. Finally, Northstar has always been dogged by high levels of petty theft of company property.

What changes to or reforms of the reward system might help solve some of the problems faced by management in this organisation?