Josita Farm HR: Challenges, Models & Improvement Case Study

1.0 Introduction

Human resources management (HRM) is the process which includes attracting, managing, controlling and recruiting employees of the company. This is the crucial part of each organisation as employee’s performance is directly linked with overall growth of the organization. This report is based on the case study of Josita farm (JF) that is aiming at providing high quality and fresh food product to the consumer while taking care of sustainable approaches. This report will discuss on various challenges and issue that has been faced by company in recruiting and retaining employees within firm. It will also depict on various HRM model, concept and theories that has been used by JF farm and its impact on working of company. This report will discuss on various positive aspect of JF and recommendation will be provided to improve HRM of the company.

2. Challenges And Issues

2.1 Strategic goals and objective of Josita farms

Josita farm has been established with the motive of providing fresh and quality food product to consumer that has been extracted from farm. They are also targeting towards achieving goals with implementing sustainable activities that aim at reducing the amount of waste in environment and conserving biodiversity & environment of country. For achieving its objective company has focused towards identifying innovative technology that helps in improving its processes, product and services leading to decreasing cost for an organization.

2.2 HRM issues and challenges faced by JF and its impact on organisation performance

There are various challenges and issues that has been faced by JF during Covid 19 and that are having long lasting impact on their overall performances. Some of the challenges faced by company are as follows:

Poor employee’s engagement: Employees engagement is crucial that helps in determining the level of worker’s satisfaction which assists in improving their overall performances. HR manager in JF did not pay focus towards creating adequate scenario that aims at improving employee’s involvement within firm’s operations (Andalib, Darun and Azizan, 2019). During Covid 19 this issue has become more popular as employees could not come to industries and have contact with other employees. This leads to reduction in employee’s engagement in the decision making and other working of company.

Face difficulty in the retention of employees: Each company focused towards acquiring and retaining talent management within the firm. This helps company in reducing its cost as company is required to organize training & recruitment session for the new ones. JF has not been able to provide adequate financial and non financial incentives that lead to reduction in motivation level of employees. At the time of Covid-19 people were more concerned towards staying at home which results into losing of many jobs (Chen et al, 2020). As the growth opportunity has been increased for JF, firm has started creating pressure on employees to work for extra time leading to impacting their social life that result into reducing their satisfaction.

Lack of training & development session: Employees are concerned towards working in firm that helps in improving their existing skill and provides opportunity to develop new skills. Training & development policy of JF was not effective as employees in the firm were asked to understand the work from their superiors (existing employees) and do task accordingly. This provides no scope for employees to indulge in other activities and develop new skills that help in attaining overall objective. As company is not providing such session, firm has faced challenges to maintain efficiency of their operation. This results into delay in the task completion and eventually leads to decreases operational efficiency of the firm. Cost and budget of organization has been negatively impacted as operational deficiency results into increasing amount of waste.

Ineffective recruitment process: It is the most important process as effectiveness and efficiency in achieving objective highly depends on the capability and skills of employees. This process helps in attaining more skilled and qualified human resources that are the most crucial for the development of organisation. JF is not following an appropriate system for acquiring employees. During Covid Company’s recruitment system involve meeting with candidate for 20 min on online platform and select them based on their interview (Cooke, Dickmann and Parry, 2020). This is not an effective method as practical knowledge is more important than theoretical and employees should be acquired after detail investigation on its background and past experiences. It impact on overall working of firm as employees selected are not best suited for the job position.

3. Various Hrm Models, Concepts And Theories Used By Josita Farm

3.1 Defining HRM recruitment and selection models, theories, and concepts

There are various model, and concept in HRM that assist in providing measures by which performance of employees could be improved that eventually results in overall development of the organization. AMO, Michigan framework, 5P’S and human capital theory need to be used by JF firm that will help in adequately achieving organisational objective of organization.

AMO theory: This HR model that aim at defining the relationship between the Practices of employees and its impact on their performances (AMO theory of HRM, 2024). This has been determined by analysing the ability, motivation and opportunity available to employees. According to theory this element together helps in fulfilling the requirement of employees and results into improving the overall performance of organization. HR of company should focus towards fulfilling element within operation for effectively working of the company. Application of this theory in JF can be understood by the following points:

• Ability: The working of company is focusing towards providing fresh and quality product to consumer by using various digital platforms. This requires firm to hire employees that are having suitable skills and techniques for accomplish goals. To acquire highly skilled employees firm needs to focus on establishing a recruitment strategies that aims at evaluating employees before selecting them. Ability could be enhanced by providing adequate training and development session.
• Motivation: It is very crucial for the manager to provide various incentives that assists in improving motivation and satisfaction of employees. Demand for farm product has been increased due to focus on healthy life during Covid. This leads to sudden expansion in the operation of company those results into enhancing work forces, acquiring new technologies (de Zubielqui, Fryges and Jones, 2019). This creates pressure for companies to focus on improving motivation of employee’s that helps in retain employees within firm and assists in improving their overall performances.
• Opportunity: JF is providing an effective amount of opportunity to employees for demonstrating their skills and magnify the existing one. This includes conducting 20 min online interview during Covid that aims at providing scope to candidate for delivering their knowledge and dispense fair chances to be selected by the company. Under on-boarding training, employers are provided with farm tour that assists in gaining in-depth knowledge regarding work. Employees are also allowed to work with existing employees that helps in broadening their understanding regarding rules and regulation of firm.

Human capital theory: Training & development sessions are crucial part of HRM that assists in determining overall performance of the employees. This theory focuses on enhancing the skill and abilities of employees by providing adequate training. Emphasis has been paid towards the importance of human capital in the organisation and its impact on overall development of business entity. It has been given that all physical capital is of no use if company has not acquired optimum amount of human capital. Therefore, to increase overall efficiency of the firm, focus need to be paid towards the development of employees (Ererdi et al, 2022). In the case study, JF has able to acquire talented employees, develop their skills and capable in relation to increasing productivity level. It clearly indicates that company is effectively using this theory within their operations and to enhance retention of employees various incentives need to be provided.

Michigan framework: Strategic HRM has been promoted through this framework by focusing on workforce management and professional group within the firm. This strategy is focusing towards aligning human resources of company with polices and structure. Under this framework, emphasis has been put towards achieving strategic objective of firm by focusing on training program. In the case study, JK is focusing towards increasing operational efficiency that helps in meeting overall objective of the employees (Gooderham, Mayrhofer and Brewster, 2019). To achieve this, organization should focus towards following an effective framework that involves recruitment, selection and performance management. There are various factors which are impacting organization efficiency that includes, political, economical, social, cultural and company’s structures. Awareness need to be created among employees regarding all the factors and measures by which theses obstacles could be overcome. This together will help in reducing negative impact and eventually results in increasing productivity within farm.

5 P’s model: This model emphasizes on the importance of values and ethics within the organization that an individual needs to follow. This model is related to the purpose, process, principle, people and performance within firm. Application of 5P’s model is as follows:

• Purpose: This involves determining and defined vision, goals & objectives of the company. Visions of company are linked with providing high quality and fresh food product to consumer by employing sustainable measures within its operations (Mat et al, 2021). For achieving the vision, company needs to establish goals related to acquiring talented employees and providing incentive by which workers could be retain within firm.
• Principle: This includes the entire crucial elements that will help in achieving goals of organization. Improving employing motivation, providing training & development session, financial benefits, recognition and positive work culture are various principles that help in achieving goals.
• Process: JF is targeting towards using sustainable process for providing healthier and quality product to its employees. To improve its process company should focus towards educating employees regarding technology by which product should be effectively produced.
• People: It includes determining the type and number of employees required to run the firm (Mio, Panfilo and Blundo, 2020). For effectively accomplish the goal of providing goods thorough digital platforms, JF has acquired highly skilled and talent employees within company.
• Performance: Under this step, performance of employees has been measured to identify deviations. HR of JF needs to decide on training program after evaluating the performance of employees during Covid.

3.2 Effect on the behaviour of the Staff within the Workplace

3.3 Effect on the company performance/productivity

4. Analysis

All the theories that have been used by Josita farm need to evaluate to determined the negative and positive impact on overall working of firm. Below is the evaluation of theories:

4.1 & 4.2 Positive impact of theories:

AMO theory: This theory is focusing towards providing management tools that helps in improving the performance of employees while following objective and mission of organization. This theory has been effectively used by company as manager has focused towards determine the skills of employees that helps in achieving the goal of firm. Various training sessions has been conducted and incentives policies had formed to influence employees to work in aligning with organization goal (Shahi and Neloy, 2020). Opportunity has been provided to better understand Working of company that assist in improving their performances.

Human capital theories: JF is implementing these strategies within its operation that results in improving morale, growth, satisfaction and engagement of the employees. This approach helps JF in acquiring and recruiting highly skilled and talented employees within its firm that results into effectively achieving goals of the company.

Michigan framework: By using this model, company is able to manage its workforce and aiming at creating competitive edge in the industry. JF is targeting towards attracting and acquiring highly qualified employees (Tiwari, Srivastava and Kumar, 2019). Firm is creating competitive edge by producing goods through sustainable activities for which JF is focusing on improving the skills of employees by organizing training sessions.

5P model: This model helps management of organisation in effectively carrying out its operations. JF is targeting towards providing high quality fresh food product to consumer through online mode (Podgorodnichenko, Edgar and McAndrew, 2020). This requires company to follow current procedure which is working effectively towards growth of company. It has been identified that company is efficiently managing its process, performances and human resources that results in getting optimum results.

4.3 Negative impact of theories

AMO theory: To increase worker’s efficiency, manager in JF has adopted policies that include creating pressure of them to complete particulate task and forcing them to work overtime. This does not lead to increases in motivation level rather results in enhancing turnover rate within the firm. Without applying this theory, manager will not able to identify issues that have been faced by the employees which result into decreasing satisfaction level.

Human capital theories: It has been identified that firm is not effectively using their strategies which result into lowering the operational efficiency of company (Human capital theories, 2023). Firm has increased the working hours for employees that results into decreasing their satisfaction level and increasing turnover rate of the company.

Michigan framework: Productivity level of employees could not be determined unless this framework has been used. Company is unable to identify the need and requirement of employees and did not provide training session according their goals.

5P model: Training session, process and performance monitoring cannot be effectively carrying out without utilizing this approach. This model does not provide clearly estimation regarding growth and development within the firm.

5. Recommendation

5.1 Models Josita Farm should implement

After analysis the current Josita farm model, it has been identified that human resources within company are facing various issues which leads to decreases in overall productivity. Company should lay emphasis towards using the Warwick and Fombrun model of HRM that assist in effective managing human resources of firm. Warwick model of HRM is concentrating towards aligning HR models with firm’s strategy. This model has been divided into 4 broad categories that involve outer context, HRM context, company strategy content and inner context. Outer is related with analysis externals business environment & inner context involve evaluating internal culture, structure and polices of company (Fombrun theory of HRM, 2021). Other two factors present that company’s strategies should be focused on enhancing HRM policies of firm. Fombrun model focuses on bringing changes in the HR policies of company according to changing environment. This provides description regarding managing work force of company and how manager could motive employees to improve their performance.

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5.2 Impact of model on improving Josita farm performance:

Using Warwick model will help in determining the changes that are occurring in the external & internal environment that assists firm in forming strategies accordingly. This will help in identifying threats and formed policies which assist in creating competitive edge within the industry (Shah and Khan, 2019). This model also provided information regarding the training session that need to be conducted for improving performance of employees.

Fombrun model provide information regarding various incentive by which employees motivation level could be improved. This will help in satisfying their personal needs that eventually results in enhancing overall performance of the company.

6.0 Conclusion

By summing up this report, it has been identified that company should effectively manage its growth with its HRM strategies that will help in overall development. AMO theory, 5P, Michigan and Human capital theories has been used to analyse the effectiveness of current HRM strategies and it impacts. It has been identified that company is not having an effective recruitment and training strategies that result into increasing employee’s turnover. It has been determined that company should use Warwick and Fombrun theory of HRM that focusing on providing adequate incentives that assist in improving performance of employees.

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7.0 References

Books and Journals

Andalib, T.W., Darun, M.R. and Azizan, N.A., 2019. East Asian trends of human resource management: theories and practices. International Journal of Human Resources Development and Management, 19(2), pp.135-149.

Chen, P., Powers, J.T., Katragadda, K.R., Cohen, G.L. and Dweck, C.S., 2020. A strategic mindset: An orientation toward strategic behavior during goal pursuit. Proceedings of the National Academy of Sciences, 117(25), pp.14066-14072.

Cooke, F.L., Dickmann, M. and Parry, E., 2020. Important issues in human resource management: introduction to the 2020 review issue. The International Journal of Human Resource Management, 31(1), pp.1-5.

de Zubielqui, G.C., Fryges, H. and Jones, J., 2019. Social media, open innovation & HRM: Implications for performance. Technological Forecasting and Social Change, 144, pp.334-347.

Ererdi, C., Nurgabdeshov, A., Kozhakhmet, S., Rofcanin, Y. and Demirbag, M., 2022. International HRM in the context of uncertainty and crisis: A systematic review of literature (2000–2018). The International Journal of Human Resource Management, 33(12), pp.2503-2540.

Gooderham, P.N., Mayrhofer, W. and Brewster, C., 2019. A framework for comparative institutional research on HRM. The international journal of human resource management, 30(1), pp.5-30.

Mat, N.H.N., Mohamed, W.N., Salleh, H.S. and Yusof, Y., 2021. HRM and Employee Significant Behavior: Explaining the Black Box through AMO Theory. Pertanika Journal of Social Sciences & Humanities, 29(4).

Mio, C., Panfilo, S. and Blundo, B., 2020. Sustainable development goals and the strategic role of business: A systematic literature review. Business Strategy and the Environment, 29(8), pp.3220-3245.

Podgorodnichenko, N., Edgar, F. and McAndrew, I., 2020. The role of HRM in developing sustainable organizations: Contemporary challenges and contradictions. Human Resource Management Review, 30(3), p.100685.

Shah, A.U. and Khan, M.I., 2019. HRM-Performance Perspectives: An overview of Theoratical Challenges and Prospects. Engineering Economics, 30(3), pp.382-393.

Shahi, K. and Neloy, H., 2020. Global transition of HR practices in covid-19 pandemic situation: a systematic review through 5P's model of HRM. Management and Human Resource Research Journal, 9(6), pp.50-57.

Tiwari, V., Srivastava, S. and Kumar, D.P., 2019. Adoption of HRM practices: A practical model-case study of a hotel. IOSR Journal of Business and Management (IOSR-JBM), 21(4), pp.59-63.

Online

AMO theory of HRM. 2024. Online. Available through: <https://study.com/academy/lesson/amo-theory-ability-motivation-opportunities.html#:~:text=The%20AMO%20theory%20suggests%20that,%2C%20and%20opportunity%20(AMO).>

Fombrun theory of HRM. 2021. Online. Available through: < https://agilityportal.io/blog/fombrun-model-of-hrm-updated-2021-a-complete-guide#:~:text=Fombrun%20Tichy%20and%20Devanna%20Model%20of%20HRM,-Devanna&text=It%20focuses%20on%20only%20four%20functions%20and%20their%20interrelationships.,to%20contribute%20to%20organizational%20effectiveness.>

Human capital theories. 2023. Online. Available through: < https://www.healthassured.org/blog/human-capital-theory/#:~:text=Human%20capital%20theory%20is%20about,we%20function%20as%20a%20society.>