The case study focuses on the growth of the debt purchase company of United Kingdom. The company is known as Debt Busters. The study will focus on the case study analysis of the strategic human resource issues of Debt Busters in the financial market of United Kingdom. It will describe about the analysis of leadership style practiced by the senior leaders of the company along with the significance of it in the human resource management strategic planning.
Debt Busters is in the verge of expansion in many areas of United Kingdom. As the company is expanding its branches, hence the company is recruiting people from the market. The case study portrays the fact that the different types of communication used by the employees were open and it is found to be more abrasive in nature. This culture is responsible for tough selection of the candidates that will filter out the candidates who are sensitive in nature. Hence, it can be seen that this is an issue in terms of recruitment of the candidates (Schuler and Jackson 1999). It is seen that sensitive people also perform well in organizations if they have the required level of expertise. Some employees of the organization are very fast paced and aggressive in nature. They sometimes do not complete the procedure of documentation of the newly recruited candidates.
On the contrary, it is seen that the centralised control of Antony Brown is very autocratic in nature. The change occurred in the company is done by Antony itself without the consent of other employees of the organization. Antony practised a centralised control on every department of the organization through his leadership skills. He considered himself as the main influencer. The senior management of the company is supporting the centralised control of Antony in the company. It creates a problem in the middle level and junior level employees of the company because they are not involved in the decision making process of the company. They don’t have any influence on the decision making process on change management and other decisions related to the company (Torrington, Hall and Taylor 2011).
The decision of Antony despite of having issues with other employees is responsible for bringing positive change in the organizational culture of the company. The senior management of the company has decided to follow the organizational culture of General Electric. The culture of general electric is responsible for bringing a positive attitude on the employees of the company that leads to success of the company in terms of business expansion. The company recruits the ex-employees of the General Electric so that they can influence the existing employees of the company (Millmore et al. 2007).
It can be said that Debt Busters is finding issues in terms of employee relations and wrong pattern of leadership styles followed by Antony along with the senior management of the company. Initially, the company is opened as a small medium enterprise with a single branch in United Kingdom. However, with the leadership of Antony and other senior management officials the company has witnessed many growths. But the internal management of the company are not at all strong. The employees are not happy with the autocratic leadership policies. Apart from that, the HRM policies of the company are not sound enough to mitigate the issues of the employees (Armstrong 2016).
These issues can be solved by practicing meetings, effective communication with the employees of the company. The effective communication is the only key to solve the issues of the employee for creating a culture that supports a positive growth of employee relations. Apart from that, participative leadership style or situational leadership style must be followed in order to participate every manager and executives of various operational fields. Participative leadership of the senior management will help in gaining the trust of the employees of the company. Besides this, the decision-making process of the company will be improved and it will formulate better decisions. The employees will feel important in their designation of the work. Hence, they will give their best output in the field of work. Thus, the relation between the junior employees and the senior employees are maintained (Torrington, Hall and Taylor 2011). Apart from that, it can be said leadership developmental program should be started in order to nurture the culture of participative leadership among the minds of the employees.
Strengths- Debt Busters is a leading financial company that has a good management system that helps the company to expand its business in a very faster pace. The senior leadership of the company is strong enough to build strategies for business expansion in different parts of United Kingdom (Mabey 1998).
Weaknesses- The autocratic leadership of the stakeholders and the strategic management team of the company is the main weakness. It leads to weaker employee relations, poor decision making between the employees.
Opportunities- The financial market of the country is stable. The expansion policies of the company are stable enough to compete with the rival companies. However, Debt Busters is using the organizational culture process of General Electric that is responsible for the growth of culture within the organization (Leopold and Harris 2009).
Threats- The competitors are using expansion strategies as well as other business growth strategies that not only focus on the external business conditions but also they focuses on the internal HRM practices of the organization that can be a threat to Debt Busters.
Leadership is an important aspect that is responsible for the growth of the company in the organizational growth. The leaders of the company itself develop the leadership style of the company. It is found that the leadership style of Debt Busters is autocratic leadership. The senior management of the company along with the leadership of Antony is responsible for practicing autocratic leadership among the organization. The organizational goals of the company are formulated by SMART objectives that lead to perfect utilization of the organizational goals of General Electric (Beardwell and Claydon 2010). Recruitment of few ex-employees of General Electric is responsible for the higher performance of the employees in terms of motivation, employee performance, and higher accountability. The reputation of the company is dependent on the different types of facilitative management of the different. The autocratic leadership has different positive and negative aspects of it. It can be critically said that autocratic leadership does not include people in the strategic decision making process of the company. It is responsible for creating a negative impact on the minds of the people. Leadership leads to the pathway of success to the organization whenever the changes responsible for the employees accept leadership associated with the organization (Leopold and Harris 2009).
On the other hand, it can be said that the organizational culture and leadership followed by General Electric brings some negative impacts on the organizational culture of Debt Buster. As the company is not a multinational company and the working, procedures are different from that of General Electric. The positive impacts of the culture of General Electric along with the leadership style of Antony are finding solutions in quickest manner, brainstorming, innovation of new services, promptness of the employees, etc. On the contrary, the negative impact of the leadership style is working together in a diverse nature of groups, slower pace of accepting the change, biasness towards another worker (Armstrong 2016). It is seen that few workers close to Antony are not performing well, hence they senior management along with Antony are not bothered as they prefer personal relationships more than that of business relationships.
It affects the strategic planning of the company. The company can face some serious strategic issues if the strategic management department of the company does not customize the strategies of General Electric in the practical field. The different activities of the senior management team of Debt Busters if practice participative or senior leadership then they can improve the poor performance of the employees along with the hindrances caused by few employees during the implementation of change management strategies (Truss, Mankin and Keliher 2012).
Conclusion
The company faces issues in many aspects of human resource management. It is seen that the company follows one type of autocratic leadership by its chief operating officer who is considered as a dominant position within the company. However, in terms of leadership it can be said that the company is trying to follow the culture and leadership pattern of General Electric that in turn results in personalized decisions in terms of many managerial decision as well as in the field of justified employee relations. The employee relations strategy will be developed only when the participative leadership along with sustainable HRM practices will be practiced in the organization. Through effective communication, the gap between the communication of the senior management and the junior management of the company can be mitigated.
References
Armstrong, M. 2016. Armstrong’s Handbook of Strategic Human Resource Management. Kogan Page.
Beardwell, J. and Claydon, T. 2010. Human Resource Management: A Contemprary Approach, 6th edition, London, Prentice Hall
Leopold, J. and Harris, L. 2009. The Strategic Managing of Human Resources, 2nd edition, Harlow, Financial Times Prentice Hall.
Mabey, C. 1998. Human Resource Management: A Strategic Introduction. 2nd Edition, Oxford, Blackwell Business.
Millmore, M., Lewis, P., Saunders, M., Thornhill, A. and Morrow, T. 2007. Strategic Human Resource Management: Contemporary Issues. 1st Edition, Harlow, Pearson Education Limited
Schuler, R.S. and Jackson, S.E. 1999. Strategic Human Resource Management. 1 st Edition, Oxford, Blackwell Business.
Torrington, D. Hall, L.and Taylor, S. 2011. Human Resource Management, 8th edition, Harlow, Financial Times Prentice Hall.
Truss, C. Mankin. D. and Keliher,C. 2012. Strategic Human Resource Management. Oxford, Oxford University Press.
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