Pound-Co Finance is considered a successful finance company that was set up in 2006. Over the last decade, the company have evolved vehemently and have emerged as a strong competitor in the financial industry. In the beginning, the company had two individual owners as it started as a merger experiment between two companies. Currently, the company operates in a non-standard market. In this type of market, Pound-Co charges higher rate but at the same time takes a great risk in trusting the customers with the money lent to them. The mission of the company is to become a specialist in the lending market and act in a responsible manner in the relationship it creates.
It even aims to play a positive role in the communities that it serves. In order to support the mission, Pound-Co believes in developing a set of values, which corresponds to fair, responsible, environmentally conscious and dedicated to providing excellent service. These values are collectively known as FRED. With the success in the market, the company have set a new objective to make two million customers and £20 million profit in the next five years. However, the company has certain issues that need to be addressed to achieve the objective. The key findings from the analysis of the report are that Pound-Co Finance can find out ways to develop a sustainable business. The satisfaction of the customers can be related with the success of the company. The action points that need to be taken by Pound-Co Finance can relate to a smart recruitment process so that the employees can be developed.
The analysis shows that with the gain in fame and prosperity, the company is moving towards being more profit oriented. In the earlier days, customers were seen as a source of help but now customers are recognised as a commodity through which profit can be earned. According to Cascio (2018), the satisfaction of the customers is one of the managerial aspects that need to be undertaken by an organisation. This is mainly because of the fact that the customers are an important stakeholder in a company.
It has also been seen that due to pressure in meeting targets, most finance advisor of the organisation is leaving. The company have targeted the branch managers as well as the financial advisors by bringing in more business every week. This has made the company become more sales oriented. The company have also grown to neglect customers that are either new or existing. At the same time, despite driving towards achieving profit, the basic salary paid to the employees is insufficient. According to Sheehan (2014), proper salary is a motivating factor for the employees. Due to the high rate of attrition, the focus of the company has become more on the recruitment and selection of employees.
The recruitment process is another factor that creates a problem for Pound-Co. It is seen from the case study that the recruitment of the company is done by using word of mouth and advertisement in local papers. Hence, the company have been attracting candidates of sub-standard quality barely interested in continuing with the job. Thus, it can be said that this is another factor that needs to be improved by the company. It has been seen that the company have also been ignoring the candidates that have been screened as a large number of applicants had appealed to the senior managers. Recruitment of proper talent is another factor that can help companies to achieve its objectives in a proper manner (Marchington et al., 2016).
Thus, having analysed some of the issues that the company faces it can be said that Pound-Co Finance needs to apply certain models and theories that are necessary for the development of the company. In order to attain the objectives and mission that has been set the immediate requirement of the company is skilled workers. For this, a proper screening method needs to be conducted and the vacancies regarding jobs need to be posted online with a proper background check of the candidates (Welch & Björkman, 2015).
At the same time, the company can retain the employees by applying certain motivational theories such as the application of Maslow’s or Herzberg theory. It has been seen that extra pressure on the financial advisors and the branch manager has made the work environment for the company to be hostile. Therefore, it is necessary that the managers of Pound-Co Finance manage the workplace environment by motivating the workers. As stated by Reiche et al. (2016) workplace environment needs to be stress-free so that employees can be motivated.
Figure: Maslow’s hierarchy of needs
(Source: Storey, 2014)
At the same time, the changes made in the organisation in terms of shifting focus from customers to making a profit, need to be made in a strategic manner. As stated by Storey (2014) that change management needs to be communicated to the employees and made at a slow rate so that employees have the time to react and adjust. In the case of Pound-Co, the company need to analyse the factors that have led to the change. Based on the analysis it can implement the changes and ensure that the employees are well informed about the changes.
In this regard, the strategy of the HR and that of the organisation can be discussed. According to Guest (2017), the HR strategies need to align with the organisational strategies so that the managers and the employees can maintain a proper coordination in terms of formulating strategies for the employees. This is particularly important in the case of keeping scores during the performance appraisal of the employees. The reason behind this is that with the help of the performance appraisal Pound-Co Finance can understand the strengths and capabilities of the company. Based on the strengths and capabilities it can formulate strategies such as improving the labour force. It has been seen that in Pound-Co, the line managers give low scores to the employees that have also accounted for the turnover of the employees. Therefore, it is important that the managers remain unbiased while conducting a performance appraisal so that it can maintain the motivation of the employees.
Thus, it can be said that in order to meet the objectives set for the upcoming years, Pound-Co Finance needs to continue with the existing trends in the field of management. Various changes have occurred in the marketing business since the inception of the company in 2006. It has been observed by the senior managers that the company lacks in the skills of people management. Hence, the organisational strategy of the company needs to include recruiting suitable people and ensuring that the needs of the employees are fulfilled (Albrecht et al., 2015).
In the words of Jackson, Schuler and Jiang (2014) the application of the motivational theories needs to be such that the employees feel valued in the organisation. The motivation needs to come from monetary as well as non-monetary sources. The case study has shown that Pound-Co has failed to provide the basic salary to the people and have managed to create a stressful work environment. Both these factors contribute to the downfall of an organisation.
Hence, the analysis signifies that Pound-Co needs to apply the basic HRM tactics so that it can get back on track to attain its objective. According to Purce (2014), the application of the motivational factors can be used so that a company can encourage employees to continue with the job. The analysis shows that Pound-Co lacks this particular attribute as the company have failed to retain employees and have failed to recruit employees that can serve the purpose of the organisation. Hence, the application of Maslow’s need hierarchy theory is essential to for Pound-Co to achieve its objectives in a proper manner.
Reference
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7-35.
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Guest, D. E. (2017). Human resource management and employee well?being: towards a new analytic framework. Human Resource Management Journal, 27(1), 22-38.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), 1-56.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.
Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016). Readings and cases in international human resource management. Taylor & Francis.
Sheehan, M. (2014). Human resource management and performance: Evidence from small and medium-sized firms. International Small Business Journal, 32(5), 545-570.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
Welch, D., & Björkman, I. (2015). The place of international human resource management in international business. Management International Review, 55(3), 303-322.
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