Assignment Task 1: [50 Marks] Organization Based study (2700 Words Max)
5. Analyze the importance of employees’ relations in the chosen organization, as well as identify the key elements of employment legislation in the organization; discuss their influence and impact on HRM decision making in the organization. (7 Marks)
6. Discuss the performance management system of the chosen organization and evaluate its role and significance in enhancing the overall performance of the chosen organization. (7 marks)
7. Select any two theories of management and leadership and reflect on the impact these have on your organizational strategy and devise a leadership strategy that you believe will support your organization’s direction. (8 marks)
Assignment Task 2: [30 Marks] Case Study (1300 words)
Enron Corporation was launched in 1985, with the merger of Houston Natural Gas and InterNorth, a Nebraska company. In 1990, Enron – which was just a natural gas transportation company at the time – started a new division to trade natural gas. The company went from being a “stodgy” gas pipeline company to being a “world-class” company overnight. Enron soon became a $55 billion empire, trading gas, electricity, minerals, water, paper, and broadband capacity. A critical part of Enron’s success was the company’s employee value proposition (EVP). The EVP focused on Enron as dealmaker and was designed to attract the top talent the company needed to continue to move it forward. The EVP provided employees with the opportunity to do something “big” and to change how business was done in other industries. Jobs were reconstructed to give employees a lot of elbow room and headroom. Traditional gas pipeline employees were not the employees needed for this new, never-before-tried venture. Internal job movements at Enron were an important part of the EVP. Managers were strongly encouraged to allow employees to move within the company. The goal was to not hold anyone back. When the global broadband unit was launched, 100 top performers from around the company were brought together in Houston. By the end of the day, 50 had been recruited for the new project. Overall, the recruiting strategy focusing on internal recruitment paid off. The business continued to grow and attract entrepreneurial employees.
The company that thought it had no way to go but up came crashing down in 2001, when it was charged with illegal activities. By 2004, Enron’s corporate officers faced numerous charges of wrongdoing, and the company was a shell of its former self. Managers were charged with manufacturing profits, hiding debt, and bullying Wall Street to buy into its questionable accounting and investment practices. An extensive amount of downsizing has occurred, and many employees had lost all of their retirement savings after Enron’s stock collapsed. Faced with bankruptcy and a sullied reputation, the company struggled to continue but finally made the decision to cease to exist once all litigation concludes.
At one time, Enron’s recruiting efforts were described as a model for other employers. Enron portrayed itself as an exciting company with lots of growth opportunity – a firm in which employees experienced a great deal of autonomy and responsibility.
1. Enron’s EVP strategy played an important role in the progress of the company in the 1990s by empowering employees. However problems at the beginning of this century resulted in Enron’s demise and closure? Conduct some research on the company and state the reasons which led to the closure of the company?
In spite of having some good HR strategies, why did the company fail and what in your view could they have done differently, as part of their overall company and HR strategy, to ensure that the company sustains itself? (15 marks)
2. If you were appointed as the CEO of Enron in similar context to turn the company around, what recruiting, talent management and retention HR strategies would you constitute to revive the company back to its original laurels?
Also discuss why it would be important to create a recruiting message for Enron that would be attractive, but that doesn’t “oversell” the company. (15 marks)
Assignment Task 3: [20 Marks] (1000 words)
American Versus Japanese Human Resource Management Practices:
Scenario: Mazda and Chrysler faced similar threat of bankruptcy in early 1980s. Mazda’s managers agreed to a 25% salary cut and a loss of bonuses for four years. Chrysler, in contrast, cut its blue-collar workforce by 28%, its white-collar staff by 7% and its senior executives pay by 2%.
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