Human Relations Management

Paper Summary:

This paper explains that some companies have begun experimenting with a labor/management partnership as a response to inevitable and rising costs of health care, which appears to be an effective model. The author points out that the experiences of companies, such as Hershey, Whirlpool, Starbucks, and Bang & Olufsen, provide important examples of the problem of introducing new information technology and its role in industry, especially in the area of human resources. The paper relates that the World Bank developed a Performance Advisory Service (PAS) model for dealings with problem workers, such as chronically poor performers, which does away with the hard-line approach of simply firing, demoting, or transferring the dysfunctional employee.

From the Paper:

"Leadership failures occur most frequently because of ineptness, the inability to catch up with development requirements or simply because of a wrong diagnosis or handling of problems (Heisler 1989). Newer and more unprecedented changes and forces keep coming and, in many cases, they do not get addressed adequately because of a company's adherence to old ways. Managers and leaders get accustomed to old laws of doing things and, with the ingress of new developments, old programs prove ineffective, cash-draining and result in employee restiveness. There is urgent need to change the American business culture from a fast-buck and short-change format to a long-term and employee-oriented action as the only way to build or remain competitive. And there is greater need to adopt a system or a new vision in making a correct diagnosis and implementing correct responses to new problems within or affecting the human resources department.
Foremost among these new problems and issues are on health care, information technology and the management system."

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