Human Resource

When analyzing the unfortunate situation faced by Bolts & Nuts Company, certain major points can be understood as the reasons for the present crisis. Among them, the major reason is the management's inability to be sensitive to the needs of the employment. In addition, they were not sensitive to the changes that had taken place in the external environment as well.

At the beginning, they had been able to maintain a considerable market share in the industry. It can be suggested that the closed economy had been a main contributory factor at that period, as they have not being able to compete successfully after the economy was opened. After the economy was opened, competitors who had the ability to produce better quality products at a lesser price had entered to the market. Faced with the heightened competition given by them, the company had decided to reduce their cost of production without considering the quality of goods. The main method they adopt to reduce cost of production is getting more by the employees without improving the working conditions & their salaries. This can be seen as the main two contributory factors for the present situation.

The machines used by the company are older than three decades and the company has not paid attention to upgrade the machines as well. This again, indicates their lack of sensitivity to the changes that happen in the environment and employees. Their main belief seems that the workers are not giving the best. Even though it may be true to some extent at the beginning, it is evident that it's not the main reason, as workers are unable to give the agreed production with the available machines at a later time when their salaries were increased.

It seems that the role of HRM is not properly understood by the Human Resource manager of the company. Even though establishing good industrial relationships is a main responsibility of HR, his approach toward employees has not made healthy industrial relationships.

In addition, company has not taken sufficient steps to protect the environment by the operations of the company. In that context, they have violated the corporate social responsibility of the company. In the present business environment, environment protection has become a major responsibility of any organizations and the reputation as well as the future of the organization depends on it. Failing to do so, has made many unpleasant repercussions to the company.

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