Consultancy report for farm XYZ: HRM on a New Zealand dry stock farm

Abstract

Initial discussions with the management of Farm XYZ highlighted some employee issues that were possibly arising due to the implementation of poor HR practices. In order to examine these issues in greater depth, informal interviews were held with the owner-manager. These interviews identified three main behavioural outcomes that management was concerned with in regards to HRM (Human Resource Management) issues at Farm XYZ; lack of employee motivation; high level of employee turnover and a lack of commitment from employees. All of these outcomes can result from the employment of poor HR practices. This consultancy report was prepared for management at Farm XYZ, focusing specifically on the HRM function of the business. The report was based around Pfeffer's (1998) seven HRM 'best practices', specifically examining to what extent Farm XYZ has adopted these practices and to what extent current HRM practice is perceived to be meeting the needs of managers and employees. In order to do this separate interviews were held with both management and employees of the business, these interviews examined the experiences and views of these two groups in regards to current HRM practices in the organisation to identify if 'gaps' between HRM practices and the model of 'best practice' as outlined by Pfeffer exist. Both the management and employee interviews identified a number of relatively similar issues. However, a number of key differences were also highlighted, two of which were particularly important. Firstly, employees held the view that HRM was not being practiced effectively by management while secondly management believed that current HRM practices were not achieving desired employee behaviours and outcomes. Put simply, management was lacking the necessary knowledge and skill to implement HRM in an effective manner. This view from employees is congruent with the management issues highlighted during the interviews, that the desired employee behaviours they hoped to attain from their HR practices were not evident. These findings suggest FIR practices could be improved through the implementation of a 'best practice' model of HRM. Using Pfeffer's best practice framework, this report identifies six HRM practices that require improvement at Farm XYZ. Therefore the following recommendations are made regarding the HR practices of; employment security, selective hiring, effective compensation strategies, extensive training, information sharing and performance appraisal.