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A Case study on

The HRM Function/Environment

Mount Ridge Engineering Systems

EMBA

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Background

Designs, builds and operates standardized coal-fired utility plants

Sells

steam to the industrial plant

electricity to local utility

Present 5 plants(approx. 45 workers perplant), 39 corporate staffs, 183 plant staffs

Fast growing successful company

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Business Strategy/Goals

Cost leadership efficient plants

Low cost production competitive advantage

Aggressive expansion plans 9 plants, 650employees in next 2-3 years time

No employee profit sharing plan

Remain non union maintaining quality worklife and attractive benefits

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HR Practices HR Director Joyce Newcombe Complete HR system developed

Employee benefit packages Employee handbook

Job description Salary program Supervisors manual, other personnel policies

Philosophy- to place great value to company-client

relationship, company-employee relationship Annual employee appreciation dinner Personnel operation centralized to corporate

headquarters

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HR ISSUES

relationship between corporate human resourcesstructure and operations at the plant level weak/loose

Getting management to understand legal andgovernmental regulations affecting HR

Supervisors not following company policy No actual implementation of the HR policies at

plant level

Insufficient or out of date HR policies

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Typical Case : Edison Plant

Eastern region of Kentucky 45 employees

Larry Braxton Plant superintendent

Bud Johnson auxiliary operator, sometimesperforms job of equipment operator, solveproblem no one else can handle

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HR Problem: Edison Plant

on going argument between Braxton andJohnson Johnsons promotion to equipmentoperator

Assignment beyond job description or employeehandbook

Johnson- dissatisfied with annual evaluation didnt follow personnel regulations before takingleave

No proper termination policy

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Causes of Problem

Rapid expansion preventing properdissemination of human resource policies

Lack of comprehensive human resource trainingprogram

Lack of proper human resource related internal

controls Lack of awareness regarding legal and

governmental regulations affecting HRprocedures

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Recommendations

Setup training program for plant supervisors forbetter human resource practices and companypolicies

Re-design the termination process and procedure Maintain a HR officer in each plant

Setup an audit and supervising mechanism

Setup a communication channel to file in

complaints Make plant management aware legal and

governmental regulations affecting HR

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THANK YOU !