Summary

The case study involves a dilemma faced by business owners.  It is a human resource issue involving using more money in increasing the worker’s salary or using the same amount in rebuilding the business. Any attempt to cut the salaries of the employees will be a big blow to retention and motivating of the current workers. On the other hand, raising the salaries will retain and motivate the workers but may be detrimental to the overall growth of the business.

McBride is contemplating on giving bonuses to hardworking employees instead of giving pay rise. He is also considering adding better persons who can bring business to the organization rather than giving out raises. However, this requires the management to be very sensitive since outsourcing may send a wrong picture to the current crop of employees(Mathis & Jackson, 2012). In essence, the case study is a dilemma involving employee’s retention through remuneration or rebuilding the business at the expense of the pay rise.

Human resource trends behind McBride’s situation

Human resource management has an absolute purpose of attracting, recruiting, selecting, training, assessment and compensation of employees. In the attempt to fulfill these obligations, the HR department must ensure that the goals of the firm are not foregone at the expense of making the employees happy. This is the situation which is facing McBride in this case. Compensation remains one of the critical tools used by HR to motivate and retain employees.

In this case, McBride is hoping to continue motivating the workers and at the same time increase the company’s productivity. Motivating employees is a vital goal of the HR department; this is because failure to do this may be very devastating(Mathis & Jackson, 2012). This is because it can lead to high staff turnover which will result to increased cost of hiring new employees and buying back lost trust in an organization. McBride seems to be very cautious in realizing a desired ay out position that is compliant with the overall objective of the organization.

Advice to McBride

Employees are very instrumental in the success of any organization. It is for this reason that McBride should be very cautious when dealing with matters pertaining their welfare. It is paramount for business owners to realize that the success of the business lies on the motivational level of the employees. This motivation in most cases is derived from the compensation that they get as a result of their output. McBride should embrace a compensation system that is based on performance. This will only be realized through regular planning and evaluation of the organizations compensation and performance appraisal systems(Mathis & Jackson, 2012).

McBride should also embrace dialogue with the employees of his business when making major decisions that will influence employees’ performance. For instance, when there is need to outsource or installing a new system, it is important that the employees are made aware as this will increase their morale. All the stakeholders should be involved in determining the ultimate compensation strategy that supports pay for performance system.

Workers motivation

Rebuilding the business remains a core objective as far as McBride is concerned. However, it is essential that the workers motivation be an issue major concern to the business owner. Any attempt to ignore the employees may be very devastating in terms of cost and inefficiency. In order to motivate employees, it is important for business owners to know what the employees want or what they don t want.

Motivating employees is mainly concerned with enhancing morale which will enable them to increase productivity. It enhances the desire for the employees to get the job done within stipulated deadlines. This is achieved through increased recognition, rewards and retention. Use of bonuses to those employees that reach the company goals serves the purpose(Mathis & Jackson, 2012). It is also recommended that rewards should be given to those employees who meet the required standards. The management should also strive to maintain its staff and reduce high staff turnoverwhich motivates staff in one way or another.

Reference

Mathis, R. L., & Jackson, J. H. (2012). Human resource management: essential perspectives (6th ed.). Mason, Ohio: South-Western.

 
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