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KA Australia is one of the biggest multimedia company which works on three main principles, i.e. employee satisfaction, customer satisfaction, and shareholder value. The main purpose of this report is to understand the employee downsizing and the failure of its Enterprise Resource Planning System (ERP). In order to meet with the customer demands and solve customer queries rapidly, KA Australia has been projecting the need for talented and skilled manpower. The company needs to focus on hiring the right number of employees at operational and IT levels. This will help in meeting market challenges. The company needs to adopt the HR practices which can be streamlined with the company objectives.
KA Australia is one of the renowned companies and has its major operations in Southern America and other states too. The company has achieved 1.6 billion dollars through its sales and has been targeting the other states as well. At present, the company is undergoing through a few issues which have led to decreasing shareholder value and customer satisfaction (Werner, Anderson and Nimon, 2019). The issues faced by the organization and their impact upon the operations and competitiveness are discussed below-
1. Failure of ERP System-This is based on the classical theory wherein the employees are considered as machine and human being are considered as part of it.Initially, the company had been successful in implementing the Enterprise Resource Planning System within its organizational structure. Later, the company has to face technical challenges from the Operations and IT team. This is due to the lack of technical skills in the employees and the inability to solve the problems within the stipulated time period. The employees of the KA Australia have not been provided with proper training and this led to failures. Failure of the ERP system led to loss of customers and has its vast impact on the sales and revenue of the company (Wilson, 2014).
2. Market challenges from the export markets-A comparative study show the company’s business in Ireland, Canada, South America, and UK show that company has lost its assets in form of unsatisfied customer relationships and shareholder value. This is based on the scientific management theory where in the HR managers are focused towards increasing the efficiency of people working in their organization.The demand for products and services has been changing continuously and the company has not been able to upgrade its system with relevance to ERP and technical skills of employees (Park, 2015). The market poses challenges for KA Australia with relevance to change management and budget flexibility. The company has been long impacted through the inefficiency of its employees and local competition coming through from its Japanese Competitor. There is a cyclical repetition of the daily activities.
3. Technological Changes-At present, the company is facing a huge challenge in the form of new technology which is adopted by its local Japanese Competitor. The employees need a lot of training in solving the customer queries at a rapid phase but with budget restrictions, the company is unable to cope up with these new technological changes. KA Australia has been continuously making changes in the hierarchical level of is employee structure but failed to suffice with customer demands(Wang, 2011). With the changing needs of the Australian economy, the company needs to build its strategy with the alignment of market objectives with due course of time.
4. Employee Downsizing-The KA Australia has been trying hard to adapt itself with the changing market demand and this is one of the prime reasons for employee downsizing. The company has made several transfers of its General Manager and other employees who can plan the best strategy for meeting with the customer demands. However, the company needs to focus on the retention of its employees and not transferring them from one center of operations to another. The corporate culture plays a significant role within an organizational context(Ivanova and Leydesdorff, 2015).
This concept is based on the administration theory. This implies that all the activities must be classified into different departments or units and must be performed by the employees working in the organization
The employees working in KA Australia has a different cultural background and requires an ongoing training program. This induction program must be initiated by the company’s management through which the lost sales and revenue margin can be regained. The firm needs to reduce its expenses on hiring new employees.
However, it has been observed that employee downsizing can be seen as a cloning response to outdo its Japanese competitors (Lian, 2019). This does not prove to be a strategy for a longer period of time but requires harnessing the technical skills of employees.
5. Customer Relationships-The lost shareholder value is one of the major problems faced by KA Australia. This is due to the non-standard work arrangements in its operational business(Bais, 2012). The human resource department of the company needs to understand the underlying employee issues like ongoing attrition of employees, salary problems, and corporate culture and market demands. The objectives of the company need to be streamlined with relevance to the market needs of customer. This is based on the modern theory wherein all the valuable concepts are integrated and a new approach is formed to retain the customers.
The employees are associated with precarious positions within the organization and deny adapting to the new culture. This must be brought under the scope of the HR department and this will lead to less employee attrition. Employee retention must be the priority of the KA Australia human resource department (Hwang and Shin, 2019).
KA Australia is a multimedia company that has an experienced HR and operation department. Since the year 2013, the company has been facing market challenges in the form of ERP technical issues, unmet customer demands, and corporate culture. The company needs to apprehend the minimization of employee attrition rates and maximize employee retention. The company’s management needs to understand the modernization of the ERP System with relevance to technical skills acquired by its employees (Cegarra, Gacias and Lopez, 2012).
The technical and economic changes in the Australian economy pose challenges for the proper functioning of the company. With the development of information technology to advanced versions, the company needs to adopt the approach of Go Global (Rajan and Baral, 2015). The demand for ERP products has been changing so far. In order to effectively respond to these changes, the company needs to develop its statistical products. At present, the company is facing a challenge with the amount of information available and rendered to its employees. The other factors affecting the company are budget constraints, employee transfers, corporate culture and technology feasibility with the organizational structure (Bilych, 2013).
KA Australia is competing with other competitors from Japan. The potential Issues faced by KA Australia include-
1. Meeting with the future use demands of Enterprise Resource Planning System (ERP)
2. Immediate response to increasing competition from other retailers.
3. Budget constraints
4. Efficient development of employees
5. Modernization of products and services
6. Effective Organization of work processes
7. The transition from operations to technical and knowledge working
8. Reducing the rate of employee attrition and increased employee retention within the organization(Saraikin and Yanbykh, 2014).
The modernization of the ERP system is not only the demand of organization structure but, also implies the standardization of technical skills of its web designers and IT personnel and Human resource department (Karpiuk, 2016). The induction program must be conducted within the organization setting, which can change the attitudes and perspectives of employees within the company. This is followed by continuous training programs and regular weekly meetings which can help the subordinate employees working in KA Australia. The ongoing meetings must be targeted at solving the one-to-one problems of employees. The development of modernized technical products is a part of change management (Maas, van Fenema and Soeters, 2014).
The successful implementation of technical changes is confronted with human resources. The HR department needs to actively participate and contribute towards the changing needs of the buyer (la, amy and nya, 2018). The corporate strategy and planning must be analyzed at top and middle management levels. The KA Australia group needs to develop the production methods and technical outputs that can meet with future challenges. This also ensures that technology products and services developed are relevant to the future world (Supramaniam, Abdullah and Ponnan, 2014).
The KA Australia needs to work on two directions-Technical output and production methods. Technical outputs rely upon the development of better and new products and services that are acceptable to the present society. Production methods involve better processes and different methodologies that have been tuned to provide the products at minimum costs. This ensures greater flexibility and cooperation between the seller and buyer (Wang, 2014).
At present, the development of communication facilities has been growing with a rapid phase and has completely reformed the technology products. This can be considered as a challenge for the different companies operating within the environment (Kim and Park, 2016). The biggest challenges for the KA Australia group is taking advantage of these market challenges and encourage innovation with relevance to processes, products, and sources that will change the organization and employee work. This also implies that changes should be reflected in staff profiles and resource reallocation (Sodomka and Klcova, 2016).
The KA Australia needs to focus on one to one general meetings within the staff members and the following areas can be particularly given attention to the development of employees in the future. This involves-
1. Motivation
2. Work environment and mobility
3. Training and skills development
4. Change management
5. Attraction and retention of staff
6. Work environment
The advanced techniques involve using E-0learning methods which can provide advanced experience to the employees working in the KA Australia group (Rajan and Baral, 2015). The company will be able to benefit through good practices and exchanging experiences. The company needs to focus on implementing the culture and change management within its structure (Ravindrakumar Rajput et al., 2015).
Analysis of implementing the various training programs at different departmental levels can bring change management within the organization. KA Australia will be able to effectively incorporate management development and training plans to outdo the competition coming from different market zones. Upgrading pathways of career development can enhance the skill and abilities of an employee.
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