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The success of an organization depends on the strategic human resource management, organizational behavior, performance management, motivation, culture and ethics and organizational design. These elements significant contribute in the future growth of the organization and to be competitive in the market. In this current study, the issues faced by the boutique HR consultancy which has been engaged by a fashion company. In context to that, a recommendation would be provided to overcome the issues so that the performance of the company could be enhanced within two years.

Background of the Study

From the provided case study, it has been reported that the company has been facing huge problems within their organization such as widespread absenteeism, insubordination, negative media attention, protracted industrial action and low productivity. It has created extensive difficulty for the company to manage its human resources and enhance its organizational effectiveness. On the other hand, due to low performance of the company, there has been loss of market share and competitive benefit. This in turn has raised question on the future Endeavour of the company. Further, it has been found that the organizational culture of the firm is not showing positive results. Due to this, it is difficult for the boutique HR consultancy to ensure positive work environment. It can be pointed that such issues would be tough for the organization to improve its performance any time soon. Further, it has been observed that the CEO of the company is not satisfied with the work approach of the HR director. Therefore, it can be indicated that if the senior management of the company have a doubt on any of their executives then it requires undertaking effective decision for the future benefit of the organization.

Aims/Objectives of Study

The main objectives of the study are;

  • To analyze the issues faced by the company
  • To recommend the ways for overcoming the organizational issues for future growth

Through the above research objectives, the key issues affecting the performance of the company can be known. It would help in identifying the internal problems that are creating obstacles for the future growth of the company. On the other hand, the recommendations would support the company to enhance its organizational performance and manage its human resources so that objectives of the company could be fulfilled without any major issues. The objectives have been written so that the relevant literature could be studied which could be effectual for solving the HR or organizational problem.

Scope of the Study

The particular study would be covering wide range of area related to human resource management, organizational culture and talent management. This would help the readers to understand the implications of the covered areas. It could also support in knowing the impact of organizational issues on the overall effectiveness of the company.

Literature Review

Employee Motivation

Motivating an employee or group of employees usually positively impacts on the performance of the organizations. It enhances the employee engagement, cooperation and supports the top management in their decision making. On the other hand, if the management of the company fails in motivating its employees either through monetary or non-monetary then it would be difficult for the company to control employee turnover. It can also lead to financial loss due to dissatisfaction of the employees from job. Employees have a huge expectation from the company which could be related to working conditions, job security, salary, favorable company’s policies, recognition and other factors (Claes & Heymans, 2008). If the organization lacks in ensuring essential benefits and meeting employees’ requirements then it would affect the overall performance of the employees. It can then de-motivate as well as dissatisfy the workers which can raise question upon their staying in the organization.

It is known that decline in the performance of the employees usually impacts on the total productivity of the company which can lead to loss of market share. Therefore, it is important for the company to understand the problems faced by the workers and need to encourage two-way communication. It could help in allowing an appropriate platform to the workers to present their concerns. This in turn can act as a motivation for the workers as it could generate a feeling that their issues shall be addressed properly by the management.

On the other hand, Thompson and Gregory (2012) opined that company failing in retaining the human capital often affects its corporate image. It makes difficult for the company to recruit new or experienced workers as these workers would develop a perception that such company is not fit for them. Therefore, it can lead to organizational ineffectiveness and could disturb the organizational culture. It has been studied that employee retention helps in building strong organizational community, better work productivity, high employee and management coordination and indicates higher organizational success. There are instances where companies significantly focus on employee retention for their organizational development. For instance, case study on ITeS companies in India shows that they have adopted employee retention strategies such as incentives, reward and recognitions, salary packages, fringe benefits, etc to have best talent in the organization (Singh, Sharma & Mahendru, 2010). It can be pointed that adopting such strategies or other retention programs could extensively support the companies in improving its image and organizational culture.

Succession Planning

It is considered as a process to develop and identify internal people with the capability to fill the key positions in the organizations. It supports in increasing the availability of potential and experienced workers that shall be prepared to undertake the respective roles.


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