GENTRO is facing staff shortages, both through employees leaving the company and increased growth, and does not have the resources in place to train and staff the vacant positions. The individual human resources policies and procedures for each operating unit, and no integrated human resources system, results in a lack of advancement opportunities for individuals and restricts growth opportunities for the company.

Impact

The differences in human resource management among the units can result in staff resentment and low morale, as employees are treated differently from one unit to another. The low support in training, and restricted advancement opportunities for staff will result in low morale among staff and employees leaving the company to organizations that support further education and provide advancement opportunities.

The lack of an integrated human resources system restricts the opportunities that employees have to learn about advancement opportunities, as well as restricts the opportunities that the company has to utilize their human capital.

Many of the unit managers are focused on improving their unit’s profits, even if it is to the detriment of other units. This lack of organization wide consideration will result in deteriorated profits and restricted growth for the company, as units compete for existing capital instead of helping each other.

This lack of centralized HR planning and operating within the organization has lead to very haphazard HR policies and procedures. Without an HR department with overarching power to institute policies and procedures as well as HR database and job, position classification, employees are frustrated and talented people are being lost to the competition. These losses lead to a significant cost to GENTRO in the form of wasted training costs and additional costs for searching for new candidates and increased salaries in order to keep and attract viable people. Several operating units have excellent HR structures that should be shared with the whole organization, however because of the separation, these efficiency increasing policies stay with the single unit who realized the benefit to the detriment of the rest of the organization.

Root Causes:

Since its early existence, the management and human resources function of Gentro’s units have been left to the unit managers. Over time a variety of management styles and beliefs have developed. Meeting ever increasing productions targets are the main focus for some managers who believe as long as staff are doing a good job why give them opportunities elsewhere within the organization or why bother to encourage them to upgrade themselves only to see them go. Other managers, have quite the opposite ideals. They believe in giving willing employees the opportunity to take on more responsibilities to better their skill sets and encourages formal training. The former has learned that giving staff the opportunity to advance makes for a more productive and happy employee and to have staff learn is a win-win for everyone, even if the employee eventually leaves.