Is Scott Electronics plcs current human resources strategy effective Essay

To what extent do you think that Scott Electronics plc’s current human resources strategy is effective? (18) Human resource strategy is how a business sees its employees from different business point of view and they are seen as resources to complete the business objectives. Firstly the human resource strategy for Scott electronics is very effective because the firm’s labour productivity is very high with 105 compared to the industry average which is 100. This is very effective as it shows the level of recruitment and the staff the business is recruiting is doing very well which has a positive effect in the recruitment section therefore this will make the company recruit more staff which will increase the productivity of the business. Also the bonuses which is 40% and its 20% higher than the industry average, this shows that the bonuses are keeping the firms employees motivated and it drives them to work harder which mean there will be a increase in productivity and if productivity increases it will have a positive effect on the sales revenue as the company will sell more items which will increase the sales revue and profit. Also another reason why the human resource strategy for Scott electronics is very effective because it has a very unique centralised organisational structure. A centralised structure is where the entire decision making is done from the top of the hierarchy. This is an effective strategy because the entire decision making can be done from the main person who is in charge and it can be done very quickly without going through any difficulties. This is very effective because staff can work through the business objective rather than stressing on the extra responsibility they have on their shoulders which will make them stress free and become more productive. Also they can be told what to do and the managers will have control over their workforce so that employees are less likely to make mistakes or make wrong decisions which will make a negative impact the on the businesses performance. However the human resource strategy for Scott electronics is not that effective because high numbers of employees are on temporary contract which is 75% compared to the industry average which is 25%. This is bad for the business because it will make employees feel that the job security is not there and they are not guaranteed the job which the business can tell the employees that they are not in need and the employees will go away, therefore this might result in the employees not very motivated to do well and they might not think as if they are involved with the business. Also employees on temporary contract are more likely to leave the business as the labour turnover rate is at 10% which is higher than the industry average which is 6%. This is human resource strategy is ineffective because it lead to employees leaving the business every year and the business is losing experienced and valuable staff. Also another reason the human resource strategy for Scott electronics is not that effective because the training budget is below the industry average as Scott electronics training cost is  £500 compared to the industries average which is  £1000. This shows that the staff are not that well trained and most of the staff don’t know what they are doing sometimes or they might not know how the company operates as high level of training was not provided. This lead to the amount of defect products increased as the staffs were not well trained and they kept making mistakes therefore the numbers of defects products increased. This is one of my strongest reasons because staffs need to be well trained before they can start the job as they will know what they are doing and how they are going to carry out each task according the company structures of dealing with things. Therefore the staff need to be well trained and the business needs to increase its amount on training the staff which will allow the business to have staff that know what they are doing and make less mistakes as this will cause the staff to make less defect products. In conclusion I think that the human resources strategy is very effect to the business because average span of control for Scott’s electronic is 5 and industry average is 8. This has a greater advantage to the specific business because it will allow the business mangers to control their staff and monitor the progress which the manager can set targets and the targets can be analysed to see if they have reached the targets this will increase the productivity of the business as targets are reached and mangers have better control over their staff and the business. However I think that the current human resource strategy is not that effective to the business because the firm’s defected products are 10% and the industry average is 5% which is doubled the amount. Therefore you can tell that the strategy is not that effective as the staffs are making a lot of mistakes which will cost the business as the raw materials cost money to buy. Also this indicates that strategy is failing as staff are not well trained or may not experienced enough to work in the field which the bale goes the firms recruitment policy as the firm could have employed experienced staff which could have reduced the level of defected products.