4 Summary of LoftLuke Robinson is recruited by new CEO to solve several company issues.HR’s purpose was administrative under CEO, WashingtonWhen Washington left, the company suddenly lost the talent of attracting and retaining talented employees.Luke Robinson, an experienced top HR consultant, is recruited by new CEO, Bernie Shargall, to solve the issues.He takes the position as career challenge, however, he is running into trouble.andrew
5 Summary of Incidents at Loft Robinson’s AttemptsCompany had never before paid much attention to HRLost 4 key employees in under two yearsConflicting opinions of LoftExecutives don’t pay attention to Robinson’s plans to fix thingsPayroll mishapMishandling of discrimination investigationSpent time with executives, managers, brokers, administrative staff, HR staff, and external contactsHR Ambassador programRegular Meetings with business-unit headsReplaced ineffective HR staffPlan to educate employees about role of HR
6 Character Analysis List of Characters 1. Luke Robinson (Managing Partner of HR)2. Philip Washington (Former CEO)3. Bernie Shargall (Current CEO) + Executive CommitteeJustin
7 Luke Robinson, Managing Partner of HR Successful HR Director at Powell Group, shows initiative to take on challenges, shows a lack of drive and motivation to continue after failures, sees the value of HR and has knowledge of HR management, lacks confidence and leadership, fails to communicate effectively with higher authority figures, neurotic personality.
8 Philip Washington, Former CEO Charismatic leader, single-handedly performed strategic HR functions, business-savvy executive who gave Loft Securities a high reputation.
9 Bernie Shargall, CEO & Executive Committee Shargall recruited outside the firm, lacks the charisma and leadership Philip Washington brought to Loft, shows the desire to improve Loft’s recruiting of talent, lacks knowledge of strategic HR functions, Shargall and committee do not demonstrate active-listening abilities.
10 Problems Hierarchical Structure Lack of Leadership Recruitment and RetentionImproving employee morale and commitmentRoutine Administrative ProblemsJustin
11 Problem 1 - Hierarchical Structure Centralized on Top ManagementLittle support from employeesFocused on consulting, thinking and planning, rather than doingnatalie
12 Solutions Decentralize! Distribute work/Give lower employees more powerWide range of skill sets neededImplement practices to enhance employee skill setsnatalie
13 Pros & Cons Pros: Cons Decentralizing will take pressure off Robinson Distributing work will give employees more responsibilityEmphasis of team workGreater support from employeesRobinson may form better relationship with line managers and employeesCreate a self-managing workforceConvince Shargall and executives of importance of HR DepartmentConsLong-term commitmentNeeded commitment from both Robinson and Executive committeenatalie
14 Problem 2 - Lack of Leadership Robinson & Shargall lack leadership that Washington possessedShargall from outside firmRobinson’s lack of leadership and initiativeHR Ambassador Program is not effectivenatalie
15 Solutions Create leadership model Create a democratic leadership style Specify goals and expected contributions from executives and managersCreate a democratic leadership styleCollaboration & Information SharingCreate an open and honest work force within the organizationInformation SharingInvolve employees and managers
16 Pros & ConsPros:Leadership model increases executive and manager motivationLeadership model supplies a starting pointInformation sharing emphasizes trust, transparency, and collaborationCons:Employees could leak information if it is shared with themnatalie
17 Problem 3 - Recruiting and Retention Loss of attractiveness to talent candidatesNo well-defined regulation on recruitingRetentionLoss of two senior managersCurrent employees do not think Loft is a better place to work anymore.Employees do not trust HRjimmy
18 Solutions Outsource recruiting function (short-term) Retention: Focus on long-term goals firstRobinson’s professionPick-up laterRetention:Conducting series of survey.Outsource the retention paperwork with detail requirement
19 Pros & Cons Pro’s Con’s Achieve the career transaction of Robinson Put more focus on strategic goalMore professional emphasis on attracting talentGain efficiency on simplify HR roles to achieve flexibilityHold back two functionsCon’sSelection of strategic partnerStrategy, position, personnel, not clear definedLess control in processNew employees not familiar with Loft’s cultureIncreasing on employees’ transaction cost(Increasing turnover)jimmy
20 Problem 4 - Improving employee morale and commitment Employees are not familiar with the HR peopleEmployees can’t see the future of the companyThe rumors by two left senior managerjimmy
21 Solutions Career development (RBV) Talent management program Training / presentationWeekly conferenceMemo formTalent management programBehavior perspective & cybernetic system in theoryFocusing on idea sharingInformation & technical support in the workEncourage self motivation
22 Pros & Cons Pro’s Motivate employees Attention transferring Giving the futureGrowth with LoftCon’sTime consumingInsufficient investmentjimmy
23 Problem 5 - Routine Administrative Problems Mishandled discrimination chargeYear-end executive bonus check errorProblems occurred before Robinson was hired
24 Solutions Outsource routine administrative work to 3rd party Common outsourced functions:Payroll401k plansHealth and welfare benefitsBackground checkingDefined benefit planspaul
25 Pros Cons Reduces time Reduces resources spent Concentrate on strategic activitiesHR not blamed if problemPaying extra money for functions HR can handleHard time convincing ShargallPaul
26 Conclusion Hierarchical structure Lack of leadership Decentralize Empower employeesRange of skill setsImplement practicesLack of leadershipCreate leadership modelDemocratic leadershipInformation sharingManagerial implicationIt is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.
27 Conclusion Recruiting and retention Recruitment: Outsourcing recruitment for the short termRetention: Conducting surveysImproving employee morale and commitmentCareer developmentTalent management programRoutine administrative problemsOutsource routine administrative workManagerial implicationIt is not easy to build or implement practices from scratch. There is also no best solution for the HR Department’s problems. If Robinson wants to take the career challenge, here is how. Changing the HR Department and maintaining competitiveness is time consuming. Instead of trying to access entire HR functions, Robinson should outsource some functions such as recruiting, and administrative functions to stop the slow bleeding in Loft’s human capital. Although outsourcing might not be the best solution for Loft in the end, Robinson can focus his best effort to recover the HR overall alignment by implementing HIWP. While outsourcing certain functions, implementation of HIWP will help decentralize the organization, and gain back management’s support and leadership.