Case Analysis

1476 words - 6 pages

Human Resource structure is administrative and common to all organizations, especially to the big company like Tianyang Food, a food production company in China. HR department act as the support for the organization in the likes of law, compensation, benefit, safety and health of the employees and the organization. However, the improper management from the HR structure can put the organization in a very difficult situation.

Based on the case study, an employee named Lu Yueting had poisoned the dumpling in the company by using a piston because he was not satisfied with the salary that he and his co-worker received from their employer, after 16 years of working experience. In this case, it ...view middle of the document...

Besides that, the HR department also must identify and solving the workplace issues in order to attract a large pool of candidates to work for the company in future.

With a strong correlation to the above, the HR structure of Tianyang Food Company also seems lack in the compensation strategy management, especially the management of internal and external equity. Internal equity exists when employees in an organization perceive that they are being rewarded fairly according to the relative value of their jobs within an organization (HR Council, 2013). The incident happened prove that the HR department of the company is not aware of the equity issue within the organization. They might not realize that equity of fairness is a major component that contributes to a successful compensation system in the company. The worst is that, the HR structure might also assume that all the employees in the organization are being treated fairly since the beginning. The HR structure also seems not taking the external and internal pay equity into consideration, where they might assume the employees have perceived that they are being treated fairly in relation to those who are perform similar jobs in the organization and according to the relative value of their jobs with the organization itself. In Yueting situation, he has served from 1993 to 2009 for the company and he perceived that he was not being rewarded fairly enough based on his 16 years of serving. Now, it is clearly that the HR structure and the employers are not very sensitive in this type of situation. Thus, there is an assumption where the existence of external equity in the organization is not properly conducted by the employers and the HR department too. Within the 16 years of working with the company, there is a possibility where Yueting compare his role, pay-to-role and pay in other organizations.

Yueting may consider much more than base pay in determining the external equity where he might emphasis in benefits consideration. Since the HR department is lack in this issue, Yueting felt that he was being compensated unfairly by the company where he had put much effort in 16 years. Finally, he destroyed the organization’s overall performance due to his dissatisfaction on the salary. So, it is important for the HR structure to create equity for fairness within the organization so that will not affect the entire organizations performance.

Another possibility that may allow the incident to happen in the company is the lack of the HR department in workplace safety management. Nevertheless, the HR structure should be able to create a work environment free from any unnecessary hazards. Unfortunately, the mismanagement of the HR department of the company enables Yueting to bring up the insect pesticide into the company and inject it into the dumpling. This incident showed that the HR structure of the company have failed to introduce a safe and clean work environment in the company. A result from...

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