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HR Issues



Generally the HR department faces various problems regarding their control over the department and enforcement of policies. The case of NAB is the latest fall due to automation and advancement in software services. NAB being an Australian Bank has some HR issues and these are taken seriously while they are the reason for any company’s success or failure. Due to automation, the company fired its employees so as to hire new employees with software skills and expertise knowledge. The HR issues like retrenchment of employees and retraining employees had an impact at financial institutions and banking sector. The number of jobs was decreasing and thereby employment opportunity had an impact in Australia. Expert level jobs were available but the scenario had an impact towards the situation. The report consist the recommendation and suggestions that will help to ensure the future of the company (Narteh, 2012). Apparently NAB has made critical decision due to automation which can be dealt along while analysing the information and having a major transformation.

NAB (National Australia Bank)

NAB is banking, and financial services of Australia. The headquarters location is 700 Bourke Street Docklands, Melbourne, Australia with serving area of Australia and New Zealand, and Asia as well. NAB is an Australian bank that has faced major issues in HR due to automation and software development programs. The news was regarding the employee redundant problem which is a complicated task and has legal risks that are associated with the negotiation issues of multiple stakeholders. Bank retrenched six thousand employees from the office due to increase in the software advancement and complex tasks. The scenario made congestion at various places such as banks and financial institutions. The other issue was regarding retraining of ageing population that shows a major issue discussed along in the business.

HR Issues

The HR issues presented in the story are about retrenchment and retraining the employees. Apparently it is important that the company has made an analysis regarding the causes of HR issues. Whether it is for the improvement purpose or any other reason, companies should perform according to the business plans that should be carried out for betterment of employees and customers. There are several factors that are needed in order to have economic circumstances that lead to challenges within the company. In the technology era, there are economic and social changes that are referred as an important business aspect. There is further high quality information that may tend to play an important role at the same time. There is a need to include the future demands of market and the current scenario that has been developed with the increase in strategy and the reduction of cost. There are new technologies and changes in the fundamental aspect of the report with which the human resource is playing an important concern in the business that is essential for the quality issues and to implement the effective production processes that are based on change in technology. With these issues to be solved in the business like retrenchment and retraining the ageing population, there are future recommendations for the company.

Retrenchment issue

NAB has several HR issues that are discussed along in the report. Apparently the company is trying to fix technology and software as their major instances that are for economic development and current improvement of services. At the same time what company has considered here is about retrenchment process which is actually not accepted in the market. There are poorly executed retrenchment processes that can lead to an issue which may decrease the morale of the workers and even economic performance is decreased. The retrenchment issue that has been faced in NAB has decreased the morale and productivity of employees, legal risks and reputation of the company are at stake and efficiency is decreased with the retrenchment process (Saharay, 2011).

Morale and productivity

It is important to consider that the retrenchment process may lead to a substantial impact on the employees working in an organization and this is the vital reason that companies should not consider retrenchment process that may affect the business and the economy (Porter & Woo, 2015). The employees working may have a negative impact of the issue and they may deal the situation in another manner. As such the process is majorly in lieu with the unnecessary conflict that may lead to a poor process and can decrease the economic performance. NAB has considered the retrenchment process due to automation and this may tend to affect the business scenario and productivity of the business. With the poor retrenchment process that has been executed by NAB, there are conflicts and loss of productivity that has been determined in the business with the decrease in the economic performance. It is observed that the maintaining employee is a difficult situation for companies and this may lead to a response that has retrenched exercise and a better response can be given in the process so as to appear in the clear grounds of the business. Employees and companies should have a better retrenchment process that may be understood by both the parties and can contribute well for the business and economic performance.

Legal and reputational risks

NAB has made retrenchment steps that are at legal risk and has affected the country. There are basic rules that are considered within the company so as to have an impact towards economic growth. With the job losses that are stated by NAB, there is a negative influence that tends to have a major aspect towards implementing the plan and this is a step backward for the economy too. There are national laws and other legal risks that are associated with the plan and this may lead to collective bargaining situation (Pascale, 2010). This is not to ensure the business service and to abide with the rules, but rules may minimise risk level and can lead to retrenchment process that do not affect the economy. There is fairness and transparency that has been observed in terms of individual employees and thi is important to be considered in the company. With the selection strategy that has been adopted in the business, the fairness strategy and the discrimination proved to be a range of good cause with the rationale thinking approach. 

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