HR issues have to be taken seriously while they are the reason for any company’s success or failure. The case of NAB is the latest fall due to automation and advancement in software services. 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.
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 are 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.
NAB is an Australian company 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. The company 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.
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).
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.
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.
Efficient work performance may not be observed if company leads to a retrenchment process at a higher level. Around six thousand workers were affected due to retrenchment process and this states that NAB has made a crucial decision in terms of retrenchment programs. The easy way to approach the program was to maintain the balance between automation as such software practices and human resource needs (McGowan, 2013). To manage this, retrenchment programs should have been conducted in lieu of the boundaries and the rules that are set by the government. Apparently, the company has affected the whole scenario in Australia and the employees are now at stake to observe the situation and lead to a major subjective manipulation. The process should be objective and fair as such it may accept challenges and may tend to have a good result for economy. These are the issues that are faced due to retrenchment process (Ochieno, 2013).
Government has led to an important solution for the retraining process when NAB has made the situation at a major issue in Australia. There adults skill gaps are to be filled with the training programs organized by the company. NAB has just declared ageing population as not considerable for the business. The issue is regarding loss of jobs with the shift of advanced and expert level employees in the business. NAB has been hiring around 2000 employees in the same period in which it had let go six thousand employees. This is about hiring new candidates for complex process job. When technology turns its way, the company had to surrender the old employees and complement the new employees as the expert level candidates selected in the process (O‟Shaughnessy, 2011). The bank tellers in this situation have been decreased in the last year but there is an apparent growth in the number of employees who are skilled and are advanced with the finance profession. With the decrease in the employment opportunity for common candidates, there is an increase with the financial institution and experts in Australia. This is a huge problem as there are many companies who do not go along with the similar approach towards business purpose.
The training should have been provided to the employees but the sympathetic issue is been carried along so as to outgo the problem that has been raised in the business. Internet and technology has changed its wave so as to carry on the business but at the same time it is not for the good that is happening with people (Nieminen et al., 2008). The huge shift has made an intense work profile as a digital influence and has faced loss in the number of employees who are willing to work. The complex business purpose has made a major change in the business and the individuals are expecting a huge change while managing the business transition in the economy. STEM disciplines should be considered with the answers to the questions that arise with the HR issues (Rotich & Muchiri, 2012). The skills are still needed as such there is a change in the occupation and the training should have been provided by NAB to its employees. Well the human functions are like empathy and this has to be understood by the company. The fuzzy problems are to be solved and apparently this is the biggest challenge for the company. Technology is essential for the routine task that has to be managed so it is important that the new tasks should be followed apparently with the growth of the business and the challenging working population. The retraining process for ageing population is not yet considered by NAB and thus this is an issue that has to be understood with the internal and training process (Meagher, 2012).
The news story of NAB Australia is reported and the HR issues are discussed along with the recommendations. It is important to know that the HR issues are serious while talking about the economic performance and the economic condition of the country. There are several arguments that are to be considered in the report. This is in terms of commencing consultation and the level of trust for employees. Around six thousand employees were fired due to automation and latest technology, so this does not make sense towards the economic instability. There should be training programs and development activities that are carried along so as to have an impact towards a change in the business. Alterative solutions should be taken and it is important that the company should ensure the retrenchment programs that should be conducted seriously. There are certain breakdowns that are understood and this is in lieu with the retraining employees and taking in consideration ageing population and the level of expertise needed. Financial institutions and experts are hired for the position where complex task is to be understood and carried out.
It is important that there should be key steps that should be conducted for the retrenchment process. Firstly the HR issues were discussed and as such it is important for the company to ensure that retrenchment process was actually needed in the company, if yes then it is necessary to follow the rules and abiding regulations that are meant by the government. It is important to notice that existing employees should not be fired due to lack of technological aspects but apparent training should be given for individual development and for increase in the productivity of the company. The scenario of the situation was worst when the two HR issues were in the market, innovative ways should have been adopted for the same. While looking for alternative jobs such as freezing the employees and retirement ages should have been changed by NAB. Outsourcing the activities was important in the business as such there active performance management should be conducted the company.
Staff involvement activities would be a better job satisfaction strategy and an activity that would have helped in the company’s decision. For future recommendations, it is important that internal staffs can be transferred if they are capable for the same. Reduction in the salary can be a main stream that can be adopted as such employees would have known the decision and this would be mutually accepted by the parties.
McGowan, R. (2013). How to Find Work in the 21st Century, 6th Edition. United Kingdom Thames River Press, 115-116.
Meagher, M. (2012). Step by step guide to managing redundancies in your Organisation. Harmers Work Insights, summer edition 2012/13
Narteh, B. (2012).Challenges of Marketing E-banking Services in a Developing Country: The Case of Ghana. Journal of Internet Banking and Commerce, 17(2).
Nieminen, T., Martelin, T., Koskinen, S. Simpura, J., Alanen, E., & Härkänen, T. (2008). Measurement and Socio-Demographic Variation of Social Capital in a Large Population-Based Survey. In Babaei, H. (2011). Social Capital and Human Development: A Meta-Analysis. Journal of American Science, 7 (6).
Ochieno, C.N. (2013). Effects of retrenchment on organisational performance at the Telcom Kenya, Eldoret Branch. Journal of Emerging Trends in Economics and Management Sciences. 4, 409-416
O‟Shaughnessy, T. (2011). Hysteresis in Unemployment. Oxford Review of Economic Policy, 27(2), 312–33.
Pascale, C. M. (2010). Epistemology and the Politics of Knowledge. The Sociological Review, 58,154–165
Porter, C. M. & Woo, S. (2015). Untangling the Networking Phenomenon: A Dynamic Psychological Perspective on How and Why People Network, Journal of Management, (41), 5.
Rotich, A., & Muchiri, R. (2012). The Impact of the Threat of Retrenchment on Entrepreneurial Intentions. 2nd (ASBES), 15-16th October.
Saharay, H.K. (2011). Labour and Industrial Law, 5 th edition. Universal Law Publishing Co. New Delhi, 79 – 86.
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