People management is a crucial success factor of any organization because employees are the backbone of the company and play a pivotal role in achieving its goals and objectives (Becker et. al., 1996).
According to Armstrong (2012. P.204), “Strategic resourcing is a key part of strategic human resource management i.e., matching human resources to the strategic and operational requirements of the organization and ensuring the full utilization of those resources. It is concerned with not only obtaining and keeping the number and quality of staff required but also with selecting … people who ‘fit’ the culture and strategic requirements of the organization.”
Josita Farm’s Case study
Josita Farm (JF) is an SEM (Small and Medium Sized Enterprises) organization that provides customers with the freshest, highest-quality, and sustainably grown food while promoting a strong sense of community and environmental stewardship. JF started its business in London, in 2019 as a family-run business that was staffed by 4 family members. In addition, two farmhands and the use of one delivery van.
JF started its business with a vision to be the leading online platform for locally grown, organic produce in Enfield, UK, and to expand its reach to other regions, empowering communities to make healthier and environmentally conscious food choices.
To implement its vision, JF is committed to delivering its product with certain organizational values i.e., quality products, sustainable farming practices that prioritize environmental conservation, minimize waste and support biodiversity, and a sense of community by connecting local farmers, customers, and suppliers, and creating a network that benefits all stakeholders. JF also continuously strives to improve and innovate processes, services, and products, embracing technology to enhance the customer experience.
To effectively achieve success in its business JF is concerned with scaling-up operations, and enhancing product offerings, and online platforms to satisfy its customers.
By aligning the mission, vision, values, strategic objectives, and goals, Josita Farm aims to not only maintain its position as a family-run business but also become a pioneering force in promoting sustainable and locally sourced food products while nurturing a strong sense of community identification among its customers and partners.
JF experienced significant growth since then (especially during Covid-19), employing over 300 employees across multiple departments. To address this the owner placed an online advert for farm hands, logistics, production, distribution, Sales & Marketing, and customer service requiring Curriculum Vitae (CVs) to be emailed to the business. Candidates that Josita Farm was interested in taking part in a 20-minute online video interview that aimed to determine their skills. Successful candidates began work once they were able to show evidence that they were free of the Covid virus. Upon starting the role, each new member of staff was given a tour of the farm and worked side by side with existing staff members for a day before being given individual responsibilities. This whole process took two weeks to complete.
The company has been successful in attracting top talent; However, the HR department is concerned about declining employee engagement levels and their potential impact on overall productivity and employee retention.
Shortly after recruitment, selection, and onboarding were completed the operational productivity for the firm decreased. Orders were late or incomplete, and for the first time since opening, customer complaints were received. Staff is now working longer hours than contracted and many are looking to leave the company once they have secured alternative employment.
Josita Farm has also been experiencing operational inefficiency due to rapid growth and the unforeseen challenges brought on by the Covid-19 pandemic. Despite this, Josita Farms started fresh food delivery services from North London and has since expanded exponentially, serving a diverse customer base across all parts of London i.e., Central London, East, West, North, and South London. Furthermore, this remarkable growth has also exposed underlying weaknesses in the company’s operational structure, leading to difficulties in sustaining the pace while retaining skilled employees.
As indicated by Garnsey and Heffernan (2005) many new businesses that experience rapid growth can experience unexpected problems. Two of the most common are operational inefficiency due to poorly trained staff coupled with employees being overworked and getting ready to leave.
Josita Farm has decided to employ your specialist HR firm to help identify the issues and rectify them, with the hope of retaining employees and leading to effective productivity returning to the company.
Case Study Sources:
- Armstrong, M. (2012) Armstrong’s Handbook of Human Resource Management Practice 12th Edition, Kogan Page Ltd.
- Becker, B. and Gerhart, B., 1996. The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 39(4), pp.779-801.
- Garnsey, E. and Heffernan, P., 2005. Growth setbacks in new firms. Futures, 37(7), pp.675-697.
Report Tasks
- From the above case study, identify Josita Farm’s strategic goals & objectives and based on that, identify, and explain what current HRM challenges/issues faced by the company during Covid-19 and still impacting the company and employees’ productivity.
- Define HRM recruitment and selection models, theories, and concepts (AMO Theory, Human Capital Theory, Michigan Framework, 5 P Model, etc.) that Josita Farm is currently following and explain how these can affect the behaviour of the staff within the workplace, which may also be affecting the company’s productivity.
- Based on Josita Farm’s current HRM models and theories identify the positive elements and any areas of the process that may need to improve.
- Identify and recommend HRM policies, and procedures for Josita Farm to adopt to improve their operational productivity and employee relations through more effective HRM talent management.