• Internal Code :
  • Subject Code : HRM101
  • University :
  • Subject Name : Human Resource Management

Introduction to HRM and Leadership

Executive Summary of HRM Issues 

The current study has focused on the HRM issues faced by Australian transport organisation Coastal Transport services. Primary research has been conducted in order to find out the HRM issues currently affecting the performance of the organization. The study looked towards an solution based approach and suggested some strategies to mitigate the issues tactfully. Some recommendations have also been made based on the findings that may help the organisation to improve HRM performances.

Table of Contents



HR problems identified.






Introduction to Human Resource Management

Human Resource Management refers to the formal system developed by organizations in order to manage its people. The major areas of operation of a human resource manager include staffing, employee benefits and compensation and specification of work. However, there are some other related factors that are required to be handled by the HR manager of an organization as well to maintain the staff relations and engagement. The current study will find out the HR related issues within the organization Coastal Transport Services located in Australia and will provide solution and recommendations based on the findings gathered.

Summary of the organization

Coastal Transport Services (CTS) is an organization dealing with transport business situated in Warnervale, New South Wales. This company has managed to generate revenue of $25.6 million in the year 2019. The number of employees currently working within the organisation is 90 (smartcompany.com.au, 2020). The company is devoted to serve its customers with the best value it can put into the services. The company has set several golden rules that include “value equals benefits minus price”, that is cheaper services cannot be considered as best (coastaltransport.com.au, 2020). Along with punctuality, keeping promises, fair price policies are also included in the values of the organisation.

Research on HRM Issues

Research scope

The current research will be able to provide a clear outlook on the HRM issues faced by CTS along with possible solutions that may reduce the issues to improve the HR functions along with the performance of the employees. The recommendations based on the practical experiences gathered by the researcher will help the organisation to design HR activities in a way that improve the culture of work and boost the employee performance capabilities.


The current researcher has used primary method of research through which the objective of identifying the HR related issues and solution towards the same are tried to develop. As influenced by Levitt et al., (2018), primary research provides opportunity to address specific HR related issues. Questionnaire consisting of the HR issues related questions has been provided to the employees of the organization. Employees are selected through applying the judgement sampling method and data has been analysed by the means of simple percentage calculation.


Primary research

Depending on the employee survey conducted it has been identified that most of the employees (60%) consider the working environment average for working.

The diversity management policies of the organization have also been recognised by the employees as ineffective in nature. (45%)

Employees have also indicated that the communication among them is most of the time not clear and ineffective for working purpose as they speak different languages.

On the other hand, there is a lack of supportive training program that may develop communication skills among the employees of the organisation.

It is also indicated by most of the employees (60%) that they do not have proper interpersonal relationship with each other.

Dissatisfaction of the employees can be considered as a result of turnover and the dissatisfaction may have emerged due to lack of employee performance recognition.

Apart from that, the work schedule has also been considered to be ineffective in nature that is, the schedule creates tremendous pressure upon the employees.

The participants of the study mostly agreed that they find it difficult to interact with each other. Work culture has been recognised by the workers as average in the marking.

Most of the employees found the work culture to be effective in increasing ability to perform well.

The staff retention policy has been observed to be ineffective as recognised by the staff members.

HR Problems Identified

HR issues that are presently affecting the performance of the employees of Coastal Transport Services are identified through conducting primary research. It includes staff turnover and absenteeism, lack of motivation among the staff members for working and ineffective diversity management. It can be stated that the problem of staff turnover has arisen from the approaches of the HR personnel’s in handling the staff retention. The employees of the organisation have been observed to perceive the work as challenging. Some of the employees also find the work as monotonous and lacks meaning.

The reason behind the lack of motivation may be attributed to lack of consistency in message from the side of the employers or the leaders of the organisation. Some of the employee values also do not match with that of the organisation. On the other hand, employee recognition is also lacking within the organisation as well.

Though the number of employees working within the organisation is 90, the organisational culture is highly diversified due to the reason that the employees have come from different backgrounds and possess different values. Communication is another key issue that is affecting the performance of the organisation as well. As mentioned by Sun, Liu & Chen (2018), the solution needs to be implemented based on the identified need of the organisation that is higher staff retention, increased motivation and effective diversity management.

Solutions to HRM Issues

In order to provide recommendations or solution towards the issues of lack of motivation, the Two Factor Theory proposed by Herzberg can be taken under consideration. As per this theory, there are certain basic factors that ensure satisfaction of the employees though they are not capable of motivating the employees (Alfayad & Arif, 2017). Factors that are capable of ensuring satisfaction of the employees include timely salary, consistent message from the employers or the leaders, clear roles and responsibilities and others. On the other hand, factors that are capable of motivating the employees are certain benefits offered, employee recognition, reward, good environment, interpersonal relationship among the workers and others.

Therefore, it can be stated that that reason behind the employee turnover within the current organizational content is lack of presence of the satisfying factors, while the employees working within the organisation are de-motivated as the factors motivating their performance such as reword, recognition and other factors (Valiev et al., 2019). In addition, it has also been identified from the current study that the diversity management approaches are also weaker that is affecting the interpersonal relationships among the employees.

Contingency theory

Figure 1: Contingency theory

(Source: Otley, 2016)

On the other hand, contingency theory can be applied in the context of management of diversity that is observed to be affecting the performance of the employees. As per the contingency theory, the attitude of the organization depicted through the leaders in various areas such as organizational strategies, its culture, environment and individual employees are all the interactive factors that works behind the diversity issues (Otley, 2016). In his context, the lack of communication skills of the employees and attitude of individual employees are responsible for the ineffectiveness of diversity management.

In the case of dealing with staff retention, the theory of Embeddedness theory can be implemented. The theory depicts that staff retention is dependent mostly upon three factors. Certain factors such as the fit of the job with the career goals, future plans and personal values of the employees determine the retention of the employees (Gu & Liu, 2019). Along with this, another factor that is responsible for staff retention is the extent of integration or the sense of integration developed within the employees as a result of working in the organization. Therefore, it can be stated that the reason behind the reduced capability of Coastal Transport Services (CTS) is differences in values of the employees and the organisation. On the other hand the organization is currently unable to meet the career goals and future plans of the employees that are leading to increased dissatisfaction that may have affected the staff retention of the organization.

Recommendations on HRM Issues

  • It can be recommended to the organisation to manage diversity effectively within the organisation as cultural differences between the employees are increasing difficulties in performing collaboratively.
  • It is recommended to arrange communication and interaction training program through which the employee attitudes towards each other can be improved leading to better communication and interaction
  • It is also suggested to develop staff retention policy with tactics for engaging the employees within the work along with employee recognition and rewarding session. This may increase motivation of the employees to work effectively implementing their finest performance within the organization.

Conclusion on HRM Issues

In conclusion, employees of the CTS is an organization facing issues regarding the Human Resource Management and as a result of this, staff turnover, lack of motivation and diversity issues have been identified to be taking place. The study has conducted a primary along with secondary research in order to identify the issues and probable causes of the issues for recommending some actions form the organization. The solution based approach of the study led to understanding of some solutions of the problems emerged. Based on the findings, it has been suggested to the organization in focus to develop strategies such as employee recognition program that may increase motivation of the employees. Along with this, the organization has also been suggested to arrange communication training program to deal with the diversity issues arising within the organisation as well.

References for Human Resource Management Assignment 

Alfayad, Z., & Arif, L. S. M. (2017). Employee voice and job satisfaction: An application of Herzberg two-factor theory. International Review of Management and Marketing, 7(1), 150-156.

coastaltransport.com.au, 2020, About Us - Coastal Transport Services. Retrieved 7 May 2020, from https://coastaltransport.com.au/about-us/

Gu, W., & Liu, J. (2019). Exploring small-world network with an elite-clique: Bringing embeddedness theory into the dynamic evolution of a venture capital network. Social Networks, 57, 70-81. Retrieved 4 May 2020, from https://arxiv.org/pdf/1811.07471

Levitt, H. M., Bamberg, M., Creswell, J. W., Frost, D. M., Josselson, R., & Suárez-Orozco, C. (2018). Journal article reporting standards for qualitative primary, qualitative meta-analytic, and mixed methods research in psychology: The APA Publications and Communications Board task force report. American Psychologist, 73(1), 26. Retrieved 7 May 2020, from https://psycnet.apa.org/journals/amp/73/1/26.pdf

Otley, D. (2016). The contingency theory of management accounting and control: 1980–2014. Management accounting research, 31, 45-62. Retrieved 4 May 2020, from https://eprints.lancs.ac.uk/id/eprint/78393/1/Otley_CT_review_for_pdf.pdf

smartcompany.com.au, 2020, Coastal Transport Services - SmartCompany. Retrieved 6 May 2020 from https://www.smartcompany.com.au/lists/smart50-awards-2018/coastal-transport-services-2/ (Accessed: 7 May 2020).

Sun, H., Liu, J., & Chen, H. (2018). Communication in Human Resource Management. Human Resources Management and Services (TRANSFERRED), 1(1). Retrieved 6 May 2020, from https://systems.enpress-publisher.com/index.php/HRMS/article/download/316/200

Valiev, R. R., Cherepanov, V. N., Nasibullin, R. T., Sundholm, D., & Kurten, T. (2019). Calculating rate constants for intersystem crossing and internal conversion in the Franck–Condon and Herzberg–Teller approximations. Physical Chemistry Chemical Physics, 21(34), 18495-18500.

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