Smart Knitwear INC., Essay Example
History and Background of the Company
Smart Knitwear Inc., a company I have worked for a year is the leading manufacturer, designer and marketer of cloth wares in the United States of America. Smart Knitwear was founded in 1975, by a fashion designer and a renowned model the company is in Auckland, New Zealand, the company is located in the CBD of Auckland. The founder of the company is called William Smith founded the company after abandoning working in a government fashion industry. Smith was discouraged by the operations of the governmental organizations, how it usually runs the corruption and lack of effective coordination among various departments. Initially the company was dealing with designing clothes in small scale; the company was then managed by the owner assisted by two employees, who work together in daily undertakings of the company (Michael, 2010).
Initially the company use to sell its products to the locals, who could order, it then grew in size and increase its production and thus having a greater share at the market place. The company then expands its operations from designing clothes it then started providing modeling services, designing and other related services.
The company being in the fashion industry is the competitive business undertakings, comprising of talented, creative, and energetic persons who normally invent styles and trends. The company has seen its success because of the ability to develop a unique design for its products and brands. The products from this company are of high quality it does offer over 100 styles of sportswear and accessories in different colors and sizes. Smart Knitwear saw its expansion and diversification because of sound management in the company; the company has also been expanded into new areas in the US and outside the states. Expansion of the company has resulted into decentralization of its merchandize distribution leading to regional operations.
Following the expansion of the company’s operations, there have been the need to employ a group of qualified personnel to undertake the activities of the company. The company as the Human Resource Manager has employed me this is the crucial post in the organization.
Environmental factors affecting the Company
A business does not exceed in isolation nor does exist in a vacuum there are factors affecting its daily operations. Environmental forces have effect businesses positively or negatively these environmental factors are either internal or external. The environmental factors positively contribute to increased sales it can also cause negative effects like increasing the prices of goods or increasing business’s overhead.
Smart Knitwear Company had internal and external environmental factors affecting its operations. Examples of internal environmental factors affecting Smart’s operations include; finance, cash flow and employees, external environmental factors affecting the company include political, infrastructure, availability of resources and population. Political environment has a significant impact on the operations of Smart Company (Kumar, 2005). Political environment consists of government institutions, organizations, and political leaders. The political atmosphere in New Zealand is favorable for the activities of businesses activities; there is political stability in the country. The stability in politics is an indication of a stable economy there are no conflicts, and this is significant in attracting customers in purchasing the products of the company. Political stability is essential in improving the economic situation of the community. A country, which is economically stable, have smooth undertakings of activities. This means that business atmosphere is favorable for successful operations of the company; Smart Company has managed to open its retail businesses and outlets in different parts of the country hence diversifying its activities and expanding market.
Government regulations affect the Smart’s operations the government imposes taxes on businesses, and the company should meet these taxes if it should be allowed to continue with the business. These regulations by the government are usually in monetary terms, at times the rate imposed by the government are high, and the company might strain its resources with the aim of meeting these charges, this affects the company negatively. Government usually put in place regulations in how those businesses operates.
Government agencies, which has been put in place in the U.S, like Environmental Protection Agency, (EPA) helps in regulating businesses, and the effects the company, can have on the environment. The Smart Company has been negatively been affected by the agency, the regulations it imposes has dictated the manufacturing process of the company and waste disposal methods (Kumar, 2005).
Political culture in each country signifies a significant aspect of all the available government and systems such as the legal system. The democracy in New Zealand had considerable impacts in this stability and the political environment, in the country, acts as a point of attraction of entrepreneurs to begin different forms and types of businesses, Smart Knitwear Company being a large company ought to obey the set policies and regulations.
The New Zealand’s government has put in place the Consumer Guarantee Act, which is a basic law for protecting the rights of the consumers; the Act covers a series of guarantees for the customers. The Act in includes products and services acquired by the business for individuals and households. For the sake of protecting legal rights of the company’s customers, Smart Knitwear’s need to make a series of the available internal policies that depends on the Act. Working in the HR department assisting in coordination, I was involved making sure that there is production and provision of high quality products and services as well as providing the products as described in promotion methods like advertisements, services in Smart Knitwear will get an opportunity of providing required skills and competencies in the field of operation.
Various practices of HR practices, which are crucial to the daily operations of the company including designing, modeling, and provision of employments to the locals, the effects of environmental effects have not hindered these practices. The involvement of the company in insuring, has enabled the company to participate in the previously risk activities because of the assurance of security guaranteed by the insurance companies, Smart Company can thus invest in various activities and undertakings, therefore, increasing their scope of operation.
Both internal and external environment can thus be said to have a positive effect on the operations of Smart Company, through the adoption of the rules and regulations instilled by the government HR practices has been made easy(Hill, 2009).
Analysis of HR Functions
HR in every business organizations and any other companies is significant in undertaking business’ operations. The HR normally involved in Recruitment and Placement, Training and Development of new employees into the company. It ensures that only qualified and experienced employees usually considered working in the company. The process thus is crucial hence requires effective measure put in place, in the effort of improving the company’s performance and operations at the same time satisfying the needs of the employees. To bring this into realization, the management of Smart Company has put in place committee to assist undertaking the process. Employment of new employees is thus an activity, which requires efficient and careful planning, with involvement of qualified personnel. These procedures and processes are as outlined.
Recruitment and Placement
Recruitment and replacement processes in any organization usually done to fill a vacant position or in cases of replacing a position left vacant by an employee after its exit. Recruitment is a process through, which an organization generates a pool of qualified candidates outside or within the organization provided, they apply for the vacancy (Searle, 2003). Recruitment can be classified into two methods; internal and external recruitments. The Smart Company had 3 posts, which needs to be filled. The positions are for the project manager and 2 posts for research co-coordinators. The post of project manager was created as the company expands its operations and the scope of its activities expanded. The two pots for research coordinators are replacement posts.
It is the duties of HR to decide on the recruitment methods to be used, in the Smart Company, working in the human resource department, I was involved in selection of appropriate recruitment method to utilize. External recruitment was appropriate in the case of the company. The method involved inviting applicants both from within or outside the company. Utilization of external recruitment is significant for the posts since the company requires individuals with appropriate ideas, skills creating new outlook to the organization. The successful candidate picked from a large pool of workers will begin its duties as soon as possible.
Using this method of recruitment, the organization will benefit from an opportunity to select the best candidate with a wide range of experience. External recruitment is, however, expensive, time consuming and lacks guarantee to the best candidate. Job employment, employee referral programs, and advertisement; are significant in the recruitment process normally done through external recruitment. The method was efficient since there was a need for a variety of new abilities, skills and knowledge, after recruitment selection the follows.
Employees in every organization should be rewarded for the work they have done, the rewards are usually done using several ways. Smart Knitwear Company pay its employees on monthly basis, the amount of salary payable to an individual employees varies according to the job group an individual falls. In addition to the monthly salary, those employees portraying good progress and those who contribute significantly are normally given awards in form of cash. This has been effective in encouraging hard work among the employees.
Training and development
The newly selected employees will undergo training before commencing their duties and responsibilities. The HR department is responsible for this training, which can be done by head of the department, the staff, or any other individual selected by the company to represent. The company can hire external experts to participate in training; the company usually hires external trainers in cases where the company does not have any competent person in the given job to train the new employees. Training by external trainers can be done in cases where the job is new to the company, thus new expert; this is so for the newly created jobs (Michael, 2010).
Development of the newly employed personnel is significant for effective performance of duties if success and effectiveness in job performance is to be realized. The departmental heads or other workers in the organization usually do development process. In Smart Knitwear Company, the human resource manager does several activities to meet development process. Development of employees is significant for the effective operations of the company hence its success in implementing the required duties and responsibilities.
In developing the new employees, I participated in facilitating the process of assigning them responsibilities and then give them directions on how to carry out the set activities with an effort of achieving the set activities. Assigning them these responsibilities, will make these employees work extra hard in trying to meet the assigned duties. It is the work of the HR to ensure that workers in the organizations perform their duties effectively. Smart Knitwear Company in the effort effectively develop its employees have started activities, where employees in different departments participate these activities include modeling. During modeling the employees competes in different departments, by doing, so they affect their performance by being effective.
Strengths and weaknesses of recruitment, training, and development
Smart Company using external recruitment when new employees normally required in the process, using external recruitment method is significant in that it assists in employing of qualified and competent personnel. The presence of a large full of individuals applying the job will enable the undertakings of the recruitment process a competitive undertaking leading to quality workers. Use of external recruitments, however, has weaknesses in that it is an expensive undertaking by the company since it involves several processes. The processes used when external recruitment is used are usually technical and complex this is because the process involves employment of new employees to the company (Kumar, 2005). The company, therefore, needs a critical analysis of these employees. If internal recruitment was utilized, the process could have been an easier undertaking since the recruits already understands the company’s mode of operation. External recruitment normally disadvantages to the existing employees especially when the post needed is for promotion or introduction of a new post in the company these employees will, therefore, feel abandoned even though they have been loyal to the company and its management.
Training of newly employed personnel in the organization is a crucial process, which requires critical and effectiveness when undertaking the process. Smart company uses internal training where their seniors train the new workers; the method is ineffective since an individual can decide what to be done without following the company’s policies and requirements in the job specification. The trainees will thus switch to ways and activities ordered by their seniors this disadvantages the company since its daily undertaking will not be accomplished as required. The use of seniors in an organization to train the new employees is a cheap undertaking to the business since no external trainer is employed to carry out the process.
Employee Health, Safety, and Security
A healthy living is a dream for everyone in the society people work hard to lead a healthy living, which is a basic requirement of leading a decent life. A healthy living is related safety and security, which are basics of leading a comfortable life at homes, workplaces, and public places. Government and institutions should thus ensure that there is regulation put in place, which assist in bringing this into realization. According to Health and Safety Employment Act of U.S, the working employees for employers and employees should be healthy, and safety requirements met. The Act put emphasis on the need of all persons in the staff to obey and follow the instructions with an effort of sustaining the healthy and safety of the work environment they are based. Therefore, all the working staff of Smart Knitwear needs to put on work clothes while administering their duties. The cloths needed for any worker in the organization include aprons, helmets and gloves. New staff will undergo a training session on how to design, dye the garments and weaving of the garments. Training process will also involve how the staff can provide their services effectively with an objective of creating a healthy and safe working environment.
Analysis of the Company
The Smart Knitwear has become the leading designing company internationally, the company being an excellent fashion company has been successful in its operations and how the company deals with its customers. The company has expanded its operations, and it has open up several retail shops in different countries of the world.
An economic analysis of the New Zealand indicates that the country is vibrant in the world market, in the modern society. The New Zealand economy has been known for the improved institutional performance of different organizations, this has seen various businesses accomplish their goals. The growth, however, of different sectors is low, and it is known that the improvement in various activities has brought enormous benefits to the New Zealand economy. The increased production in the company has significantly contributed to the economic growth of the country, thus leading to improved living standards of its people (Hill, 2009).
The Smart Knitwear has outstanding strengths, which make it become the leading designer of the world. The company produces unique, and quality products and services, services offered by the company are unique thus makes it difficult for its competitors to pose a threat. The company also enjoys the benefits of economies of scale this is an advantage to the company in meeting its set objectives and maximizing the profits. The location of the company is an added advantage for effective production, marketing and promoting its products the company is located in a strategic position where people of different ages, economic classes and cultural backgrounds (Michael, 2010). The Queen Street where the company is located has a large population of locals, students and locals who are the significant customers of the company. The company has put strategies depending on the group of people they are dealing; these strategies are meant to promote the company’s products hence attracting them.
Smart Knitwear’s unique product and services have been of significance in attracting customers. The pricing strategy employed for the company’s products has been of significance in attracting a large number of clients enjoying the quality products. The outstanding performance of the company is attributed to its ability to meet the needs of its employees thus success in the company’s operations. Improving the performance of a company is a crucial process, which need concern and efforts to meet the company’s standards and requirements (Searle, 2003). The nature of the products the company deals with do not lose value in the market, this has enabled the company to produce these products even in large-scale, thus in a position to enjoy the benefits of economies of scale (Seale, 2003).
The HR operations are, however, faced with various weaknesses, these weaknesses affects its day-to-day operations. The company has a centralized system of management, whereby the management makes all the decisions and employees are never given an opportunity to contribute in the company’s welfare (Hill, 2009). The employees are thus not motivated because they do not feel that they are part of the company, this resulted into low production and lack of commitment to the job. Use of a centralized system of management has led to inappropriate conclusions arrived at by those in management, they make decisions suit their interests and not the company’s interests.
The management in an effort of improving its production and efficiency in all the undertakings; has sought to motivate the employees by increasing their basic salary and providing them with other benefits. There are awards and gifts given to those employees, who display loyalty and commitment to their work; this has seen the employees administer their duties in the desired manner.
I worked in the Smart Company for 1 year while I was a freshman I, therefore, understand all the operations and activities the company undertakes. I have a clear understanding of the company’s strengths and weaknesses. I will thus recommend the company to change its way of operations, mode of management and how it handles the workers.
In the HR department, significant changes need to be taken in the way they carry out the recruitment, replacement, training, development and motivation of the employees. The company should device other ways of recruitment the current method used is the traditional method, and thus ineffective in employing competent and vibrant personnel to carry out the duties assigned. The method is done manually, thus prune to corruption in the whole process. I will recommend the company to adopt a transparent recruitment method in carrying out the process.
Training process of new employees is inappropriate use of those in authority to carry out the training process has proved insignificant and inefficient; since they carry out the process to suit their interests and not the organizational interests. The company should, therefore, employ experts from outside the company to undertake the training process. This ensures the operations of HR are undertaken in a professional and appropriate manner without leading to the company’s inefficiencies.
Smart Company has not effectively utilized appropriate technology in undertaking its activities, most of the undertakings of the business are done manually, and there is no technology involved in undertaking its operations. This has made the company advances in different departments, but it is still behind in utilization of modern technological advancement. I recommend the company adopt modern technology in communication, production processes and human resource department is expansion and advancement is to be realized.
Effective application of managerial skills and competencies in any business is of considerable significance if success is to be realized. HR department should also work together with other departments to ensure that the department works together with other departments.
Hill, Charles (2009). International business: competing in the global marketplace. New York: McGraw-Hill/Irwin.
Kumar, D. (2005). The Dynamics of Competition. New Delhi: Orient Longman Publishers.
Michael, A. (2010). “A Handbook of Human Resource Management Practice“. Kogan Page Publishers.
Searle, R. (2003). Selection and Recruitment: A Critical Text. London: Palgrove Macmillan and Milton.
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