QualTex is a long established textile manufacturer in Blackburn , Lancashire. It used to be a large textile mill which made material on site, however ,given the decline in the textile industry in northwest of England, the production of cloth has now cased, and the workforce (which has been much reduced over the years and only totals 100) Now produces cloths from imported cloth. Despite problems in the industry QualTex is surviving. It makes cloths for well known supermarket chains, and given the explosion of this part of the market, is managing to turn a respectable profit. The company has a reasonable reputation as local employer, the rates of pay are good for the area and it as an unproblematic industrial relations record (atleast there haven’t been any strikes in the Last 10 years)however , it does have a high labor turnover, there have been some worrying health and safety issues and a couple of serious accidents at the factory in recent months. It also has a reputation as an “old fashioned” placed to work. All issues to with personal and industrial relations have been managed by the Managing Director and his PA. The PA keeps the personal records of all employees and the MD has published a number of personal policies to cover “Absence”, “Discipline” and “Regulations on wearing personal protective clothing at work”. The MD expects the section managers to “manage” the people issues in the factory. What is completely missing is any training , learning and development activity other than the minimum of health and safety training , and some cursory induction training on appointment.
The workforce of the factory has recently been stunned by the news which was announced by the Managing Director on 1 December last year. The announcement was as follows:
In order to ensure the survival of QualTex in these difficult times for the textile industry, the company will merge with Grimshaw’s Fabric Company with effect from 1 January 2007. this is not a take over, but must be seen as a new partnership of long –standing successful Lancashire Textile manufacturers. The merged company will registered at Company’s House under the new name of Grimshaw’s Quality Textiles’.
This is a starting development. Grimshaw’s is a highly successful textile manufacturer which has modernized its plant and streamlined its production at its factory in Accrington. Unit costs are kept to a minimum, employees are paid minimum wage rates, but are part of a profit- sharing scheme and get good payouts at two crucial points in the year, immediately before the summer shutdown for “Accrington holidays” and again before Christmas. Healthy and safety records appear to be good, with a reduction of ‘incidents’ since 2004. There have been some difficulties with industrial relations and there was recently a walk- out by employees protesting about the low level of pay. The threat of losing last year’s Christmas profit share bonus brought everyone back to work very quickly. The management of Grimshaw’s has a reputation for being tough. ‘ if your face doesn’t fit … you are out’, is a frequent complaint amongst Grimshaw’s employs a Personnel Manager who is responsible for the issue and implementation of personnel policies and procedures; training managers to comply with these and for keeping all personnel records, including records of absence, disciplinary actions, and timekeeping. There is also a Health and Safety Officer who is responsible for training in safe practices, keeping records and advising senior management of its duties and obligations.
The new Manufacturing Director of Grimshaw’s Quality Textiles was the MD of the original Grimshaw’s. the MD of QualTex has been appointed as Chairman. They and remaining members of the Boards of the two companies have been working on a new business plan since the announcement. The key elements of this plan are: survival of textile manufacturing in Lancashire; growth; rationalisation ; increased profits over a five – year timeframe; efficiency and increased output and, finally becoming an “employer of choice” by 2010.
In order to assist with the significant changes needed to establish one, efficient and effective company with a secure future, the Board has commissioned a number of projects to be managed by various consultancy groups. Your consultancy company has been engaged to devise and develop a HRM strategy and to prepare a clear implementation plan to support this strategy. ( other agencies will be focusing on marketing , finance etc). You have carte blanche from the Board to identify and introduce whatever is necessary ‘ The Personnel Manager has tendered her resignation from Grimshaw’s and will be leaving on 31 March. The way is now clear for you to make a significant impact on this new company.
Task:
Consider the in formation given the following case study Grimshaw’s quality textiles.
Prepare a management report for the Managing director of grimshaw’s giving advise on the HRM problems of the company and advising on a new and appropriate HRM strategy. U should also prepare a clear implementation plan (through the identification of a clear, prioritizedm, time- Bound set of recommendations ) in the final part of management report. (See final section of the case study document for details).
Assessment Criteria:
Format : Report Relevant Bibliography
Length : 3500 words
Note:
You may make any reasonable assumptions about the organization and the details outlined above, providing that they do not substantially after the case.
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