Room for Improvement. Restructuring and Redesigning Human Resource Management in a family-run manufacturing company (PDF)

Seminar paper from the year 2011 in the subject Leadership and Human Resource Management - Miscellaneous, grade: B, Prifysgol Cymru University of Wales, language: English, abstract: In the following case study we would be looking at a manufacturing company, "Flambo Plast GmbH" (FPG) specializing in the fields of plastic packaging, catering
largely to the food industry. It is a family run business, involved in manufacturing three types of products viz., beverage packaging, food packaging and cutlery. It has
an enlisted record of 500 employees. It was enjoying a good stand since its inception, but the growing competition in the field in the recent years, have pushed
the management to rethink newer possibilities. The general threat is mostly experienced from the cheap product options flooding the German market. The
management is run single-handedly by one owner. Lack of specialization amidst the employees is baffling and disappointing the management.

Key Concern Areas
The condition in the manufacturing unit is not proving to contribute to organizational growth.

· Large number of temporary workers, leading to higher churn, lack of skills.
· High rate of sick leave application, burdening productivity of the firm.
· Lack of employee motivation, owing to mismatched skills, low managerial
control.
· Employees are supervised by three administrative managers dealing with
three individual product lines. This causes conflict in direction and reduced
clarity on product line, requiring different set of focus and skills. Lack of
customer feedback has reduced the customer connect.
· With global markets garnering momentum, it is imperative to understand cost
competitiveness, product competitiveness, differentiating products to market.

Thus it is quite apparent that the management will have to consider a total
organizational restructuring along with a thorough redesigning of the functioning of
the human resource segment (read more).