Analysis on “To promote or not” case.
Human plays a critical role in the firm (Sachs, 2006). Though most of the operations in the firm today involves machines and robots still humans are responsible and in “hands-on” for most of the critical processes in the firm. They are the one working, managing and controlling most of the important activities inside and outside of the company, for better outcomes of a plan or management strategies and thus for generating income.
The human capital is the skills, talent, and knowledge of a firm’s workforce which is an important asset for a firm because this greatly contributes to success. It contributes to having a sustainable competitive advantage over other firms and for a critical strategy implementation. Today human capital is becoming more insufficient than financial capital; since there are only limited people who have the capability of doing excellent works that will improved the overall activities of the firm.
This case involved the promotion or not of a long established metropolitan law firm employee. There are three employees who are candidate for the promotion; one of them is Nina Allen, a more excellent worker. Since she is a more excellent worker, the firm is considering more her promotion. Ms. Allen is really a good worker but though she has done exemplary work for the firm, her time for the firm becomes limited since the time she had her baby three years ago, which takes her an approximately 50% of the billable hours of her colleagues, and with salary and other benefits reduced accordingly.
In this case, showing the performance of Ms. Allen it is just right to promote her, since with her good performances, she is an important asset of the firm, losing her will lessen the firm’s competitive advantage over the other.
If the promotions committee will come to a decision of promoting her, the company will realize these advantages, such as not losing a committed worker, since we can see that she really is, because though her time is limited for the firm, still she is doing an effective performance, in fact she is having an exemplary appraisal from her client. The firm will also have more clients since from the work of Ms. Allen, she has produced a good image for the firm that will be overheard by other clients and with this the firm will generate much greater income. Promoting her can also be a good image for a committed worker, since she is working excellently given a little time. This image will then motivate other employees of the firm to work as effectively as Ms. Allen. The disadvantage of promoting her is really the limited time Ms. Allen is giving for the firm, because of this there will be limitation on what she can do and offer for the firm, she might have less focus on the matters regarding activities of the firm, but though it is a possibility, Ms. Allen can overcome those risks, since she is a committed and an excellent worker.
On the other extreme, if the promotions committee will not promote Ms. Allen, they will then lose her, since it is stated in the case that if the nominee will not be promoted s/he will then be fired. Losing her will do a big downfall for the firm since she is an important asset of the firm. Other disadvantage is that they will lose a competent worker who is also the only female worker of the firm who has showed a good performance. Letting her out will then lose their opportunity of attracting and retaining the best people in the field of law firm. Another disadvantage is the moral damaged, this can lead to a not good impression to other employees, and with this others will lose their motivation in working for the firm, thus other employees will then not work effectively and productively for the firm. The big effect of such option is the possibility of having tremendous decrease in the firm’s income. But on the contrary losing her will give the opportunity for other nominee to be promoted and be retained in the firm that will give those employees a chance of showcasing to the firm their worth. They will also retain their value of motivation and dedication, since they will lose the worker who they think does not showed such.
The underlying problem that is visible in the company is the firm’s wrong management of their employee or their human capital. The human capital as it is stated earlier is an important asset of the firm that must be controlled effectively because if not they will lose much in terms of work productivity and in a wider view a decrease in the generation of income. The problem is that the firm does not put much emphasis on the welfare of its worker and they have not done their part in making good decisions that will be most beneficial for both the firm and so as with the worker. What the firm focused on is much on profit maximization rather on wealth maximization, where the human capital is a big part of.
To solve such problem, firm must review their ways of management for the employee. They must put emphasis on their welfare since they play a crucial role in the firm. They must eradicate the consequence of firing the employee if they will not be promoted, it is because it can lead to moral damages that can affect the employee and which can again lead to a much big effect such as losing part of income. They must also stress on giving the employees a motivation for a better work done. Since a motivated worker can do jobs much better than those who are not, because they will be more satisfied with the output of their work. It can also force the worker to perform productively, to achieve the company’s goals and desire for a consistent well-performance. Ways of doing so, will be by giving them their needs such as “money,” since they will feel more satisfied for a good compensation for the output. A good compensation also produces a “good fit” since it is no longer necessary to force the worker to do the job, because it is rewarding and satisfying to do so. The firm must also be more careful in making decisions, because most of their decisions are affecting the firm. They must always consider making a sound decision that will be both beneficial to the firm and so as with the employee. As with the case of Ms. Allen the firm must have considered her chances of being promoted with the part time decision.
As it is already stated the workers are very important for the firm since they are the one that will make the company work, and so the Nina Allen’s decision is critical for the firm because she is part of the firm’s human capital and she is one of its assets, and for her case the firm have the options of promoting or not promoting her. If they will promote her definitely the firm will not lose her and in that case the firm will still be competitive, will generate greater income, they will have more clients, the firm also has the possibility of growth and will have many benefits such as the good image that she have produced for the firm since Ms. Allen is an excellent worker. But on the contrary if Ms. Allen will be promoted they have the risk of having problems in running the activities of the firm since Ms. Allen have limited time. If they will not promote her, definitely the company will lose Ms. Allen, and with this they will lose an effective worker for the firm. They will lose a precious asset of the firm, since she has attracted more clients for the firm from her exemplary work, and in a wider view the firm will lose a big part not only of their earnings but to the totality of the firm.
Analyzing the case, the best option that the firm should take is the promotion of Ms. Allen. It is though there are risks due to the limited time of Ms. Allen, still she is a very important part of the firm, losing her in the firm is not a wise decision, given the fact that the human capital is a limited input for the firm, losing an excellent worker will severe the situation of having a competent worker for the firm. Weighing the two options, not promoting her will give the firm a much heavier load that it needs to carry on. The firm will then face bigger negative effects such as a decreased in the firm’s generated revenue. The firm must reconsider Ms. Allen’s nomination; they must consider her abilities and exemplary performance for the firm and not merely on her negative which is its limited time for the firm, because though she has little time, still she is a committed worker, because if she is not, then why do many clients are appraising her for her works. They must also consider the image that Ms. Allen has produced for the firm, and that losing her will lead to a negative image. The other employees might also lead into not working excellently since they will be disoriented due to the lost of Ms. Allen in the firm and that there is a possibility that the other employee will no more be motivated. They must widen their view of Ms. Allen’s case, they must realized that if she is not dedicated to her work then why is she still making good works. Lastly, if they lose Ms. Allen, the company will lose their competitive advantage and worst they might produce new competitor if she will then be hired by other law firms.
Human capital management is a very important aspect for the firm to consider, since people are the firms most important assets. Mismanagement of the human capital can lead to serious treats that can hinder the growth of the firm and an effective one will lead to excellent operation and success in having more customers and in turn success financially, it will also lead to a greater competitive advantage, and lastly a good management of the human capital can lead for a good implementation of strategies, this all will then lead to a productive work that will generate greater revenue for the firm, and that will benefit the totality of the firm.
Sachs, G. (2006, October 24, 2006). careers. Human Capital Management Retrieved November 25, 2006, from http://www.google.com.ph/search?client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&hl=tl&q=human+capital+management&meta=&btnG=Hanapin+sa+Google