The Challenge of Devolution Case Study

I. Summary

In this case study, HR Director of Inchcape UK faced problems in HRM of Inchcape. In particular the growth of the company has created difficulties and a number of challenges need to be addressed. Add to that the decentralized method to subordinates who are line managers so will have more authority. These issues force the HR Director to make decisions to answer the following questions.

1. How should the role of the HR department of Inchcape be, that to meet the requirements of HRM?

2. In the HRM, how should the HR Director create organization, function and determine the task of HR Department and subordinate who are line managers?

3. How decentralize enough power of the line managers? And what challenges it creates for them in the management and administration tasks.

To address these questions, it is necessary to analyze the following:

* The scale, nature, structure and organizational culture of the company and influence the decisions of HR Department

* The advantages and disadvantages when decentralization, challenges for the line managers

II. Devolution for line Managers

a) Scale: at present Inchcape has 3000 employees working in all regions of the UK. The total number of employees is managed by 60 General Manager. The retail company with such characteristics should be more difficult in human resource management.

From this scale, the question is how to develop human resources strategy? And what is method to perform them to meet business objectives of Inchcape.

b) The nature: the nature of the company is business operations, so human resource strategy must be consistent with the competitive strategy of the company. In particular, the competitive strategy of the company must be clearly defined to ensure the recruitment, staffing the right people in order to increase the efficiency of business operations.

c) The culture structure:

However when it comes to business, or mention the HRM it needs to consider to the corporate culture.

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