Case Title: Enterprise Rent-a-Car
Organizations needs to manage their workers for its effective and efficient process of production. They can adopt the methods either Personal Management or Human Resource management depends on the capacity, nature and expansion of their businesses.
Personal management is an administrative Discipline of hiring people of small size enterprises who just focuses on the outcome on individual targets assigned. This method can be more fully describe with the management process of Human Resources of Enterprise Rent-A-Car at its inception in 1957 with only seven cars.
Human resource management is a subsequent approach to managing people which is responsible for the recruitment, selection, training, evaluation, and employees are identified with their talents and skills and managed and rewarded accordingly. Employees can develop their career within the organization. This is the Human resource management role involved in Enterprise Rent-A-Car in 2007.
Conversely there is a major difference between Personal Management (PM) and Human Resource Management (HRM) which can be expressed as follow with some of its dimensions.
Time & Planning
In Personal Management employees are hired on short term basis just focusing on the present requirement of the organization. Employers are comfortable with changing and replacing the workforce according to the time to time requirements. Therefore their planning of human resource is reactive. Activities of the worker are regulated and employees cannot expect a career development or future benefits.
In contrast Human resource management identifies the employees individually and involves their capabilities with appropriate processes in the organization’s strategy. Employees can pursue career development in relation to their aptitudes and organizations objective are integrated with employees aspirations.
In Personal Management there is a big gap between the employer and employees which gives law autonomy to employees. All are identified collectively as the workforce and no individual recognition Very law trust develop among the staff and firm which also cased to decrees the satisfaction of their job and efficiency.
On the other hand in Human resource management worker are identified individually according to their talents and skills and they are benefitted accordingly. All of the organization, from the management to lower level staff are working on the same goal and work together with harmoniously. Therefore the employees are self-motivated and empowered to think independently.
Enterprise Rent-A-Car have to encounter many challenges with external environmental factors when managing their workforce for its international business expansion.
Enterprise Rent-A-Car is a multi-national corporation deals with many nations where they have to face for cross cultural differences in terms of people’s language, attitudes, customs, negotiation patterns and decision making styles. Staff of Enterprise Rent-A-Car should have a proper understanding on cultural differences to avoid cross cultural blunders in order to maintain their standard of customer service which is a key driver of growth for enterprise.
Since the enterprise is consisted of four operating units and continuously expanding its service, company requires to execute an effective strategy to adopt to new markets. In facing the challenge of new markets the company’s key importance should be focused on Human Resource. Enterprise should assess the existing workforce by analyzing employee's skills individually to identify whether they can be enrolled in future positions and how they are valuable for the company. Moreover the selective workers can be improved with their abilities providing training and retraining strategies. (E.g. Promotion Exams, Promotion interviews)
In order to compete with key rivals in new markets, company should use human