Section 1: Situation Identification
The contingent workforce planning is one of the complicated and urgent issues of the management practice. Due to the numerous strategic and tactical attempts, the Motorola Inc. achieved the effective approach to maintaining the stable social policy of the human resources management and filled it with the innovative ideas. Moreover, the contribution of the company has brought the principles of the management of human resources into conformity with informational and economic advances.
The key issues coming up in this case concerned the transformation of the labor use and the peculiarities of the staffing model of the contingent workforce of the Motorola Inc. The successful implementation of the created and developed model of the contingent workers was expected to promote the business success for the organization and its shareholders. The Motorola Inc. was faced with the necessity to employ the growing number of contingent workers. Thus, their efficient integration into the organizational structure and the business performance was included in the plans of the corporation.
The contingent workforce represents the separate group of human resources among the full-time staff and requires the specific approach of utilization. The effect from the involvement of these employees into the company’s performance is to ensure the flexibility and sustainability of the socioeconomic system. Furthermore, the established relationships with the suppliers and shareholders were assumed to be provided by the talented personnel of different categories of employment. Therefore, the mixed composition of the personnel was needed to become the competitive advantages rather than spontaneous trend in the labor market. The appropriate utilization of the contingent and full-time employees of the Motorola Inc. referred to the adherence to the principles of human resources (HR) that can be applied to the examined issue. They were assigned to orient the managerial decisions on the correct and rational directions, basing on the HR practice.
Section 2: Key Facts/Supporting Information
The business of the Motorola Inc. had the gradual and progressive growth in the industry of electronics and communication technologies. The leading position has enabled the company to expand the supply, gain the substantial market share in different areas of national economy and market segmentation, and focus the efforts on the research and the development of human resources (“Human resource management principles”). Moreover, the business division and expansion encouraged the company to employ more people around the world. The subsequent peculiar changes consisted in the separation of the personnel and production according to the needs of the company’s sectors. Different level of the volatility of the demand on the products from various production sectors compelled the Motorola Inc. to revise the business model and work out new strategy aimed at the flexible performance of the company in the changing conditions of external environment.
In the framework of the new strategy introduction, the company intended to engage the talented people in the business activity. This goal was realized through the work of the established group of employees responsible for the hiring and recognizing the talented human potential. Creation of the Global Talent Supply attested the purposeful and active initiative of the Motorola Inc. to gain benefits from the creative and professional employees (Hamblen, 2012). Among the first experimental issues of the social reformation, there was the creation of the separate office that was responsible for the management of contingent workforce, mainly within the particular production sector. The activity of this department was directed at centralizing the coordination of the contingent employees, contacting with the staffing company, resorting to the help of the contingent workforce, and solving the issues of appropriate employment.
The difficulties might happen with the decentralization of the corporate management as the business was conducted in several countries. Therefore, the permanent dynamic of the contingent workers recruitment in the Motorola Inc. and the dispersal of workforce make the HR management complicated and particularly uncontrolled. The obstacles of the contingent workforce utilization partly violated the principle of congruence that has to be implemented in the HR management, because the efforts of such staff as the contingent employees were used only for a short period and did not provide the career opportunities within organization. Nevertheless, the recruitment of the talented employees for the development of research and innovative activities responded and was congruent with the company’s and management goals.
By the use of the contingent workforce, the Motorola Inc. faced the principles of competence and cost effectiveness. It should be noticed that the joint practice of the managers and staffing companies experienced the spiraling costs of this workforce and the low level of the managers’ awareness of the professional qualities of candidates. Due to the lack of time and collected information, the managers were unable to make sufficient decisions in the process of recruitment. These negative aspects of the management of the contingent human resources referred to the higher risks and costs. Moreover, the disparity of the payment rates of the contingent workers and the sum of compensation for the full-time employees occurred owing to the increased wage costs. The shortage of the procurement system enhanced the costs inefficiency and led to the controversy with the principles of fairness and equity. Thus, the low motivation of the full-time workers had influence their decision to work for the company.
The inequality of payment has happened due to the working time fund and the budget of the particular department. The salary of the full-time worker was traditionally set, while the contingent worker’s compensation for the program development weighed more. Yet, the managerial decisions of the Motorola Inc. were focused on the opportunity to experience the workplace costs. This peculiarity has created the contingent planning in the organization and should be guided by the best principles of the HR management to maintain the highest level of motivation and the accordance of the employees’ goals to the corporation’s mission and objectives.
The principle of the HR management such as commitment was not also supported, as the employees were not contracted for a long-term period and the management of the Motorola Inc. invited the people on occasions of full workload. Nevertheless, the contingent and full-time workers were tending to demonstrate the commitment to the company’s short-term objectives through the timely limited work (“Principles & policies for managing human resources”). The existing practice of the temporary arrangements with the staffing companies encouraged the Motorola Inc. to evaluate the professional skills of the potential contingent employees according to the contract of employment. Thus, the recruitment processes ensured the company with high-performed workers according to the requirements of the work position.
The specifics of the contingent employment forced the principles to be changed, as the temporary occupancy did not allow the corporation to manifest the management performance. Although the Motorola Inc. used the contingent labor for the quick tactical goals, the managers were interested to recognize the new skills and efforts applied in the temporary work positions. Thus, the company promoted the individual development in the framework of the business growth. The HR management was actually aimed at withdrawing the valuable benefits of the advanced workforce.
During the implementation of the contingent workforce practice, the recruitment policy of the Motorola Inc. had shifted from the traditional relationships with the staffing companies to the strategic sourcing model. The introduction of new model provided the advanced agreements with small staffing companies within the entire supply chain management. The essential form of connection concerning the webbing infrastructure of the business, created the opportunities to link with the suppliers of contingent workforce. The model was filled with the experience of developers and included the adherence to the HR management. The introduction of this model has allowed the company to plan precisely the professional level of the applicants, examine the demand on work position, sort the candidates among the available individuals by the expected characteristics, etc.
The developed model contributed to the improved equity of the compensation and accurate payment for both contingent and full-paid workers. The model has liquidated the disparity of the salary and at the same time set the appropriate payment for the less-professional contingent employees. Thus, the principle of the equal payment was successfully achieved.
The planning of the recruitment and management of the contingent personnel was performed easily and was based on the company’s needs in additional labor. The team of the developers and mangers was encouraged to form the base of the seats allocation that allowed planning the possible gap and filling it by the attraction of other staffing companies. Therefore, the performance management as the condition of the efficient managerial decision was realized simpler (Cascio, & Aguinis, 2008).
Despite bringing the significant contribution to the common process of the contingent workforce planning, the Motorola Inc. faced different challenges of the external social and economic environments. In order to support the long-term development, the company should move to more flexible and socially-adaptive model of the organizational structure and create deeper integration of the contingent workers in the corporate system.
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Section 3: Recommendation(s)
The tentative solution for the improvement of the planning process, touching the issue of the contingent workforce planning at the Motorola Inc., should be based on the appropriate managerial concept and toolset. The management system should return to the primary principle of the efficient HR management to ensure the sustainability for the corporate shareholders and stakeholders. The technical and technological base should support the managers’ decisions of the staff recruitment and release. Furthermore, the employees’ base will rank and select the different groups of the performers by the contribution and role in the business development of the Motorola Inc. Consequently, the further managerial decisions will be well based, forecasted, and applied to particular individual from the contingent candidates, especially if the repeated processes laid in the functioning of the model and the network with the same staffing companies were provided.
The developed models of the company assist the managers in the complicated and permanent processes of the staff selection. The right choice should be based only on the determination of the appropriate criteria to the candidate that should reflect the mission, conceptual statements, objectives, and tactical measurement of the company. Due to the concurrence of these organizational positions and the goals of the contingent candidate, the company may increase the level of labor productivity and execute the corporate plans more accurately. If the contingent and full-time employees are motivated enough through the developed system of the equal working conditions, the activity of the high performer, and other material and non-material remuneration, the productivity will be obtained in every structural group of the company’s staff. Thus, the design of the motivation model will enhance the foreseeing and planning processes. Moreover, planning of the training and individual development will ensure the increasing of the demand on the work positions of the company.
The principles constituting the HR management promote the relationships of the employer with employees and suppliers of the contingent workforce. Therefore, their introduction in the managerial approach to the planning of the contingent staff should be provided. As the Motorola Inc. invited the skilled workers to take a place within the socioeconomic system, the grievance and non-ethic conduct should be handled in the same manner as with the full-time workers. The application of such measurement will favor the equal and ethic relationship between these groups of the staff. The company’s policy focused on the responsibilities of every individual will protect the company from unfulfilled work and the defectiveness of the production and management. When the hired contingent workers get the proper and clear responsibility, except the benefits of the work position, the planned number of the applicants will raise.
To sum up, the planning of the contingent personnel refers to modern requirements of the flexible and sustainable performance of advanced company. Therefore, the provision of the company with high-skilled human resources demands the clear compliance with the principles of the efficient HR management. As it is the primary base of the common managerial process, the planning function needs to rely on them. The attempts of the Motorola Inc. demonstrated the professional and modern approach to solve the defined problem with contingent workforce. Nevertheless, the company has experienced the lack of essential concepts and economic crucial defects. In order to develop proper positions and adopt the available capacity to the required needs, the company should transform the model in accordance with initial concept of HR management. Therefore, the appropriate principles concerning the fairness, the equal working conditions, parity of salary, individual training and development should play the essential role in the improvement of the contingent workforce planning.