City Shuttle Inc. is an example of innovation in the service industry at its best; by making small modifications to its traditional business model, the company has been able to greatly increase the span of its operations. Unfortunately, this has proved to be challenging, especially for City Shuttle’s employees, as a variety of significant ethical and legal issues have arose. This includes the absence of a formal human resources department, the endangerment of customers by depriving casual drivers of sleep, a lack of benefits for employees, ineffective communication practices throughout the company, and the refusal of upper management to respond to harassment allegations. These five major issues may cause City Shuttle Inc. to suffer …show more content…
The author goes on to say, “Through strategic HRM practices, employees achieve a specific set of competencies that differentiates banks and leads to the achievement of competitive advantages in the banking industry” (Kadar Muhammad Masum, 2015). Because the market for these banks are essentially all the same, the HR department is what enables a competitive edge as it causes employees to differentiate themselves through their skills and competencies. Much like in City Shuttle Inc., employees in organizations that lack an HR department fall short compared to its competitors because, as the backbone of the company, they are not performing to their …show more content…
62). She goes on to say, “the impact of HPWP on corporate financial performance is in part due to their influence on employee turnover and productivity” (p.62). These quotes explain the effects of HPWP and how, when poorly implemented, they may result in some of the issues City Shuttle Inc. is currently facing. Their high turnover rate is a result of poor human resource management by the executive managers, uncertain hours, ineffective operations, and little to no employee involvement, resulting in employee dissatisfaction and poor performance. In fact, the absence of regular hours is an extreme sign of poor human resource management because this infers disloyalty among