Rio Tinto Case

489 Words1 Page
bulb-icon

Recommended: Explain the relationship between the Human Resources (HR) functions and other business functions

In 2008, when a global recession hit, Rio Tinto needed to minimize potential problems with the reduction of force. The company’s HR department participated in the decisions that were being made and contributed to the problem to find a solution. The outcome was hard but also necessary. Rio Tinto determined that in order for the mining company to subsist it would have to let go of 14,000 current employees. This decision was determined through the use of maximizing HR skills such as, understanding and strategizing the use of all employees, maximized human assets, and taking advantage of human capital. Formerly, the HR directors would have used numerous different methods in solving this problem, but by coming together and finding a common …show more content…

It is likely that the reactions of the employees would be confused and, depending on if you were fired, angry or relieved. Employees have given their time and effort into that company to be suddenly laid off. I think without giving a correct explanation the employees would be confused and eventually upset. That is where HR comes in. It is important to let the 14,000 employees know that their time at the company was valued but currently their talents are not needed. As for the employees that “survived”, they need to understand that their employment at Rio Tinto must not be taken for granted. HR is able to determine where their talents are best at and who works better with whom. HR needs to take in consideration the reactions of employees to better prepare for the future and keep the company organized. The company cannot afford to receive a bad reputation because of how they are handling the situation. Being aware of the potential outcomes is always imperative to a company’s success. With good tactics, the company can be at a competitive advantage by using resources such as innovation and talent. It is always important to stay one-step ahead in the business field. Looking for new, more efficient ways to do things is what HR is all about. HR is crucial to a business’s overall success and harmony amongst

Show More
Related

  • Perfect Pottery Case Study

    1257 Words  | 3 Pages

    The next problem is poor morale. Morale is the job satisfaction, outlook, and feelings of an employee. Right now, employees do not feel secure within the business and are rebelling against it. They do not have a positive outlook for the future of the business and feel betrayed because of all of the people getting let go. The employees right now have a poor morale due to all these factors.

    Read More

  • Rio Tinto Case Study

    882 Words  | 2 Pages

    As you can see, as the economy increases the environments safety deteriorates. As Per Capita Income increases it eventually reaches the Turning Point Income. The turning point income shows that the environment starts to improve with a growth in Per Capita Income consequently decreasing the environmental deterioration that has been made. However, as a country becomes a developed nation it decides to outsource its industries towards developing countries. These developing countries still have a weak economy with little governmental regulation. In effect the environment of these countries are destroyed at the expense of the developed nation’s economy growing stronger. The reason is because developed nations have strict environment regulations and

    Read More

  • Human Resources Management at REI, Inc.

    2489 Words  | 5 Pages

    Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.

    Read More

  • Rio Tinto Case Study

    1430 Words  | 3 Pages

    Instead of using previous methods of open pit extraction, block cave mining and rapid tunnel technologies is used to access deep ore bodies faster and with less environmental impacts (RioTinto 2014).

    Read More

  • Legal Issues In The Workplace

    1374 Words  | 3 Pages

    In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their goals. Far too often, the Human Resources (HR) function is nominal thus they are not as quick to respond to the rapid rate of change. When “this occurs, companies may be perpetuating or even creating barriers to fully leveraging their human capital. Organizations can begin the process of removing these barriers by assessing the Human Resources function and its alignment with business objectives” (Wert & Liwanag , 2002). This paper will make a case for having HR report to the CEO. In order to do so the author will describe the relationship between HR strategies and business strategies. Examples of HR strategies that can be effective will be discussed. In addition, the author will examine the benefits and consequence of having HR as a strategic partner and well as the key business competencies that they must retain. Furthermore, she will discuss an optimal career path for a senior HR executive.

    Read More

  • Equity in Human Resource Management

    2507 Words  | 6 Pages

    The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).

    Read More

  • Human Resource Challenges of the 21st Century

    1350 Words  | 3 Pages

    Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.

    Read More

  • Case Analysis: RL Wolfe

    3133 Words  | 7 Pages

    Ulrich, D., Younger, J., and Brockbank, W. 2008. “The twenty-first century HR organization.” Human Resource Management, 47, pp.829-850.

    Read More

  • Interview With a Human Resources Manger

    1933 Words  | 4 Pages

    Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)

    Read More

  • Human Resource Management and Health Care

    1335 Words  | 3 Pages

    Knouse, S. B. (2005). The Future of Human Resource Management: 64 Leaders Explore the Critical HR Issues of Today and Tomorrow. 58(4), 1089-1092.

    Read More

  • Human Resource Management

    1222 Words  | 3 Pages

    An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...

    Read More

  • Job Design and Job Analysis

    764 Words  | 2 Pages

    4) Tokesky, George C; Kornides, Joanne : ‘Strategic HR Management is vital’( Personal journal, December 1994 v 73 n 12 p 115.

    Read More

  • Case Study Of The Rio Tinto Company

    855 Words  | 2 Pages

    This paper is about leading people through a management system called Human Resource (HR), that does more than payroll, design training, and avoiding lawsuits. It provides essential components that will ensure that human talent is used effectively and efficiently to accomplish organizational goals. It is a case study of the Rio Tinto company 's Human Resources global approach after a significant downsizing in 2008.

    Read More

  • Rio Tinto Case Study

    2063 Words  | 5 Pages

    Rio Tinto is a leading international mining group headquartered in the UK (United Kingdom), combining Rio Tinto plc, a London public listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. These two companies were founded in 1873 and 1903 respectively. The original Rio Tinto company was set up by a group of investors including Matheson & Co. and Duetsches Bank, who together bought Rio Tinto mine from the Spainish government for $3.7 million in the early 1870’s. By the end of the 1880’s Rio Tinto was known as the world’s leading copper producer.

    Read More

  • Motivation and Conflict Management

    1025 Words  | 3 Pages

    Lewis, Clive (2007) Human resource management international digest. Bradford: 2007. Vol 15, Iss.4: pg. 3.

    Read More

More about Rio Tinto Case

Open Document