Task II- Performance of Pars’ Foods

Introduction
According to Gadot (2007), performance of an organization has both direct and indirect
relationship with leadership characteristics and styles. The development of leaders at every
management level is an important management task to increase the employees’ participation and
to enhance their engagement with job and with the company (Rowold, 2008). The function of
HRM is not only based on selection and retention of employees but also to motivate and to
increase their performance through provision of effective leadership. The outcomes of a well
motivated workforce are increase in job satisfaction and involvement in employees that lead to
the high standards of organization performance (Gadot, 2007).

Leadership, Motivation, and Employees Behaviour in Pars Foods

Currently leadership at Pars foods is basically dependent on the individual units work in nearly
isolation, controlled by the department heads, which are answerable to the board of governors
directly. Human resource department is facing scarcity of staff and they are required to hire
professional consultants to impart necessary training and development in all departments.
Therefore, the process of leadership development is to be imparted through experiential and
formal learning in the areas of operations, finance, and marketing and sales. The areas of
employees’ performance are based on the long term and short term company objectives that need
more skilled, talented, and adaptable employees that cater every situation (Case study).
Employees performance depends on different elements like Value, Amount, and timing of
rewards with the likelihood and fairness of rewards is also very important in employees
motivation (Fincham & Rhodes 2005).

As company is already under employed in nearly all departments, therefore, HR department is

also recruiting and hiring new incumbents in all areas, therefore, new trainings are also required.
As, the employees performance is greatly linked with the motivational strategies used in the
organization (Popper, 2005), therefore influencing and motivating the existing and new staff is
also important in Pars’ Foods. In this regard, Marquis and Huston (2009) and Fairholm (2004)
forward some important aspects of leadership and motivation like personality influences of
managers, inspirations and innovation capacity, level of intelligences, and culture of goal
orientation in the company is important to achieve the desired goals through engaged employees.
Therefore, major aim of leadership and motivation practices is to increase the employees and
organization performance through effective strategies (Dewhurst et al 2009).

In this regard, the major initiatives taken by the HR department are:

1. Hiring new professional consultants to train and develop employees for TQM and
ISO9001impolementation.
2. Staff development and training programs of ISO9001 training for managers, Food
hygiene for production staff, and Customer service training for the administration, sales
and marketing teams.

Impact on Operational Function

The operational function is facing the problems of poor inventory management, lack of proper
and trained staff, and issues with supply chain management. Though, training for food hygiene
will increase the reputation of the company in producing high quality products, but this training
is not solely enough to create the competitive edge in this department. The company needs to
become sustainable in operations in all aspects of production, supply Chain, and inventory
management. Therefore, development of a social sense of sustainability is important through
rigorous trainings at all levels of management and employees. Also, the motivation to take part
and to perform in these training sessions is also important (Bjorklund, 2001); therefore, linking
these sessions with incentives like performance bonuses, pay raise, and fair treatment of all
employees will motivate the employees and in turn, will have positive impact on the employees’
performance.

Impact on marketing and Sales

Skills development and motivation of the employees in marketing and sales is very important as
they work on the fore fronts of the organization and have direct contact with the final consumers
and customers (Deci & Gagne 2005). Therefore, imparting customer relationship trainings is a
good initiative in the period in which the software of CRM is also going to be operational in
Pars’ Foods. Apart from this initiative, this department needs a dynamic leadership that sustains
the image of organization in difficult tuimes and makes decisions for sustainable growth of the
company. The trainings need to be given in the areas of marketing communication and marketing
strategy development in view of the overall performance of the company and new targets of
market expansion to North Europe. Another aspect of motivation is rewards and appraisal,
therefore inclusion of sales commissions, bonuses to marketing teams, and rewards on individual
performance can create the desired employees performance. Sustainability of marketing policies
is important for the organization; therefore, leadership needs to have long term vision.

Impact on finance functions

Though the top management of Pars’ Foods has realized the importance of continuous
improvement processes with the use of latest technology, employment of learning opportunities
through training programs, and initiatives to increase employees’ morale, but all these initiatives
need a sound financial base of the organization (Dewhurst et al 2009). The finance department
will undergo a cost burden due to the increase of capital expenditures on land, machines, and
supply chain networks, hiring of new employees and consultants, and the implementation of the
desired training and development programs. The arrangement of funds for all these activities is
seemed very difficult as company is facing decline in profit margins due to sluggish growth in
UK market.

Hence, the impact of leadership initiatives also required that the company should be able to
arrange capital investments through venture capital or IPOs. For this regard, finance department
also need skilled and capable employees to pursue the capital investment markets. Therefore,
hiring of trained and experienced financial consultants at competitive packages is needed at Pars’
foods. The employees’ performance in this department will be positive affected through unbiased
performance appraisal, bonuses, and job security.

In conclusion, a dynamic and proactive style of leadership with appropriate motivation strategies
will surely increase the employees’ performance in each functional department of Pars’ Foods.
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