Fishbone-HRM

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Fishbone-HRMIn the fishbone diagram, the cause and effects in human resource management are due to a number of varying factors. Failures and challenges of the human resources management sector of a company are caused by the five main factors as further elaborated here. The environment comprises of two sections, the internal and external factors. Internal environmental factors are the laying off of employees, executive payoff or bonus of employees, bankruptcy, lack of truth and lack of attention. External environmental factors are lack of regulations for analysts, improper US financial regulations, political campaign, fluctuating prices of the world financial markets and media misrepresentation.

The second factor is the internal control or audit which is characterized by a number of problem areas namely: improper risk assessments, not digging deep enough in trying to identify problem areas, not asking the right questions pertaining to this area of audit, turning a blind eye on important issues that need to be made known to the executives, and the lack of identifying inadequate checks and balances in order to protect the company from external and internal fraudulent practices. Other concerns in the internal control or audit are the lack of education of employees and improper business analysis to assess the type of transactions being conducted and their legitimacy.

Leadership is important in the human resource management and this area also has concerns which may lead to the failure of a company. The main issues here are abuse of power by the leaders or managers in the company or corporation, excess privilege accorded to some employees compared to others, deceit and lying, inconsistent treatment of internal and external constituencies, misplaced and broken loyalties and irresponsible behavior. These ethical leadership challenges have caused failures of most corporations because there is no transparency in the leadership docket which is supposed to oversee the smooth running of the company and ensure employers and employees’ welfare is made a priority.

Lack of regulations in different issues is another factor. The areas of concern in this are lack of regulations in banking which causes conflicts of interest and unsafe lending, securities analysts that are not always objective and are not required to disclose their personal holdings or their employer’s dealings. Corporate governance lack of regulations is on how board members are elected and employers contributing to board members organizations while auditor-client conflict of interest arises because auditors can provide other services to clients making this relationship a conflict of interest. There is also no oversight board to assess the auditors’ work and effectiveness and no limitations on 401K employer stock contributions plans can hold.

The final factor in the failure of the human resource management of a company is the lack of accounting standards which has an array of issues to it and they are the improper mark-to market accounting standard usage, the lack of using derivatives to manipulate accounting results, and lack of knowledge of the right use of special purpose entity accounting. The interplay of these factors in a company determines its success or failure. The lack in one area of the five cause and effect concepts of the proper working and functioning of a company may see to its failure overall.