Toyco Case Study

Executive Summery

This report examines TOYCO’s approach to human resources management strategy on relation to its business strategy and how a company could use AMO model to help achieving business objectives. TOYCO was founded as Go-toys by Harold Bennet in 1950s and later was purchased by Henri Pallas who moved most of the production to Europe with the head office in Oxford.

Gearldine, HR director, try to keep control over all the employee related matter in the organization. In addition, there are many human resources management issues for not following business strategy. There is an issue in the organization of Geraldine is being unfair to some employees including employees from Morocco and Mexico. People are complaining about disparities in pay and there is a high staff turnover in some areas of the company. When managers are not effective, they cannot satisfy employee need and get nothing in return (Hollander and Julian, 1969). Further, TOYCO do not have proper intrinsic and extrinsic employee reward policy in place to motivate employees.

TOYCO does not have any policy and procedure in place for employee motivation and satisfaction. Gorden is very much concern about cost cutting since company is not doing well. On the other hand there is a lot of turnover an intangible issue, which is leading the company to huge underlying problem and making it more difficult to address (bizfilings, 2012).

Human resources department at TOYCO need to have a systematic hr policy in place to help keep employees on the same page and streamline the day-to-day operation of the business (Bump, 2014). The company needs to have proper training and development procedure in place for employee’s training, professional development and job security (Bump, 2014).

Introduction

TOYCO was established as a traditional toy company. The management at TOYCO who is mainly 35+ and holds a degree and are professionally qualified. The business made significant profit in early years but is not facing a good time since last 20 years. One of the TOYCO’s major competitors is ToysRUs, which is one of the most iconic children’s retailers in the world. One of their human resources strategies is to make employees work in a group. Their team is focused and clear with common, friendly processes and fast and urgent in decision-making and quick in adapting to change (ToysRUs, 2014).

AMO (Motivation)

AMO is at the heart of strategic human resource management in the sense that all firms wishing to maximize the human contribution have to have workable policies in these three broad areas (Boxall & Purcell, 2003). AMO has a direct connection in the creation of organizational commitment. In response to AMO policies, employees will develop organizational commitment, motivation and job satisfaction.

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