BT's Resource Management

BT's Resource Management

Before exploring the various answers to the question, I will start by briefly describing the role and purpose of HRM (Human Resources Management) within a firm. HRM is primarily concerned with the human side of management and sees the management team and subordinates as having the same goals. It combines elements of; work psychology, personnel management, employment law, business organisation, training and industrial relations. The HRM team are therefore involved in every aspect of an employees period of employment within the organisation.

After reading the case study, it is clear to see that there are several manifestations of various problems that can be related back to the HRM within the call centre system of BT. The most obvious are the complaints about the staff working conditions in these centres, which were dubbed as ‘oppressive' by the CWU (Communications Workers Union). This eventually resulted in the 4,000 Union members voting to go on strike for the first time in 13 years (Financial Times, 23rd Nov, 1999). Examples of the poor conditions highlighted by the members included; inadequate staffing levels, high surveillance and frequent target changes (Caulkin S., 1999). These factors resulted in the call centre staff being over burdened with work in the absence of an adequate level of staffing. As well as having to make up for the shortfall in staff numbers, the staff were often set what they felt were unrealistic performance targets. Another complaint from the union members was the fact that although BT employed 8,000 staff in all of its call centres, there was almost as many agency staff employed as union members. They felt that BT deliberately employed this tactic because agency staff are not entitled to the same pay, pension and redundancy rights as the permanent unionised employees. These problems caused the employees a great deal of stress, which resulted in high levels of absenteeism, high staff turnover and even musculo-skeletal disorders in some cases (Financial Times, 30th Nov., 1999). One such case even resulted in 13 employees taking legal action against BT over health complaints (Darby I., 2000). BT claimed that the industrial action had a ‘minimum impact' on their service – a comment that fuelled the anger of the union members as it was in essence devaluing the enormity of their actions.

Taking all of these problems into consideration, it is quite easy to surmise that the HRM dept is clearly at fault.