Human capital theory states that the organization is based on how the people contribute to the organizational capability and to increasing their contribution to the company. The organizational economic value is found to be based on the work efficiency and effective efforts of the company. This human capital theory was impacted by this model and prolonging of the protest had only caused further detriment to the performance of the company. The agency actors of this company caused further separation between the agent and the owners. These caused the company to face more issues rather than solution.
Hence this act of the company caused to lose brand image and sales. It must have created a more cohesive platform to rebuild the lost brand patronage. To summarize about the issues, the company did not manage the issues well and it needs to have created a more cohesive relation in order to connect with the employees.
The crew members need to connect with the company. They need to have more control over their working hours. The franchises in the company are found to be based on the discretion of the individual managers. They need to be better management based on the principle that the company needs to adhere to connect with the people. The motivation for the employees needs to be based on tangible remuneration. The company needs to give more autonomy for the crew members in the decision-making. Maslow’s hierarchy model and Hertzberg model need to be factored in the ways in which the company interacts with the people.
The company needs to foster better relationship between the corporate intention and the actual management. A more transparent and a credible approach need to be created in order to form the best human resource practices for the company.
A fluid approach that is based on the contingent factors must be included in this dynamics. The prescribed approach of the managers and their employee relationship must be based on the factors and the local culture of the place. Dispute and conflict resolution needs to be managed to prevent future issues for the company.