Managing Human Resources: Aes Corporation Case Essay example

2933 Words Dec 26th, 2011 12 Pages
Managing Human Resources: AES Corporation Case

Final Exam Case
MGT 412

Respectfully submitted by:

Frank Rizzo

AES Overview:
AES managers exemplify the leadership it takes to run an HR-minded organization. Leadership is mandatory for the success of AES as the organization continues to have a competitive advantage over its competitors. The core competency of AES is the core values that all their employees follow. Bakke’s description of the purpose of AES is “to steward resources to meet the needs of society. AES strategic goal is to continue its success to meet the needs of society but to do this AES has established the most impressive HR-minded culture that all their employees perform. AES employees are given the freedom
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The top three people management practices that AES emphasize are participation and empowerment, employee ownership and incentive pay.

1. Participation and empowerment: More autonomy is expected to be associated with greater job satisfaction because workers have more freedom to determine their own effort and work schedule.

2. Employee ownership: Since AES employee ownership is combined with a management style that encourages employees to share ideas and information, AES has grown 6% to 11% per year faster than would be expected otherwise.

3. Incentive pay: At AES bonuses are given to employees to serve the following purposes: to create incentives to reduce costs; to pay people for doing a good job; and to encourage employees to think like shareholders.

EAS known’s that it is important that their people management practices are interrelated and it is difficult to do one thing by itself with a positive result but the top three people management practices that AES that are most lacking are high wages, taking the long view and measurement of the practices.

1. High wages: Higher wages typically attract more applicants and send a message that the organization values its people. Too some people higher wages are a must when looking for job if the wage does not meet their desire economic amount they will search for other employers. AES does…