HRM380 Case AMC in Combodia

Prepared For:
HRM 380 Case 4
Mr. Tajuddin Ahmed

Faculty Member School of Business North South University
Date of SubmissionSubmission 06.12.2010 Monday
Prepared By:
Group K1
Anika Erin Nafia Nazmee Sabbir Ahmed 072 819 030 092 0039 030 092 0041 030
December 06, 2010 To Mr. Tajuddin Ahmed Lecturer BBA Program North South University Dhaka Subject: Submission of the case analysis on American Mining Company (AMC) in Colombia Dear Sir, Here we have solved the case analysis as a requirement for the HRM 380 course. We have worked with utmost enthusiasm, since the experience has augmented and assisted us integrate our knowledge about elucidation and execution of the approaches we have been taught so far and implement them accordingly. We anticipate learning some real life lessons and first handling knowledge on compensation problems during further course works. We would be delighted to furnish you with any details, if required.
Thank You Sincerely, Group: K1 HRM 380, Section: 02
_________________ Anika Erin 072 819 030 _________________ Nafia Nazmee 092 0039 030 _________________ Sabbir Ahmed 092 0041 030
Executive Summary
Coal, a fossil fuel, is the largest source of energy worldwide. Some of the world's largest coal reserves are located in South America, especially in Colombia. Our case analysis is based on one of this coal mining business organization of ColombiaAmerican Mining Company.
In the background part, weve discussed about the case briefly. Weve discussed that American Mining Company (AMC) is an USA based coal mining company which decided to transfer its operation from USA to North East Colombia due to many reasons like lower labor cost, flexible laws, government support, huge coal reserve etc. But their USA workers were totally unaware about this matter. It was not easy for AMC to run their business in Colombia due to increased terrorism, volatile political environment, and several attacks to the organizational properties and employees of AMC by local guerilla groups such as FARC, ELN and AUC.
In the theme part, weve discussed about the problems of AMC according to the case, where the problem were termination of their USA employees without any prior notice, external threats like attacks of terrorist groups of Colombia and so forth. Then in the main issue part, weve questioned about the viability and the future of AMC in Colombia because of the alarming situation of rising terrorism and attacks of the guerilla groups.
Then in SWOT analysis, weve discussed the strengths of AMC like its reputation in international mining market, huge capacity of processing etc.; not transparent management, lack of proper diversity ratio in workforce etc in weakness part; profitability and expansion of the business due to lower rate of labor cost, government support etc. in opportunity part; its location in demilitarized zone, increasing terrorism etc. in threat part.
Next in HR Issue part, weve discussed the HR issues of AMC like as per the case, they dont have any HR Department, they dont follow the ratio of diversity in the workforce properly, theyre not providing the proper safety for their employees etc.
After that, in recommendation part, weve recommended some solutions for the HR issues as well as weve described some general issues as problem and discussed about the recommendations of them. In our last segment implementation, weve discussed about each and every recommended solutions detail implementation process like how to implement it, who will implement it, when and where to implement it.
Table of Contents
Content Background Theme Main Issue SWOT Analysis Strengths Weaknesses Opportunities Threats HR Issues Recommendation Implementation Appendix
Page No. 01 08 10 12 13 15 16 18 20 24 33 44
Case 04 American Mining Company (AMC) in Colombia Group: K1
The American Mining Company (AMC) was one of the leading mining companies in the United States for the previous half century with a worldwide reputation of providing high quality coal, reliable delivery and excellent service. It was one of the top 300 largest private companies in the United States. However, the company had begun to diversify into real estate developments on both the US east and west coast.
AMC Moves to Colombia________________ Colombia_____________________________ ___________________________

Due to some situations AMC decided for a move to Colombia, which offered some enticing openings for them. In order to grab the opportunities in Colombia and capitalize on them, the coal mining company decided to transfer its coal mining operations from United States to Northeast Colombia. But the most tragic thing is, majority of the workers did not know anything about the transfer notice. Nine mines were just shut down and almost 5,000 workers were sacked from their jobs.
The bottom-line of the decision of moving to Colombia basically consist of three advantages, which United States could not provide. The low wages was the first of them. In contrast to the United States, wages for Colombian mine workers were almost onethird of that of the United States. As a result, AMC could cut their cost down at a remarkable level. Moreover, US mine union enforced some onerous laws restricting the stress and risk for them on the companies. The exact contradictory situation existed in Colombia. There was no restriction on limited working hours and mandatory safety precautions. Colombia provided more advantages because of a 20% unemployment level. There was no shortage of labor supply and the wage bargaining power was on the companys hand. So Colombia offered a good opportunity for AMC to grow higher.
Secondly, worlds third largest coal reserves were in Colombia. The coal reserved there was the best of the world. Average coal in Colombia was excellent and of high-class quality. Moreover its sulfur and ash content exceeded global standards.
And finally, Colombian government offered copious attractive investment incentives to AMC, which was tactless to reject. Enormous public debt forced to privatize national industries and attract foreign investments to meet IMFs loan condition. AMC saw many other advantages like transportation facilities, tax-free operations and safety in Colombia. Over 500 Colombian army were always standing by the mine for the protection of companys operation and also its workers.
With all these advantages and opportunities, AMC began its operation in Colombian mine in 1994.
Initial Operations___________________________ perations____________________________________

Within a year, AMC had developed their business a lot. Their initial production capacity was three million tons per year, which was huge. AMC owned loading trucks and trains in order to facilitate their transportation process. Their transportation capability was also gigantic. More or less 1,700 tons of coals per hour could be efficiently loaded into railcars.
AMC also had a plan to expand by the year 2004. According to the plan, they could produce more than 10 million tons per year. AMC had expected a significant growth in the near future. The mines had already started to gain a growing percentage of profit. They also started to close their business in United States gradually and transfer those industries to Colombia. The then CEO of AMC stated publicly that the companys future lay in Colombia. Reviewing all other external prospects, CEO could see a dazzling future was on its way ahead very short.
Business Environment Environment in Colombia_______________________ Colombia_______________________

Although there were some restrictions, the overall business condition in Colombia was preferable for foreign businesses. The same legal and administrative policies were applied on both foreign and local companies. 100% foreign ownership was permitted for most sectors. Most sectors were becoming privatized in the early 1990s.
AMC exceeded the minimum requirement of national employees in a company in Colombia. They had a good advantage in this. Moreover, AMCs main working area, coal, was itself a superior export in terms of revenue; just behind oil and coffee. Colombian government expected a high growth in coal exports and they wanted this industry to be privatized. AMC was interested in acquiring a state-owned coal company named Carbones de Colombia (Carbocol). Carbocol had a 50% stake in Latin Americas largest mining operation and one of the largest pit mines throughout the world. So acquiring Carbocol was a very optimistic decision for AMC.
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Political Environment Environment in Colombia________________________ Colombia________________________

The political situation of Colombia was very volatile at the time. Civil wars were frequent in thirty years after 1970. President Pastrana was elected in 1998 to bring an end of the civil wars. Pastrana was always active and tried to bring into a negotiation with the rebels. But the rebels show no sign to give up and they still continue what they did for the last thirty years. Another disheartened thing was that Colombia topped the list of kidnapping rates all over the country. This made the situation more badly.
FARC_______________________________________ FARC____________________________________________ _________________________________

The Fuerzas Armadas Revolucionareas de Colombia (FARC) was Colombias most dominant and largest rebel group. It was formed in the mid 1960s and has been very violent since its formation. It was based upon Marxist ideology which advocated many changes in the government structure. It realized a good amount of profit from kidnapping and drug trafficking which allowed them to be better equipped and better armed. They became so strong that even Colombian army was often reluctant to fight against them.
To initiate peace talks, President Pastrana declared 42,000 square kilometers of land to be demilitarized zone letting FARC to do whatever they wanted to. No government soldiers were permitted to enter this zone. FARC used this area to train its soldiers and cultivate cocaine. The civilians living into that zone was often harassed by them. FARC planted a huge amount of cocaine every year and this brought more than $700 million annually.
ELN____________________________________ ELN_____________________________________________ _____________________________________

The Ejercito de Liberaction Nacional (ELN) was Colombias second largest rebel group after FARC. Its primary activities involved kidnapping, attacking countrys energy and petroleum infrastructure with guerilla tactics and blackmailing multinationals. They were
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also allowed to have a safe haven of approximately 5,000 square kilometers in order to negotiate for a mutual understanding.
ELN came into headlines when they hijacked a domestic airline in 1999, forcing the plane to land in remote northeastern Colombia. Hostages were kept imprisoned for over a year. Many were died in the jungle. ELN also kidnapped 100 churchgoers from the central Cali just one month after the plane incident. Government could not come into negotiations with them. But government antiterrorist troops secured the release of all hostages within a month. AMCs principal Colombian mine lay within territory contested by the FARC, ELN and the Paramilitary.
AUC______________________________ AUC____________________________________________ ____________________________________________

Autodefensas Unidas de Colombia (AUC), commonly known as Paras, was believed to be one of the largest violators of human rights in the world. They followed very brutal tactics to combat the Marxist rebel group. Their main target was anyone associated with the rebel groups and they were associated in more than 75% political motivated killings in Colombia. Marxist sympathizer union workers were also a prime target of AUC. Paras did not directly target foreign multinationals.
AUC was a highly disciplined soldier group but was officially illegal. President Pastrana tied all official government ties to the AUC, but remained the primary source of intelligence of the Colombian army. It depended on 60% tax imposed on cocaine producers to finance war against rebels. AUC was better equipped and also better motivated than other government army equivalents.
Plan Colombia_______________________ Colombia_____________________________________ mbia_____________________________________

In the mid 2000s, US government sent $1.3 billion assistance to Colombian government in order to support security issues created by rebels and the drug problem. But the package was obstructed by some vigorous efforts of FARC.
AMC always wanted the aid and they were very active to assist the Colombian government representatives around Washington, DC while they lobbied the US Congress to increase military consignments. US Congress members knew that American companies that were operating in a volatile condition in Colombia would directly benefit as they had some strategic issues. The rebels considered that these American companies are highly dominating Colombian workers.
Obstacles for AMC_________________________ AMC_________________________________ MC_________________________________

AMC faced constant threats only because operating in a volatile region. Their operations were often in the crossfire between the rebels and the paramilitaries. Their success was continually impeded as they faced increasing number of challenges from these two groups. FARC was very active to assail AMCs locomotives. Their mine pits and infrastructure was also a subject to attack by FARC and they were forced to operate only during the sunlight hours.
FARC proclaimed plan to impose a 10% tax on the companies within its controlled area. AMC directly refused to make any sort of payments. So FARC became irritated and increased the rate of attack on them. In association of ELN, FARC took strategic actions against the companies which refused to pay taxes to them.
AMC faced constant threats from FARC, ELN as well as from paramilitaries. Kidnapping of foreign executives remained a major menace. Although AMC maintained private airport and requested help from the government, Pastrana could not provide good support due to lack of trained soldiers and secluded territory. The company also faced some problems from the paramilitaries as a consequence of attacking the union leaders.
In spring 2001, AMC faced further awkward situation when two of the union leaders were executed during transporting to the village after work. Those leaders raised their voices to allow employees spend the night at the mine due to precarious travelling situation. But AMC refused the appeal saying that the mine was not a house. As a result, a riot began just after that day.1200 workers protested and all production stopped. Two more union leaders were assassinated in October 2001 due to the same reason. The company still continued to refuse to house its workers. At a point, The United Mine Workers of America (UWA) called AMC to completely depart from Colombia due to putting the workers in a very volatile situation.
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ela also troubled AMCs management. In November 2001, Venezuelas President Venezuela stated a new w law regarding oil industries which is rigorously criticized by the private industry experts. Business leaders called for a nationwide strike for a whole day. But Chavez z was remarkably popular among the poor and they brushed off the criticism. Chavez tried to nationalize the industries in order to help the deprived peoples which included land distribution. FARC and ELN in Colombia had the same view. They tried to promote land distribution and eradication to multinationals. AMC feared that Colombia would go through the neighbors way.
In order to move to Colombia, AMC shut their American mines without any prior notice and most of the workers were sacked from their jobs. There they faced many external threats that hold back AMCs operations at times. AMCs principal Colombian mine lay within territory contested by the FARC, ELN and the Paramilitary. Both the rebels and anti-rebel groups collided in those territories where AMC mines were subjected to attack. FARC proclaimed taxes on the companies operating within its locality which AMC refused to give and that in turn enabled FARC to attack on the company as well as its operations. AMC refused to accommodate its workers in the mine during night despite of unsafe travelling conditions. Kidnapping was all over and some union leaders were assassinated by AUC which lead to a severe riot. UWA continued to pressurize AMC to completely depart from Colombia due to putting the workers in a volatile condition.
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Though the advantages of low cost labor, great government support and huge coal reserve, what will be the future of the American Mining Company in Colombia affected by the increased terrorism and attacks of the local guerilla groups?
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Strengths__________________________________________
1. AMC has a good reputation all over in the mining market because it was only mining company for previous half century.
AMC was one of the leading mining companies in the United States for the previous half century, with a big amount of revenue and a strong reputation all over the world.
Before its shift to Colombia, AMC was one of the top 300 largest private companies in the United States. It was very dominating in its area of mining for the previous half century. AMC had earned a coal holding of over 1.3 billion short tons and revenues of nearly $1 billion. AMC gained this kind of status because of providing high quality coal, reliable delivery and excellent service. A good reputation is very handy for any company. People know their goodwill and have a trust on that goodwill. AMC had already gained peoples faith and that in turn ease the sale of AMCs goods. So, their market reputation had a positive impact on their operations as well as their success.
2. AMC had good top level executives who had an optimistic view about the future of the company.
Deciding for a shift to Colombia was an admirable plan for AMC because it provided many opening for the company. They can operate in Colombia and have access to many strategic advantages.
AMC started its operations in the United States. They were pretty successful there, but the top level executives of the mining company saw many opportunities in Colombia and thought that they could gain more profit and status if they transfer to Colombia. So it is a good strength to have optimistic decision-makers like AMCs. In Colombia, they could have a low labor cost and an outsized amount of coal reserves. Moreover, Colombian government was in pressure of high public debt that time. AMC could capitalize on those opportunities there. So, all the praise goes to the decision-makers of the AMC for making an optimistic and challenging decision like this.
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3. AMC had a huge capacity for storing and processing of coal.
AMC owned a massive area in Colombia for storing, processing and transporting of coal.
As soon as AMC began its operation in Colombia, they had constructed a huge area for storing and processing of their coal. Their initial production capacity was three million tons per year. The processing facility also had a capacity of 200,000 tons of coal. Coal was mined underground and transported by a truck to a huge loading facility. AMC owned a portion of a rail link. So this is also a very good side for the company. The most significant thing is that, approximately 1,700 tons of coals per hour could be efficiently loaded onto railcars with a 50-ton capacity. They also planned to expand by 2004 and increase production to more than 10 million tons per year.
4. AMC had access to modern technology and efficient operational logistics.
AMC had all the latest technology and the necessary engineers to maintain those. Moreover, they had a very strong logistics. So they could capitalize on these benefits.
On the plan to expand by 2004, AMC tried to increase their production day by day. Moreover, they also had to maintain a very good relation with the outside world. The modern technology, efficient production and well-organized logistics could provide a reliable source of exports for the world coal markets. Maintaining a very good relation with the others is vital for the success of any organization. AMC could retain their customers and they had created trust on their customers. They had already created a good reputation because of providing quality coal, reliable delivery and excellent service.
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Weaknesses________________________________________
1. Lack of diversity among the employees of AMC.
Most of the AMCs employees were from Colombia. American workers were fired during the transfer to Colombia.
The decision of transfer to Colombia was not known by AMCs workers. Nine mines were closed and over 5,000 US mine workers were fired within a 5-year period. Due to low wage in Colombias labor supply, AMC hired all workers from the locale. So there was a lack of diversity in AMCs mines. Diversity is very beneficial for any organization. People can share, enjoy and learn very efficiently if there is diversity available in an organization. But the AMCs mines consist of the workers from the same background.
2. Poor communication between the workers and the management of AMC.
AMCs management could not maintain a good communication with its workers. Workers demands were not met and various conflicts took place.
AMC could not respond to the demands of the workers unions. Union leaders demand for residence of the workers during night due to dangerous travelling conditions. AMC continued to refuse the demand stating that the mine is not equipped for residence. Moreover, some union leaders, who raised their voices, were assassinated and the situation got worse. AMCs management could not convince the workers to come to work when they call for a strike due to the assassination.
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3. Inefficient management of AMC created many crises in the organization.
The management of AMC was so much shaky at times and they could not cope with the critical situations which created so much trouble for the company.
AMCs management could not maintain a good labor relation and they had taken so much wrong decisions at times. They did not notice anything about the protection of the workers and their human rights. Many employees and union leaders were put to death. They did not provide necessary protection for the workers and put them in very volatile situations. So UWA continued to increase pressure on the mining company to completely remove from Colombia. AMCs management could not come up with some effective ideas to resolve these problems. So conflicts were obvious every day.
Opportunities_____________________________________
1. AMC can earn more profits by utilizing the low cost labor of Colombia than in USA.
As there is an opportunity in Colombia that the labor cost is lower than the USA market, and the government has a rule of minimum 80% of local employees in the workforce, AMC can gain more profit by the proper utilization of this fact.
Colombia has a lower rate of labor which can play a significant role in making more profit in AMC Colombia than that was in AMC USA, as because as per the labor cost will go down, the profit margin will jump up in a positive manner. Where the company has to pay $3000 to the USA workers, they can easily hire a Colombian who will cost the company only $1000. Along with this, their safety cost is much lower than the USA workers. This kind of thick margin can save the company a big time than the previous time. This is a great opportunity for them as they are having the opportunity to utilize the cheap labor rate of Colombia. This will help them to reduce their operational cost and as a consequence, they will be able to make more profits over time.
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2. Colombia had the worlds third largest coal reserves.
Colombia had a large amount of coal reserved into its undergrounds and AMC had an opportunity to capitalize on that.
Colombia held the worlds third largest coal reserves. Its natural resources generated some of the highest quality thermal coal anywhere in the world. The average composite of Colombia coal had a heat value of 11,800 per pound. This is one of the highest in the entire world. Its sulfur and ash content also exceeded global standards. So, by coming to Colombia, AMC had opened so many doors for its success. They had a great opportunity in front of them if they could utilize on the natural resources of Colombia properly and efficiently.
3. AMC can make a rapid growth of business by utilizing the facilities such as tax subsidies, low land acquisition cost etc provided by Colombian government.
As Colombian Government is trying to improve the socio-economic condition of Colombia by encouraging foreign investment in their country, they are giving many advantages to the foreign companies by which AMC can be really benefitted.
AMC is a foreign company to Colombia which is a befit for them. Colombia government is trying to improve the countrys socio-economic condition by asking a loan from IMF, who is asked the Colombian Government to increase the foreign investment in their country. So the Colombian government is trying to attract the foreign investors by providing many facilities to them. Such as the foreign companies like AMC will have the opportunities to enjoy first ten year tax subsidy, low cost for land acquisition etc. This long term advantages will help the company to achieve a faster growth than ever. For a long period of time, they do not need to pay tax or they are acquiring the land which is a fixed asset acquired in a lower price which is really a viable opportunity for AMC.
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4. 100% foreign ownership was allowed in Colombia and only a few restrictions were applied for businesses.
AMC is a foreign company and they had full rights on the operations of their company in Colombia. Colombian government was not authorized to interfere in any operation of AMC.
Foreign companies were granted a dazzling investing opportunity in Colombia. Very few restrictions were applied and both foreign and national investments were obliged to follow the same legal and administrative policies. So foreign investors like AMC could take advantage of these rules. This is great opportunity for cost cutting of the foreign companies.
Threats___________________________________________
1. As AMC is in the de-militarized zone of Colombia, where the guerilla groups can cause any major harm to the company and its employees anytime.
There are many active terrorist group in Colombia who are engaged in many criminal activities such as drug dealing and production, kidnapping, attacking properties and persons etc. which is a major threat to the properties and employees of AMC as they are in the de-militarized zone of Colombia.
Colombia has two active guerilla groups and one non government paramilitary groups in the country. All of them are engaged in many crimes like killing, drug dwellings, kidnapping, attacking private properties etc. The government had a negotiation with them in order to control them by an adjustment of leaving a zone for them with no access of government military. Unfortunately, AMC is situated in that area and the properties as well as the personnel of AMC are in great threat of any harm any time. Many employees were already being attacked, and many times their properties were being attacked. This situation was a great threat to the company.
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2. There is increase in terrorism as per the government rule and negotiation with the guerilla groups which is a threat for AMC.
Because of the negotiation between Colombian government and the terrorist group, there were many adjustments made in favor of the terrorist parties which led the whole terror condition in a further dangerous stage.
Colombian government left with a choice of declaring a de-militarized zone where the guerillas are making their own heaven while there was a negotiation between the guerilla groups and government. So as per the condition, the zone was not accessible for the Colombian militaries and it made the zone as heaven for the terrorists. AMC was situated in that area and the attack of the guerilla groups were increasing in an alarming rate. Even the terrorist groups were demanding a 10% tax from the company for doing their business. These situations were the signs of increasing the terrorism in that particular area which was a major threat to the AMC.
3. The insecure condition of running business can spread negative word of mouth internationally.
Alarming increase in terrorism and killings of employees in AMC Colombia and as things were getting worse day by day, there were a spread of negative word of mouth about the company which was affecting the company image adversely.
Paramilitary troops of Colombia were in practice of killing the employees in a style of assassination, and the employees were in great danger outside of the company premise. As an international organization, ILO is already concerned about the situation of the labors around the world and the condition was getting worse day by day. The employees were already raised their voice against this situation and were demanding a accommodation facility from the company, but the company was refusing to provide it. So there were dissatisfactions among the employees and these incidents were spreading negative word of mouth which was affecting the company image adversely.
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Human Resource management plays a vital role in any organization. Nowadays, establishing an organization without HR department is like commiting suicide because HR department is a heart of an organization. So, for any organization, HR issue are very important because it deals with the companys HR department and HR department deals with everything related to the company. So, in this section, we should discus about the HR issues of American Mining Company (AMC). At first, we should mention the HR issues of AMC and after that we should discuss the reason that why this issue would be regarded as an HR issue.
HR Isssue: 1
There is no HR department in American Mining Company (AMC).
Why this is an HR issue?

Human resource issues are very crucial factors for any organization in this world. HR issues refer to policies, practices and employees attitudes toward their jobs. Analyzing and designing work ,determining human resource needs, hiring effective employees, selecting employees for required position ,train the hired employees for efficient working, rewarding employees, evaluating employees performance and giving them feedback, and also creating positive work environment all of these things are HR issues. The most important resources of any organization are its HR resources. According to this case there is no integrated HR department which actually plays the part of controlling and maintaining the whole oeganization .The major responsibility of HR department is to make job analysis to understand the requirement of of the job and the requirement of any person inside an organisation. Based on that analysis recruitment process occure so that a large pool of qualified candidates can be attracted. For recruiting, various media can be used. From short listed, limited number of candidates HR officers select the right person, for the right place, in a right time, in a right salary for the organization by using various interviw sessions and other tactics.
HR department is basically determines the salary standard. They make the compensation and benefit packages for employees so that they can be motivated and do their job efficiently. Not only that, HR department do performance aprraisal so that they can judge the performance of each employees and based on that various monitory and nonmonitory advantages is given to them. Finally another basic activities of HR department is they are concern with employees productivity level. To increase the productivity they
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usually provide various training programs and also provide different career management programs and councelling programs. In this case , the mentioned above components are missing because there is no HR department .
HR Isssue: 02
AMC should follow the rule and regulations of Colombia Government to have a well organized and effective diversified workforce.

Diversity is a mixture of different people in the workplace. Managing the mixture of employees and developing each employees full potential while leveraging diversity as an organizations resource. AMC has the diversified work force; but it does not followed by the law of Colombian Government. According to the case, under Colombian Law, 80% of a companys employees were essential to be Colombian national. But, AMC exceeded this percentage least amount, as the company rotated top and mid level executives between its US headquarters and its Colombian operations. The mine and seaport workers were completely local. So, AMC must change it and they might follow the law.
HR Isssue: 03
AMC should take proper steps to protect their employees from the attack of the rebel groups.

At AMC, union leaders and other employees are facing so many attacks and troubles from rebel groups. Rebel groups not only make harm of AMCs resources but also finishing so many lives of its employees. So, it is a mandatory duty of AMC to take proper decisions to protect their employees from the attack. And as we know that HR department deals with each and every task which is related with decision making. So, it is also a HRM issue.
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HR Isssue: 04
AMC has not provided its union members with the accommodation facility for their safety.

According to the case, with six union leaders killed by the Autodefensas Unidas de Colombia (AUC) within three years because union leaders followed the communist ideology and rebel groups follows Marxist ideology, union leaders held one of the most dangerous occupations in Colombia. Union leaders asked for an accommodation only at the night time because it becomes so dangerous to travel after dark. But AMC refused to give them this right. So, this issue can be regarded as anti- Occupational Health and Safety (OH & S). AMC should take care of its workforce and it is one of the fundamental duties of Human Resource Department of any organization.
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After analyzing the case and Human Resource Issues effectively in the previous part; it is the time to offer some recommendations on this particular case. Recommendations are proposals for the welfare of the company as a whole. Every company or individual has negative aspect and tribulations. We have identified some of the problems and gave solution of them in this section of the report.
American Mining Company (AMC) is a very well known and successful company but there is some lacking we found in the management and other sectors of this company. So, to survive in this competitive market with maintaining such a good condition, they have to follow some recommendations.
By focusing on HR related issues, we have identified in the previous part, now we are going to recommend some solutions that will support the efforts of quality enhancement of their services. By adopting our recommendation, we believe that AMC can overcome its problems whatever it has. And by following the certain suggestions they might increase their market value. In the following one by one, at first we will mention what are the specific problems we have identified and then what our recommendation to solve the problem, and why those are important for the betterment of the company. Our recommendation is applicable for both the top management and other employees related with this company.
In this recommendation part, the scope of discussion is mostly confined within the WHAT and WHY (reason) parts of suggested activities this company must undertake in order to encounter prevailing challenges. The means, first it will be mentioned what are things that can be or should be done, and why those have to be done. After that, in the subsequent implementation section of the report, it will be discussed elaborately that how that can be done, along with what else will be necessary to make them successful and effective.
Problem No: 01______________________________________ 01______________________________________

There is no HR department in American Mining Company (AMC).
According to the case and HR issues, we have come up with that there is no intigrated Human Resource Management Department in AMC. Their unprotected workforce, unlawful management system etc. gives the prove of their shortage of strong and active HR department.
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Recommendation No: 01
AMC should establish an effective and active HRD to manage HR related problems in an organized manner. This is an era of Human Resource Management. Human Resource Management is essential to manage any kind of organization with a certain manner because it is a heart of any certain organization. So, not having a formal and strong HR department is like a curse for any organization because in this competitive world, maximum companies have HR department and they deal with other companies by their HR department. Moreover, it is so necessary in the case of recruiting and selecting deserving candidates of any organization. For any organization, their employee is preferred as their assets. AMC might face problem due to the lack of a good HR department, they might fail to select a good employee. A good employee is preferred as an asset for any organization, if they are good employee. On the other hand, they might consider as the curse for the certain organization if they are not active and good at their job. So, a non deserving employee cannot be an asset for an organization. So, if any company has no good HR department, they might face tremendous problem in case of selecting suitable candidate.
Justification
In an organization, most important is its human resource. Without it, an organization is like helpless in a sea because every part of an organization is interrelated with HR. Appropriate human resources assure an organization that the right number and kind of people are available here at the right time and place so that organizational needs can be met. Sesame does not have any specific HR department for which it does not follow any specific rule to recruit, select, and compensate their employees. So, it is the best solution for them to run their business in a systematic way. Moreover, operating and managing multi-cultural conditions which are more competitive, AMC needs to hire efficient managers and it will be difficult if they do not establish a Human Resource Department. To manage employees, AMC needs to have a strong HR department; otherwise they will be fall in the big trouble.
Under the control of HR department, AMC may have to create recruitment and selection committee consists of some experienced and loyal executives for their venture, who have the experience to work as a HR manager or line manager and can handle any unexpected issues, can understand his responsibility and work for the organization towards gaining profit. They will be responsible for maintaining the whole HR process. They will hire new and suitable employees for the betterment of the organization. They will do so
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because they know which candidate to choose or not more than anyone else. In this way, AMC can be able to find an asset in the form of their employee.
Problem No: 02 _____________________________________

AMC does not follow the rules and regulations of Colombia Government to maintain their diversified workforce. According to the case, under Colombian Law, 80% of a companys employees were essential to be Colombian national. But, AMC exceeded this percentage least amount, as the company rotated top and mid level executives between its US headquarters and its Colombian operations. The mine and seaport workers were completely local.
AMC should follow the law of Colombia government and maintain the diversified workforce according to the law. Diversity is a mixture of different people in the workplace. Managing the mixture of employees and developing each employees full potential while leveraging diversity as an organizations resource. AMC has the diversified work force; but it does not followed by the law of Colombian Government. So, they have to establish their diversified workforce according to the law of Colombian Government.
Justification
For any country, government establishes laws to keep their nationals in a discipline. So, this is very crucial to maintain these laws for the welfare of the country as well as the nationals. So, as a part of Colombia; AMC should establish its workforce by following the rule of Colombian Government. They should take 80% of a companys employees from Colombian national and rest of the 20% from the other nationals. They should be loyal to the Government of Colombia. On the other hand, if any company remain successful to control the diversified workforce, it is obvious that the company will earn success because an organization with multi-cultural value is already rich in ideas and creativity. So, American Mining Company (AMC) should establish an effective diversified workforce but following the law of Colombian Government.
27
Problem No: 03 _____________________________________

AMC does not take proper and sufficient steps to protect their employees from the attack of the rebel group. The employees of AMC have been attacked by the rebel groups for several times. They are still in danger. AMC does not provide employees security of their life even. This can be a major cause for AMC because if employees of this company does not get sufficient protection; they might leave the job and look for the other one.
AMC should introduce sufficient rules and regulation and take necessary steps to protect their employee from the attack of those dangerous rebel groups. AMC should provide sufficient safety to its employees. AMC should personally hire security people for their protection. It should take help of modern technology to enhance its protection and privacy more. Top management should take proper steps to look after the safety of the company. They can make a deal with the Colombian government. They might ask to the Colombian Government for the replacement of the company in a safe territory or make the company area a military zone. They can also ask help to the US Government to solve the problem.
Justification
For any company, employees are regarded as an asset. It is the responsibility of the company to keep their employees in safety and provide them with the protection they need to survive and do their job properly. If any company does not do that, it might be a cause of employee turnover. And as we know that, employee turnover is a negative aspect for an organization. So, for the betterment of the organization, AMC should introduce sufficient rules and regulations and take necessary steps to enhance the protection of their employees. As it is the matter of terrorism, they must consult this matter with Colombian Government. It can ask for Colombian Government to make the company area under military zone and take necessary steps to prevent this kind of attack. American Mining Company can also take the help of UNICEF and INTERPOL to solve
28
this problem. It can also set their personal security force to have an extra protection for their employees. So, AMC can take these steps as soon as possible and save its employees and the company.
Problem No: 04 _____________________________________

AMC has not provided its union members with the accommodation facility for their safety. According to the case, with six union leaders killed by the Autodefensas Unidas de Colombia (AUC) within three years because union leaders followed the communist ideology and rebel groups follows Marxist ideology, union leaders held one of the most dangerous occupations in Colombia. Union leaders asked for an accommodation only at the night time because it becomes so dangerous to travel after dark. But AMC refused to give them this right.
AMC should provide its union members with the facility of accommodation. AMC should provide its employees with the facility accommodation to stay at night. It is the duty of the organization to protect its employee from any harm which is connected with the company image.
Justification
For any company, employees are regarded as an asset. It is the responsibility of the company to keep their employees in safety and provide them with the protection they need to survive. If any company does not do that, it might be a cause of employee turnover and employee turnover is a negative aspect for an organization. So, for the betterment of the organization and to save its employee from the offensive rebel group, AMC should provide an accommodation facility to its employees.
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Problem No: 05 _____________________________________

According to the case, there is no mention of any CSR activity of AMC. In the case, there is no mention about any CSR activity of AMC. As a well known and well established company it is a matter of creating negative image among the general people.
Recommendation Recommendation No: 05

AMC should do some CSR (corporate social responsibility) to gain some positive image of the organization. CSR activity plays a vital role for any company. It builds the positive image of the company in general people. AMC can do so many CSR activities to make a bond with general people of Colombia and make them its protection force.
Justification
As foreign company, AMC needs a good word of mouth and a good image in Colombia. CSR activities can make the positive image of a company and also they can be used as an indirect publicity of a certain company. If AMC practices CSR activities like establishing fund, charity for poor and orphan children etc. - can make a positive image of AMC to the general people of Colombia. As we know from the case that Colombia is corrupted country and AMC is facing so many challenges because of these offensive issues created by the rebel groups; in this case general people of Colombia can be strength for the employees of AMC. They can provide security for the employees of AMC. They also can give shelter in the unsafe moment. So, if AMC helps the general people by doing some CSR activities, it should have a good influence o general people and at the bad time of AMC or its employee, they should find these general people by their side. General people should be in support of AMC in future and protect them from any unexpected issue as they can. That is why; AMC should involve itself in CSR activities.
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Problem No: No: 06 _____________________________________

The resources and assets are often attacked by the guerrilla groups which hamper the productivity and cost a lot to the company. AMC is suffering from the problems created by the rebel group. For the unlawful and offensive activities of rebel groups, not only the life of employees of AMC is getting worse, but also the productivity and other financial and business issues are facing obstacles. The unwanted activities of the guerrilla groups are becoming the major cause of interruption in a maintaining a healthy business for AMC.
AMC should sit with the government to discuss this issue and demand more safety or military for the protection of their properties as well as they can build a pool of private security guards of their own to protect their properties. AMC should provide sufficient safety to its employees. AMC should personally hire security people for their protection. It should take help of modern technology to enhance its protection and privacy more. Top management should take proper steps to look after the safety of the company. They can make a deal with the Colombian government. They might ask to the Colombian Government for the replacement of the company in a safe territory or make the company area a military zone. They can also ask help to the US Government to solve the problem.
Justification
Employees are assets for any company. It is one of the major responsibilities of the company to keep their employees safe and provide them with the highest protection what they need for their survival and do their job in a good environment. If any company does not do that, it might be a cause of employee turnover which is a negative feature for an organization. So, for the betterment of the organization, AMC should introduce sufficient policy and set of laws and take necessary steps to enhance the protection of their employees. As it is the matter of terror campaign, they must consult this matter with Colombian Government. It can request Colombian Government to keep the company area under military zone and take necessary steps to stop this kind of assault. American Mining Company can also take the help of UNICEF and INTERPOL to solve this crisis.
31
AMC should set their personal security force to have an extra protection for their employees. They can request Colombian Government to select some military officer and order them to provide highest security among AMCs employees. So, AMC can take these steps as soon as possible and save its employees and the company.
32
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Any plans are just waste of time if they just limited themselves in paperwork. Full proof plans and highly justified recommendations are just useless if there is no implementation in real life. Along with this, implementation has to be done in appropriate time when the action is needed and it should be done effectively because unless this, all the efforts are given in making those plans and recommendations would be just a waste of time.
As per the case analysis, we have discussed about some points of recommendation regarding the well being and sustainable growth in this highly competitive market by solving its weak points or problems, HR issues and so forth. To meet the organizational goals and mission, it is important to have a sound human resource management system in any organization; AMC is not exceptional from it. Moreover, the implementation of the plans for sustaining in this highly competitive market is also a challenge to continue its works with generating revenue as well.
Implementation is the real life application of all the plans and recommendations. It is the scope where it is possible to practice the feasibility of all the suggested recommendations and the worthy paperwork which includes the efforts of the people who are involved in the game plan of making it a better a one than the previous one. As proper planning is a vital part, as well as the implementation has its own appeal to apply those plans in real.
This implementation section that we are going to describe will basically cover these areas:
34
Problem No. 01______________________________________

According to the case, there is no mention of any HR department in American Mining Company (AMC).
Recommendation No. 01
AMC should establish an effective and active HR Department to manage HR related problems in an organized manner.
How it would be implemented?

As there is no mention of an active HR department in American Mining Company (AMC) case, we are assuming that they dont have any HR department in their company. They must open a new HR department for better service and production. In this competitive era, anything can be copied and anything which is now your invention could be others in a moment without the human resources, where it cant be copied but can be nurtured as distinctive assets for the organization.
We have suggested them to open a HR department where they have to create a Recruitment and Selection committee to recruit the right talents for producing their high quality productions without any compromise. The committee must have a panel of experienced and loyal employees who can assure that the organization is having the very best talent of the market who will further improve the production. Also, a HR department is also needed for handling any arising HR issues because any disruption can hamper the organizational environment.
We all know that without proper implementation, no plans can be successful. So American Mining Company (AMC) must implement the plan of establishing an active HR department that we have suggested in the previous section of recommendation. As we mentioned before, they can create a panel with their own employees or they can hire third party organization to do it for them. For some other HR related issues like for training, they need a structured Training and Development Department, for distribution of compensation committee etc under HR department. So everything would be in a systematic way and under the supervision of HR Department. They can follow the following steps like:
35
They can conduct planning and forecasting to determine the positions to fill in accordance with the duty and job description and specification with the qualifications to fulfill the recruitments. They can put the recruitment advertisement on TV, online, newspapers etc for attracting external candidates, or for internal recruiting they can post it office notice board or newsletters.
Then they can build a pool of qualified candidates from internal or external sources. Then they can screen out all the applicants applications by themselves or they can give this responsibility to other third party organization on behalf of them. As the next step they can utilize many selection tests like written tests, medical test, analytical ability, creativity check etc. Then they can arrange interview to find out the right person for the job.
By these steps, they can open a new HR department in their organization. After establishing it, they can form a committee or they can give the responsibility to the third party to design a compensation plan for the company or they can create other committees to handle the other HR issues. For training and development, they can endorse some supervisor who will train some other employees about the style and standard of American Mining Company (AMC) who will then next train the local subsidiaries.
Who would implement it?

Every plan should be implemented by the right person, because no plan can be successful if it is not implemented in proper manner by the right person. And opening a new HR Department is a big issue which cannot be implemented easily. The right and responsible person from top management will implement the plan of establishing the new HR department, and they will also designate the newly hired HR employees in a proper manner with the right positions. But a supervisor needs to be there who would be the existing employee of the organization to get them acquainted with the organizations culture, mission and standard.
Where it would be implemented?

The place where the plan of establishing new HR department would be implemented is to an important issue for AMC. As it a internationally active organization, it is really a critical issue to determine where they will establish it. It is recommended to open a HR department in all their Colombian Venture.
36
When it would be implemented?

Implementing any plan without proper timing has no value. So American Mining Company (AMC) has to be concerned that currently they have no HR department, so they have to open it as soon as possible. They must come up with a specific date to establish it in a nearby future after completing all the preparation regarding it. If they cannot establish it in a near future, the plan might not be effective because within that time maybe there will arise some HR issues which cannot be solved properly.
Problem No. 02 _____________________________________

AMC does not follow the rules and regulations of Colombia Government to maintain their diversified workforce.
AMC should follow the law of Colombia government and maintain the diversified workforce according to the law.

As per the rule of Colombian Government, AMC has to maintain the employee recruitment ratio as minimum 80% of locals. But for their own benefits and cheap labor cost, AMC was in tend of hiring more local workers than the American ones which was exceeded the limit of the condition. But in contrast, they were in practice of hiring more white-collar employees from USA which is a clear discrimination and violation of the rule.
To solve this problem, weve recommended following the rule and contract with Colombian Government in recruiting the workforce. Actually there is no other way to implement this issue rather than just following it without any violation. So when the HR Department will be established, the recruiting committee will has to put an extra concern in recruiting people as per the stated ratio by the authority.
37

Of course an active HR department will do this after establishing it. They will analyse the current organizational situation, determine the employee types and their deserved positions, etc. and then in the time of hiring, they will implement it.

All the plans will be implemented in American Mining Company, in Colombia. As they are not following the rule there, and dont have any proper system or dont have any plans in proper employee recruitment ratio, it should be implemented there.

As soon as possible it has to be implemented because the employees are already recruited are not by following the contract or rule. Because they Before the situation becomes alarming and beyond control and the recruitment process results in a questionable state, they have to implement it immediately.
Problem No. 03 _____________________________________

AMC does not take proper and sufficient steps to protect their employees from the attack of the rebel group.
AMC should introduce sufficient rules and regulation and take necessary steps to protect their employee from the attack of those dangerous rebel groups.

AMC is located in the de-militarized zone of Colombia where no military or Government Army will go there as because of the government rule. This situation is a threat for the company to maintain their business in peace and harmonious environment. So it is
38
necessary to ensure a peaceful environment and terror free working situation for the employees.
To solve this problem we have recommended to take some necessary steps. These steps could be a negotiation with the government to ensure that the employees of the organization would not be the victim of unnecessary killings and humiliation. In addition, AMC can demand more military members from the organization for their protection. Or they can go for the negotiation with the guerilla parties to request them not to harm the employees of AMC.

The top management of AMC should implement it because they have the authority to do that rather than other employees. In addition with the Colombian management people, the authority from the home country can influence this process also. They can also ask the help of USA government to influence this situation. Where it would be implemented?
It would be implemented in American Mining Company, Colombia as because the threats to the employees lives are taking place on there.

It has to be implemented as soon as possible because the lives of the employees are in danger on Colombia which also affecting the productivity and the image of the organization.
Problem No. 04 _____________________________________

39
AMC should provide its union members with the facility of accommodation.

The union leaders are in the most threatening position in AMC Colombia. As the paramilitary group of Colombia are killing the people who are in favor of Marxist Ideology, so they are killing the union leaders of the AMC if they suspect anything against them regarding spreading or supporting the Marxist Ideology.
As the union leaders are being killed when they are coming or leaving the AMC and when they are on the roads or vehicles, it is important for having an accommodation facility especially for the union leaders. The organization can build several buildings inside the company premise to ensure that the union leaders are safe inside of the organization and they are not getting killed. So the company has to plan the numbers and the conditions or the state or nature of the union leaders to predict the accommodation style first. Then they have to arrange some land inside the premise and then they have to build several building to accommodate the employees.

The top level management of AMC will implement it with consent from the home country organization.

It has to be implemented in the American Mining Company, Colombia.

It has to be implemented as soon as possible as the lives of the union leaders are already under threat there.
40
Problem No. 05______________________________________ 05______________________________________

According to the case, there is no mention of any CSR activity of AMC.
AMC should do some CSR (corporate social responsibility) to gain some positive image of the organization.

According to the case, there is no mention of any CSR activities of AMC Colombia but there are many opportunities to do that. There are many issues over there which can be taken care of and the organization can play a vital role in this matter.
As the country is affected by the drug smugglers, the organization can raise some awareness or sponsor some events to highlight the bad effects of drug addiction or how the drug selling is adversely affecting the country as well as the whole world. They can emphasize on how drugs leaves its black scars on the physical and social life of an individual and how its affecting and damaging the billion lives in the whole world. Along with this, they can also sponsor some events to motivate the people to cultivate crops in their lands rather than cocaine. They can also teach that hoe negative impact can be occurred to the land for this kind of cocaine cultivation which has no remedy after stages. Along with this, they can also emphasize on the adverse effects of terrorism and how a peaceful country can be beneficial for the people of the country.

The top management of AMC Colombia will implement it as the organization has no CSR activities.

No doubt the plan has to be implemented in AMC Colombia as there are so many issues which can be influenced by the organization through the CSR activities.
41

It would be implemented after taking proper steps and planning and after analyzing probable the reaction of people of Colombia as well as the guerilla parties and government regarding this matter.
Problem No. 06 _____________________________________

The resources and assets are often attacked by the guerrilla groups which hampers the productivity and costs a lot to the company.
AMC should sit with the government to discuss this issue and demand more safety or military for the protection of their properties as well as they can build a pool of private security guards of their own to protect their properties.

Organizational properties are being hampered in the Colombia which is costing the company a great loss and it is disrupting the sound process of the business. Sometimes the terrorists are attacking the coal delivery; sometimes they are damaging the rail lines. Even the guerilla parties are now demanding a 10% of unethical tax from the organization situated in that location. So its a major problem regarding doing the business.
Some necessary steps are recommended to solve the situation. Here, AMC can demand troops of Colombian Army to be deployed in the rail road area as well as in the trains to protect the goods to be delivered. Colombian government had already provided the armies for the company but the authority of AMC have to convince them to provide them for the rail tracks and trains to. Moreover, there has to be militaries in both day and night shifts as the nights are more vulnerable in transporting coal.
42

The people of AMC will implement it with the help of Colombian Government as because its a major issue for the organization for their exporting business.

It would be implemented in AMC Colombia as the situation is getting worse there regarding the transportation of coal as well as the export process.

It has to be implemented as soon as possible as the situation over there is getting worse day by day and there is no government provided troops to protect the rail tracks and the delivery of the coal.
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12/6/2010
HRM380, CASE: 04
American Mining Company (AMC) in Colombia Group: K1
BACKGROUND
AMC moves to Colombia Initial operations Business Environment in Colombia FARC ELN AUC Plan Colombia Political environment in Colombia Obstacles for AMC
12/6/2010
THEME
AMC shut their American mines without any prior notice and most of the workers were sacked from their jobs They faced many external threats that hold back AMCs operations at times. AMCs principal Colombian mine lay within territory contested by the FARC, ELN and the Paramilitary. Both the rebels and anti-rebel groups collided in those territories where AMC mines were subjected to attack. FARC proclaimed taxes on the companies operating within its locality AMC refused to accommodate its workers in the mine Kidnapping was all over and some union leaders were assassinated by AUC UWA continued to pressurize AMC to completely depart from Colombia
MAIN ISSUE
Though the advantages of low cost labor, great government support and huge coal reserve, what will be the future of the American Mining Company in Colombia affected by the increased terrorism and attacks of the local guerilla groups?
12/6/2010
SWOT ANALYSIS
STRENGTHS
Good reputation Good Top level executives Capacity for storing and processing coal Access to modern technology and logistics
SWOT ANALYSIS
WEAKNESSES
Lack of Diversity Poor communication Inefficient management
12/6/2010
SWOT ANALYSIS
OPPORTUNITIES
Earn more profits in Colombia Third largest coal store Rapid growth of business 100% foreign ownership
SWOT ANALYSIS
THREATS
In the de-militarized zone Increase in terrorism Insecure condition
12/6/2010
HR ISSUES
No HR department in AMC AMC should follow the rule and regulations of Colombia Government to have a well organized and effective diversified workforce AMC should take proper steps to protect their employees from the attack of the rebel groups AMC has not provided its union members with the accommodation facility for their safety
RECOMMENDATION: 01
Problem: 01
Recommendation: 01
12/6/2010
RECOMMENDATION:
02
Problem: 02
Recommendation: 02
RECOMMENDATION:
03
Problem: 03
Recommendation: 03
12/6/2010
RECOMMENDATION:
04
Problem: 04
Recommendation: 04
RECOMMENDATION:
05
Problem: 05
Recommendation: 05
12/6/2010
RECOMMENDATION: 06
Problem: 06
The resources and assets are often attacked by the guerrilla groups which hamper the productivity and costs a lot to the company.
Recommendation: 06
IMPLEMENTATION: 01
Problem: 01
Recommendation: 01
12/6/2010
IMPLEMENTATION: 01
Forecast and plan the employment positions to fill up for new HR Department. Publish recruitment ads in proper medias. Go through appropriate recruitment process to hire the right employees. Place the final employees in the right places in HR Department.
How to Implement it
Where to Implement it Who would Implement it When to Implement it
In AMC Colombia
People from the top level management of the organization.
As soon as possible after full filling all the requirements of establishing HR Department.
IMPLEMENTATION: 02
Problem: 02
Recommendation: 02
12/6/2010
IMPLEMENTATION: 02
Following the rule and contract with Colombian Government in recruiting the workforce without any violation. The recruiting committee will has to put an extra concern in recruiting people as per the stated ratio by the authority.
How to Implement it
In AMC Colombia.
The HR Department and people from the top level management of the organization.
As soon as possible after a establishing HR Department.
IMPLEMENTATION: 03
Problem: 03
Recommendation: 03
10
12/6/2010
IMPLEMENTATION: 03
A negotiation with the government to ensure the safety of the employees. Demanding more military members from the government for their protection. Go for the negotiation with the guerilla parties.
How to Implement it
In AMC Colombia
As soon as possible because the lives of the employees are in danger in Colombia
IMPLEMENTATION: 04
Problem: 04
Recommendation: 04
11
12/6/2010
IMPLEMENTATION: 04
Having an accommodation facility specially for the union leaders. Plan the numbers and the conditions or the state or nature of the union leaders to predict the accommodation style first. Build several buildings inside the company premise.
How to Implement it
In AMC Colombia
As soon as possible as the lives of the union leaders are already under threat there.
IMPLEMENTATION: 05
Problem: 05
Recommendation: 05
12
12/6/2010
IMPLEMENTATION: 05
The organization can raise some awareness or sponsor some events to highlight the bad effects of drug addiction They can also sponsor some events to motivate the people to cultivate crops in their lands rather than cocaine. They can also teach that the negative impact can be occurred to the land for this kind of cocaine cultivation. They can also emphasize on the adverse effects of terrorism.
How to Implement it
In AMC Colombia
After taking proper steps and planning and after analyzing probable the reaction of people of Colombia as well as the guerilla parties and government.
IMPLEMENTATION: 06
Problem: 06
The resources and assets are often attacked by the guerrilla groups which hamper the productivity and costs a lot to the company.
Recommendation: 06
13
12/6/2010
IMPLEMENTATION: 06
AMC can demand troops of Colombian Army to be deployed in the rail road area as well as in the trains. There has to be militaries in both day and night shifts as the nights are more vulnerable in transporting coal. AMC can demand Colombian Army to be deployed in the organization for their safety.
How to Implement it
In AMC Colombia
The top level management people of AMC will implement it with the help of Colombian Government.
As soon as possible as the situation over there is getting worse day by day.
14

HRM380 Case AMC in Combodia

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HRM380 Case AMC in Combodia

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HRM 380 Case 4

Mr. Tajuddin Ahmed

Date of SubmissionSubmission 06.12.2010 Monday

Thank You Sincerely, Group: K1 HRM 380, Section: 02

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

AMC Moves to Colombia________________ Colombia_____________________________ ___________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Initial Operations___________________________ perations____________________________________

Business Environment Environment in Colombia_______________________ Colombia_______________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Political Environment Environment in Colombia________________________ Colombia________________________

FARC_______________________________________ FARC____________________________________________ _________________________________

ELN____________________________________ ELN_____________________________________________ _____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

AUC______________________________ AUC____________________________________________ ____________________________________________

Plan Colombia_______________________ Colombia_____________________________________ mbia_____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Obstacles for AMC_________________________ AMC_________________________________ MC_________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

3. AMC had a huge capacity for storing and processing of coal.

4. AMC had access to modern technology and efficient operational logistics.

Case 04 American Mining Company (AMC) in Colombia Group: K1

2. Poor communication between the workers and the management of AMC.

Case 04 American Mining Company (AMC) in Colombia Group: K1

3. Inefficient management of AMC created many crises in the organization.

Case 04 American Mining Company (AMC) in Colombia Group: K1

2. Colombia had the worlds third largest coal reserves.

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Why this is an HR issue?

Case 04 American Mining Company (AMC) in Colombia Group: K1

Why this is an HR issue?

Why this is an HR issue?

Case 04 American Mining Company (AMC) in Colombia Group: K1

Why this is an HR issue?

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: 01______________________________________ 01______________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: 02 _____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: 03 _____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: 04 _____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: 05 _____________________________________

Recommendation Recommendation No: 05

Case 04 American Mining Company (AMC) in Colombia Group: K1

Problem No: No: 06 _____________________________________

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

Case 04 American Mining Company (AMC) in Colombia Group: K1

AMC Moves to Colombia__ Colombia_ _____________

Initial Operations_ perations__________

Business Environment Environment in Colombia_ Colombia_

Political Environment Environment in Colombia Colombia

FARC_______ FARC _

ELN______________ ELN_ _______________

AUC AUC ______________

Plan Colombia_____ Colombia_ mbia___________________

Obstacles for AMC_________ AMC_ MC_________________

Problem No: 01 01

Problem No. 05 05