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Research on organizational issues could not come at a better time for there is the need to understand the issues facing RACQ and make necessary changes. The report is significant as it gives the management a channel to implement changes in the HRD practices and solve organizational issues by understanding their implications.

The main purpose of the report is to give an understanding of organizational issues facing RACQ and their implications to the development of human resources at RACQ. This report discusses organizational issues including competition, management style, operational issues, employment issues, change, and change management practices at RACQ (Clegg 1977 p. 8).

The report has a limitation since its basis is information from RACQ’s website generated by RACQ’S management. Manipulation of information for the benefit of the organizations profitability image is a possibility. The report tries to overcome this limitation using varied studies as shown in the bibliography at last page of the report.


Human Resource Development (HRD) refers to a theoretical framework that guides an organization to expand its human resources and capital with the aim of achieving improved and optimum productivity (Wilson 2005, p. 23). This is in line with companies’ major aim of increasing productivity and ultimately, maximizing on profits. The capacities of individuals and human resource are dependent on their skills to deliver to the expectations of the organization.

Through trainings and skills development, organizations are able to improve their effectiveness of the key competencies of the employees. Effective human resource management ensures that the organizations are able to manage change, innovation and adoption of technology. With this in mind, RACQ is an organization that has numerous challenges that could be resolved by initiating effective human development program.

An analysis of RACQ revealed organizational issues facing the company and their implications on HRD in RACQ. The company faces internal and external organizational issues as detailed in this part of the report. Various circumstances in the last ten years including wars and military skirmishes and a high rate of technological innovation have influenced organizational issues in the organization (Clegg 1990 p. 124).

The occurrence of these incidences has led to the need for examination of organizational issues facing RACQ. This is a requisite to survive and change the development of new product and ways in the achievement of the company objectives and functions (Griffin & Moorhead 2011, p. 12). The following is a detail of the key organizational issues facing the company:


RACQ face competition from upcoming brands especially in the insurance sector of the company’s operations. RACQ tumultuous year, 2011 coupled by an increase in lawsuits for compensation is an issue the company has to face head on in overcoming competition. Competitors aim at using the misfortunes at RACQ and lack of well-structured policies to overcome the dominance of the company in Queensland.

The company has to improve human resource development in order to overcome the challenge posed by competitors (Wilson 2005, p. 44). Development of human resource has to be to be in a position to engrain the goal of the organization and the need to provide excellent service for the benefit of the members.

To become competitive, RACQ needs to enhance its productivity and ensure the satisfaction of the customers. The rationale is that the organization ought to have a competitive edge over its competitors for it to put up with effective competition.

According to Wilson (2005, p. 47), competition ought to enhance the effectiveness of the organization as it ensures that each competitor has a unique aspect that makes their respective brands to appeal to customers. At RACQ, competition seems to dent the company’s ability to put up with the competition.

Management style

Another organizational issue depicted from RACQ’s situation is the management style, which requires a positive change in perception and outlook. There is a need to change the management style at RACQ by shifting management perceptions, and changing management structure from the standard levels of leadership approach to a more integrated approach (Golembiewski 1989, p. 117).

Effective implementation of the group’s CEO position addition to that of the company is a change that enables greater organization flexibility at RACQ. Despite the move, the need to transform employees’ perception in realizing the importance of the change to both the organization and employees is a challenge (Holton & Swanson 2001, p. 178).

This implies that the need for creation of human resource development channels to promote a clear and conscious management style readily able to make changes where applicable, at a time when change is inevitable. Training of human resource should instill management and critical thinking on the employees of RACQ to ensure future development of the organization.


Another organizational issue realized from the findings is the need to change the organization’s culture to depict the current times (Carter 1999, p. 243). The needs for change in the culture of the organization aim at overcoming the challenges in the environment and make the company profitable despite the apparent challenges.

Changing the organization culture faces difficulty due to element of resistance of change (Cummings & Worley 2008, p. 252). Nonetheless, the change managers ought to be wary of the fact that people oppose changes due to various reasons. Lack of understanding of the benefits that the company stands to gain by implementing change is the main challenge. Hence, change managers should be able to explain that apparent need to change the organizational culture explicitly.

Ensuring the stability of change aids RACQ to achieve a solution to the organizational challenges it faces. There is a need of integrating the RACQ’s subcultures into the running of the organization to make the brand reputable and appealing to the public. The implication of this organizational issue is the requirement to make fundamental changes in the development of human resource at RACQ.

This will aid in the depiction of the organization’s sub cultures for the success of the organization in the face of challenges. This is in lieu of the fact that development of human resource ought to be dynamic and responsive to changes that an organization faces in the contemporary business environment.

Adoption of Technology and Change

The other organizational issue noted at RACQ is the need for upgrading of the system to fit modern times use of technology (Cunha & Putnik 2007, p. 96). In technology incorporation, change capability of RACQ affects the ability of the members to accept changes and the need for upgrading the system.

The reason is that the system affects the operations of the employees in carrying out their duties. The need for further training on the use of the system could be a reason for employees’ resistance to system change. There is the need to change the system to a functional IT system that fulfills the requirements of the members and improve service delivery. This implies the requirement for the incorporation of IT skills training in the human resource development programs to manage a new system for better service delivery.

An enumeration of the benefits of technological system incorporation on human resource development aids ebb tide resistance to system change (Head et al. 2006, p. 11). Citing of personal, career development and improved opportunities for training also aids in resistance reduction against system change.

Adoption of the appropriate technology entails the ability of the organization to be responsive to change. Ability to change is an organization issue, as RACQ has to make enormous changes in the running of the company to fit into a different business environment from the historical setting (Burke 2010, p. 54). This basis of management is obsolete and cannot allow for efficient, management and correction of current organization issues in the business environment.

A replacement of the core systems at RACQ is required to make efficiency, profitability, and social responsibility a possibility (Hassard & Pym 1990, 54). Evaluation of the employees, technology, and customer relation service to meet the requirements of the current market environment is paramount.

The implication of this on human resource development is the need to make changes to employees’ training to incorporate critical and creative thinking, decision-making, communication skills, and personal development practices (DeSimone & Werner 2011, p. 243).


In essence, various organizational issues at RACQ have implication on the human resource development measures. The main implications on the human resource development practices at the company include improving training practices and personal development measures for the employees (Clawson 2003, p. 242).

The management has to change the career development practices for the employees, incorporate a wide range of skills in the training program of its human resource development, and provide channels for personal development.

The skills that should be included in the training as part of the employees’ development strategy include communication skills, disaster preparedness, and decision-making skills (Simon 2001, p. 9). Further, skills for development through human resource training include critical and creative thinking, and management skills for the achievement of RACQ’s goals.

Channels for employee development in their personal area of interest are also necessary as a measure of improving the human resource development projects at RACQ. The implications for human development measures are due to the need to make changes at RACQ as a measure to overcome organization challenges.


Burke, W 1977, Current issues and strategies in organization development, Human Sciences Press, New York.

Burke, W 2010, Organization Change: Theory and Practice, SAGE, New York.

Carter, R 1999, Addressing Cultural Issues in Organizations: Beyond the Corporate Context, Sage, New York.

Clawson, J 2003, Practical problems in organizations: cases in leadership, organizational behavior, and human resources, Prentice Hall, New Jersey.

Clegg, S & Dunkerley, D 1977, Critical Issues in Organizations, Routledge, London.

Clegg, S 1990, Organization Theory and Class Analysis: New Approaches and New Issues, Walter de Gruyter, New York.

Cummings, T & Worley, C 2008, Organization Development & Change, Cengage Learning, New York.

Cunha, M & Putnik, G 2007, Knowledge And Technology Management in Virtual Organizations: Issues, Trends, Opportunities and Solutions, Idea Group Inc (IGI), Hershey.

DeSimone, R & Werner, J 2011, Human Resource Development, Cengage Learning, New York.

Gilley, J & Gilley, A 2003, Strategically integrated HRD: Six transformational roles in creating results-driven programs, Perseus Publishing, Cambridge.

Glombewski, R 1989, Organization Development: Ideas and Issues, Transaction Publishers, New Jersey.

Grieves, J 2003, Strategic Human Resource Development, Sage, New York.

Griffin, R & Moorhead, G 2011, Organizational Behavior: Managing People and Organizations, Cengage Learning, New York.

Griffin, R 2008, Management, Cengage Learning, New York.

Hassard, J & Pym, D 1990, The Theory and Philosophy of Organizations: Critical Issues and New Perspectives, Routledge, London.

Head, T, Sorensen, P, &Yaeger, T 2006, Global Organization Development: Managing Unprecedented Change, IAP, Iowa.

Holton, E & Swanson, R 2001, Foundations of Human Resource Development, Berrett-Koehler Publishers, San Francisco.

Joy-Matthews, J, Megginson,D & Surtees, M 2004, Human Resource Development, Kogan Page Publishers, Philadelphia.

Simon, C 2001, To Run a School: Administrative Organization and Learning, Greenwood Publishing Group, London.

Wilson, J 2005, Human Resource Development: Learning and Training for Individuals and Organizations, Kogan Page Publishers, Philadelphia.

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