Human Resource of Ritz Carlton Essay

Human Resource of Ritz Carlton Essay.

Introduction

In today’s economy where knowledge and skills demand are rising, it is also the responsibility of an organization’s human resource team to analyze and ensure they recruit the most appropriate candidate for the job. Organisations have been seeking, attracting and retaining the best talents available in order to overcome the competitive challenges that they are facing today.

Apart from achieving the strategic goals and objectives of an organization, human resource management (HRM) also plays a part in the output of a company performance as it lays down strategic decisions, policies, as well as systems, that may affect the most important asset in the organization, its employees (Armstrong, 2008, p.

5).

In this assignment, it will reference to Ritz Carlton that is one of the most successful organizations that have acknowledged their human resource (employees) as the most important asset to achieve goals and objectives. The focus on human resources into recruiting, selecting and development has aided them to achieve several worldwide recognition awards such as the gold standard of hospitality (The Ritz-Carlton Hotel Company, 2011).

Recruitment and Selection

Hellriegel and Slocum (2007, p.161) states that Ritz Carlton knows the type of employees they are looking for in every job position, and is careful to only employ those who display the skills and behavior required to accomplish the job. Ritz Carlton has always been successful in selecting and recruiting the most suitable talents to their organisations that will fit into their cultures, values and service standard that is crucial in maintaining or even heighten the standard of Ritz Carlton.

With positions that require employees to be on the front line to interact and serve guests, it is of utmost importance that an employee is able to provide the level of service required to meet or exceed the satisfaction level of the guests as failing to do so may result in negative feedback, leading to poor company performance. In the success of Ritz Carlton, its employees had played a significant role by blending into the organization’s culture, abiding by the organization’s value and philosophy, to create a unique and pleasant experience for its guests.

Training & Development

A well planned and structured training not only provides information and direction to accomplish specific tasks related to organizational needs and objectives, it also leads to behavioral change and improvement in job performance (Vaughn, 2005, p.2)

In Ritz Carlton, be it current employees or new hires, employees are provided with an array of opportunities to learn and develop skills to facilitate and enhance employee performance. In the case of an employee in management role, training could lead him to better decision-making skills for both himself, and for the organization. For employees in the non-management positions, training could include developing the necessary skills, knowledge, the right mindset, as well as the abilities to resolve problems. Today, with the numerous awards won for its legendary services, Ritz Carlton had proven that its employees had been consistent in demonstrating the skills, knowledge, and behavior obtained via training.

With their heavy focus on human resources training and development, employees are more equipped and knowledgeable in tackling problems, changes or any obstacles while performing their tasks which will lead to increased productivity which may be crucial for organizations that may need constant improvement.

Employee Retention

For an organization to be relying very much on its employees Ritz Carlton have not only provided a unique work environment, it has also recognized the needs to prioritize the health and well-being of its employees as a mean to retain its talented employees. By being able to retain the talented individuals in the organizations, Ritz Carlton will be able to invest their capital more efficiently as they do not need to waste time and money on new hires and re-trainings. High-turnover rate of any organisation will be disruptive and non-productive for the work environment that will might slow down or affect the growth of the organisation.

Therefore, retaining the best talent within the organisation is also crucial for any organisations. Ritz Carlton is a good example as they create a very good working environment as they respect others and in return, receive the respect from others with their famous motto “We are ladies and gentlemen serving ladies and gentleman”. (The Ritz-Carlton Hotel Company, 2011).

Employee Compensation

Career development plans, opportunities to promote within the organization, complimentary employee meals and retirement plans are just some of the benefits offered by Ritz Carlton to motivate its employees. Apart from that, Ritz Carlton had also recognized the need to respond to the needs of its employees by getting employee feedback. By having motivated employees, Ritz Carlton had also gained a competitive edge by having more loyal and committed employees who would go the extra mile to get their job done.

Conclusion

Human Resource (employees) is the greatest asset to an organization as they contribute directly to the growth of an organizations. With capable and talented employees in the workforce, an organization can benefit greatly as its employees could make critical and responsible decisions that determines the progress of an organization. However, an effective and efficient human resource strategy needs to be implemented for both employees and organization to fully benefit from it. In the example of Ritz Carlton where its employees are its greatest asset, its human resource department has taken further measurements by analyzing and identifying the requirements of an individual who can perform the job.

With the right attitude and beliefs, its employees are given a wide array of opportunities to learn and develop skills via training which would lead to increased productivity and efficiency. In an attempt to retain its top talents, Ritz Carlton had also been successful in providing attractive benefits, as well as a distinctive work environment, so as to keep its employees motivated, loyal and committed. To conclude, Ritz Carlton had been remarkably successful in its strategy of using its employees as its greatest asset to achieve its goals and objectives.

References

A. Noe et al.(2010): Human Resource Management: Gaining a Competitive Advantage(7th Edition) . New York: McGraw-Hill

D.Hellriegel and W.Slocum (2007): Organizational Behavior (11th Edition) . USA: Thomson South-Western

H.Vaughn (2005): The Professional Trainer: A Comprehensive Guide to Planning, Delivering, and Evaluating Training Programs(2nd Edition) . San Francisco: Berrett-Koehler Publishers

M. Armstrong (2008): Strategic Human Resource Management: A Guide to Action(4th Edition) . US: Kogan Page Publishers

The Ritz-Carlton Hotel Company,2011. About Us.[Online].

Available at: http://corporate.ritzcarlton.com/en/About/Default.htm.

[Accessed 16 November 2011]

The Ritz-Carlton Hotel Company,2011. Learn and Develop.[Online].

Available at: http://corporate.ritzcarlton.com/en/Careers/YourCareer/LearningAndDevelopment.htm.

[Accessed 16 November 2011]

The Ritz-Carlton Hotel Company, 2011. Gold Standards. [Online].

Available at: http://corporate.ritzcarlton.com/en/About/GoldStandards.htm#promise.

[Accessed 16 November 2011]

Bibliography

H. Koontz and H.Weihrich(2008): Essentials of Management: An International Perspective(7th Edition) . New Delhi: Tata McGraw-Hill

Human Resource of Ritz Carlton Essay

Human Resources Information System (Hris) Essay

Human Resources Information System (Hris) Essay.

There are many different purposes, functions and components to HRIS software systems. Technology has been constantly expanding, and with all the new possibilities, companies are able to use these software systems to help their HR departments perform their jobs faster and easier. Large businesses want to make the most amount of money, by spending the least amount possible; with HRIS they are able to realistically achieve this goal. Businesses need to grow and expand or they will not succeed.

The main purpose of an HRIS is so companies can use it internally to keep track of the store’s budget, payroll and employee information more accurately and efficiently.

Many large human resource organizations develop or buy these software systems to improve their HR operations while trying to keep the total operating costs low. The more a business can save on wages, the more it can spend on the company internally, to invest in improving the other departments as well. Some companies use HRIS systems to help them communicate worldwide; companies can have one business with several stores around the world that speak different languages.

HRIS software systems main function is to help HR personnel handle and process large quantities of information that is tracked and updated automatically; this allows HR staff to focus on personal interaction with employees, instead of dedicating the majority of their time to paperwork.

The key functions of an HRIS software system are to create and maintain employee record, adhere to legal compliance, forecasting for future planning, strategic alignment and enhanced decision making (Dessler, 2011, pg 61). The other functions that an HRIS system can perform include items such as control, effectiveness, flexibility, efficiency, responsiveness, accuracy, ease of use, automation, timeliness and process improvement (HR Systems Strategies Inc, n.d., pg. 1). The companies that are worldwide can use this to communicate the same thing to other countries with the HRIS system. HRIS software systems can have many components to it; however, not all companies require the same components.

The general components that most large HR organizations have include a database to store employee information, time and labour management to track employee attendance, payroll to ensure employees are paid correctly and legally, benefits to ensure employees have appropriate benefits and retirement investments, recruitment to help build the company’s workforce, training for new or promoted employees, organization charting and scheduling for employees shifts and breaks and an employee interface for employees to review personal information (Jennifer, n.d., pg. 1)(Dessler, 2011, pg 58). Some companies can develop their software systems to be capable of performing things such as a salary analysis, budget planning, job design and performance reviews (Cezanne, n.d., pg. 1).

The cost of an HRIS software system can depend on many factors, such as how complex or simple it is and if it was specialized for your company or if it is a general system. Large companies such as fortune 500 can run systems around the tens of millions of dollars, but smaller companies can run systems for less than a thousand dollars (HRIS, HRMS and HR, n.d., pg. 1). The reality is that there are many different HRIS software systems for any price range, but however much you invest into it, is how much you will get out. The HRIS system that a company chooses should not be based on how complex the system is, but how beneficial the system will be to help improve the businesses HR department.

The impact of technology has changed the role of HR in many different aspects. The most obvious positive effect of using technology in an HR department is the increase of accuracy and efficiency, which in turn reduces costs and improves results within the company. The use of technology makes it able for HR to dedicate less time to paperwork and more time to employee interaction (Hall, 2012, pg. 1).

Works Cited
“Cezanne.” Cezanne. Cezanne Software Limited, n.d. Web. 20 Sept. 2012. <http://www.cezannesw.com/solutions/>. Dessler, Gary , and Nina D.
Cole. “Human Resources Management and Technology.” Human Resources Management in Canada. 11th Canadian Edition ed. Toronto: Pearsons Canada, 2011. 58,59,61,62, 63. Print. “HR Systems Strategies Inc | HRIS Software Canada / US.” HR Systems Strategies Inc | HRIS Software Canada / US. N.p., n.d. Web. 20 Sept. 2012. <http://infohr.net/>. “HRIS, HRMS and HR software FAQ’s.” Free HRIS HRMS and HR Software Buyers Guide. N.p., n.d. Web. 20 Sept. 2012. <http://www.comparehris.com/about/faq/>. Hall, James. “Impact of technology on human resource management | Importance of Technology.” Importance of Technology. N.p., 1 Mar. 2012. Web. 20 Sept. 2012. <http://importanceoftechnology.net/104/impact-of-technology-on-human-resource-management>. Jennifer, Kristin. “The Components of an HRIS System | eHow.com.” eHow | How to Videos, Articles & More – Discover the expert in you. | eHow.com. N.p., n.d. Web. 20 Sept. 2012. <http://www.ehow.com/list_7418360_components-hris-system.html>.

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Human Resources Information System (Hris) Essay

Human Resource Is the Most Important Assest in an Organization Essay

Human Resource Is the Most Important Assest in an Organization Essay.

Human resources are the set of individuals who makes up the workforce of an organization, business sector or an economy. This resource resides in the skill, knowledge and motivation of people and under the right condition it improves in age and experience which no other resources can do. It is therefore considered the most productive resources that can create the longest advantages for an organization.

For an organization to sustain and grow they do not only rely on advanced technology, good marketing strategy and other factors etc.

In fact, they have to rely on their employee performance, contribution and image. As in most organization, they are mainly human orientated. Thus, without their support and contribution to the business operation, the organization daily business operation will not be functioning well. Christina. P (2009) mentioned that organizational psychology holds that successful organizations do not owe their success solely to market realities and sustainable competitive advantages. Actually, there is a lot more. Successful companies are those that consider their human capital as their most important asset.

Facts and figures are the quantitative elements of successful management, yet the qualitative, i.e. the cognitive aspects, are those that actually make or break an organization

Here are a few factors that explain how human resource can contribute to an organization to help them meet their future goals and expectations. Firstly, having strategic human resource planning. It is a process that identifies current and future human resources needs for an organization to achieve its goals. Reilly (2003) define human resource planning as: ‘A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand.’ Without human resource planning, an organization may not be ready and well prepared for the future challenges ahead.

Secondly, by having a positive working environment. In order to allow employees to contribute to the organization it is important to create a positive environment for the employees so as to ensure the smooth running of business of an organization. For instance, encouraging employee to go for lunch break on time, taking short breaks in between during working hours if there is too much stress, minimal overtime work. Such work practice will actually motivates employees to contributes more to the organization as they are not overwork or over stress. As mentioned by David.I (2009), “work environment, employee satisfaction and employee turnover are three distinct concepts that are inseparably linked; workplace environments greatly influence employee satisfaction, which in turn directly affects employee turnover rates. Knowing how to use a positive work environment to increase employee satisfaction and reduce turnover is a key to developing a high-performance workforce.”

Thirdly, continuous learning within an organization. It is important for an organization to promote and send their employees of different level to attend workshops and courses. This is to allow employees to have an opportunity to learn new skills and to continue to upgrade themselves regardless of their age. Without the right knowledge or skill in a certain organization, employees may not be able to contribute to the organization more effectively. As mentioned by Robert J.V (2006), “a learning organization embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge. Improvements in product or service quality do not stop when proper training is provided to the employees. Employees need to have the financial, time and content resources available to increase their knowledge.“

Lastly, by having attractive benefits and compensation. Pay and benefits are the most important incentives that organization can offer to employees in exchange for a more productivity and quality contribution to the organization. Employees should also be rewarded when they have accomplished a big assignment for their hard work and efforts to the organization as this attractive benefits and compensation will also help booze the employee morale. At the same time, they will feel appreciated by the organization where they may contribute more to the organization in future.

If employees are not satisfied with the level of compensation or benefit, they may not be motivated to work and the level of standard for quality and productivity will definitely be low. As mentioned by Rebecca. L (2012),” when your workers feel you’re looking out for them, they’ll look out for you, too, by producing higher quality work and staying in their jobs longer. Providing good benefits packages—which might include retirement, health care or dental plans—is a tangible way to show employees that you value them and their quality of life. Sure, the rising cost of benefits has made offering an attractive package more difficult for small businesses, but there are still ways to offer competitive packages to recruit and retain the best workers while staying within your budget.”

In conclusion, “Human Resource” is the most important asset of an organization as it plays an important role in every aspect .It is the backbone of an organization, without human resource the organization will not be able to function well and may not succeed in the future challenges.

Human Resource Is the Most Important Assest in an Organization Essay

The Use of 360-Degree Feedback in Performance Appraisals Essay

The Use of 360-Degree Feedback in Performance Appraisals Essay.

Introduction

The focus of this essay will be “The Use of 360-degree feedback in performance appraisals”. My understanding of 360 degree feedback is that it gives employees feedback from the people they work around, including managers, peers, customers and even suppliers. It measures behaviours and competencies and provides feedback on how others perceive an employee it also addresses employers if employees are not up to scratch and if not what can be done to improve them.

From researching 360 degree feedback one can see what it is used for, one now can understand that 360 degree feedback is used to get full feedback for an employee by getting feedback from above, below and around the employee it can be a positive thing if carried out correctly it can help improve team work by seeing what other employees think and what the employee is doing wrong.

It can also be a negative thing if the employee takes it the wrong way as they might think other employees don’t like them which could lead to a lot of dentition.

There are alot of advantages and disadvantages of using 360 degree feedback in performance appraisals. Some of the advantages are combined opinions which gives a well rounded view which can be more accurate, skills such as leadership, are best judged by people below a manger instead of above, also if there is a problem with an employee it can be difficult to ignore when expressed by a number of colleagues, it can help improve a company’s performance.

While the disadvantages of using 360 degree feedback in performance appraisal first of all its time consuming and costly, the technique is often restricted to management levels, results can often be destroyed by organisational politics or culture, 360 degree feedback can be destructive unless handled carefully and sensitively, it can also generate an environment of suspicion unless managed openly. These are just a number of advantages and disadvantages which go along with 360 degree feedback.

This essay will focus on the advantages given to businesses from the use of 360-degree feedback in performance appraisals it will show how companies can improve their performance by using 360 degrees feedback. It will also show how 360 degree feedback can go wrong and have a negative effect on companies by making employees being paranoid if not carried out correctly.

Main Body

The key to successful business is talented staff members which can lead a business to high profits this is why companies use 360 degree feedback to find those employees in a company and reward them by promotion or bonus to keep these talented employees in there company. “We have been gathering information on our financial and service performance since day one, says Michael Weinholtz, CHG president and CEO. But we knew that overall business success is an outcome of more than just operational performance. We are a business that is based on people. Our ability to attract, motivate, manage, and retain talented employees is key to the company’s bottom line, and we knew that we needed a way to measure those factors.

CHG discovered that 360-degree feedback provided an effective way to measure individual strengths and areas for development. Coupled with regular employee engagement surveys, this overall feedback offered some enlightening information.” Maylett, T. M., & Riboldi, J. (2007). Using 360° Feedback to Predict Performance. Training + Development, September, 48–52. This shows us how 360 degree feedback is a very key tool to a business if carried out right it can find key employees in a business and make sure they are rewarded for there hard work. This is a great advantage to business in a competitive market.

Smither et al. (2005) suggest, “We therefore think that it is time for researchers and practitioners to ask, ‘Under what conditions and for whom is multisource feedback likely to be beneficial?’ (rather than asking ‘Does multisource feedback work?’) (p. 60).” This is another advantage to companies using 360 degree feedback as they are finding out what employees are best benefiting there company but this might not be an advantage for employees even though it might point out if an employee might not be up to scratch and what can be done to fix this but it might point out to employers that this person might not be fit for their job and should be replaced by someone else which could be a negative thing it could be a disinvite for employees to participate in 360 degree feedback.

The Use of 360-degree feedback in performance appraisals has been seen to help improve the performance of employees by identifying there weakness and putting in place the correct procedures to strenght their weaknesses and the companies performance. There has been “Several studies (Hazucha et al., 1993; London & Wohlers, 1991; Walker & Smither, 1999) indicate that the use of 360-degree feedback helps people improve performance. In a 5-year Walker and Smither (1999) study, no improvement in overall ratings was found between the 1st and 2nd year, but higher scores were noted between 2nd and 3rd and 3rd and 4th years. A study by Reilly et al. (1996) found that performance increased between the 1st and 2nd administrations, and sustained this improvement 2 years later.

Additional studies show that 360 feedback may be predictive of future performance (Maylett & Riboldi, 2007)”. This shows how 360 degree feedback can be a great advantage to improve performance in a company. While on the other hand some people think that 360 degree feedback does not work at all and does not improve companies performance. That it gives a bad vibe in a company by other employees ranking each other and every one acting different.”there is no data showing that [360-degree feedback] actually improves productivity, increases retention, decreases grievances, or is superior to forced ranking and standard performance appraisal systems. It sounds good, but there is no proof it works.” (Pfau & Kay, 2002)Similarly, Seifert, Yukl, and McDonald (2003) state that there is little evidence that the multi-rater process results in change.

Aonother disadvantage to 360 degree feedback is that the results of the 360 degree feedback might not reflect the employee at all and that there supervisor might have rated the employee different to what employees under the employee think of them. There has been additional studies (Maylett, 2005) found no correlation between an employee’s multi-rater assessment scores and his or her top-down performance appraisal scores (provided by the person’s supervisor), and advised that although multi-rater feedback can be effectively used for appraisal, care should be taken in its implementation (Maylett, 2009).

This research suggests that 360-degree feedback and performance appraisals get at different outcomes, and that both 360-degree feedback and traditional performance appraisals should be used in evaluating overall performance ( Tracy M, 2009). As some aspects of job perfomance such as work effort, work initiative and work quality these are difficult to assess objectively eg sales person might have high sale but might be to pushy and manipulative that customers are unlikely to return to the shop this is hard to measure in company unless getting a survey off the customers this is why 360 degree feedback is a good advantage to see how a business is doing.

Conclusion

After researching the use of 360 degree feedback in performance appraisal and after looking at both advantages and disadvantages it has showed that the use of 360 degree in performance appraisal is a great advantage to a business first of all it can improve a business performance by finding the weakness of its staff and identifying there strengths. This helps the performance of business by improving their weakness and using there strengths to business advantage. (Hazucha et al., 1993; London & Wohlers, 1991; Walker & Smither, 1999) This also finds out if employees are not up to scratch and need additional training or if an employee has a hidden talent which would benefit the business.

Companies may be predictive of future performance by using 360 degree feedback, there was studies done to prove this by (Maylett & Riboldi, 2007). This a great advantage for companies to be able to look into the future. A disadvantage to 360 degree feedback is that it can cause a bad vibe within a company but part from that one could think it is a very use full tool which a company can use in performance appraisal and would be well worth implementing 360 degree feedback in performance appraisal, to improve the performanceof a company.

Reference
Hazucha, J. F., Hezlett, S. A., & Schneider, R. J. (1993). The impact of 360-degree feedback on management skills development. Human Resource Management, 32(2–3), 325–351. Maylett, T. M., & Riboldi, J. (2007). Using 360° Feedback to Predict Performance. Training + Development, September, 48–52. Maylett, Tracy (2005). The Relationship Of Multi-rater
Feedback To Traditional Performance Appraisal. Doctoral Dissertation, Pepperdine University, Los Angeles, California. Maylett, Tracy (2009). 360-Degree Feedback Revisited: The transition from development to appraisal. Compensation and Benefits Review, September/October 41(5), 52–59 Pfau, B. & Kay, I. (2002). Does 360-degree feedback negatively affect company performance? Studies show that 360-degree feedback may do more harm than good. What’s the problem? HRMagazine, Jun 2002. 47, 6; 54–60. Reilly, R., Smither, J.W., & Vasilopoulos, N. (1996). A longitudinal study of upward feedback. Personnel Psychology, 49(3), 599–612. Seifert, C., Yukl, G., & McDonald, R. (2003). Effects of multisource feedback and a feedback facilitator on the influence of behavior of managers toward subordinates. Journal of Applied Psychology, 88(3), 561–569. Smither, J.W., London, M., and Reilly, R.R. (2005). Does performance improve following multisource feedback? A theoretical model, meta-analysis and review of empirical findings. Personnel Psychology, 58, 33–66. Maylett, Tracy M., EdD, Pepperdine Univ, 2005 Abstract, Retrieved May 15 2009. Walker, A., & Smither, J.W. (1999). A five-year study of upward feedback: What managers do with their results matters. Personnel Psychology, 52(2), 393–423

The Use of 360-Degree Feedback in Performance Appraisals Essay

HR Planning for British Airways Essay

HR Planning for British Airways Essay.

Human Resources are one of the most important departments in any organisation. It plays a big role for the company and influences every employee because it is responsible for managing employee costs. However, Human Resources Department also has responsibility for many other tasks including Recruitment and Selection, Training. The most important task that performed by HR Department is Workforce Planning. Basically, Workforce Planning is the process when business needs to make sure that it recruits the right people. The recruitment and selection of best employees might be very hard.

First of all, the company has to understand the importance of Human Resources Management and ensure they spend enough capital on each employee. As many companies nowadays failed to do that and can’t survive among its competitors. Human element is the key to potential success and it is what the company should care the most about. If you have the right employees with right skills and they are well motivated then they will perform a good job and will bring the company more profit.

British Airways is one of the leading global airlines that I have selected for this assignment. British Airways is aware of the importance of Human Resource Management. Therefore, as the employer they are providing the professional environment for its employees where they can be treated with respect. British Airways also trains and motivates the employees by communicating ethical policies and socially responsible behaviour to them. It makes employees to work more efficiently.

There are many external and internal factors that can affect Human Resource Planning and that any organisation should be aware of. The main external factors that affect British airways are political, economic, technological and social.

The airline industry is highly affected by political factors. British Airways’ business operation and decisions are influenced by regulations and policies. Regulations can be such as routes that an airline chooses to fly, the business partners the airline works with, the airport slots it uses as well as the fare it sets and the infrastructure costs it pays. Safety and security is another area that is highly regulated by governments. British Airways is engaging with different governing bodies such as European Union and national government to ensure safety and security while causing minimal inconvenience to customers.

The airline business is highly sensitive to any economic downturn. There are a number of factors that affected the business of British Airways. For example, prices increases in oil and commodities. Consumer and business confidence on airlines declined because of rising unemployment, uncertainty in the capital markets, the erosion of household budgets and falling house prices. Therefore the customers are likely to cut its costs on holiday and airline tickets which means lower profits for the company.

Social factors that affecting HR planning need to be taken in an account by British Airways. Nowadays passengers are choosing trusted airlines, First of all the fall in the economy is also pushing customers to seek for lower prices. With the developing of Internet and other technological advances it is easier for the customers to choose among different airlines and even get personal recommendations online, therefore the customers became less loyal.

As every other company nowadays British Airways is also affected by technological factors. Maintaining a corporate website which handles customer queries and reservations is a new requirement for the airlines. British Airways has managed with this task and also the company keeps regularly up to dated with its competitors and technology world. Making customers experience more easier and faster British Airways also uses online self check in and self check in machines at the airports which makes the process much easier for its customers.

Like many organizations today, British Airways face several environmental issues such as climate change. Governments and policy makers are now creating regulations and policies that will require airlines to curb emissions growth. All airlines have to meet a comprehensive range of local, national and international environmental regulations

As well as there is a number of external factors affecting HR Planning, there are also internal policies and procedures impact HR activities. For example, if the company is committed to promoting from within, HR must ensure employees receive appropriate training and development to be ready for promotion when the time comes. HR should monitor the number of employees eligible for retirement and ensure potential replacements or other staff members are trained to avoid a sudden departure of business

HR Planning for British Airways Essay

Angelo’s Pizza Essay

Angelo’s Pizza Essay.

1) The problem with Angelo’s Pizza is that it has no strategic human resource planning. Strategic HRM is about planning to meet the organizations human resource requirements well in advance of the actual required date. The high level goals for strategic HRM will be derived from the organizations overall strategic planning. For example, Angelo’s Pizza started out from a single shop enterprise and then expanded three stores. However, there was no plan is place about the enhanced human resources which would be required to support the organizational growth plans.

Because of this, the organizations human resources became the weak link when the new stores were set up. Similarly, if a franchisee is to be established, Angelo needs to have a detailed strategic HRM plan in place.

The first step in Strategic HRM is to determine the number of employees and the types of competencies which will be required by the organization in the next five years. For this purpose, the present and future expansion plans must be considered and the competencies which would be required by the various types of roles in the organization must be developed.

It is important to remember that the competencies not only include hard skills like qualification and work experience, but also soft skills like communication, manners etc. Consider the importance of a candidate’s temperament, motivation, attitude and initiative (Johnson, Rose). Once the list is developed with various types of roles and the competencies required for each role, the next phase is to begin implementing steps enable the organization to have the required employees.

To implement strategic HRM, the organization must have a recruitment strategy, training strategy, and compensation planning and employee retention strategy in line with the requirements planned for the future. The company must have a stable recruitment policy which should be able to attract candidates with the kind of competencies required. The recruitment calendar should be of a long term nature where candidates are recruited based on the needs developed in the long term plans and not just a knee jerk reaction to resignation or new store opening. Since Angelo’s Pizza does not have any in house recruitment team, it would be a good idea to outsource this to a hiring agency which would select candidates and after a first level screening as per requirement of Angelo’s Pizza, would only send the shortlisted candidates for interview directly with Angelo.

Currently, Angelo’s Pizza has no training facility and all new joiners are expected to learn on the job. This strategy may work for hourly workers such as waiter who come with prior experience; however, for managers and any recruits with no relevant experience, some training would be required. In line with Angelo’s aim of expanding and eventually using franchising model, training manager will be critical for success. To enable this, Angelo should move out of the role of managing any store full time and concentrate of training all his store managers. Angelo should take charge of training and spend time in each of his stores, giving time to train the managers. The store managers in turn will be responsible for training and guiding other staff members in their stores.

For any organization, to retain the best talent, it is important to have a fair and attractive C&B plan as well as other aspects in a comprehensive talent retention strategy. Angelo’s Pizza must have a rating based appraisal where high performers will be given better salary. The company’s talent retention strategy must be focused on trying to keep employees happy at work and offer them career growth opportunities within the organization. For example, having rewards and recognition for good performers will motivate employees to work hard and satisfy high performing employees. Similarly, employees showing high potential can be offered higher education support so that they can move to managerial roles within the organization. 2) After considering the problems faced by Angelo’s Pizza, the following learning objectives seem most suitable:

i) LM 3 (Discuss how recruiting strategies impact the competitive advantage of a firm): Angelo’s Pizza is suffering from high turnover and lack of good employees due to its unplanned recruitment policies. Angelo has a very rudimentary recruitment strategy which does not reach out to the right candidate pool and is not able to select the best fitting candidates. To improve its competitiveness, Angelo must have a well developed recruitment strategy. Advertising in two local papers is not enabling Angelo to reach out to the intended audience. He can take the help of hiring agencies to find the right candidates as per the job profile and put them through a multi level selection process. Employee referrals are also an important tool for recruitment. Also, he must outsource the background verification process to a competent organization.

ii) LM 4 (Comment on the relationship between personality and work performance): It is seen from the case, that the job requirements have soft skill requirements which come from a person’s personality. In the restaurant business it is important how employees interact and treat the customers. Therefore, Angelo needs to consider these requirements which designing the hiring profile and recruitment strategy. Also, stress has to be placed on other personal qualities such as honesty and loyalty. Since Angelo’s is worried about theft, the selection process must also take into consideration the candidate’s personality traits. This means that the selection process will have to be muti-tiered consisting of background checks, personal interview and mock situations where the candidate is given realistic situations.

iii) LM 7 (Develop and evaluate a performance appraisal tool for a given situation): Angelo’s Pizza has a very high turnover and it is noticed that it is the good employees who are leaving the organization. To reverse this trend, a holistic performance appraisal system should be put in place which recognizes high performers and differentiates them from the others. The high performers should not get frustrated at the job and a performance appraisal system is the first step in identifying these high performers so that strategies can be developed to retain them. The performance appraisal system should be fair and evaluate the employee against the targets set by the manager. There should also be a mechanism where the feedback from customers is collected and used as an input for performance appraisal.

iv) LM 8 (Discuss various types of benefits a company could provide employees): Once the appraisal system is in place, compensation and benefits should be variable based on employee performance. As a small organization, Angelo’s Pizza has the flexibility to design C&B as per employee requirements. Small scale, personal involvement and independence all lead to an absence of bureaucracy, creating the SMEs’ reputation of being able to respond readily to changing circumstances (Brand.2002). For example, for hourly employees, assistance for further education can be a lucrative benefit, while at the same time providing the organization with a higher qualified resource for future managerial position.

v) LM 9 (Discuss how corporate strategy can be aligned with HR): The lack of strategic HRM is the core issue affecting Angelo’s Pizza. Corporate strategy should be aligned with HR, so that resource requirements are planned well in advance and there is no shortfall of trained employees when the organization needs them. As Angelo’s Pizza is on a growth track, it must ensure that it has a recruitment and training plan to support the organizational growth.

3) Theft can be a major problem in small organizations because there is lack of control mechanisms and often employees are assigned to multiple tasks which reduce checks and balances. To reduce the problem of material and intellectual theft in the recruitment process, several measures can be adopted. Background verification is perhaps the most important factor which can help weed out candidates who are likely to steal. Angelo’s Pizza can outsource this task to professional agencies which conduct through background checks. These checks should include the candidate’s criminal record, past employment history, credit rating and other social security details.

According to the law, a person cannot be discriminated against just because he has a criminal record. However, if the employer can show that the person’s criminal record will hamper his job responsibility, it can weed out such candidates. Attorney Mark Briggs of the Arizona-based Briggs Law Group said the new law forces employers to have a clear connection for why someone’s criminal record makes them unfit for the job they are applying for (Brooks,2014). For example, if a candidate has multiple theft convictions, Angelo’s Pizza may have to show how this would lead to higher chances of theft at job, if they have to disqualify the person. Similarly, a person with regular credit defaults may be under higher financial pressure and hence more likely to steal.

Having a recruitment process to avoid intellectual theft is more difficult. Employers should take time to understand their current high performing employees and see what personal attributes have led them to stay at the job. Take the time to find individuals in your organization that have the same or a similar position to the one you are recruiting for (Wheeler, 2004). The interview must check the candidates future aspirations and see if they are in line with growth in the company or not.

4) To check the employee manners in an interview, Angelo can use role plays, where the candidate is given a certain hypothetical situation and has to respond to that situation. For example, Angelo can pretend to be a customer and the candidate must pretend to be a waiter. In this way, Angelo can create potential difficult situations which may arise when a customer is unhappy and check how the candidate responds in the interview. For example, Angelo can take the role of a customer who is unhappy about the food and is in a bad mood. The candidate must act the role of the waiter who will have to calm down the customer and end the situation in a satisfactory manner.

Another option, which is less time consuming and can be used as a screening method is to give all the candidates a case study reading a difficult situation where an unruly customer must be calmed down. The candidates should be asked to respond to the situation is writing and mention how they would respond to the situation given in the case.

5) To check if the candidate is ineffective, Angelo must decide which would be primary responsibilities for the job and design the interview to check those competencies. For example, for a cashier, numerical ability is important. Therefore, Angelo can give a numerical question which the candidate must be able to respond to quickly. Check of effectiveness cannot be generalized as different jobs require different skills. One good way to check the candidate’s intelligence level is to give him an aptitude test. Aptitude tests are important because they show the persons mental ability. A person with a high aptitude will generally be able to learn and master new skills more effectively. Angelo can also give candidates some specific task to accomplish like for example, building a Lego model to check their effectiveness.

References:

Brand, Maryse. (2002). Strategic HRM for SME’s: Implications for Firms and Policy, retrieved on 10/23 from http://www.rug.nl/staff/m.j.brand/e_tj_2002_strategic_hrm.pdf Wheeler, Kevin. (2004). Good Hiring Starts With A Good Job Profile, retrieved on 10/23 from http://www.ere.net/2004/11/10/good-hiring-starts-with-a-good-job-profile/ Johnson, Rose. How to Reduce Employee Turnover by Effective Recruitment in the Hotel Industry, retrieved on 10/23 from http://smallbusiness.chron.com/reduce-employee-turnover-effective-recruitment-hotel-industry-33538.html Brooks, Chad. (2014). Employee Background Checks: What’s Legal, What’s Not, retrieved on 10/23 from http://www.businessnewsdaily.com/6166-why-you-need-to-use-background-checks.html

Angelo’s Pizza Essay

Recording analysing and using HR information Essay

Recording analysing and using HR information Essay.

The below note will give you a brief information about the way the organisation’s approach to collecting, sorting and using HR data. This was divided into the following:

1) Two reasons why the organization needs to collect HR data:

a) “to be able to retrieve information whenever it is needed. For example each organisation has to keep accurate records or information of their employees in order to be able to use this information for planning ahead (…) b) a legal requirement, for instance in order to be able to make accurate tax returns to the government” [1]

2) Two types of data that is collected within the organization and how each supports HR practices:

a) sickness records: this type of data/report may be collected periodically (monthly or quarterly) and compared or analysed against each employee’s attendance records.

This helps the human resources to manage the attendance record of the organisation accurately and inform line managers of the constant attendance offenders (…) b) the contact details for each employee especially home address.

This is essential if a correspondence needs to be sent out to each employee, such as contract, payslips, pensions” [2]

3) A description of at least two methods of sorting records and the benefits of each:

a) manual method: “paper-based items such as employees’ original application forms, contracts of employment and any other documentation – letters, references, and so on – that relate to employment. Such records should be systematically field for security purposes and ease of access to authorized users. (…) b) electronically method: (…) not only can absence turnover, pay and training be monitored easily, but specific programs on human resource planning, psychometric testing, employee development and appraisals can be used to help make relevant decisions.

Databases containing employee details can be a real time-saver when it comes to working out pay awards, statistics on how many people have been trained who is due for retirement and so on (…) Both of those methods help in strategic decision-making, support services to line managers, (…) provides information when decisions need to be made about the future of an individual employee” [3]

4) A statement of at least two essential items of UK legislation relating to the recording, storage and accessibility of HR data

a) Data Protection Act (1998)
“processed fairly and lawfully and shall not be processed unless certain conditions are met obtained only for specified and lawful purposes
adequate, relevant and not excessive (…)
accurate and up to date
kept for no longer than in necessary
processed in accordance with the rights granted under the DPA98 kept securely
not transferred to a country without adequate data protection”[4]

b) Freedom of Information Act 2000: “provides public access to information held by public authorities. It does this in two ways: Public authorities are obliged to publish certain information about their activities; and Members of the public are entitled to request information from public authorities.” [5]

Part B493

This section analyses Absence Management in Private Sector in 2014. The information is based on the CIPD Survey Report, published in November 2014.

The report concentrates on analysing data for organisations on absence as well as a focus on employee well-being. Additionally the report says, about the impact of government initiatives on absence management. The report was divided into the following sections:

1) Absence level:
It has reduced considerably. The average level has fallen by 1.7 days this year compared with last. (Figure 1)

Length of absence:
nearly ¾ of absence are short-term (up to 7 days),
14% of absence are long-term (up to 4 weeks) (Table 6)

a) short-term absence: based on the vast majority 85%
minor illness
musculoskeletal injuries
back pain
home/family responsibilities
stress
mental ill-health (Table 10)
1/3 of private sector organisations reported increase in stress-related absence.
The reasons of it are: high workloads, non-work relationships/family and management style.

2/5 of private services organisations report an increase in mental health problems

Solutions:

with regards to stress absence: management training and training to build personal resilience, flexible working options/improved work-life balance with regards to mental ill-health: counseling, flexible working options/improved work-life balance and employee assistance programmers, training to line managers to effectively manage and support staff

b) long-term absence:
acute conditions (stroke, heart attack, cancer)
stress
musculoskeletal injuries
mental ill health
back pain (Table 13)

Solutions:
change the working patterns or environment to enable people to stay in or return to work, flexible working arrangements

The vast majorities of organisations have a written absence/attendance management policy, record their employee absence rate collect information on the causes of absence and provide one or more well-being benefits. Developing line managers’ capability to manage absence (2014: 56% of those that made changes; 2013: 33%) This was achieved by an increased focus on attendance strategies and the fact that some organisations are developing line managers capability, from 39% (2013) to 61% (2014)

2) Cost of absence:
It has increased compared with last year:
2014 – £520
2013 – £467 (Figure 2)

3) Approaches to absence management:

a) short-term:
return-to-work interviews (the most effective method)
trigger mechanisms to revive attendance
disciplinary procedures for unacceptable absence
giving sickness absence information to line managers (Table 25)

b) long-term:
return-to-work interviews
risk assessments to aid return to work
occupational health involvement (table 26)

4) Government plan:
1/5 of organisations plan to access the new government Independent Assessment and Advisory Service (now called the Fit for Work Scheme).

Summery:

Most private sector employers believe they could decrease their absence levels. Organisations themselves need to ensure that they understand the cost of absence to help galvanise senior management support for addressing absence issues. Regular monitoring, review and act on the data they collect regarding the level and causes of absence, to ensure their approach to absence and well-being is relevant to their organisation’s specific issues. Clearly is essential to develop line managers in managing short-term absence. [6]

Bibliography:

[1] Why Organisations Need Data – College Essays – Oluwatayo. 2014. Why Organisations Need Data – College Essays – Oluwatayo. [ONLINE] Available at: http://www.studymode.com/essays/Why-Organisations-Need-Data-1001107.html. [Accessed 30 December 2014].

[2] Why Organisations Need Data – College Essays – Oluwatayo. 2014. Why Organisations Need Data – College Essays – Oluwatayo. [ONLINE] Available at: http://www.studymode.com/essays/Why-Organisations-Need-Data-1001107.html. [Accessed 30 December 2014].

[3] Introduction to Human Resource Management A Guide to HR in Practice, Charles Leatherbarow, Janet Fletcher, Donald Currie, Published by CIPD, 2013, page 77-78

[4] Introduction to Human Resource Management A Guide to HR in Practice, Charles Leatherbarow, Janet Fletcher, Donald Currie, Published by CIPD, 2013, page 392

[5] What is the Freedom of Information Act? | ICO. 2014. What is the Freedom of Information Act? | ICO. [ONLINE] Available at: https://ico.org.uk/for-organisations/guide-to-freedom-of-information/what-is-the-foi-act/. [Accessed 30 December 2014].

[6] http://www.cipd.co.uk/binaries/absence-management_2014.pdf

Recording analysing and using HR information Essay

Resourcing talent CIPD Essay

Resourcing talent CIPD Essay.

INTRODUCTION

Resourcing talent refers to the processes for identifying, assessing, acquiring, developing, and deploying employees who are critical to the company’s success . The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company. The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic importance, has come to be known as the war for talent.

Factors that affect an organization approach to resourcing talent: While it is certainly important to acquire new talent for the organization, it is worthwhile investigating what talent is already available within the organization and if these can be used to fill any vacancies.

Employer branding is the creation of a brand image of the organization for prospective employees. A strong employer brand is about differentiating yourself as an employer of choice, align that single vision to everything you do and amplifying that message across all business strategies.

Employer branding sells your workplace culture, values and goals to potential and existing employees.

A company needs to identify what sort of people the organization needs with regards to their qualifications and experience and the extent to which they are likely to fit the culture of the organization, its values and norms. Another aspect to take into account is where the organization operates, such as culture of the people already in employment, the local talent or whether it is beneficial to open the recruitment to a wider market.

Benefits of attracting and retaining a diverse workforce:

Leadership – “employees join companies and leave managers”: while people often join companies with high expectations, it is often their managers and supervisors that they leave, and not the company. If managers fail to create job satisfaction within their teams, people feel unmotivated and negative. Managers have the power to create a team that is totally engaged or they can drive people to leave their job. Learning opportunities: It is wrong to think that if a company develops its high-potential employees these will leave for another company.

High potentials who are not developed and do not see advancements opportunities will leave the organization even more quickly. Performance recognition and rewards: Employee recognition is a communication tool that reinforces and rewards the most important outcomes people create for your business. When you, as an employer, recognize people effectively, you are reinforcing, with your chosen means of recognition (monetary or non-monetary rewards), the actions and behaviours you most want to see people repeat.

Factors that affect the organizations approach to recruitment and selection: “Recruitment is the process of finding and attracting people to fill the positions in an organisation, with the aim of the activity to find some numbers of qualified job applicants who will take the position it is offered.” Jewell 1998. “Selection techniques are used to decide which of the applicants is best suited to fill the vacancy in question…a negative activity in so far as it involves picking out the best of the bunch and turning down the rest”. Taylor 2002. Factors affecting recruitment and selection are:

Time frame: it depends how quickly the job needs to be filled, whether it would be better to recruit internally, which takes less time, or whether the company would benefit to recruit externally and wait a little longer. Internal or external recruitment/Cost involved:

Internal recruitment is cheaper and quicker and the employee is already familiar with the organization. It provides opportunity for promotion and motivates the staff. External recruitment takes longer and it is more expensive but the company will benefit from the new ideas the new recruit brings to the organization. There is also a wide market to choose from and a bigger range of experience. Working conditions, salary and benefit packages offered by the organization. Cultural, economic, political and legal factors like reservations of jobs for specific sections of society etc.

Benefits of three different recruitment methods:
Internal recruitment:
It is cheaper and quicker to recruit.
People are familiar with the business and how it operates
Provides opportunity for promotion within the business and creates motivation for the staff. It is beneficial from a HR perspective as the person is already known and his personal data is already recorded. Job advertisements:

Advertisements are the most common form of external recruitment. They can be found in many places (local and national newspapers, notice boards, recruitment fairs). Recruitment agencies: provides employers with details of suitable candidates for a vacancy. They work for a fee and often specialise in particular employment areas.

Benefits of three different selection methods:
Practical test: these test ability and are usually done for:
Manual jobs – trade skills
Secretarial jobs – word processing skills
Those working in call centres or in telesales – telephone sills Interview: the advantage of face to face interviews is that the researcher can adapt the questions as necessary, clarify doubt and ensure that the responses are properly understood, by repeating or rephrasing the questions. The researcher can also pick up non-verbal clues from the respondent through the body language. Assessment centres: These are generally used by large organisations, particularly when making senior appointments. Individual and group exercises tale place, sometimes over a few days, often including an interview, psychometric test, group discussions and tasks, written exercises and presentations. They can be expensive and time-consuming.

Conclusion:

“The firm’s most important resources and capabilities are those which are durable, difficult to identify and understand, imperfectly transferable, not easily replicated, and in which the firm possesses clear ownership control. These are the firm’s ‘crown jewels’ and need to be protected; and they play a pivotal role in the competitive strategy which the firm pursues. The essence of strategy formulation, then, is to design a strategy that makes the most effective use of these core resources and capabilities”. Grant (1991)

Resourcing talent CIPD Essay

Human Resources Outsourcing Essay

Human Resources Outsourcing Essay.

I. Topic

In today’s fierce competition in business, corporations need to generate more revenue creatively while keeping cost of sales at minimum level without scarifying efforts. Michael Porter refers this current competition as ‘hyper competition’, which he thinks it best describes the intense development of business today. Amidst highly demanding consumers, companies spawn new methods and uncharted techniques to gain the lead within their industries.

Concerning the need to reduce costs, enterprises strive for finding the best methods to increase revenue while keeping costs as low as possible.

While the technology advancement can help enterprises to reach economy of scale, outsourcing of employees (human resources) can be the attractive savior for them to keep their fixed costs, which contributed by cost of employees and researches to name a few, to reach minimum level.

Many believed that outsourcing is a breakthrough that will adjust the way corporations manage their human resources in the future although some may have problems in differentiating outsourcing with employer-vendor relationship, but the bottom line is outsourcing involves a degree of two-way relationship, including information exchange and coordination.

In addition, there are also those who reveal the economic threats that come along with the outsourcing method.

Outsourcing is an activity to transfer existing business function to external provider that includes delegating the functions of relevant physical and human assets toward external providers. While outsourcing provides attractive benefits for employers, they should consider many potential drawbacks including the different culture between employers and the outsourced personnel.

II. Statement of the Problem

Outsourcing involves transferring significant amount of management control and decision making to the chosen outsourcing provider. Fortunately, in the Internet era where any documentations process is exchangeable over the Internet and jobs can be discussed via e-mail or instant messaging, outsourcing-typed employment model have proved to promote significant savings.  According to McKinsey & Co, Internet-enabled services (ITES) market is likely to touch $142 billion in 2009. There would be a net saving about $390 billion from current $532 billion for these services (Kurian, 2003). U.S. can fulfill the net saving through off shoring to other countries, like India.

Dookril (2004), in general, says there are two main advantages that companies obtain by outsourcing:

– Focusing on Core Competencies

This is the most common reason to outsource in which the company can focus and develop its core competences although some companies also outsource their core functions in order to gain better competitive advantages in the market they serve.

– Lowering Cost

At a glance, outsourcing can help companies to cut additional cost associated with the employee cost like medical and travel allowance since the companies only pay in bulks to the provider of outsourcing staffs. In this situation, the company can shift the variable costs of employees into fixed costs, which in turn, enable the company to manage its cost of sales and offer competitive price to customers.

However, outsourcing might also poses disadvantages since the inclusion of external parties in efforts of achieving corporate goal. The common problems in outsourcing are:

Uncertainty of Product or Service Quality
Media and companies, which has used outsourcing, reveals the discouraging facts that sometimes outsourcing leads to worse services or products as the outsourced functions also reach core functions like sales and customer service.

Security
Because the outsourcing provider has access to certain corporate functions, documents, database, and other resources; it raises concerns about the security of corporate confidential information.

Concerning the benefits and drawbacks of outsourcing method in human resource management (HRM) discussion, as mentioned above, therefore the research statement or question for this research is

“As corporations realize the benefits of outsourcing, what are some of the barriers that HR outsourcing creates between employee and employers that may widen the gap between tem and result in the unachieved target?”

I choose this research statement or question since it may be different from others who only focus on the benefits of outsourcing. Instead of discussing the partial discussion on outsourcing issues, I decide to discuss the potential clashes caused by outsourcing since according to Michel Janssen, founder and President of Everest Group, there is possibility that outsourcing have closed relation to the loss of jobs in the US.

III. Subquestions

Concerning the elaboration of outsourcing, this paper will discuss three main research questions as following:

1. This paper intends to discuss how successful is human resource outsourcing and what factors and initiatives that best take advantages of outsourcing that contribute to the success?

2. Using the non-participant observation method, collecting data and analyzing qualitative information from journal, books, magazine and other online materials, this paper aims at elaborating the effects does HR outsourcing have on employees’ benefits and services?

3.  In addition, the paper aims at formulating and suggesting the areas of human resources need outsourcing in order to describe the future for HR outsourcing

By using the three research questions as mentioned above, this paper hopes that in the end, there are particular stances towards outsourcing issues in order to better manage human resources of a company.

Human Resources Outsourcing Essay

Strategic and Cultural Change at Chrysler Group Essay

Strategic and Cultural Change at Chrysler Group Essay.

1. What are the observable artifacts, espoused values, and basic assumptions associated with Chrysler’s culture. Explain

Observable artifacts, espoused values, and basic assumptions are vital components of an organization’s culture. The culture of an organization will guide the processes associated with an organization, from product innovation to employee perceptions of the workplace. According to Chen and Corritore (2008), many factors of organizational culture affect organizational performance. To be successful, an organization’s members should have a clear vision of these factors and the company’s overall culture.

The most observable cultural factor is observable artifacts. Observable artifacts are the cultural values of the company that can be seen or heard through stories, the work space design, pictures, signs, awards, etc.

The next factor in an organizations culture is espoused values which are not as easily determined as the observable artifacts. Espoused values are the values created by the founder and spread to the remainder of the organization through management. The final factor in an organizations culture is basic assumptions.

Basic assumptions are the unseen, unappreciated values that individuals believe about the company. Basic assumptions are the most difficult to change because changing basic assumptions requires a change of the mindset of individuals.

When Sergio Marchionne became CEO, he had to restore Chrysler’s culture. Chrysler had filed bankruptcy and was on the verge of failure when Marchionne took CEO position in 2009. Marchionne had to take extreme measures to change the old culture of Chrysler and align the new culture with his goals. Chrysler’s new culture is presented through new observable artifacts, espoused values, and basic assumptions. Chrysler’s most observable artifact is the story regarding Peter Fong matching rebates to the government incentives. This story is used to create a culture of what is not acceptable under Marchionne’s control.

While this was at one time acceptable, Marchionne now uses the story to support Chrysler’s new culture that profits involved in a sale are more important that making the sale. Another observable artifact representing Chrysler’s culture is the weekly team meetings created by Marchionne. Through meetings, Chrysler’s employees realize Marchionne is serious about the employees being involved through the sharing of ideas. Finally, Marchionne changed the physical workspace, which can be seen and analyzed by employees; therefore, changing the associated basic assumption that management is not involved in the processes.

The espoused values of Chrysler’s culture did not change much under Marchionne’s leadership. Rather, the espoused values of Chrysler still hold the founder’s original values to “design with purpose” (Chrysler History, n.d., para. 18). Under Marchionne, the espoused values of Chrysler continue to encompass innovation, creative design, quality, and affordable prices.

Along with observable artifacts, the basic assumptions of Chrysler had to be completed transformed in order to create a new culture and reorganize the company. Basic assumptions are the most difficult of the three to change because they are often unobservable, unappreciated, and highly resistant to change (Kreitner & Kinicki, 2013). Marchionne disposed of the basic assumption that it was acceptable to offer large incentives at the profit of the company. By firing many employees and managers for slashing prices, employees redefined their basic assumptions about how the organization operates. Through all of his actions, he changed the underlying basic assumptions; therefore, leading to a more productive and profitable organization. Under Marchionne’s control, innovation, employee productivity, and profitability focus became basic assumptions.

2. Use the competing values framework to diagnose Chrysler’s culture. To what extent does it possess characteristics associated with the clan, adhocracy, market, and hierarchy cultures? Discuss. The competing values framework is used to “understand, measure, and change organizational culture” (Kreitner & Kinicki, 2013). There are four cultures in the competing values framework, clan, adhocracy, market, and hierarchy cultures. The clan culture is the most flexible and inviting to employees. The clan culture focuses on the internal environment and allows for flexibility and innovation. The clan culture thrives on the commitment of happy employees. Employees in the clan culture are free to express their ideas and opinions for creative thinking solutions. The adhocracy culture allows for flexibility similar to the clan culture; however, it focuses on the external environment. Stakeholders, customers, and product design are more the focus of the adhocracy culture. The adhocracy culture thrives on innovation and consumer happiness. The hierarchy structure is opposite the adhocracy culture.

The hierarchy culture focuses on internal focus and a controlled structure. The hierarchy culture thrives on the efficiency of employees and smooth workflow. The final culture in the competing values framework is the market culture. The market culture focuses on the external environment and a controlled structure. The market structure is opposite of the clan culture. The market cultures main focus is profitability and market shares. Chrysler is most representative of the adhocracy culture. Chrysler focuses on the external environment by designing products that are “exciting, efficient, reliable, safe” (Chrysler History, n.d., para. 18). Chrysler creates customer value in each product design. In addition, Chrysler represents the adhocracy culture through its flexibility in design and innovation.

An adhocracy culture is represented by “growth, stimulation, variety, autonomy, and attention to detail” (Hartnell, Ou, & Kinicki, 2011). Each of the listed adhocracy values are presented in Chrysler’s culture. Chrysler’s culture allows for the constant development of new vehicles, with new features and designs. Chrysler allows employees to take risks, thinking-creatively to develop new innovative solutions. Through learning the goals, Marchionne believes employees will act accordingly on their own. Chrysler must continue its adhocracy culture to enhance growth through innovation.

While Chrysler does support its employees as represented in the clan and hierarchy cultures, its primary focus is on customer satisfaction rather than employee satisfaction. As with the internal versus external environment, Marchionne does have control as represented in the market and hierarchy cultures but the main focus is on flexibility and innovation which will guide profits. 3. Begin by looking up Chrysler’s mission or vision statement on the company’s website. Now answer the following question: To what extent is the culture type you identified in question 2 consistent with the accomplishment of this mission or vision?

Explain.

Chrysler’s mission statement and vision are not clearly defined on its company website. Employees and customers should be able to find and understand a clearly defined mission statement. According to a study completed by Khandelwal and Mohendra (2010), “employees’ awareness of espoused values, vision, and CSR was moderate, very low, and fairly high, respectively“. Espoused values, the shared strategies and goals, are often reflected in the mission statement (Chen & Corritore, 2008). The mission statement is vital to guiding the organizational goals and cultural beliefs; therefore, this could become a problem within the culture of Chrysler.

Through research of Chrysler’s history on the company website, Chrysler’s mission seems to be “to build revolutionary new cars – affordable luxury vehicles known for their innovative, forward-thinking engineering” (Chrysler History, n.d., para. 18). According to Chrysler’s social media Facebook page, Chrysler’s mission appears to be “providing a direct line to the automotive capital of the world and the proving grounds of American design” (Chrysler, n.d.). Per Chrysler’s media product information specialist Mark (personal communication, September 12, 2014), “Chrysler Group LLC does not have an official mission statement”.

As you can see, the mission statement and vision of the company are not extremely clear. However, the statements above do support Chrysler’s adhocracy culture of customer satisfaction, innovation, and quality design. By being innovation, Chrysler can add value to customer satisfaction. Chrysler is thinking of the future in their product designs. By taking risk and being creative, Chrysler is able to engineer revolutionary new cars as expressed on their company’s website.

4. Which of the mechanisms for changing organizational culture did Marchionne use at Chrysler? Explain.

When becoming CEO of Chrysler in 2009, Sergio Marchionne quickly reacted to Chrysler’s crises and set out on a mission to change the culture of Chrysler. Chrysler was facing severe financial hardship that had to be changed in order to keep the company afloat. In order to regain financial stability, Marchionne had to change the culture of Chrysler by changing the basic assumptions and observable artifacts with dramatic measures that required perseverance. As stated by Peters and Waterman, successfully instilling values occurs “from obvious, sincere, sustained personal commitment to the value the leaders (have) sought to implant, coupled with extraordinary persistence in reinforcing those values” (as cited in Khandelwal and Mohendra, 2010, p. 21).

Because basic assumptions are engrained into a company’s culture, Marchionne had to be persistent in changing people’s basic assumptions about Chrysler’s culture, beginning with management. He had clear goals and a specific vision for the type of manager he wanted. He fired the leaders whose values did not represent the values of Chrysler’s new culture. Then, he recruited new managers whose values were aligned with Chrysler’s new culture and provided them significant training that they would provide to their employees. He also presented the story of Fong, which enforced activities that are not acceptable under the new culture. Without dramatically changing these basic assumptions, cultural change could not flourish.

In addition, Marchionne changed the physical workspace environment, an observable artifact. He changed the physical workspace of his office by downgrading his executive office from a suite to the technology room, where he worked alongside Chrysler’s engineers. He did this to show employees that focusing on vehicle design and creation was more important than a fancy suite. Changing his office location allowed for communication between employees and upper management; therefore, he could better understand the problems associated with vehicle designs and profitability by being involved. Additionally, he created a learning environment through weekly meetings. In the meeting, Marchionne discussed the problems he saw in product design and profitability margins. This created a learning environment and allowed for idea sharing. He set the bar for focus on activities and processes; therefore, passing on the need to focus on activities and processes to employees.

5. Based on your reading this week, what recommendations would you make to Marchionne that would aid in his success in cultural change?

Marchionne has done a great job of changing Chrysler’s culture by being involved, reinforcing innovation, and focusing on customer satisfaction. My first recommendation to Marchionne would be to develop a clear organizational mission statement and vision. If Chrysler has a mission statement, it is not clearly known by all employees, as can be seen in my communication with Chrysler’s media product information specialist Mark. Advising all employees of the mission statement would help employees understand and practice Chrysler’s culture.

Next, I would recommend that Marchionne not get so encompassed in customer satisfaction that he forgets employee satisfaction. There should be a balance between customer satisfaction and employee satisfaction. Employee satisfaction is essential within the workforce because employee satisfaction ultimately leads to higher customer satisfaction; employee satisfaction will lead to higher productivity and less turnover. Marchionne should continue being a mentor to managers who will in turn be mentors to employees. By being supportive and encouraging employees, they will gain self-confidence and self-efficacy that will improve their productivity.

References

Chen, L., & Corritore, C. L. (2008). A theoretical model of nomadic culture: Assumptions, values, artifacts, and the impact on employee job satisfaction. Communications Of The Association For Information Systems, 22235-260.

Chrysler. (n.d.). Facebook. Retrieved September 12, 2014, from https://www.facebook.com/Chrysler/info?ref=page_internal

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Strategic and Cultural Change at Chrysler Group Essay