Human Resources Strategies on performance of Dubai Refreshments
The workforce of the organization is termed as the Human Resource. Earlier they were just the people who facilitated in production activities and were more associated with support activities but now they are considered as an important asset of the organizations and feel a need to be managed properly. Therefore in the eyes of corporate organizations, Human Resource is a separate management function that is charged with the total responsibility of implementing and making policies for managing the people. Management is the science of optimization and therefore human resource strategies must be formed so as to get an effective and efficient outcome from the people. There are four eminent resources without which any company will fail to achieve its objectives. They are Man, Machine, Money, and Material. Thus Human resource forms an integral part of organizational functioning. Human resource management is a management science which deals with the progress and accomplishment of plan adopted by people, which includes business strategies, and makes sure that the culture, values, and structure of the organization, and the superiority, inspiration and vow of its members add completely to the attainment of its aims. Strategic Human Resource Management is executing and formulating HR strategies and policies in such a way to develop employee competencies and behavior that can help organization to achieve its goals. In earlier times, Human Resource Management kept administrative records, at the level of operation. It tried to keep fair terms and conditions of employment and simultaneously managing personnel actions which took place in individual departments or other departments in an efficacious manner. It was presumed that the end result of offering impartiality and attaining effectiveness in personnel activities management would definitely bring success to the organization. But Strategic Human Resource Management surpassed the previous definition and came up with the planning aspects in a broader sense. The process of Human resource management comprises of following steps that are shown in the figure
Dubai Refreshments (DRC), Dubai Based company, is a franchisee and also a wide spread distributor of Pepsi products all over the world, operating for over 45 years, ensuring ready access to Pepsi products in UAE and the world. It is situated on the Sheikh Zayed highway in Dubai. The product line at DRC includes Pepsi, Diet Pepsi, 7UP, Diet 7UP, Mountain Dew, Mirinda Green Apple, Pepsi Max, Mirinda Orange, Mirinda Lemon, Shani, Everess ginger, Evervess Soda, Evervess Tonic, Aqufina Pure Drinking Water etc. When we talk about the bottling technology, DRC is atop in terms of capacity in lower gulf and also in having the advanced PET/ Non Refundable Bottle. Earlier it was manufacturing only returnable glass bottles products but know the product portfolio has increased to Cans, PET, Bag in Box etc. which are also available in various sizes. The company has been sponsoring the Dubai Shopping Festival for the last 10 years; it sponsored various sporting and cultural events like The Pepsi Sports Fiesta which has football, cricket and streetball tournaments. There are various other events that the company sponsors like International Tennis Tournaments, the Dubai Little League Baseball, the Dubai World Cup Horse Races and various high profile musical and cultural concerts. This shows DRC’s greater interest in using the sponsorships as the major front in the communication mix. Company also believes in public events and maintaining relationships by engaging itself in social tie ups, environmental concerns and charities. The vision of the company is to achieve the position of leading Beverage Company in the lower gulf region with the help of the top caliber people stuffed with right tools and solid systems. The pillars of the value system of DRC are Teamwork, Leadership, Service Excellence, Commitment, Effectiveness and Staff well being.
1.2 Problem Identification:
The problem in the company is that HR department does not have any way to evaluate the impact of their strategies on the employees.
1.2.1 Statement of the Problem
Because of the importance of Human Resource in DRC’s business operations, it is very important to know the effect of human resource strategies on the performance of the employees and thus the effect on organizational performance.
1.3 Aims and Objectives
1.3.1 Aim of the study
The aim of the study is to conduct a descriptive conclusive research in order to find if there exists a significant impact of human resource strategies on employee’s performance in the organization.
Reaching to important conclusions that will benefit the company in order to formulate their human resource strategies and match those strategies with business strategies in order to achieve the organizational goals effectively and efficiently.
1.3.2 Objectives
To study the employee’s attitude towards the human resource strategies deployed by DRC
To know if the factors of Human Resource Management; Training, Performance Appraisal, Career Planning, Employee Participation, Job Definition, Compensation and Selection have a significant impact on employee’s performance.
1.4 Scope of the Project
To let DRC know about the attitude of workers towards the strategies of human resource and helping the company with formulating the strategies according to business strategies
1.5 Hypothesis
The main hypothesis is HR policies have a significant impact on the employees of the organization. Policies related to training, career planning etc have deep impact on the employees.
1.5.1 Alternate Hypothesis
The alternate hypothesis is HR policies have no significant impact on the employees of the organization. Policies related to training, career planning etc have no deep impact on the employees.
1.6 Focus of the study
The focus of the study is on knowing the approach of employees regarding the human resource policies employed by DRC and what is the impact of these strategies on the performance of the company.
The study also focuses on determining the relationship between personal factors and attitude of employees.
Attempt to suggest some formulations in the HR strategies which will help the organization to improve its operations.
1.7 Significance of the Study
Knowing the importance of Human Resource in current times and how important is to synchronize the Human Resource Strategies with the Organizational Strategies, this study will stand as a solution to any problems that DRC faces in existing Human Resource Strategies. The study can be used a s manual for research purposes in future and also can come in hand while making any policies for the organization. The study can be very important for formulating HR strategies and can be very profitable to the company.
1.8 Limitations of the study
The research depends upon the responses of the employees. Employees may not provide correct information which may bring errors in the results. Also, many of the qualitative data is expected in quantitative format which may bring more problems with the results.
Chapter 2: Literature Review
Human Resources Management department in an organization set strategies and make policies, standards, systems and various processes for the Human Resource activities which are mainly:
Recruitment and Selection
Training
Compensation and Incentives
Performance Appraisal
Career Planning
Employee Participation
Job Definition
The other activities that Human Resource Department in organization has to take care about are: (Ahmad, 2010)
Management of staff files and legal documents that are employment related.
Organizational design and development
Business transformation
Change management
Industrial and employee relations
The HR strategies formed in DRC follows the flow diagram:
(Al-Lamki, 2009)
2.1 HR Planning
The first and foremost process in the HRM process is the HR planning which is systematic review of the requirements of human resource in the company so as to get to know the available employees with required skills and how many more to hire or fire. It contains four phases: (Atkinson, 2011)
Determine future HR requirements
Determine future HR availabilities
Reconcile requirements and availabilities
Control and evaluate the plan
The diagram below depicts the Organization/Human resource Planning and Analysis Process
2.2 Job Analysis
The next activity is the Job Analysis which is analyzing the duties and skills required for a job in a person. It also takes behavioral characteristics into considerations. The information from Job Analysis gives idea about: (Crawshaw, 2010)
Work activities
Machines, tools, equipment and work aids
Performance Benchmarks
Job context
Human necessities
Human behaviors
Then after analyzing the activities, company gives a job definition as in what roles and responsibilities one has to perform and what qualification one should possess in order to match a fit for the job position. (Greene, 2008)
2.3 Recruitment and Selection
The next activity of Human Resource Management is Recruitment and Selection. The recruitment and selection initiates the process of hiring for an organization to recruit the highly qualified workforce which takes into account the skills required, potential of the employee and their social and personal attributes. The responsibilities that an employee has to take care of also come into the picture in the Job Analysis. The organization tries to see a proper fit between the identity and values of the organization and the values of the employee. This consists of the employee’s attitude towards team building, team work, honesty and integrity and other factors. Simultaneously, the strategic aspect of HR recruitment and selection activity will take into consideration the firm’s future strategic improvement and development needs of the people’s structure, characteristics, skills and talents. The firm has the duty to announce the availability of the job in the market and should be capable enough to attract the talent. It’s up to the firm if it chooses to hire people from within the organization or from outside the organization. (Greene, 2008)
Recruitment is of two types:
External Recruitment: Hiring people from the existing workforce of the organization for a vacant position.
Internal Recruitment: Hiring suitable applicants from outside of the organization
Recruitment and Selection responsibilities are: (Judie Gannon, 2009)
Identifying recruitment methods for the selected jobs and setting up recruitment plan.
Developing strategies to brand/market the Institute to potential qualified applicants.
Developing and implementing selection procedures including interviewing, aptitude testing, reference and background checking.
Developing and extending employment offers and developing negotiation strategy
Drafting an employment contract.
Generally followed procedure is: (Judie Gannon, 2009)
Showing company profile and setting limits for entertaining the candidates like a minimum percentage requirement in Academics.
Going through the resumes or curriculum vitae of the candidate eligible to participate in the recruitment procedure. Resumes present personal information about the applicant, his education, skills, teaching experience, achievements etc. in the most favorable light and do not always contain all of the information necessary to determine if the applicant is qualified for the position.
Interviews of the selected candidates after giving written tests to test aptitude skills and technical skills. HR can enact various tests to judge the skills of teaching and aptitude level of the candidate. The use of pre-employment tests has become more prevalent in recent years. These tests take many forms and have a variety of purposes.
Aptitude tests: To measure an individual’s knowledge and ability to apply skills in various areas, such as mathematics, typing, language, and reasoning.
Personality test: To assess how a candidate will “fit” into a specific job. Asking questions to know about the behavior, psychology of mind etc.
Afterwards, interviews are to both discover facts about the candidate and provide information about the position. The recruiter assesses the interest of the candidate in the position and begins the process of determining which candidates are the best fit for the position. And there are many types of Interviews that recruiter can go for.
The Screening Interview: Screening tools are used to make sure of the minimum qualification requirements. Interviewers check every loophole in your qualifications and experience so prepare yourself to give correct and genuine answers. (Peters, 2010)
The Informational Interview: Well here introduction between the interviewer and the applicant takes place without any consideration to a particular job opening. It is to develop more references from a point of view of the job-seeker.
The Directive Style: Well the directive interviewers have faith on their on questions and they have their own style to know about an applicant and his capabilities. (Randma-Liiv, 2010)
The Meandering Style: Generally it’s easy to control the interviewer thinking and dominate the interview in this style. He starts with question like” tell me about you “.and applicant can take advantage of that. He allows the applicant to be on advantageous side always.
The Stress Interview: Judging people in an environment of immense stress and their affected efficiency becomes the distinguishable criteria. There are put into stress situations and on the basis of their handling, they are selected. Insults and miscommunication are common.
The Behavioral Interview: Many organizations go for the behavioral study of the applicant, Applicant might be asked to explain a time that required problem-solving skills, compliance, headship, conflict resolution, multi-tasking, initiative or stress management. Applicant will be asked how you dealt with the situations.
The Audition: It is carried out to test applicant’s skills, before a decision is made. Abilities are shown in interactive ways to the interviewer. It gives the applicant an idea of what the job is all about.
The Group Interview: Show casts the potential of the applicant to become a leader and the style of communication among the people. The dominance an applicant possess impresses the interviewer. Interviewer might ask to solve a problem in group and managing it.
Enlisting the selected candidates and drafting them the employment contract.
2.4 Training
The next activity is Training of the recruited candidates. It can be of two types: on-job or off-job training. On-Job training has other techniques to train a new entrant and off job has some other. Training is the process of providing employees with exact skills or helping them correct their deficits in their performance. With the rise in technology, rapidly changing customer needs and intensified competition because of globalization, organizations need to manage the knowledge they possess and use them effectively and efficiently. Organizations thus not only try to train people technically but also in dimensions like behaviour, soft skills etc. This led to improvement in staff quality, diversified skill set and organizational skills on the whole. With training, organization becomes more adaptive to changes and develops capacity to absorb capabilities which are of very high level. (Greene, 2008)
2.5 Performance Appraisal
The next activity is Performance Evaluation or Performance Appraisal. Companies adopt various methods to evaluate an employee for his job. Performance appraisal is basically assessing the employee’s current and past performances on set benchmarks and then comparing them. An appraisal involves:
Establishing work standards
Evaluating actual performance vs. established standards
Giving response to the employee
The various methods adopted by the firm are Graphic Rating Scale, Alternation ranking, paired comparison, Forced Distribution, Critical Incident, Behaviorally Anchored
Rating Scales etc. But nowadays firms are usually adopting Management by Objective techniques and 360 degree appraisal techniques because they are more efficient in judging an employee’s performance. The statistics are: (Randma-Liiv, 2010)
The employee performance can be defined as the contribution by the employee to the organizational performance. Usually, factors that influence employee performance are: people’s characteristics, training conditions, working environment, and so on. Person’s characteristic is the main factor, the all-purpose training is the solution to improve the performance, and the working environment is the purposeful factor of performance assessment. The factors affecting an employee’s behaviour are:
2.6 Compensation
Incentives and Rewarding forms the next activity of Human Resource Management. It is very important to differentiate employees on the basis of their efforts. Incentives and rewards should be given to employees who achieve the organizational standards. These incentives and rewards are tools for motivating the employees to work in the way they are working and a provoking measure for the employees who don’t achieve the standards. It can take many forms: promotion, cash bonus, holidays, allowances etc. (Randma-Liiv, 2010)
2.7 Career Planning
Career Planning is also very important for an employee because it helps him/her in knowing what they aim for and how they should go about it.
Short-term planning
Measure your skills, knowledge, values, restrictions and interests
Long-term
planning
Find out which new skills and knowledge you need to acquire
Look up for career opportunities
Make a career action plan with possibilities
Up to 5 years ahead
Make a real career actiona plan
From 5 to 10 years ahead
Both the cycles of short term and long term in the table should run simultaneously and should also be reviewed on a regular basis.
Chapter 3: Research Methodology and Data Collection
3.1 Introduction
The research aims at finding the employee’s attitude towards the Human Resource Strategies framed for them in DRC and thus it is essential to form a research design that will consist of data collection methods, data analysis methods and findings and conclusions. It is also mandatory to form certain hypothesis, which are unproven statements, so as to realize any significant impact of Human Resource Strategies on the employee’s performance.
3.2 Research design
A questionnaire is constructed which include questions on seven main variables as we found out in literature review. On every variable, 3-6 questions were formed and the data is stores in SPSS file.
The file will be than analyzed using SPSS to form table and charts. Based on these results, comments on the main hypothesis will be made.
3.3 Steps involved in the methodology
The steps involved in the methodology are:
Reading literatures to identifying what all policies of HR has an impact on employees in the company.
Forming a questionnaire based on the literature review.
Collecting employee feedback on the questionnaire.
Analyzing the data collected.
3.4 Reason for the Research
A research is initiated when a problem is defined and this doesn’t mean that a solution has to be framed for the problem. A problem can be a mere interest in an issue that fascinates a researcher and thus the problem that fascinated me was to measure the impact of the Human Resource Strategies at DRC on the employee’s performance. This will unveil the strengths and weaknesses of the strategies that the company is using recently because the employees’ attitude towards the strategies will explain that.
These kind of descriptive problem oriented researches are catching the attention of many researchers because these researches will unveil the internal functioning of the organization, how the employees are managed and what do they think about the organizational HRm policies.
3.5 Sampling
The sampling technique used in the research is stratified sampling which is used because of the variability of the sub-population and therefore it is appropriate to sample each stratum on its own. The procedure followed was grouping the members of the DRC employees into groups that share same personal characteristics like nationality, age, income or gender and then performing the random sampling on the strata obtained. It is very important for the strata to be mutually exclusive; one member should only go into one stratum and not the others. Also, all the population elements should be included in the strata. The advantage of doing this type of sampling is that it reduces the sampling error.
For our research at DRC, we chose Nationality as the characteristic differentiating group of employees into various stratums. 78 is the sample size that we got after selecting three employees from 26 stratums of sizes 50.
3.6 Data Collection
Two types of data are there for the research:
The primary data is collected with the help of a questionnaire that consisted of at least three questions on each of the factors identified and the total numbers of the questions are 36.
The secondary data is collected by reading the journals and publications, newspapers, books on HR strategies and HRM, etc.
To frame out the management decision problem and research problem, talks with management personnel helped a lot and also while recommending the solutions, data gathered from these management people helped a lot.
3.7 Limitations
The limitations faced during the research are:
It is likely that the sampling error will come in the picture because only 6% of the population is taken as the sample for gathering of primary data.
Involvement of 7 variables in the study makes it difficult to analyze the impact of each on organizational performance a bit deeper.
Employees were afraid to fill the questionnaire as they fear losing job
Chapter 4: Analysis and Interpretation of Data
4.1 Introduction
The study aims at finding out the employees’ attitude towards the HR strategies formed by the DRC HR department and also the impact of those policies on the organizational performance. Therefore we have a theoretical model explaining that:
4.1.1 Personal background
Gender:
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Female
14
17.9
17.9
17.9
Male
64
82.1
82.1
100.0
Total
78
100.0
100.0
Comments: It is clear from chart and table that majority of participants are male.
Nationality
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Indians
23
29.5
29.5
29.5
Other Arab
22
28.2
28.2
57.7
Other Asians
17
21.8
21.8
79.5
UAE
16
20.5
20.5
100
Total
78
100
100
Comments: The participants are from diverse nationality as clear from above chart.
Age Group
Age
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
21-30
71
91.0
91.0
91.0
31-40
2
2.6
2.6
93.6
Up to
5
6.4
6.4
100.0
Total
78
100.0
100.0
Comments: Majority of employees in the company are young and belong to age group 21-30.
Education:
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Graduate
14
17.9
17.9
17.9
Post Graduate
21
26.9
26.9
44.9
Primary
21
26.9
26.9
71.8
Secondary
22
28.2
28.2
100.0
Total
78
100.0
100.0
Comments: Most of the sample participants are educated till secondary. The sample has equal proportion of primary educated and post graduate people.
Occupation:
Occupation
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Business
4
5.1
5.1
5.1
Other
2
2.6
2.6
7.7
Service
72
92.3
92.3
100.0
Total
78
100.0
100.0
Comments: Most of the sample participants are from service background which is obvious as we are conducting the research in a company.
Monthly Salary
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
>8000
6
7.7
7.7
7.7
2000-4000
8
10.3
10.3
17.9
4000-6000
60
76.9
76.9
94.9
6000-8000
4
5.1
5.1
100.0
Total
78
100.0
100.0
Comments: Majority of the sample population is earning between 4-6 thousands per month.
4.1.2 Recruitment and Selection strategies
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
Disagree
3
3.8
3.8
3.8
Neutral
29
37.2
37.2
41.0
Agree
45
57.7
57.7
98.7
strongly agree
1
1.3
1.3
100.0
Total
78
100.0
100.0
Comments: The result shows that majority of employees are affected by the recruitment and selection policies of the company.
4.1.3 Training
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
strongly disagree
2
2.6
2.6
2.6
Disagree
4
5.1
5.1
7.7
Neutral
31
39.7
39.7
47.4
Agree
33
42.3
42.3
89.7
strongly agree
8
10.3
10.3
100.0
Total
78
100.0
100.0
Comments: Majority of people here has accepteed that training has a significant influnece on them.
4.1.4 Career Planning
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
strongly disagree
1
1.3
1.3
1.3
Disagree
3
3.8
3.8
5.1
Neutral
27
34.6
34.6
39.7
Agree
44
56.4
56.4
96.2
strongly agree
3
3.8
3.8
100.0
Comments: There is a huge percentage of population which accepts the influence of career planning on them .Thus we can conclude that career planning has significant influence on employees of the company.
4.1.5 Performance Appraisal
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
strongly disagree
1
1.3
1.3
1.3
Disagree
4
5.1
5.1
6.4
Neutral
34
43.6
43.6
50.0
Agree
37
47.4
47.4
97.4
strongly agree
2
2.6
2.6
100.0
Total
78
100.0
100.0
Comments: The majority of responses are towards agree and neutral. So with some doubt, it can be concluded that performance appraisal has an influence on the employees of the company.
4.1.6 Job Analysis
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
strongly disagree
3
3.8
3.8
3.8
Disagree
3
3.8
3.8
7.7
Neutral
30
38.5
38.5
46.2
Agree
35
44.9
44.9
91.0
strongly agree
7
9.0
9.0
100.0
Total
78
100.0
100.0
Comments: The pie chart again clears that job analysis policies of the company has an influence on the employees of the organization. The employees of the company are affected by the way in which there job is taken by the company. The necessary reasons could be dependence of their salary on the perception of the company on their jobs.
4.1.7 Employee participation strategies
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
strongly disagree
4
5.1
5.1
5.1
Disagree
8
10.3
10.3
15.4
Neutral
31
39.7
39.7
55.1
Agree
30
38.5
38.5
93.6
strongly agree
5
6.4
6.4
100.0
Total
78
100.0
100.0
Comments: Majority of people on this perspective responded that employee participation has significant influence on their lives in the company.
4.1.8 Compensating strategies
Compensation
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
disagree
2
2.6
2.6
2.6
neutral
33
42.3
42.3
44.9
agree
43
55.1
55.1
100.0
Total
78
100.0
100.0
Comments: Here, more than 55% of the sample agrees that compensation has an influence on them. So we can conclude that compensation policies of the HR department impart significant impact on the employees.
Chapter 5: Observations, Conclusions and Recommendations for Improvement
5.1 Introduction
In this part, we have tried to reach to certain conclusions on the basis of the data we collected, observations we made and hypothesis we tested. This helped us to know the employee’s attitude towards the HR strategies adopted by DRC.
5.2Observations and Conclusions
Recruitment and Selection strategy has a significant impact on the Organizational Performance of DRC. If qualified pool is recruited, organization will achieve its goals effectively and efficiently.
Training strategies has a significant effect on Organizational Performance of DRC. Training helps in gaining specific knowledge and also helps correct deficiencies, so organization should develop a comprehensive procedure of training.
There are five phases in a system model of training which gets repeated on a regular basis so that the processes can be improvised. The sole purpose of training is to facilitate employers in their work. Providing them technical, managerial and ethical knowledge in the training processes, help the organization to achieve success without obstacles. DRC should use the following steps to formulate a training program
Analyze and Identify: What is for the training should be conducted and why it should be conducted? These questions have to be answered first. DRC has to identify the department, employees of that department that needs training, their job, in which field they need to be trained and the cost of training must also be estimated. Then to evaluate the performance of the employer, performance measures have to be decided.
Design: Next step is to provide training and designing an appropriate system for that. This step demands for the development of objectives of training, locating the learning steps, structured and sequenced contents.
Develop: The development step demands the proper listing of activities that can help the trainees to learn, choosing an appropriate method that will help the trainees to learn, picking up a genuine delivery method, providing a check on the training material, and examining the material carefully and checking the material also for the valid data it imparts to the trainees. DRC trainers have to care that training material should fulfill all the goals and objectives.
Execute: The execution of the model is the toughest part and it shouldn’t be taken carelessly otherwise the whole procedure can get crashed.
Evaluate: There is an evaluation to be done for each phase of the training process. Well in this step DRC has to also check any necessary amendments to be done for mistakes done in previous steps.
Career planning strategies has a significant effect on Organizational Performance of DRC. Employees should feel satisfied from the work they are doing and should also know the future of their working life. There should be a proper plan of their career growth and company should facilitate employees in developing that.
Performance appraisal strategies have a significant effect on Organizational Performance of DRC. Appraisal cycles are conducted in the companies which periodically evaluate the performance of the employees and incentives, rewards and promotions are given according to that.
Job Analysis strategies have a significant effect on Organizational Performance of DRC. Companies should frame job definition in a proper manner without any ambiguities so that there should be proper fit between the qualifications of the employee and the requirements of the job.
Employee participation strategies have a significant effect on Organizational Performance of DRC. Company has participative decision making environment which involves supervisors, middle managers and top managers to indulge in decision making. 360 degree appraisal method is used by the company to evaluate the performance of middle managers and top managers.
Compensating strategies has a significant effect on Organizational Performance of DRC. Pay structure is formed after analyzing the job requirements, skills needed to perform that job and also the minimum qualifications needed to perform that job. Incentives, Bonus, rewards and promotions are also crucial things that supplements job satisfaction and motivate employees to work with sincerity, commitment and dedication.
5.2 Recommendation for Improvement
DRC should follow a systematic procedure to form its HR strategy:
Step 1: Get the ‘big picture’
Recognize the business strategy
Try to identify the core competency of your business i.e. the eminent factors that drive the business can be markets, technology, distribution or competition etc.
What effects do these forces have on the human resource of DRC should be the next question to be answered.
DRC should know the contribution made by the people in bottom line businesses from performance prospective.
Step 2: Frame a Mission Statement
The mission statement should be framed taking into consideration the people of the organization. It should be specific and should not be too long. It should also be realistic.
What do the people of DRC contribute in business operations?
Step 3: Do a SWOT analysis of DRC
SWOT is an acronym of Strengths, Weaknesses, Opportunities, and Threats. This is a strategic analysis that makes a company aware of its relative position among competitors. Strengths and Weaknesses in SWOT judge internal factors of company’s working environment. Opportunities and Threats deal with external environment of the firm that affects company’s strategic plans. This strategic analysis is referred to as SWOT analysis. It is an eminent tool to match the firm’s resources and capabilities to the environment in which the firm is functioning. It portrays standing of firm in the competitive market. It is instrumental by nature when it comes into play for formulating strategies and selecting strategies. SWOT should be done from the people side and Strengths, weaknesses, Opportunities and Threats should be formed keeping in minds the HR strategy.
Step 4: Conduct a detailed human resources analysis
The focus in this step should be on the culture, organization, people and the HR policies that the company is following. The company should know that any formulation in their existing strategy will pose a change in front of the employees and thus proper change management team should be given the charge to manage the situation. Company should know its current position and where it wants to be and the path that it is going to follow to achieve that goal.
A gap analysis should be conducted in order to know the amount of leap it has to cover to reach the desired state. SWOT outcome must be properly analyzed and should be the basis of knowing the path to take to reach the desired state.
Step 5: Find out important people issues
The first thing to do in this step is to match the SWOT and COPS outcome with the business strategy. Ensure that a proper alignment is laid between the business strategy and the people strategy.
The next step is to find out the important Human Resource issues that the company should address in order to amalgamate the people strategy in perfection with the business strategy. People generally are reluctant to change and thus a consultant should be hired in order to carry out the change procedure smoothly. Appreciate the people who are willing to change and get rid of people who oppose them. Benefits of the new HR strategy should be properly conveyed to the people before going for the change procedure so that people should seek benefits out of it for them and also for the organization.
Set priority for the issues to address.
Also set a risk contingency plan in case the HR strategy fails.
Step 6: Develop consequences and solutions
For each issue that has been discovered by the managerial team an action plan has to be developed. Alternatives have to be formed and each alternative has to be evaluated on cost, benefit and risk dimensions. An innovative approach has to be developed in carrying out the action plan and not the way the things had happened in past.
The seven factors that have been identified from the literature; Recruitment and Selection, Training, Performance Appraisal, Participations, Compensation and Incentives, Career Planning and Job definition form the HR strategy mix . DRC should look out for the changes that have to be made in each of the strategies if required or in one of them.
The consequences should be evaluated all of the times after some change is made in the HR system.
The broad objectives thus formulated after the action plan are:
Organization development
Employee training
Management development
Reward System
Performance Appraisal
Recruitment and Selection Procedure
Manpower planning
Communication and information dissemination
Career Planning
Budgeting and scheduling of activities have to be done after the objectives are set.
Step 7: Putting action plan into action and evaluation of the action plans
The final goal of developing the strategy for Human Resource is to make sure that the objectives formed should be mutually supporting each other because then there will be proper integration of reward and payment systems with the employee training modules and their career development plans
.
Chapter 6: References
Anne-marie Greene. (2008). Diversity management meets downsizing: the case of a government department. Employee relations. 33(1), 22-29
Jonathan Crawshaw. (2010). Justice and trust as antecedents of careerist orientation. Personal Review. 40(1), 106-125
Carol Atkinson. (2011). Flexible working and happiness in the NHS. Employee Relations. 33(2), 88-105
Sohel Ahmad. (2010). Knowledge management through technology strategy: implications for competitiveness. Journal of manufacturing technology management. 22(1), 6-24
Jane Ja¨rvalt and Tiina Randma-Liiv. (2010). Public sector HRM: the case of no central human resource strategy. Baltic journal of management. 5(2), 242-256
Asya Al-Lamki. (2009). HRM Practices and Organizational Performance in Oman. Personal Review. n/a
Premilla D’Cruz and Ernesto Noronha. (2009). the exit coping response to workplace bullying: The contribution of inclusivity and exclusivist HRM strategies. Employee relations. 32(2), 102-120
Mohamed Branine. (2010).Human resource management with Islamic management principles. Personal review. 39(6), 712-727
Judie Gannon, Angela Roper. (2009). The impact of hotel management contracting on IHRM practices: Understanding the bricks and brains split. International Journal of Contemporary Hospitality Management. 22(5), 638-658
Pascale Peters. (2010).May I work from home? Views of the employment relationship reflected in line managers’ telework attitudes in six financial-sector organizations. Equality, diversity and inclusion: An international journal. 29(5), 517-529
Chapter 7: Appendix
7.1 Questionnaire
This questionnaire targets impact of HR strategies on employees’ performance of the company. The information collected will be strictly private and it will be exclusively used for the investigation purpose and no recognition will be disclosed.
A. Personal information:
1. Gender:
Male
Female
2. Nationality
UAE
Other Arabs
Indians
Other Asians
Others
3. Age Group
Upto 20
21 – 30
31 – 40
41 – 50
>50
4. Education
Primary
Secondary
Graduate
Post Graduate
Others
5. Monthly Salary
Upto 2000
2001 – 4000
4001 – 6000
6001 – 8000
>8000
B. Attitude towards HR Strategies
Training
1 Our organization conducts extensive training programs for its
employees in all aspects of quality.
2. Employees in each job will normally go through training programs every year.
3. Training needs are identified through a formal performance appraisal mechanism.
4. There are formal training programs to teach new employees the skills they need to perform their jobs.
5. New knowledge and skills are imparted to employees
periodically to work in teams.
6. Training needs identified are realistic, useful and basedon the business strategy of the organization.
Performance Appraisal
1. Performance of the employees is measured on the basis of objective quantifiable results.
2. Appraisal system in our organization is growth and development oriented.
3. Employees are provided performance based feedback and counseling.
4. Employees have faith in the performance appraisal system.
5. Appraisal system has a strong influence on individual and team behavior.
6. The appraisal data is used for making decisions like job rotation, training and compensation.
7. The objectives of the appraisal system are clear to all employees.
Career Planning
1. Individuals in this organization have clear career paths.
2. Employee’s career aspirations within the organization are known by his/ her immediate superior.
3. Employees in our organization have more than one potential position for promotion.
4. Individual and organization growth needs are matched
in this organization.
5. Our organization plans for the career and development
of employees.
6. Our organization prefers an internal employee whenever
a vacancy exists.
7. Each employee is aware of his/her career path in the organization.
Employee Participation
1. Employees in this organization are allowed to make decisions related to cost and quality matters.
2. Employees in this organization are asked by their superiors to participate in operations related decisions.
3. Employees are provided opportunity to suggest improvements in the way things are done here.
Job Definition
1. The duties of every job are clearly defined in our organization.
2. Each job in our organization has an up to date job description.
3. The job description for each job contains all the duties performed by individual employee.
4. The actual job duties are shaped more by the employee than by the formal job description.
Compensation
1. Job performance is an important factor in determining the incentive compensation of employees.
2. In our organization, salary and other benefits are comparable to the market.
3. In our organization, compensation is decided on the basis of competence or ability of the employee.
4. The compensation for all employees is directly linked to his/her performance.
5. In our organization, profit sharing is used as a mechanism to reward higher performance.
Selection
1. The selection systems followed in our organization are highly scientific and rigorous.
2. In our organization, line managers and HR managers participate in selection.
3. Valid and standardized tests are used when required in the selection process.
4. Selection system in our organization selects those having the desired knowledge, skills and attitudes.