Future Goals Three
Dino has visioned the expansion of his company into a national company for a long time. Dino’s company has gotten to the point where he needs to employ a human resource manager, and two other group managers, to deal with all the problems that he is not able to deal with, so he as managing director of the company can focus all his attention on the expansion plans of the company. The following are human resource management related goals that need to be achieved for the expansion plans to take place, these include:
- Decrease the staff turnover rate, to one that is acceptable.
- Increase the performance of current and future staff, by creating an employee handbook containing all the processes defining the way things are done within the company.
- Rewarding high performing staff, which have worked for a long period of time.
- Make each café self-sufficient, meaning though Dino has the final decision in everything about the business, he should be able to focus his energies on the expansion plans of the company, and away from things that can be completed by his line managers.
Employee Selection Four
Before future employees can be selected for their initial interview an analysis of the jobs within the company has to be completed. An analytical study needs to be done to identify the tasks to be performed to determine their essential factors. This analysis of the job will be written into the job description so that Dino, as the ultimate selector of staff will know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are decided advantages (Accel-team.com, 2004).
Currently more than half of the company’s employees have experienced burn-out, therefore making it necessary for each job analysis to be changed accordingly. This could mean implementing more part-time or casual workers, to decrease the workload put on employees. Furthermore if employees know the exact description of their job, and they know what is required of them, they will be able to focus all their energy on completing the tasks of their job to the highest level possible. For this to happen Dino needs to act as a role model within the business, and provide employees with clear explanations of what is required of them. This is necessary to avoid constant cases of burn-out among employees.
Five
Employee selection is a very important process as the performance of the organisation depends on the performance of its employees, employees who haven’t the right skills or who are abrasive or obstructionist won’t perform effectively and the company’s performance in turn will suffer (Dessler et al. 1999). When employing staff it is important for Dino to go through the same set of screening methods all the time. The screening method steps are as follows:
- Review application letters and resumes, and rank the applications from best to worst.
- Initial interview, interview the best application first, the group to be interviewed should be limited to 25 applicants.
- References need to be checked and notes should be taken about the applicant.
- Second interview, if required, due to questions that may have arisen from the reference checking.
- Technical test needs to be completed by the applicant; this would normally come in the form of a trial, where the applicant is viewed for competence in their area of work.
- Next the applicant will be selected to fill the vacant position, will be made to fill out all the appropriate employment documents and be place on probation for a three-month period.
- Once the employee has been working for the company for two weeks, the line manager will complete a performance review, and this will be forwarded on to Dino.
- A month after the employee has started working for the company, the line manager will speak to Dino and talk about the new employee’s performance, and actions will be taken if the employee has not met the standard of the company.
As Dino’s company is a SME (Small to Medium sized Enterprise) it doesn’t mean he shouldn’t engage in a strict employee selection process. Quite the opposite: hiring one or two mistakes may not be a big problem for a large firm, but it could cause disarray in a small operation (Dessler et al. 1999).
Performance Management Six
Evaluating performance will give Dino the opportunity to review his subordinate’s work-related behaviour, and give him information upon which promotion and salary decisions can be made (Dessler et al. 1999).
Though before management decisions can be made, Dino needs to provide all employees with the future objectives of his company, as well as information pertaining to a definition of each of the jobs within the company. This is so staff known what they are going to be assessed on. The following is a three-step performance appraisal system that will align the activities of Dino’s staff with the goals and strategies of Espresso Pty Ltd. The three steps of the performance appraisal system include:
- Employees who have worked for Dino for a full year shall receive a bonus, or a wage increase. By doing this their loyalty towards the company will be increased and because of their experience their performance level will also be of a high standard.
- The next way that Dino can measure performance of each individual café is to set budget targets. Each employee in each café will be notified of the budget targets in an open book style of management. Indirectly each café will be competing with each other, and the employees of the café that has reached the most budget targets over a yearly period will be given a bonus.
- Finally each and every employee will have the opportunity to have their say about any problems in the workplace that may be restricting them from reaching their peak performance. Employees can either pass their problem on to their line manager, or they are encouraged to send problems direct to Dino’s email account, which is checked every day.
Point two is of particular importance as it is a performance target that is related to the wider objectives of Espresso. The performance target needs to be reviewed on a consistent basis to make sure progress towards is being achieved. Once the performance results of each café have come through, it is important that feedback is provided to all employees so they can assess their own progress. If it is well known that certain employees are struggling, extra training may need to be provided for these employees to make sure their struggles at the workplace do not continue.
Seven
Performance management is a very essential human resource management function that Dino needs to grasp. Evaluating performance should be one of Dino’s main tasks as Managing Director of Espresso; the three points previously shown cover the broad performance of the business. Though the individual performance of every employee also needs to be managed.
The system that I am planning to implement is similar to management by objectives, as employees and their supervisors jointly determine performance, though I have named it “management by processes” (MBP).
Management by processes will work in the following way: Dino will interview the highest performing staff members from each area within his company. Meaning the best chef, the best line manager, the best waiter and the best coffee maker will each meet individually with Dino to create a set of guidelines for completing work in that area of the company. This set of guidelines will become part of an employee handbook that will be given to all new employees; this handbook will introduce them to the company and provide them with specific guidelines on how their work should be completed.
Legal Acts related to the Business Eight
Equal Employment Opportunity Act 1984 (W.A.)
Workplace behaviour and the associated culture should change appropriately to ensure that all employees have equal access to fulfilling and productive working lives (Dessler et.al, 1999). Meaning staff should be give the opportunity to gain more skills through training, and be given the chances to move up the company based on their performance at work. The Equal Employment Opportunity Act also entails workplace discrimination, which involves decisions about people made on criteria irrelevant to the reasonable performance of their work. Meaning Dino needs to treat his staff strictly on a performance-based approach, and should not rate them in any such other way.
Privacy Act 1988 (W.A.)
Due to the fact that the Espresso’s database holds a great deal of information about employees, it is necessary for Dino to control this personal data stored in the organisation’s database. The expansion of end-user computing capabilities has offered greater opportunities for more people to have access to this data, therefore it needs to be controlled better (Dessler et.al, 1999).
The following are guidelines related to controlling privacy within Dino’s company:
- Train your supervisors. Dino needs to meet with his entire front of house line management team as well as his management team to emphasise the significance of confidentiality with regard to information about employees.
- Adopt a policy that only those who ‘need to know’ will share the information; otherwise the information will not be shared.
The above acts need to be educated to all Espresso employees; hence information regarding the acts will be provided in the employee handbook.
Nine
Can Human Resource Management influence business outcomes?
Previously no formal channels were in place within Espresso, due to Dino’s lack of business familiarity. Firstly, Espresso needs to develop an ethos in which employees can better understand the goals of the business and work fittingly to meet these goals.
The Espresso Ethos:
“To produce the finest food and coffee, with the uppermost service being delivered to all customers at all times.’
This ethos developed by Dino and his management team conveys briefly to all his staff what is expected from them, when they are at work. It is not possible for Dino to meet with every staff member, and force upon him or her how to represent his company. For this reason an employee handbook will to be created and given to all staff, new and old. This handbook will include a mission statement, corporate objectives/goals, long term corporate plans of the company and performance guidelines/processes for employees. (Harrison, 93).
Previously within Dino’s company Human Resource Management practices didn’t have any influence whatsoever on staffing processes, though this must change if Dino wishes to expand his business interest’s interstate. Dino needs to identify his goals for the business and these goals need to be shown to all employees. This way the employees can see the direct effect of their actions whilst working, and also change the way they work appropriately to meet the goals of the business.
Dino needs to also develop a company structure, where it is easy for employees to pass on any problems that may have arisen. Clear communication lines need to be developed so management can act quickly and suitably.
Espresso Company Structure Ten
The front of house line managers will report directly to Dino everyday through email. Everyday an email is sent to Dino from each café noting the cafés takings, and any problems or important items that need to be noted. Any specific problems relating to HR, Marketing or Operations will be sent directly to the relevant managers, and if the problems are big enough they will be passed on to Dino.
Each line manager is in charge of 12 employees at their café, hence there are approximately 130 staff members not including the management team within Espresso Pty Ltd.
Conclusion Eleven
“A successful company is one in which human resource development is a part of everyday operations. Companies must invest more than money in their employees if they want them to grow. At the same time, employees cannot look just to management for inspiration. The desire for growth must be two sided, because ultimately both sides will benefit.” (BSM Online, 04)
Dino needs to educate himself, as well as his employees on the way that Human Resource Management will change the way the organisation works in the future, to meet his future goals and objectives. The road to expansion for Dino’s company is through the Human Resource Management side of his company to become more committed in the day-to-day running of the company, hence having more influence on the decisions of the business.
Through the human resource management functions: employee selection and performance management, human resource management will influence directly the way Dino’s company works. From the way employees are employed, to the way they work whilst being employed by the company. The efficiency and effectiveness of employees shall undoubtedly improve and previous problems shall be reduced, so the future goals and objectives can be realized, and Dino’s legacy will continue on.
References. Twelve
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Bosworth D. 1989, Barrier to Growth: the labour market. In Barriers to Growth in Small Firms, pp 58 – 80, Routledge, London.
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Dessler, G., Griffiths, J., Lioyd-Walker, B. & Williams, A. 1999, Human Resource Management, Prentice Hall, Australia.
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Employee motivation, the organisational environment and productivity 2004. Retrieved: May 10, 2004 from .
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Fox C. 2004. Work Space: Taking the lead on burn out, The Australian Financial Review, March 9, 2004.
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Harrison R. 1993. Human Resource Management Issues and Strategies, Addison-Wesley Publishing Company, Great Britain.
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Human Resource Development, 2004. Retrieved May 11, 2004 from .
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Scott, M., Roberts, I., Sawbridge, D. & Holroyd, G. 1989, Management and Industrial Relations in small firms. Department and Employment Research Paper No. 70, HMSO, London.
