The Way forward UK

University Degree Business and Administrative studies

Table of contents

Page

Executive Summary……………………………………………………………..………3

Task 1

HRM policies and practices to reach organisational goals………………..…………..4

Task 2

Recommendations regarding recruit and select additional consultant………………7

Task 3

Proposals to CEO regarding divorce, turnover, sickness etc………………………...11

Task 4

Investigate current pay structure and my proposals ………………………………...14

Task 5

Introduce employee development programme for the consultants………………….17

Task 6

Review the key issues and consult with the consultant’s union……………………...20

Reference and bibliography……………………………………………………………22

Executive summary:

The Way Forward (TWF) is a renowned management consultancy company specialising in strategy and accounting services in UK since 40 years.

The company, with the head office located in Bath, UK has 100 consultants serving many companies and gained substantial growth in last 10 years. But from last year, TWF facing some internal problems regarding lacking of development training for employee, excessive work pressure, and pay structure.

In this report the following proposals will consider to solve those issues:

The importance of Human Resource Management policies and practices to getting organisational goal.

By analysing TWF and its clients need, recommend to recruit some additional consultants based on their quality and experience.

Propose several employee facilities and overtime to balance consultants working life and home life.

Investigate and recommend a standard pay structure for the employee.

Introduce a number of employee development programme and training for the consultants.

Find out the key issues and disagreements between management of TWF and consultant’s union and propose the solution.

Task 1

As the new Chief Executive Officer (CEO) has just come on board and is not an HRM specialist, he is interested to know what role HRM policies and practices can play in contributing to organizational goals. What will you tell him?

Definition: If a business organisation compare with a human body than HRM plays like brain where the organisation’s success based because it refers to the policies, practices and systems that manipulate employees’ conduct, attitudes, and performance. HRM is essential to overall productivity and efficiency of the strong workforce in any successful company. In most specialized organisations, the role of the human resources department is not sidelined or eclipsed by other departments. It is one of the most valued and respected department in the organisation which deals with company’s most important asset “people”.

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Before setting up policies and practices for the company HRM needs to get a big picture of the company to understand the business strategy, develop the mission statement, SWOT analysis of the company to find out strengths and weaknesses, and evaluation employees by current performance.

HRM policies: Human resources management have some policies which contribute a big part to achieve organisational goal by following government’s regulation. Devanna et Al. (1984) states them as follows-

Select the most appropriate people to meet company needs.

Performance in the hunt of business objectives.

Monitoring the performance and providing feedback to the organisation and its employees.

Developing the skills and knowledge to convene company objectives.

HRM practices to obtain organisational goal: To create business and protect competitive advantage Human Resource teams have an important part. Innovative and efficient people strategies make an actual diversity to the bottom line performance. We can divide HRM practices in six ways-

Job analysis and design: Job analysis is the procedure of getting complete information about jobs and defining the way of work will be performed is job design. To produce any specified numbers of product or service and manufacture these products needs a certain task to be performed by a company. A group of tasks become jobs. Job design is important for organisation’s strategy because it requires new or old task performed in a different way. Or sometime it requires to implementing new technologies. To do these job employee needs to be efficient and innovative.

Employee recruitment and selection: Raymond et al. (2006) states that recruitment is the process through which the organisation seeks applicants for potential employment. And selection is the process which attempts to discover applicants with the compulsory knowledge, skills, abilities and other quality that will help the company to achieve its goals. Some times HR department prefer to recruit internally because by this company can save money for training. Recruitment can be done by universities, agencies and other head hunter organisations. By implement different types of strategies a company needs various types and number of employees. To pursue organisational goal they make sure to select the right people for the right job.

Employee training and developments: Training is learning of job related knowledge, skills and behaviour by employees and on the other hand development refers to acquiring those skills and behaviour to meet changes in job requirements. Training is compulsory for new employees in an organisation to get to know company’s goal and culture. If an organisation changes their strategy, product or services, they need to train their employees to adapt and skilled with the new strategy. Some companies trained their employees for legislative requirement like health and safety training, fire training etc.

Performance management: Performance management make sure that the activities and outcomes of employees are relevant to achieve company’s objectives. Performance management helps the organisation to improve its performance through the employee and involve to implements those activities and outcomes which will make company flourishing. In organisations structure first level manager know more about job should be performed than top level manager (Raymond et al.2006). These performance needs to reviewed on regular basis and its also important for motivation and development. Finally annual assessment needs to be done which is related to pay received based on achieving the business objectives.

Pay structure, incentives, and benefits: To implement any strategy pay scheme plays an important role. Standard level of pay and benefits motivates the employee and persuade them to provide of their best while at work. It also ensures to the competitor that company attracts and preserve high quality employees which give a competitive advantage. Or on the other hand to motivate the employees company can announce some performance pay which can inspire the employees and help the organisation to reach the goals. Finally organisation can introduce some other benefits to its employee like luncheon vouchers, subsidised meals, discount purchase schemes and the range of welfare provisions like free chiropody and cheap hairdressing (Torrington et al. 2002).

Labour and employee relations: Raymond et al. (2006) states that the general approach to relations with employees can strongly affect their potential for gaining competitive advantage. Most of the companies are unionized and it is important to have a good relation between management and employees union. Employees are assets of the company so the organisation’s need to choose to invest on them or reduce the outlay.

These are the approach an organisation can take in order to achieve short time or long term goals successfully.

Task 2

It might appear that a review of ...

This is a preview of the whole essay

These are the approach an organisation can take in order to achieve short time or long term goals successfully.

Task 2

It might appear that a review of current skills against the needs of TWF and their clients is needed. It may emerge that a recruitment and selection of qualified and experienced management consultants is one of TWF’s most pressing needs. What strategy or approach might you recommend in regards to assessing current consultancy skills alongside the potential recruitment and selection of additional consultants?

At present in a highly competitive market regarding this issue Human Resource Department can play a significant role by hiring qualified and experienced candidate. But before hiring new consultants we need to make a strategy to find out the reason why the existing consultants are failed to deliver the standard of work or any other particular reasons. After find out the reasons we will make some training and development programme which will improve their skills up to standard. With these for clients need and meeting their time limit we will recruit new consultants.

In training and development for the existing consultants we could follow the following steps which are described by Raymond et al. (2006) –

Find out the current weaknesses and get the solution to cure it.

Attitudes and motivation- their self efficacy towards learning the new system.

Clear idea for the purpose of training and having 360 degree feedback from the trainer and employees.
Training method could be individual or group. If group training is not enough than deliver one to one training and evaluate regularly.

After giving a proper training to our current consultants we have to recruit some additional consultants for our clients and market demand. But before recruiting someone we need to categorize the vacancy and get someone suitable for specific job. To do this we will approach the following steps-

Recruitment process
Selection process
Decision making

Recruitment process: As we stated before about the clients demand, we are going to recruit some new consultants. So these particular vacancies present the chance to consider restructuring the requirements of the job which will bridge the gap of TWF’s present situation. These stages describes below-

Job analysis- Describes the purpose of the job and how it will contribute to the organisations goal with the type of key skills and individual attributes needed to complete the role.
Job description- Helping applicants and other recruitment agencies to get an idea of the job.
Person specification- Skills, ability, knowledge and experienced needed from the applicants.

Pay- A blue print of paying higher than present market wages have unique benefit in recruiting.

Attracting applications- This is way to generate interest from candidates and the possible methods to consider like internal recruitment because it is convenient and diversify existing employees’ skills. On the other hand external recruitment generates interest from outside the organisation where the company look for their strengths, weaknesses, and necessary skills. In this case various recruitment agencies help the organisation to get their desirable employee.
Advertisement- Any advertisement needs to designed and presented effectively to ensure the right candidates are attracted. It could be in job centres, national news papers, professional journals, internet, local universities, and local newspaper as well.

Fig – Recruitment and selection process.

Selection process: It’s a process where employer can know about applicants thought, ideas, and passionate for job. TWF is leading management consulting company and has the history to attract best talent. We use most standard and proven selection test to assess the interested candidates to get best people. The number of tests candidates needs to pass before we make our decision-

Interview provides sufficient information upon which to take a decision to hire or not. HR manager needs to keep the interview structured, standardised and focused on accomplishing a small number of goals with quantitative ratings, note taking system which will be important to justify the applicants.

By aptitude test we can determine applicant’s ability to develop by their performance and how they achieved. We also measure their reaction and sincerity to finished number of task in a time limit. Consultants provide business solution to their clients so it is have high mental capacity to work under pressure (Torrington et al. 2002).

Consultancy is a high diagnostic type job and their clients got different problems. So the candidate must have the ability to think analytically and resolve the complex problem quickly.

Achievement test provides applicants past working history based on their experience, training or other activities. By this we can decide and measure the output we will get from the applicants if we employ them.

In group assessment every one got chance to perform, and their opinion will be monitored. By this we will identify the applicants with leadership quality and motivation power.

Decision making: Finally the decision making procedure is the most important part in recruitment. With this we will decide who to employ as soon as possible by using structured scoring system while they participate all the selection tests. Taking notes during the tests which will help us to make decision but also giving them feedback. We will inform them about our decision as soon as possible whether successful or unsuccessful. By giving positive feedback to unsuccessful candidates we will make sure that they have been treated fairly and courteously (Torrington et al. 2002).

As a market leader in Management Consultant Company we need to make sure that people working for us are coming from the different social background and got the opportunity to represent in our company.

Task 3

Many of TWF’s consultants have reported an imbalance between their working life and home life. Associated with this are reported high levels of stress indicated by such symptoms as divorce, turnover, sickness and absenteeism. What might you propose to the CEO regarding this issue?

Definition of stress: Stress is a condition or feeling experienced when a person perceives that demands exceed the personal and social resources the individual is able to mobilise. Some times people feel less stress whenever they have the time, experiences, and to manage a situation but great stress when they think they can’t handle the demands put upon them.

Every successful consultant needs have a good balance of work life and home life because it is related with organisational success. As a market leader clients’ expectation to TWF’s is higher than other company. So our consultants having extra pressure of work since last year which gives them stress and make unhappy. As it is related with TWF’s reputation so we considering this issue seriously. After monitoring the situation we have come across some reasons for employees dissatisfaction which as follows-

Demands: Consultants often become overloaded if they cannot cope with the excessive work pressure.

Control: They are performing poorly as they don’t have any control over the time limit.

Support: Lack of support from the managers to accomplish their job make them frustrated which is one of the reasons for sick absence.

Relationships: Failure to make a good relationship between managers and consultants can lead to problems related to discipline, grievances and bullying.

Role: By not having a clear idea of work and organisation’s expectation consultants become anxious which lead them to give poor service to the clients.

Change: Failure to manage change of work effectively and properly which lead them uncertainty.

Go on strike: Consultants show their dissatisfaction by going for strike with the union.

Long working hours: By working longer hours than normal consultants did not spend enough time for their personal life which is the main reason for losing concentration of work.

Less paid: If the employee thinks they are getting less payment than industrial standard rate than they lose interest about job which lead labour turnover.

Labour turnover: If the labour turnover rate is higher than the organisation could not provide standard of work to the clients and put extra pressure on other colleagues. And on top of this it is expensive for the company.

After having a clear idea of these problems we will resolve the situation very quickly because consultants are the rhythm of TWF. If we keep them happy they will deliver their best service which will help to regain our goodwill. The following solutions we should take-

We will make sure consultants understand what they have to do and how to do that. And giving consideration their flexibility to do that.

Giving them proper training to meet TWF’s need. This training would be based on their performance.

Management needs to consult with the consultants about decision making which will build an effective team with the responsibility. Introduce open door policy to the company.

Review employees’ performance to identify their strengths and weakness and give them feedback.

Management needs to be supportive with the consultant and discuss about their stress. Because some time employee wants to share their problem with the colleague.

Inform our consultants properly about the procedure of misconduct and poor performance. Always let them know about anything new to the company.

By giving clear job description and induction to the new employee will help to understand what organisation expects from them.

Management needs to maintain a close link with the individual to follow organisational standards.

Discussion with the consultants about prospective changes so they have a real input and work together with us to solve problems.

Introducing virtual office system which can be very useful. Because employee can work from home so they can give more time to their family member. And it saves company’s money as well.

Recruiting temporary staff on task basis so they will be helpful for us during busiest time.

We will introduce performance related payment system which will boost their interest about work sincerely.

To get best at they are at work we will announce 5% profit share with the employee. Because money is the big motivator for work which will keep TWF’s employees for long term.

Finally it is important to having a 360 degree feedback system between the consultants and management which will keep all the stress away from the employees and help the organization to reach its goal.

Task 4

In addition to the work-life balance issue previously described, many employees have complained about their lower than industry standard of pay. How would you approach investigating this issue, and what would be some of your proposals? Include a rationale in your proposals for a pay structure.

In the modern labour competitive market every employer needs to compete for hiring better employees. This hiring competition is not only with the company who gives the same service and money but also different types company as well. The Way Forward is one of the leading management consulting companies in UK. They used to have a competitive advantage whenever they recruit new employees.

But from last year TWF management got numbers of complains from their consultants about the level of payment which is below standard. Regarding this issue we need to investigate present payment and compensation policy and give some proposals to CEO which will keep the employees happy.

Reviewing present pay structure: To review our present pay structure we need to set up a benchmark which compares market standard salary we are paying to our consultants. We have got the survey report from “Top-consultant.com” and as we see in 2006, generally UK consultants got pay rises of 8.8% and year end bonus payments equivalent to 14.6% of salary. Comparatively TWF did not give standard pay rises (3.5%) to its employees in last couple of years. The Way Forward has experienced in substantial growth in 2006 which gave excessive work pressure to the consultants but the payments was pretty same. And there was a variance to giving pay to senior and junior consultants.

If we take a look at the graph It clearly shows that the salary benchmark for all level of consultants in 2006.

In generally TWF did not give standard pay rise to its consultant which is the main reason for absenteeism, turnover, sickness etc.

Following steps will taken to resolve these problems which are-

Job evaluation: Job evaluation will be used for pay and grading structures. It ensures a fair and equal pay system and compares internal pay rate with external rate.

Standard pay: We will give industry standard pay to our consultants by pay rising to 8.8%. As example junior consultant will get £35,951 after pay rise.

Pay for skill, knowledge and competency: The idea to pay this system to get more competencies between consultants to learn new skills, become more flexible and deliver to the clients.

Integration with the business strategy: New pay structures are frequently being introduced as part of a business strategy for cultural change.

Profit sharing: As we states before to give a 5% profit to our employees which will force them to work efficiently.

Payments by result schemes: Torrington et al (2002) states it’s a rare pay scheme for the employees to finished a task in time limit. That means how much time a consultants can save performing a specific operation.

Commission: Torrington et al (2002) states the payment of commission on sales is widespread practice about which surprisingly little is known as instant rewards. It will drive them to serve our clients

Other rewards: We can offer a great range of rewards to our employees like holidays with pay, maternity or paternity leave, sick pay, staff discount schemes etc. Because this might help employees weigh up the overall value of their reward when they considering a career move.

Pension schemes: Introducing an early pension scheme for the employees. By these our consultants can go for early retirement after serving particular years.

Share ownership: Employees will get special consideration if they wish to buy company’s share.

Family – friendly policies: To Ease employees’ conflict between work and non work, TWF may use family- friendly policies such as family leave policies and childcare.

Those are the benefits and facilities we can offer to our consultants in order to enrich our pay structure.

Task 5

There is currently no employee development programme at TWF. Employees also state that due to their heavy workloads they are not able to attend conferences to develop their professional skills. What might you propose as a way forward to introduce such a programme aimed at TWF’s management consultants?

The Way Forward needs to set up a model of planned human resource deployments and activities intended to achieve its goal. And the HRM department got big influence in strategic management process. At present our consultants are not well informed about any strategic changes which might be the top reason about giving poor service to our clients.

Normally strategic decisions are taken from top level of management and each level of management discussed about people related business issues. HR department deal with the people so it is their duty to tell management how their activities would make a difference (Noe et al. 2006).

We can discuss four levels of integration between HRM function and strategic management function which are as follows:

Administrative linkage: Noe et al. (2006) states that HRM function’s attention is focused on day to day activities at this level. And it is normally engaged in administrative work which is unrelated with company’s core business needs.

Fig- Linkage of strategic planning and HRM.

One-way linkage: Organisation’s business planning function develops the strategic plan and informs the HR department about the plan. To implement the strategic plan HR department design the programs.

Two-way linkage: It allows considering HR issues during the strategy formulation process. Planning team informs HR manager about strategies which organisation will consider and after analysing the HR manager gives the result to the planning team. After choosing the best strategy HR executive needs to implement it (Noe et al. 2006).

Integrative linkage: HRM function is involve in both strategy formulation and strategy implementation. By getting information about human resource capabilities the top management chose the best strategy.

An organisation’s success depends on its employees. By providing the right resources and an environment that supports the growth and development need of the consultants a company can make their employees’ multi skilled. Development program infuse consultants with a sense of their skills and strengths and propel them to higher levels of effectiveness and success. It will enhance company’s ability to undertake more complex work and use the advance technology and method to solve problem and Open the way for expansion into new business. With the help of development program employees will get the better sense of self worth and dignity. Organisation trained their employee more often but development programme is different. The difference between training and development are-

After analysing current business status we have find out we are not performing well as did before. The quality of the work is not up to the industry status and not where we want to be. This is why we are going to introduce employee development programme which are stated below:

Formal education: This programme designed with short courses offered by universities or other educational organisation for our consultant. It is include lectures from business experts, adventure learning and meeting with the customer.

Assessment: It involves collecting information and feedback from the managers, their peers, and customers about consultant’s behaviour, communication style or skills. This assessment is to identify consultants with the potential to move into management position.

Role playing and simulation: It brings employees to sensible choice making situation. Here employees will come with different resolution for a problem and their approach and perspective will be discussed and the best solution will be identified.

Performance appraisals and 360 degree feedback system: The performance appraisal system helps to development the system. After monitoring employees with current progress managers can discuss with consultants about their performance and what TWF expect.

Sponsorship: Each year company will sponsor the best performer to do an MBA from a top business school. And condition to work for our company for 6 years minimum after graduation. It will help us to meet the future demand for high calibre staff and create an example which will bring ambitious individual to work for our company.

Job experience: Most employee development occur through job experience particularly when they a got job is relating their experience. By this they will show interest to learn new skills.

Job rotation: It features involves employees being introduced to a series of jobs so they get to know all the tasks associated with different jobs. It is an effective training method for line manager as they co-ordinate different division of the company.

Externship: We will arrange our consultants to take a full- time operational role at another company for gaining experience.

Evaluation of training: Development program will be evaluated several times for its effectiveness. All the employees will be evaluated by comparing their newly acquired skills with the skills defined by the goals of the training program. Any discrepancies should be identified and adjustment will be made to keep the whole training program on track.

Mentoring: We will provide mentor, who is an experienced, productive senior employee to our consultants to develop their skills. Mentoring relationships can also develop as part of a planned company effort to bring organisational success.

Task 6

There seems to be a marked tension at the moment between the management of TWF and the consultant’s union. What are some of the key issues that need to be reviewed around recognition and consultation with unions?

Definition: Trade unions aim to signify the interests of individuals at work and negotiate with employers for better terms and conditions for their member. It seeks through a collective action to give workers a proper and independent voice in setting the terms and conditions of their job. Trade union is an organised group of workers which main aspiration is to defend and advance the interests of its members.

Objectives of Trade Union: Torrington et al (2004) states about trade union’s objectives are-

Improve the economic and social well being of the members and enhance their status.

Promote and protect the familiar and individual interests of its members and regulate relations between members and employers.

Encourage people to work together effectively.

Act as negotiating body on all questions affecting the conditions of employment and the relations between members and their employers.

The role of shop steward: Ensuring and maintaining the communication between management of the company and the employees within the framework to the law. The shop steward is the link between employees and the union in negotiations.

TWF's consultants' Union is unhappy about a number of issues that have emerged over the last ten years and that have not been addressed. Consultants' salaries are below industry standard, work loads are excessive causing stress related conditions, there is no employee development programme in place, there is a 14% staff turnover and 13% absenteeism rate. Consultants under severe stress have laid claims against TWF, causing the company financial distress and tension with the union.

It is imperative that TWF identify and address the issues with the Union in order to avoid further decline in relationship or even worse, facing the Labour Court. Unions are by law (Labour Relations Law) authorized to act for or on behalf of their members in order to promote and protect their members' goals within the context of the work place. We have find out the problems which are:

Remuneration rates
Excessive work loads
Employee Development
Staff turnover rate
Absenteeism rate

Resolving disputes/grievances: The aspiration for both the union and company would be to resolution the dispute or tension at the lowest possible level through negotiation, in other words, resolution is to take place without having to go to higher levels e.g. Labour Court. Organisation and union will follow dispute or grievance procedure, after it has been agreed which issues are grievances and which fall under 'disputes'. A grievance is any situation that is in breach of the terms of the service contract and that justifies an individual to lay a complaint. A grievance procedure facilitates an in-house solution process over the unsatisfactory working conditions as expressed by employees. If a grievance is unresolved within a time framework of negotiations, it becomes a dispute and will be referred to a bargaining council.

TWF taking following procedure on behalf of any complains or unfair behaviour:

Member of staff lodges complaint with manager in a written statement.

Manager takes complaint to HR Manager, who then keeps records of proceedings and endeavours to deal with the said grievance within a time limit. A hearing is facilitated and a solution or agreement reached.

A verdict is announced and the employee may appeal if they are not happy.

Complaint reaches managing director if not resolved as above.

Grievance reaches external mediation if managing director fails to solve it.

A neutral negotiator may be contacted to meet with both sides in order to reach an agreement. The negotiator points out both sides of the story and offers advice on which management can agree to act. The advice of a negotiator may be solicited even during the HR manager dealing with that, before a hearing. The negotiator may be someone from the organisation or from the union, but is trained specifically in negotiation and acts fairly.

References and bibliography:

Book References:

Torrington, D.; Hall, L and Taylor, S., 2002. Human Resource Management. 5th ed. England: Prentice Hall.

Noe, R.A.; Hollenbeck, J.R.; Gerhart, B. and Wright, P.M., 2006. Human Resource Management: gaining a competitive advantage. New York: McGraw-Hill Companies.