Human resource planning Assessments & appraisal Reward management
Recruitment & selection Training & development Career management
4.1 Evaluating Vertical Integration
4.1.1 Structural changes:
In Armstrong (2000) view, HR director should be include on the board as they are there envision HR strategy. The inclusion of HR director on the board of NZB indicates vertical integration between HR strategy and the business strategy. This alignment is very important because it enables HR strategy to be incorporated into business strategy when drafting business strategy. In a similar view, [Millward et al (2000) cited in Marchington & Wilkinson] suggested that for HR issues to be taken seriously in organization, an HR specialist person must be present on the board.
4.2 Job role profiling:
Dennis Finn attempted to make HR initiative measurable, record able and actionable with clear linkage to strategic performance indicators. Also increase training to a minimum of five days per year for employees, so that HR initiative are integrated with Business Strategy. So vertical integration is present which resulted in the growth of the company.
4.2.1 Business development is not totally integrated as Business Development Director is not a part of a team and high staff movement (43%) is evident in the marketing department changes have been implemented internally to maximize productivity such as:
- Allocating a NZ$100 budget for each individual member of the staff
- Annual bonus which is related to company performance
- 360 degree feedback
- Performance related pay ( PRP)
The above indicate vertical integration in NZB.
4.2.2 In Mullins (1999), training in the key element in improving organisational performance. The purpose of training is to improve knowledge and skills, and to change attitude. It is one of the most important potential motivators. The increase in training to 5 days per employee per as one of HR initiative indicates a vertical integration between HR strategy with business strategy.
4.2.3 The organisational climate survey in [French et al (1985) cited in Armstrong 2003] sees it as the relatively persistent set of perception held by organisational members concerning the characteristic and quality of organisational culture. The organisational climate survey conducted by HR on NZB employees ensure the involvement of employees in decision making and improves their perception of the organization. It also ensures increase in employee performance.
4.3 Individual Attitudes & Behaviors:
“Reward system design features are not stand-alone items. There is considerable evidence that they affect each other and, as such, need to be supportive of the same type of behavior, reflect the same overall managerial philosophy, and be generated by the same business strategy.” (Lawler 1984:145: People Management & Development)
Individual attitude helps to achieve business goals through their commitment, support, recognition and responsibility. In this case vertical integration is present but by the third year the standard is dropped. HR Director needs to concentrate on this area to see what is affecting their performance and quality to maintain the standards.
5.1 Evaluating Horizontal Integration
5.1.1 Assessment & Appraisal/ Reward Management:
5.2 The Reward system in NZB is up to standard because it measures favourably with the local standards. The reward system in NZB like in any organization is important because according to Bratton and Gold (2003), “pay is a ‘key lever’ in pursuit of the HRM goals of commitment, flexibility and quality”.
5.2.1 This means that for Horizontal integration to occur there has to be an “evidence of alignment between reward and business strategy creating ‘strategy-reward fit’ [Rynes & Gerhart (2000) cited in Bratton & Gold 2003).
5.3 Priority is given to appraisal and feedback in NZB for the chief reason that it affords the employees opportunity to measure the impact of their productivity and at the same time make contributions to the organization and other employees. This is better called 360 degrees feedback. In Bratton and Gold’s words “feedback received from different sources including peers, subordinate staff, customers and employees themselves allows for balance and objectivity”.
5.4 Horizontal integration is also seen in training and team work which was adapted as a method for fostering a more participatory organisation culture
- To improve the culture of the organisation 360 degree feed back process is adapted
- Regular performance feed back designed to enhance their performance
- Annual bonus which is related to company performance
- Performance related Pay ( PRP)
- Internal recruitment and promotion for career development
- 13 staff were promoted
- 8 staff were broadened ( given other roles to perform)
- 5 staff were transferred ( including one promotion)
- 6 left the company
- 2 retired
- 2 were made redundant
6.1 Training & development/ Career Management:
6.1.1 Training and development was the primary concern for the NZB. A training focused on teams was adapted increasing training to a minimum of 5 days per employee per year.
6.2 All these methods were adapted for more participatory organizational culture. And also Development assessments are carried out by team leaders and managers in January and February and training development starts in May at the start of a 9 to 12 month plan for each individual. The figure below shows the achieving maximum output and standards through the performance management process. This should apply to all staff to reinforce performance standards.
7.1 Added value of HR Initiatives:
The HR initiatives as stated in P.ILES model are as follows:
- Retain “A Class” personnel
- Allocate a NZ$ 100 budget for each individual member of staff
- Promote from within the company
- Conduct regular “organizational climate” surveys
- Increase training to a minimum of 5 days per employee per year
- Focus training on teams
7.2 In addition, SWOT analysis was conducted to locate the weaknesses of the organisation and to improve them by adding value. As the data from the case study clearly states that the performance of the organisation is satisfactory, but nevertheless training & development needs more attention.
7.3 The Following methods were used for measuring HR Initiatives:
7.3.1 One of the methods deployed in the NZB, accordingly to the case study, to measure the added value of the HR initiatives is the annual climate questionnaire. All the employees from the different department were given this form to evaluate which area needed attention. The Director argues that soon after conducting the first survey, managers were able to initiate an almost immediate improvement in the culture of NZB. Feed back from the climate questionnaire is encouraging in respect that HR initiatives appear to have had an impact.
7.3.2 The HR Director made an effort to measure the effect of initiatives and link them to strategic performance indicators like earning before interest and tax (EBIT).Hence, the organization’s HR activities are documented in detail and so is their connection to the organization’s performance.
SWOT analyses are also used to assess the adequate performance and improving them by training & development. This data collected by HR Director is then related to HR Initiatives to add value to the organisation.
7.4 The Balanced Scorecard:
7.4.1 In 1992 Robert Kaplan and David Norton, wrote an article in the Harvard Business Review called “The Balanced Scorecard: Measure that Drive Performance.”
This model will help to understand and evaluate the performance of NZB.
The HR initiatives taken by NZB will be analyzed by the balanced scorecard.
1: Financial- To succeed financially, how should we appear to share?
2: Customer- To achieve our vision, how should we appear to customers?
3: Internal Business Process- To satisfy our shareholders and customers, at what business process must we excel?
4: learning and growth- To achieve our vision, how will we sustain our ability to change and improve?”
Source: (Andrew Mayo- The Human value of the Enterprise)
7.4.2 This model brings out three outcomes measurement which NZB can add value to their organisation. This model measures the growth and performance of the system i.e. Employees productivity and also new clients which results in increase of brand loyalty as Canterbury Draught is a strong regional brand and won a gold medal at the 1994 Monde Selection Awards in Belgium. This leads to employee’s satisfaction and retention. As a result of employee’s satisfaction, retention and productivity sets out staff competences, technology infrastructure and the climate for action.
QUESTION 3
8.1 CHANGE IN RESPONSIBILIY
8.1.1 The notion either to recruit a new HR director or to hand over HR issues to line manger is a critical issues and both options have to be carefully evaluated in other to make recommendation
8.2 According to [Storey (1992) cited in Marchington & Wilkinson 2002], many surveys indicates that line mangers now have far greater responsibility for HR issues, typically in conjunction with HR practitioners if they are employed.
8.2.1 There is also the argument that line manager operate at work place along side the people they manage, their reaction can be more immediate and appropriate as against having to wait for a reaction from personnel department [Lowe (1992) cited in Marchington & Wilkinson 2002].
8.2.2 In line with NZB policy to recruit from within, line manager will be the most appropriate option base on their year of experience and their working knowledge of Human Resource Management (HRM).
8.2.3 In [Cunningham & Hyman (1999) cited in marchington & wilkinson 2002] view, HR managers are unresponsive and slow to act; always wanting to check options thoroughly rather than pursing a series of action and not worrying about the consequences until later.
8.3 Considering that argument put forward above, line managers seems to be the best option for replacing Dennis Finn after he moves on, However, it is important to note that strategic decisions are not made at line level management but at the board level.
8.3.1 According to [Earnshaw et al (2000) cited in Marchington & Wilkinson 2002] without specialist HR support and a clear procedures to follow, it is highly likely that chaos will appear in the management of human resources. (Earnshaw et al 2000) states the importance of an HR director as against line managers in NZB.
8.4 Line manager have many other more pressing priorities than managing and developing people who work for them, besides, they do not have the competence and they are also assessed by other mangers. [Gatton et al (1998) cited in Marchigton & Wilkinson 2002].
8.5 To further support the recruitment of new HR director, (Armstrong 2000) in his view support the idea of an HR director, they should be included on the board because they are there to envision HR strategy inline with the business strategy.
8.5.1 In a similar vein, [Marc Thomson (1998) cited in Armstrong & Baron 2000] support the idea of an HR director because the competency of an HR director determines the level of HR strategy. This view however ruled out the possibility of handing over HR issues to line manager because they are not competent in formulating HR strategy.
8.6 After carefully considering the theories put forward above, NZD should recruit a new HR director after Dennis Finn move on.
9.1 CONCLUSION
NZB HR strategy is more vertically integrated than horizontally, the Human resource function can be said to be performing to expectation and NZD should recruit a new HR director after Dennis Finn move on.
REFERENCES
Armstrong M (2003) Human Resource Practice (8th ed) Virginia CPI
Bratton G & Gold J (2003) Human Resource Management; Theory and Practice (3rd ed) New York Palgrave Macmillan.
Graham H & Bennet R (1998) Human Resource Management (9th ed) London Pitman publishing.
Kasket J (2005) Lecture notes – Managing and developing people. Middlesex University.
Marchington.M & Wilkinson.A (2005) Human Resource Management at Work – People Management and Development (3rd edition).( Wiltshire. Chartered Institute of Personnel Development.).
Mullins L (1999) Management and Organisational Behaviour (5th ed) Essex Pearson Education.
Sparrow P & Marchington M (1998) Human Resource Management – The new Agenda. London Financial Times Publishing.
Storey J (ed) Human Resource Management – A critical text (2nd ed).(2001 Surrey, Thomson learning).
