In modern business there can be an increasing range of companies whose employees aren't employees in the traditional sense, but contingent workers. The brand new organizational form of human resources management is dependant on the actual fact that special companies over a commercial basis provide businesses with staff who actually remain in the state of agencies that provide these services. To such services change more and more companies, and in recent years, almost one-third of careers get contingent workers, and the majority of them are used through agencies providing contingent staff. This trend is clearly found in america, whether or not the economy of this country on the decline or surge.
Recruitment businesses and companies of contingent workforce management have grown to be a significant component in the formation of labor work in many areas of the economy and industry. Because of this, there is research that some businesses are paying significantly less attention to the problems of recruitment and staff managing because of the use of OCWM services. Subsequently, there are companies where contingent employees go over typical staff and even form inter-corporate culture and industrial atmosphere at work. A significant upsurge in activity and affect of contingent labor in the labor market triggers an additional issue of "insecurity" of the work relationship.
Such a situation is considered in Motorola company, where was designed a particular contingent labor force management model. On this work it is necessary to consider the case of Motorola company, it's human resources management strategy and make a finish about the possibly best variant of HR management that company will put into practice. It is necessary to identify the situation, to provide assisting material upon this topic and provide suggestions of possible problem fixing.
Situation Identification
Motorola is a international company, which works in 70 countries all over the world and had in the entire year 2000 about 147, 000 employees. It is organized into six business units:
- the semiconductor products sector (SPS),
- the broadband marketing communications sector (BCS),
- the built-in electronic digital systems sector (IESS),
- the commercial, federal government and industrial alternatives sector (CGISS),
- the global telecom alternatives sector (GTS),
- the non-public communications sector (PCS) (Beaulieu, 2000)
Motorola Company, Inc. is one particular modern companies which actively use contingent workers. At first, the company's human resources recruitment and management process was based on transactional relationships with many different recruiting and staffing firms which were involved with collection of the personnel and making contracts in the market. Of course, that first model induced many problems, mostly related to insufficient a unified method of the choice and management of the personnel, insufficient coordination. And also very important to point the lack of a common corporate plan for sourcing contingent labor, and high costs of sourcing and such a problem as disparity between contingent staff member pay rates and company's full-time employees income.
That is the reason why the business initiated creation of new different approach to contingent staffing at Motorola, that could address many of these problems. A fresh tactical sourcing model that could involve contracts with a small amount of staffing companies that could "partner with Motorola to jointly build a business-webbing infrastructure that would supply the linkage between SPS and a massive network of contingent labor suppliers". (Beaulieu, 2002)
In doing this was created any office of Contingent Workforce Management (OCWM), with Randell Floyd as a mind, responsible for building and putting into action the new contingent staffing model. The other responsible were Tim McLaughlin, who manipulated the program targeted at non-professional manufacturing workers, and Callie Affluent who maintained daily businesses.
So it's important to identify what's the Office of Contingent Workforce Management - this is a business webbing (b-web) solution for taking care of contingent workforce via an outsourcing strategy. Relating to Tapscott et al. (2000), a company web (b-web) is "a definite system of suppliers, marketers, commerce service providers, infrastructure providers, and customers that make an online search for their primary business marketing communications and transactions. " (Tapscott et al. , 2000)
The key goals of the new contingent staffing model at Motorola were:
to recruit the high professional individuals, which approved special consistent test;
to maintain versatility of personnel - that means that the quantity and quality of the personnel must answer the present needs of the business in the personnel;
to develop an infrastructure to control contingent employees and control costs of their employment in the business. (Beaulieu, 2000)
So it is possible to identify the two most significant problems : the first was associated with cycles of business activity of the business and the industry, with required certain degree of overall flexibility of the staff number; the second problem was linked with high costs of previous scheme of staff recruiting and management through large number of staffing companies. Also an important concern that greatly influenced the choice and management of the personnel (and contingent staff in particular) in the company was having less unified and built in approach to recruiting and personnel management, when every manager of the HR Team in the business had its approach and its system (for example, the Research and Development group). Many of these problems might be fixed with a new contingent personnel strategy and any office of Contingent Labor force Management.
Another problem that arose before the Motorola company was negative cycle in the industry, when the business had huge costs and losses. Overall development strategy of the business included primarily a tight cost decrease for another period. It had been necessary to reduced costs also for human resources management, together with a large amount of workers were laid off because of the decline in creation and consequently to the decrease popular for workers. The brand new asset-light procedure was the business's strategy for another years.
Therefore, additional costs for launching a fresh program of staff management were not real decision, and all this program was under the question. The new challenge before the company was to find new substitute staffing methods predicated on the global inclination to market overall flexibility. That tendency recommended "moving to more flexible workforce staffing models that engaged substantial numbers of contingent workers". (Beaulieu, 2000, p. 10)
That is, starting from the 2001 the Motorola company possessed implemented an "asset-light" approach. But the vice-president of GTS acquired expressed involvement in the OCWM model, that's the reason it's important to analyze weather it could be better then your "asset-light" approach and if it could become a new effective model for Motorola' management of recruiting.
The question that stands before Randell Floyd is convince GTS that the OCWM model could be effectively put in place at Motorola and that new method for sourcing contingent labor would succeed.
Supporting home elevators the challenge of contingent personnel management
Thus, recruiting of contingent employees is the present day propensity in many big companies, and Motorola is one of those. Of course, the trend to employ temporary personnel has certain reasons, and, as mentioned previously, this trend is largely because of the cyclical aspect of industry and overall economy, which requires overall flexibility of staffing. Among other reasons that companies positively use work of contingent personnel is categorised as inability to organize the recruitment and training of specialists relative to their needs. This we can see in the Motorola where there is no one particular single approach to the stuffing, which induced many challenges and problems.
The main reasons for using new contingent personnel strategy and the Office of Contingent Workforce Management will be the follows:
- The business's need to be able to use a flexible plan of recruitment in terms of cycles on the market and increased competition on the market;
- The need to adequately respond to changes in the labor market;
- The need to reduce labor costs at the organization level;
- The probability of reducing the expense of the task for selection and staff management.
Analysis of the problem of the Motorola helped to uncover top features of employees recruitment and management when company used a significant volume of contingent workers chosen through businesses:
1. Professionals of organizations providing contingent personnel were involved in the implementation of a few of the traditional HR-functions in the company: this, in particular, was the copy of function of personnel verification and recruitment of new employees. In cases like this, HR-managers of companies had permanently to work carefully with professionals of the agency, building possible and effective co-operation and ways of work.
2. A redistribution of the functions of HR-managers of Motorola and managers of recruiting companies in the areas: professionals of agencies tracked the "private" position of contingent personnel (paid days and nights- off, disciplinary, dismissal, etc ). At the same time, the task of monitoring and managing of quality and efficiency of the task of contingent staff at the average person and collective levels continued to be unchanged responsibility of HR management of the business.
3. The existence of two different sets of employees - contingent and and long lasting employees, satisfying in the business the same work - created a certain anxiety and alienation among these communities. The reason behind this exclusion, generally, are distinctions in payment and benefits deal (overtime payment, health insurance, paid days and nights of disorder, etc. The other reasons of the atmosphere of "injustice" in the company were the inclination of using contingent personnel for more difficult types of work, shorter time of work contracts than for the long lasting staff. All this created yet another burden on the HR-managers of the business, who got to battle with the strain, preventing the reflection of this happening on the efficiency of the work of employees.
4. Increasing volume of contingent workers, used in the business, is the cause of the simultaneous progress of personnel turnover. This put yet another burden on Man Resource Professionals, because somewhat required their specific actions for adaptation of new momentary personnel to the developed at the business corporate culture and style of work, development of certain professional duties, etc. Typically, problems of recruiting management in the period of new staff adaptation business lead to dismissal of personnel, which is the reason for the expansion of personnel turnover. According to company's professionals, to minimize the costs of adaptation of temporary personnel to the work it's important to go into a agreement for an interval of at least 6 months, and based on the same managers, a fresh contingent employees only after 18 months can fully adapt its professional duties in the new workplace.
Thus, a radical method for the issues of version of new employees and, therefore, reduce of staff turnover seems to be necessary considered when expanding and applying new program of recruiting and personnel selection. This program should consider to the utmost extent the correct skills and certification of newly hired employee's for specific job requirements of the business.
That is, based on the analysis of the above problems, it is necessary to say that the transition to a new style of recruiting and stuffing for Motorola company calls for new top features of employees management.
Recommendations
Thus, the evaluation of the situation in Motorola demonstrated the following: the company's staff now is not really a homogeneous band of employees, because in addition to traditional salaried employees employed by the company on the long term basis, there work contingent employees, including those provided by professional companies or working directly under the contract, some of whom work part time, as well as the staff managed via an outsourcing strategy. Therefore the best decision may be to combine under one management composition all the personnel - in other words to create the Office of Contingent Workforce Management, doing HR-management of all existing personnel in the company, irrespective of its position.
The new system of HR-management will mostly be aimed at ensuring the preferred work environment for employees and to make a team of professionals - and that is not an unreal or too costly task. As the greatest team effectiveness can be achieved mainly through the good selection of personnel and ability to guarantee the maximum work output of each worker, both of permanent personnel and contingent individuals.
Creation of any office of Contingent Labor force Management will help to achieve that, and to solve some early on existing problems. Early the copy of function of testing of new hired contingent workers to businesses led in some cases to the loss of control over the skills and ability to work effectively of contingent staff. Solution to the condition is found in the following form:
- the company can add a two-tier system of recruitment: at the first stage the organization will choose employees in line with the certain knowledge requirements and specific qualification requirements, with the second stage the HR-managers of the company conduct interviews with those candidates who have exceeded through qualification test at the first level of recruitment;
- the business will implement an additional training curriculum, conducted by special staff training agencies, including targeted training of prospects for temporary career of skills which are the most significant and necessary for the task in the company.
The work of any office of Contingent Labor force Management is designed to integrate, organize, and integrate all the functions of recruiting management in one unit. This is achieved by implementing the ideas of working with staff and their interaction, and you will be based on such basic principles of work:
1. Progressivity: relevance of new contingent labor force staffing model to modern intensifying analogues.
2. Prospects: the creation of the new employees management system should include the point of view of development of the company.
3. Performance:
- assumes the most effective and affordable organization
of personnel management system;
- reduction of the share of costs for staff management in the total costs of the business;
- improving worker productivity and add to the efficiency of development;
- costs to enhance the staff management system must be determined due to the effect of expansion of production.
4. Intricacy: creation of the employees management system must take into account all factors influencing the system (arrangements with recruiting agencies, contractual preparations, the status of the system of management, etc. ) and cover all areas of employees work.
5. Ease and optimality for the business.
6. Reliability: The interactions between the regions of the machine of recruiting management, as well as between relatively autonomous parts of the employees management system, should be generally in keeping with the basic aims of the model and synchronized with time.
7. Versatile and productive career: the system answers to the business enterprise needs, level of labor productivity, level of company's need using type of employyes with specific skills and skills.
8. Definite guidelines: human resources management system should have a conceptual unity, include a sole accessible terminology, the actions of all departments and professionals should be based on common guidelines and instructions (levels, stages, functions) that simplifies the process of staffing and helps it be more effective.
Thus, a designed contingent labor force staffing model and any office of Contingent Labor force Management will create a proper unified strategy in the business to something of personnel selection, management, training and education of new employees, as well as control over their work. This new model will help to solve various existing problems and must become quite effective.
