This project will research how human source management (HRM) plays a part in the accomplishment of organisational goals and goals, particularly looking at HRM activities such as staffing, performance management and change management.
A conversation of several HR planning and development models will be offered including the style of traditional manpower planning, the built in recruiting planning construction and the organized model of learning and training. Finally, an research of how appraisal systems are used to screen performance in organisations will be carried out, making suggestions on the shortfalls of the method and potential advancements.
Discussions in this assignment will be retaliated to current information about Mars included Ltd (Mars). Mars is a privately-owned, global fast moving consumer goods company specialising in confectionery, drinks and pet attention. HRM Information of Mars was basically from in interview conducted with a brand director in HRM at Mars. Information in this task obtained from the interview is not referenced. Other information presented about Mars which has been from other sources such as their website and books has been reverenced at the end of the task.
Task 1: RECRUITING Management
Human learning resource management activities at Mars Confectionery
This section will firstly discuss the HRM activity of staffing which is conducted at Mars. Staffing is the procedure of acquiring, deploying, and keeping a labor force of sufficient variety and quality to generate positive impacts on the organisation's effectiveness (Burkholder, Edwards and Sartain, 2004). Second, the HRM activity of performance management will be discussed. Performance management can be grasped as the process of creating a work place or setting where people are enabled to perform to the best of their capabilities (Bacal, 1999). Change management is the third main HRM activity conducted at Mars. Change management is a organized approach to transitioning individuals, groups, and organizations from a present state to a desired future express (Cameron and Green, 2004).
Staffing
Human source management at Mars is primarily concerned with making certain the organisation is properly staffed with the right people, with the right skills, at the right time. In the employee level, staffing gets the target of finding an employee who 'works with' in to the culture and value system and who's motivated and empowered to work with the organisation. Second of all, at the organisational level, staffing aspires to maximise critical knowledge, skills and skills within the organisation which contribute to its overall success and competitive advantages (Judge and Ferris, 1992).
At Mars, these objectives are achieved through several means. Initially, an obvious forecast on future staffing needs are founded. These are decided at Mars by the organisational strategy and the forecasted turnover rates centered upon averages from prior years. Deals for different groups of employees are then devised and work packages are designed to attract the required worker skill levels. Relevant series managers who are aware of the skills necessary for the certain role will be required to draft role specifications addressing the certain skills and capabilities needed.
In addition to this, employees viewed as no longer fitting in to the organisation's culture and value system are dismissed by HRM. Before dismissals take place at Mars, HRM places underperforming employees on a Performance Improvement Plan (PIP) to help screen their performance and offer them with mentoring.
Performance Management
A second activity of human being source of information management at Mars is to ensure that employees are highly encouraged and perform well within their jobs. The main objective of enhancing drive and performance is to maximise your time and effort employees put into their roles and to focus attention on performance focuses on. In addition to this, improving performance within the labor force also really helps to raise levels of commitment and engage employees in developing new ideas (Torrington, Hall and Taylor, 2005 p7).
Enhanced worker performance is achieved by human source management at Mars through worker training and development programmes which aim to increase employee's capacity to adopt new technologies and methods. Training and development programs allow employees to increase their job development through the company and reduce worker turnover through increased desire and commitment. Furthermore, incentive systems, such as advertising and bonus products, are also used at Mars to improve performance through providing incentives and positive reinforcement.
Change Management
Another activity of human being reference management at Mars is to make sure that organisational change interventions are successful and run as effortlessly as possible. For example, Mars has implemented change programs such as TQM and six sigma. These have required considerable changes to the organisations culture and work systems. It had been HR's role to improve the planning of the implementation and to ensure that the required training and support was available to the workforce when implementation initiated.
These objectives are attained by HR at Mars through recruiting and growing people with the required leadership skills to help drive the change process. Furthermore, agencies are also recruited by HR to encourage the popularity of change by the labor force and construct compensation systems to bolster new behaviours.
HR also requires a leading role in assessing the likely impact of change on employees as well as helping them during the change programme. That is achieved through organizing information to help them manage the procedure and creating a timeline for change.
HR at Mars also offers a critical role in examining if the change programme have been successful and monitoring whether it offers produced the mandatory return on investment. They achieve this objective through performing employee survey to obtain feedback on employee perceptions about the change and exactly how it was conducted.
In summation, the three HRM activities of staffing, performance management and change management at Mars are essential for the even operating and development of the Mars organisation.
Theoretical models of human reference management
This section will explain two influential models within HRM. First of all, the Harvard model by Beverage et al. (1984) is an analytical model which views employees as significant stakeholders within the company using their own needs and concerns (Torrington, Hall and Taylor, 2005 p34). Secondly, the Michigan or Matching model will be resolved. The Michigan model says that the control of HRM is the responsibility of senior management and perceives employees as resources in the same way as any other business tool (Price, 2007 p39).
The Harvard Model
The model acknowledges that management has the greatest power in a organisation but suggests that for effective HRM, the needs of employees must be continually be considered. For instance, the model shows HRM procedures to be affected by two significant factors: situational factors (workforce characteristics, management beliefs and labour market) and stakeholder hobbies (employee teams, community and unions). This demonstrates effective HRM should not be a reactive function but continuously help screen and modify the organisations regulations to meet up with the permanently changing needs of the labor force and environment where it manages.
In addition to the, the model also acknowledges the need for HRM mechanisms to reconcile the inescapable tension between employee targets and management objectives. For example, the execution of rewards and structured work systems allow for the company to nurture the prices of commitment, competence, congruence and cost efficiency within the workforce.
To achieve long-term HRM goals of individual wellbeing, organisational performance and social well being, the Harvard model shows that it is essential that must be accountable for human source of information and consider issues such as delegation, authority, participation and team development.
The Michigan Model
Unlike the Harvard model, the Michigan model (Fombrun et al, 1984 p41) takes a top-down approach recommending that the control of HRM is the duty of mature management and views employees as resources just as as any other business tool (Price, 2007 p39). For example, the model shows areas such as 'selection', 'appraisal', 'rewards' and 'development' but ignores the affect of employee needs and situational factors after the company. Instead, the model views that employees need to be been able like equipment; obtained as cheaply as is possible, used sparingly, and developed and exploited whenever you can (Price, 2007 p39).
The Michigan model also shows that employees must be decided on and trained to 'fit' the strategic requirements of the company and show behavioural uniformity with their ways of thinking and working (Price, 2007 p41). For example, if there is an organisational strategy of creativity, employees will be expected to show long-term creative imagination and skill. This is displayed by the great emphasis after selection, performance and appraisal within the model.
In contrast to the Harvard Model, the Michigan model shows HRM to be always a reactive organisational function which under-emphasises the value of interpersonal and exterior factors. For instance, the model places focus on the value of selection, performance, appraisal, rewards and training, but make no reference to employee needs and pursuits, and environmental factors such as staff communities, community and unions. This means that the model would be unable to factor in current concerns such as staff work-life balance.
In synopsis, the Harvard and Michigan models both show two contrasting perspectives of effective HRM. Although they are both highly applicable models in their own right, it could be advised that Harvard model is the most applicable to the HRM of today, considering current concerns of work-life balanced.
Task 2: HR Planning and Development
Three HR planning and development models
This section will illustrate the two HR planning types of 'Traditional Manpower Planning' and 'Integrated RECRUITING Planning Model'; and the HR development model of 'Organized Learning and Training'.
Human Source Planning
Human reference planning is the procedure of controlling when people enter into, move through and leave business organisations in accordance with the overall objectives of the business. HRM needs to assess the near future demand for staff and the availability of suitable staff to meet their requirements (RDI, 2008 p2. 3 ff).
1. Style of Traditional Manpower Planning
The model of traditional manpower planning is a more traditional recruiting planning model emphasising the value of acquiring the right amount of the right employees in the right place at the right time (Torrington, Hall and Taylor, 2005 p51). The model shows that demand for employees is highly influenced by organisational strategies and objectives, the environment, and how staff are supervised and utilised (Torrington, Hall and Taylor, 2005 p51).
Environment
Organisational goals and strategies
Analysis of inner manpower supply
Analyses of exterior manpower supply
Project manpower demand
Project manpower supply
Manpower plans
Reconcile
Figure 3: Model of traditional manpower planning. Designed from (Torrington, Hall and Taylor, 2005 p51).
When making use of the model of traditional manpower planning to Mars, it could be suggested that Mars commences by analysing the changing environment where it operates. For instance, the recent takeover of Cadbury's by Kraft has intended that Mars' strategy has become more defensive ensuring preserves its competitive edge within the industry. Mars must get started to project manpower demand and supply to ensure with the ability to recruit the right people with the right skills to help in its new defensive strategy. For example, one option for Mars is to focus on and recruit previous Cadbury's and Kraft professionals to acquire important competition information. Before it can fulfil this recruitment strategy, the model suggests that Mars must determine the availability of such knowledge within job the marketplace.
2. Integrated RECRUITING Planning Model
Unlike the model of traditional manpower planning, the designed recruiting planning model includes all areas of HR planning and considers the effects of culture, systems and environment on staff demand (Torrington, Hall and Taylor, 2005 p52). The model recognizes 'where we wish to be' based mostly upon the organisation's strategy; 'where we are now'; and 'what we have to do to get there'.
Environmental Influences
Where are we now?
Translate vision -
Where do we want to be?
Design and use strategies to attain transition
Strategic
Vision
Figure 4: Integrated Human Resources Planning Framework. Adapted from (Torrington, Hall and Taylor, 2005 p52).
When making use of the integrated recruiting planning model to Mars, Mars would first of all need to address 'where we could now'; analysing the surroundings to determine what customers want and what rivals are doing. For example, from analysing the existing confectionery market, Mars will determine that there is increasing competition from Cadbury's because of its recent takeover by Kraft. Also, they might have the ability to determine from the analysis of customer requirements that there is a need for better customer service and lower prices.
Based after the model, Mars would then have to address 'where you want to be'; translating environmental affects into strategic goals which can be used to ascertain human tool goals. For instance, for Mars to compete keenly against Cadbury's they must establish human resources goals to ensure that their hire talented professionals who can bring new skills and features to Mars. Furthermore, Mars should talk about 'what do we have to get there'; addressing the resources and time-scales needed to fulfil the strategic objectives. Mars would have to decide on what type of skills and personalities they have to recruit, just how many new employees they have to recruit and how they will advertise the positions.
Human Resources Development
HR development is a tactical approach used to invest in individual capital. It draws on other HR functions including resourcing and performance assessment to identify genuine and potential expertise (RDI, 2008 p2. 22). The systematic model of learning and training originated to help organisations move away non-evaluated training, exchanging it with a far more orderly collection of development.
1. Systematic Model of Learning and Training
Environment
Business Strategy
People Development
Strategy
Identify development
need
Design development
activity
Carry out development
Evaluate development
Figure 5. A systematic style of learning and training. Designed from demand (Torrington, Hall and Taylor, 2005 p391).
According to the model, the changing environment and business strategy help shape the sort of skills and capabilities required in the workforce. These developmental needs can be determined by both individual and company by having a problem centred methodology (where a new strategy may focus on a shortage of a specific skill within the workforce) and expanding a person's competency account to meet the job requirements. For instance, the changing business strategy at Mars to improve internal personal computers has revealed a potential difference IT specialized skills.
When a difference in skill has been identified, the model shows that the development required must be organized and developed. The planning and design of the training will be inspired by HR development strategy, which might determine who's involved in the training and kind of methods used. For example, HR at Mars has prepared and developed a learning program with trained IT coaches to visit the business and develop staff IT skills whilst at work, but not divert an excessive amount of their time away from other more important responsibilities.
In synopsis, when an organisation such as Mars adapts to changing surroundings through with new proper goals, it often requires new skills to be brought in or developed within the business. These changes in labor force requirements can either be prepared and remedied through recruitment, or development may take place to improve and build upon existing staff skills and expertise. Planning and development models that are most reliable in helping an company to meet is goals are these which have a more holistic procedure and are able to adjust to changing organisational requirements.
Effectiveness in achieving organisational objectives
An organisational goal at Mars is to get and keep maintaining competitive advantages through an experienced and motivated workforce. Although the style of traditional manpower planning works well in allowing Mars to arrange for and fulfil future workforce needs, the model will not take into consideration the need for Mars to plan for issues such as staff behavior, personality and 'fit' within the organisation's culture.
In contrast to the, the integrated human resources planning model is very effective in allowing Mars to do this strategy. Unlike the model of traditional manpower planning, the included human source planning model is able to integrate the need of the company to obtain very skilled employees with the need to allow them to hold the right 'fit' within the organisational culture. Furthermore, the model is able to adjust to the ongoing changes to Mars' strategy which is central to the manpower planning framework.
The systematic style of learning and training is also effective in allowing Mars to attain its organisational target to gain and keep maintaining competitive gain through an experienced and motivated workforce. The model has an integrated framework to allow Mars to plan learning programs and to develop labor force skill around organisational strategies and environmental changes. Despite this, the model has the limitation of being too organized and potentially unable to relate with the fast rate of constant change evident at Mars (Sloman, 2001).
In summary, maybe it's recommended that Mars adopts a combo of the involved recruiting planning model and the systematic model of learning and training. Through utilizing a combination of these two models, Mars would be able to adequately plan for and hire appropriate staff and then develop skills to meet their strategy needs.
Task 3: Performance
How HR performance is monitored at Mars
This section will discuss how appraisal systems are used at Mars to keep an eye on performance. Performance appraisal systems are a formalised process to review performance at the job over confirmed period of time (Grote, 1996).
Mars runs on the method whereby role objectives or targets are set up by the employee and line manager over summer and winter and are later reviewed at another appraisal. Assessments are created to measure the magnitude to which these objectives have been satisfied throughout the year. Mars thinks that performance targets have to be understood and involve contribution from employees to allow for a larger degree of source and commitment.
The objectives set by employees at Mars are meticulously checked by the brand manager to make certain that they correctly stretch the individual and provide personal development as well as achieving the needs of the role. The objectives set by the staff and line director are prioritised according to importance and exactly how urgently they have to be tackled. Prioritising aims in this manor allows the employees to control their time more effectively through addressing the most crucial targets first.
In addition to this, Mars also uses the SMART system for describing individual focuses on and aims. Before a concentrate on can be arranged by the worker, the line administrator must make sure that the prospective is Specific, Measurable, Appropriate, Relevant and Timed. Making certain the target fits these criteria means that the aims are meaningful and reliably evaluated.
Regular brief meetings are placed between staff and administrator, as objectives are met, to go over progress and choose whether new goals have to be added or whether some objectives have to be removed. Trouble spots are highlighted and talked about, and ongoing training is given by managers to help guide employees giving constructive opinions.
360 degree appraisals are being used at Mars to allow for a far more fair and strict method of performance analysis. Performance is checked and evaluated by a variety of people in touch with the average person, including, line professionals, peers, clients, suppliers. Obtaining appraisals from a number of sources allows for a fuller picture to be built up of the performance and capabilities of the average person in a number of regions of their work.
The final result of appraisal systems at Mars is immediately from the salary and special offers. For example, if employees are ranked throughout their appraisal as 'exceeds expectations', they'll receive a 4% pay improve the following time. Employees scored as 'below objectives' can be positioned on a 'Performance Improvement Program' meaning their performance is strongly monitored throughout the year and they are given mentoring to boost problem areas.
Although it appears that Mars has an extremely stringent approach to performance appraisals, it's important to comprehend how Mars uses these details after it's been obtained and whether line managers have obtained the right training to make certain they are simply collecting information reasonably.
Effectiveness of the appraisal system at Mars and potential improvements.
The appraisal system at Mars is very effective in obtaining reliable and useful information regarding worker performance. One manner in which Mars maintains the potency of its appraisal system is through making sure that line managers are properly trained to conduct appraisals. Managers are required to attend a every year training session reinforced by human resources where they educated about the most effective ways of monitoring process and promoting their employees through development. Training is also provided how to record appraisal information successfully and the way to conduct 360 level appraisals.
Despite the strict approach to performance appraisals at Mars, appraisal have been criticised to be too subjective (Torrington, Hall and Taylor, 2005). Sometimes appraisals can be unreliable through prejudice when the appraiser's judgement is distorted because they don't really like the appraisee. Also appraisals can be unreliable when the appraisers have inadequate understanding of the appraisee. That is particularly the circumstance when appraisers carry out appraisals due to their position in the company hierarchy rather than their understanding of the appraisee.
In addition to this, appraisals can result in a lot of nervousness and stress for those included. Research about appraising performance has found that the appraisal itself was often associated with very long periods of sickness absence credited to stress (Grint, 1993). This is a potential problem at Mars because appraisals are immediately linked to staff pay and campaign which may make a lot of stress for specific employee.
Effectiveness of appraisals at Mars can be increased further making sure that all involved in the 360 degree appraisal understand what the system is for and the importance of precision. Research suggests that questions will be clarified more accurately when individuals understand the real purpose of the appraisal (Grint, 1993). Furthermore, plenty of responses should get to those involved with appraisals as research also shows that feedback permits the system to be better accepted and reduces anxiousness (Grint, 1993).
In conclusion, Mars has a very stringent method of performance appraisals. They assume that it's important to secure a full picture of the average person, from various sources and invite the given individual to play a dynamic role in shaping their own purpose and target setting up. Despite this, advancements can be produced to make certain that stress is placed to a minimum and proper training is provided to be sure that appraisals are not biased in anyhow.
Assignment Conclusion
To achieve success in a fast changing global market, organisations must commit more time and resources in to the acquisition and development of high calibre employees. HRM has a vital role to experiment with in this plan through performance management, recruitment and change management. Within the example of Mars, HRM is continually facilitating a host where employees can enhance their skills and competencies through professional development programmes and performance appraisal. Although Mars has well toned HRM policies, to remain competitive, they must continue to commit time and resources into HRM to keep to get the right employees, with the right skills at the right time.
