This assignment will give you an overall idea about human resource issues because Coca-Cola brought 10, 000 employees, and thus doubling its workforce. In such conditions, as mentioned, Coca-cola faced complexity with unnecessary employees and, resignations and sacks. Under these circumstances HR management needed to conduct staff appraisal to setup objectives to accomplish company's goals.
1a) Critically appraise varied human resource management perspectives and their impacts on the introduction of business strategy.
Three varied human management perspectives are Universalist approach, fit or contingency approach and resource-based approach.
Positive impacts of the Universalist approach are: not reliant on competitive strategy of organization, based on four HR policy goals (strategic integration, commitment, versatility and equality), clarify organisational goals, considers stakeholder's influence on employee's performance. The negative impacts are: the goals tend to be unachievable, internal consistency difficult due to contradictions, some elements lead to confusion.
Positive impacts of the fit or contingency approach are: provides a simple framework showing how selection, appraisal, development and rewards can be mutually geared to produce required employee performance. Negative impacts of this approach are: will not address how to proceed if struggling to produce required employee behavior and performance, assumes employees will behave as requested.
Positive impacts of the resource-based approach are: it's worried about the relationships between internal (HR) resources, strategy and firm performance, targets attaining competitive advantage using human capital, give attention to behavior, skills, knowledge, attitudes and competencies, involves measuring, reporting and managing human capital, organisation can 'loan' human capital. Negative impacts are: requires coherent framework to be able to decide on the measures, and identifies people as 'human capital'.
1b) What exactly are the existing situations/difficulties regarding these issues in Coca-Cola and Dabur companies?
Coca-Cola changed their pay rate consistent with other Indian companies, thus meaning it was dependent on their competitive strategy. This does not follow the Universalist approach as it contradicts their decision. Coca-Cola instead adapted the resource-based approach; they centered on attaining competitive advantage by buying developing human capital. The actual fact they concentrated significantly on human resource development satisfied several standards of the approach.
Dabur to some degree maintained the universalist approach as it provided clarity of goals (the three-fold recommendations), and it recognized the majority stakeholders' (the Burman family) influence in creating a 'family-oriented' working environment because of its employees. Dabur met the criteria of the fit or contingency approach by targeting consistency across workforce; recognizing it had to provide rewards to junior sales officers and representatives for reaching target, they allowed certain employees to club their leaves and enjoy a vacation.
1c) How do they improve this situation?
The easiest way for Coca-Cola and Dabur to boost their situation was to meet more requirements for any certain approach. E. g. Coca-Cola should concentrate on the resource-based approach as it has recently met a few of its criteria, whereas Dabur should focus on the fit or contingency approach as it has already met a lot of its criteria. By maintaining and meeting the requirements of any one approach both companies can desire to be in an improved situation.
2a) Critically analyse the value of alignment between an organizations corporate strategy and objectives, and its human resource strategy.
Each of the five steps to the alignment of organisation's corporate strategy and objectives, and its human resource strategy, contribute and are of significant importance:
1. separation - no relationship at this time, thus unimportant.
2. fit -recognises importance of people in reaching organizational strategy.
3. dialogue - recognises need for two-way communication plus some debate.
4. holistic - recognises people as the main element to competitive advantage rather than a way of implementing organisational strategy.
5. HR Driven - places HR strategy in prime position.
2b) Then by taking into consideration the research study compare real activities about alignment between an organizations corporate strategy and objectives in Coca Cola and Dabur with best practice (theoretical view) to identify what the difficulties are regarding this issue in these businesses?
Coca-Cola began by recognising human resource's significance in the restricting process. This resulted in appointment of managers in the six regions, and a location general. They then recognised the importance of two communications by ensuring the Regional General Managers are accountable to the VP, who in turn are accountable to the CEO. Coca-Cola then took the fourth step by recognising their employees as the key to competitive advantage by combining employees from different work cultures and value systems. Their final step was to put the employees in prime position by firmly taking a strategic level decision to carefully turn itself into people-driven company.
Dabur used HR strategy as an important part of its restructuring process. It started by recognising the value of individuals in obtaining the organisational strategy by introducing employee friendly initiatives like total annual sales conferences. After that it recognised two-way communication by introducing an interactive newsletter. It further recognised employees as key to competitive advantage by commissioning consultants to formulate an employee stock Option Plan. To place HR in prime position they made a decision to extend the scheme.
2c). How can you solve these problems?
Coca-cola's problems were the amount of employees leaving the company. By better control of the unrest among employees, and by other means such as not downgrading the centres, would have allowed Coca-Cola to avoid this crisis. Problem was Dabur didn't use HR strategy as significantly. If HR strategy played a larger role in the organisational strategy it would have been more good for the Dabur.
3a). Judge the required processes of assessing the effectiveness of confirmed human resource strategy and its effect on overall corporate strategy.
In assessing the potency of a HR strategy we use the below issues: the HR approach by achieving the corporate strategy objectives. We evaluated the impact of human resource (HR) managers' features on HR management effectiveness and the latter's effect on corporate strategy. Effectiveness is associated with capabilities and attributes of HR staff. We also found relationships between HR management effectiveness and productivity, cash flow, and market value. Findings were consistent across market and accounting measures of performance and with corrections for biases.
3b). What exactly are the prevailing condition/difficulties regarding this problem in these businesses?
Coca-Cola HR carefully revised intend to achieve goals, or developing/carrying-out planned strategies. Coca-cola decreased payment and additional facilities for the employees. Virtually they compact the needless extra facilites. In the first phase Coca-Cola HR strategy could not develop leadership and management released a flow of records which led the company to loss with extra outlay.
Darbur has a people-leaning work culture, therefore has no proper HR development to focus on. The evaluation of companionship earnings and expenses is not vigorously monitored it was a stride following its competitors. Through the case study we're able to not find any loot system from the Dabur before restricting. According to information given Dabur is a family business so the relation between members of the family are okay however the relation between employees and higher management might be problematic.
3c) How can these companies improve their situation regarding this issue?
The companies need to reform their organization and make sure that changes need to be accepted by people. The concern is Coca-cola desire a stable leader. Because need of business chiefs will affect company's direction and profits. The rewards are incentives, oversee operation etc. Also, employee encouragement necessary for better outcome.
4a) Argue the appropriate human resource strategies for organizations facing mergers, acquisitions, strategic alliances and joint ventures.
Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. We've little information regarding these events. To understand and study the authors mainly developed a connectional framework. HR management gives a border procedure for leaning model. This model represents similarities and complements of merging companies. The HR strategies will vary for each and every company, and also be based upon circumstances. The merger, acquisition, strategies and joint venture happen because of four motives. Those are enlargement and synergy. Actually human resources management will study both motives of the companies. They'll decide whether they will merge or acquisition a business for faster growth synergy, if these businesses rapidly increase. We are able to say using the change in technique. In some company merger or acquisition planning, we need to know very well what we are receiving into (WILL I go ahead? Adjust the price? Leave?). That is your one shot in understanding the business enterprise before closing the deal. You also want to lessen any post-acquisition surprises (exactly what will we need to focus on after acquisition; integration issues, personnel issues, obsolete equipment requiring replacement, warrantee exposures, major contracts, and customer's base). A significant key to keep in mind is "It's not only the numbers!"
4b). From then on by relying on the given information in the case study compare current situation of HR strategies in the days of mergers, acquisitions, strategic alliances and joint ventures in Coca Cola and Dabur with best practice (theoretical views) to discover possible difficulties regarding this matter in these companies?
In the case study Coca-cola used the HR management strategy. Coca-Cola merged with four bottling companies. Coca-cola used growth and synergy for these merges. This means harder HR issues because of merges, Coca-Cola brought 10000 employees, meaning doubled employees. In this condition Coca-cola faced complexity with unnecessary employees and, resignations and sacks. Under these situations HR management needed to decrease outlay. With too much labor they cannot be so, they discharge people so that it threats an unstable situation.
4c). How these problems can be solved?
As of the business outlook, if they want to reduce employees, they can do it, but from employee's view these dismissals affect their families. So companies could consider the employee's experience with them. By giving compensation for dismissal there exists fairness (HR management has to balance both side).
5a) Appraise different ways of employees' selection.
The different ways of employees' selection are as follows:
Interview:
Positive sides of interviews are: have the opportunity to see how the individual dress, speak, communicate, behave, whether clean or not, and learn their personalities. Negatives are: stressful for interviewees, very subjective, 'talking is not everything', unable to explore technical skills, and personality clashes.
Assessment centres:
Positives are: prospects like them and generally predict job performance accurately. Negatives are: slow process, costly method and not always reliable.
Psychometric tests:
Psychometric tests (test for normal or abnormal personality, ability or intelligence, interests or attitudes) are being used along with assessment centres, as it offers a better evaluation than either used alone.
Work simulations:
Candidates are put into small scale job situations.
Full Reference checks:
Consider the 'reference letters', contact people who recommended applicants, contact applicant's manager or colleagues, get information from independent assessors.
CV/Biographical information:
Positive side: it's a good way to obtain information regarding the applicant. But, negative side is that it is useful only if real and true.
Graphology:
Involves analyzing handwriting in relation to human psychology. Positive side: helps understand applicant's personality. Negative side: based fully on psychological decisions.
5b) What exactly are the current situations/difficulties regarding these issue in these companies?
Coca-cola appointed a new CEO, a VP (Operations), six Regional General Manager. They also appointed Arthur Anderson to inspect accounts in North India.
Dabur appointed a new CEO and 3 vice presidents.
5c) How can they improve this situation?
Coca-cola needs to ensure they hire trustworthy and uncorrupted employees to avoid scandals like the main one they confronted with the North India operations.
As it's the first time Dabur is taking such a step by reorganising their structure, it might be better to hire a professional external recruitment agency as they would have better experience and knowledge regarding hiring employees then Dabur would.
6a) Critically evaluate strategies for employee deployment, redeployment, poor performance and retention.
Employee Deployment is the number of employees required in each department, time period for which they are really required and the skills required. Employee Redeployment is transferring employees from one department/position to some other for effectiveness. Poor Performance is principally due to Lack of Ability (insufficient training or resources) and Low Motivation (insufficient desire and commitment). Employee Retention is the policies and practices utilized by companies to stop valuable employees from leaving (mainly because they spend time and effort, effort and money to find, recruit and train employees).
Coca-cola made a decision to employ new managers and senior officers, which required Employee Deployment, throughout their restructuring. They used Employee Redeployment in order to ensure the new 10, 000 employees brought from merger were being used efficiently. They tried combating Poor Performance by introducing 'talent development meetings', training and foreign internship. But, couldn't prevent Employee Retention as 40 managers and some senior personnel left.
Dabur used Employee Deployment to employ new senior officers (i. e. a CEO and three Vice Presidents) and restructure their business. Dabur tried to prevent Poor Performance by introducing newsletters for better employee communication. Dabur maintained Employee Retention as they successfully kept hold of employees.
6c) How can you solve these problems?
Coca-cola can solve this problem by protecting against Employee Retention by investing in place policies and practices to stop employees leaving. Dabur could become more efficient by using Employee Redeployment.
7a). Measure the relative need for the creation of the learning organization through self-managed learning, the promotion of intellectual capital and knowledge management.
Learning organization is the organization's ability to make use of mental capacity of its members to create the processes that will improve its. The technical view assumes that organizational learning is approximately the effective processing interpretation of, and respond to, information both outside and inside the business.
The points below can help understand why the training organization is important to both companies, they are simply:
Awareness of new and different perspectives.
Personal growth and development.
Ability to see complexities to make decisions.
Awareness of new options and ability to build options
Companies to thinking about reduce to the task force, as they may have double than required.
Sense of career directions.
The promotion of intellectual capital and knowledge management:
Intellectual capital is knowledge that may be exploited for the money - making or other useful purpose. The term combines the thought of the intellect or brain power with the financial idea of capital, the saving of entitled benefits so that they can be invested in producing more goods and services.
Enhance productivity through improved creation, access and distribution of knowledge. Promoting changed organization to achieve far better knowledge management. Coordinating technology and human resource development. The management of the intellectual capital in the data intensive organization may also contribute positively to individual wellbeing, as well argue.
Knowledge management is the first competency that an organization needs to develop for the management of intellectual capital. Knowledge management constitutes the ability of a business to learn, to remember what it learned, and to leverage what it learned internally and externally. Internally by transferring it to different personnel and department. Externally by sharing it with supplier's distributor's partners and customers.
7b). What exactly are the existing condition/difficulties regarding this problem in these companies?
There were difficulties in Coca Cola and Dabur. They are: learning organization, intellectual capital, knowledge management.
Difficulties of learning organization: there is absolutely no problem with teaching personnel presentation skills. Coca cola and Dabur's scheme did not. Companies thought about reducing employees.
Intellectual capital is more difficult to place a value on, the extent to which it has loyal customers, how it is looked upon in the neighborhood community and the extent to which it includes long term satisfactory relationship with key external agencies. For company recruitment of pupils from the neighborhood catchments area might appear an apparent surrogate but it isn't a good measure on its own as parents often have no choice.
Difficulties of knowledge management: reports about successful and failed knowledge management initiatives using various IT systems exist, it's important to analyse the reports before defining the necessity of an understanding management. The following list shows the issues and they are;
Restructuring are a big part of both company, it has to resolve.
System not accepted. Lack of user uptake due to insufficient communication.
Information is not classified properly in knowledge management system.
Using theoretical knowledge for practical problem.
Lack of energy and training.
The knowledge distribution system will not seem sensible.
Knowledge management not built-into normal work procedures.
7c). How can these companies improve their situation regarding this problem?
Difficulties in Coca Cola and Dabur: negative media reports, heavy investment in India and Japan, accommodation and foreign trips for bottlers. Both companies think about reducing employees.
Hence, we believe the below discussions can help to improve their situation about the above mentioned issues:
We must be completely updated on current assignments and accomplishments of employees. If employees do not have own initiatives to work, then HR consultants need to examine the problem with the employee to accomplish more work progress and also to reduce employees.
Specify issues with productivity, quality of work, interactions with co-workers, clients or any other problematic behaviour/incidents in the office. If there are particular complaints from supervisors, clients and customers we have to read them and conduct necessary investigation to acquire full details and follow proper procedure regarding how we are handled Coca Cola and Dabur evaluation.
8a) Critically evaluate the role of performance review and strategies for management development.
The Appraisal Scheme aims to identify the management development needs of staff in order to enhance the performance of people and of the organisation to attain company's key objectives.
We believe, it'ss responsible for the line manager to check on and review each objectives each year. 6-monthly interim reviews are optional. Such as for example:
staffs need to find out how they can donate to organisational success
review past performance
develop potential and assist in improving current performance
maintain high performance
set up both companies objectives to achieve companies goals
assess learning and management development needs
Appraisal link assessment for future development with current performance. It offers a more robust role for line management in development. It gives the average person the possibility to discuss his or her career intentions concerns and views with somebody else. It becomes a vehicle for mentoring where the manager is supported and provided with development opportunities.
Performance management is strategic in the sense it is concerned with the broader issues facing businesses if it's to operate effectively in its environment and with the overall direction in which the business intends to go.
8b). From then on by relying on the given information in the case study compare current situation of performance review and management development in Coca-cola and Dabur with best practice (theoretical views) to detect possible difficulties regarding this issue in these companies?
Both companies have difficulties with media reports, heavy investment in India and Japan, accommodation and foreign trips, we also believe both companies' managers hasn't conducted the staff performance review and haven't given objectives to employees. They had other staff during that period therefore was having financial looses.
As best practice management development is best described as the process that managers learn and enhance their skills, investment in general management development can have economical benefits to the organization.
8c). How these problems can be solved?
Discussion below may help improve Coca Cola and Dabur's problems:
leadership and motivation creates and maintains an effective/motivating environment where people shoot for quality of service and is also supportive of all staff; fosters a commitment for achieving companies goals
consultant managers will meet with employees at the end of the evaluation period to formally discuss, evaluate and develop company's new goals.
reduce employees
requires promotion and advertising
talent managers have to setup objectives for the employees to attain company's goals for the coming years
identify and implement changes to boost performance to provide a clear knowledge of how to be successful
provide feedback regarding employees' performance and development
role-based performance metrics and appearance at training needs across a group
Conclusion:
The company outlook to lessen employees, so companies could consider employees experience, provide compensation for dismissal.
Advertising and promotion necessary for both companies to accomplish goals. Performance of employees is evaluated. We also found relationships between HR management effectiveness and productivity, cash flow, and market value.
The companies need reorganization with expert employees to overcome the issues faced.
