1.0
Introduction
There are
several failings with the HR issues at Acountco, although these are causing
problems at present they are rectifiable, with intervention This will take
commitment from all parties involved
This report has
been commissioned to identify the current problems, and recommend changes that
will move the organisation forward. Although there is some initial cost
involved this will be off set by a successful recruitment and retention
programme.
The report
recommends the introduction of HR practices, with the appointment of a
specialist who will control the intervention. This will be reviewed with the
partners.
2.0 Contents
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1.0
Introduction |
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Page 1 |
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2.0
Contents |
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Page 1 |
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3.0
Rationale |
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Page 2 |
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3.1
Structure |
Page 2 |
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3.2 Culture |
Page 2 |
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3.3 HR |
Page 3 |
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3.4
Recruitment & Retention |
Page 3 |
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3.5
Mentoring & Induction |
Page 4 |
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3.6
Motivation & Reward |
Page 5 |
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3.7
Appraisal |
Page 5 |
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3.8 Control |
Page 6 |
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4.0
Recommendations |
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Page 7 |
5.0
Bibliography |
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Page 9 |
3.0 Rationale
This chapter
will discuss relevant theory on each of the identified problem area. From this
review the recommendations are made.
3.1 Structure
The structure of the organisation is ad hoc; there has been no formal
planning.
This structure has evolved is in formal, this places a greater emphasis
on getting the best performance from the employees. According to Delany (2001)
“successful organisations keep people issues the people issues at the forefront
of their thinking and at the core of their decision making and planning”. The
organisations that get the people things right are the organisations likely to
be around in the future (Delany (2001) cited in Mullins, L. 2005:748).
Since the late 1990s the business environment has drastically changed
(Mullins, L. 2005). Competition and the pace of change in business require
continuous improvement, therefore it means continuous learning. The
organisation requires flexibility to react to market changes (Stern, S 2002).
3.2 Culture
Each organisation is different and therefore must be treated as an
entity. The cultural difference of Accountco to their competitors is their
family value. this is an asset.
As firms evolve, they pick up skills, abilities and resources that are
unique to them, reflecting their particular path through history (Barney,
(1995) Cited in Paauwe, J & Boselie, P. 2003).
This is particularly true of a firm's human resources, employees who are
recruited, trained and who become part of the specific organisational culture
and network (Paauwe, J &Boselie, P. 2003).
Introducing the proposed program will change values. Accounto will need
to prioritise the values and competencies that is requires from its employees.
These can be used as benchmarks to evaluate current and future employees
(Armstrong, M. 1999).
3.3 HR
There are no
formal HR strategies; the delivery of any strategy is ad hoc.
The implementation of the HR policies and practices no longer helps to
generate competitive advantage, precisely because they are now common across a
large number of organisations. So, the timing of take-up and the costs involved
in the adoption process of new HR practices is crucial (Paauwe, J & Boselie, P. 2003). Therefore to remain
competitive all of the organisation must embrace HR practices (Beardwell, I. et
al 2004).
Ownership and responsibility for the recommendations will be the HR
department. The role the Human resource function will be harmonised with the
values of values of the organisation. With a strong presence of HR
professionals at the top, this should have a stronger influence on the
formulation of any strategy in the future (Harrison, R. 1997).
3.4 Recruitment and Retention
Recruitment has been a problem, but this with retention of employees can
be disastrous for any organisation.
Retention begins at recruitment time, so it is important to select for
cultural fit, not merely against the technical and skills requirements. Best
practice companies have known this for a long time, and ensure that the
selection process allows a full assessment of candidates' abilities, interests,
aspirations, and values, and a deliberate review of how well these match their
organisational culture (Paauwe, J &
Boselie, P. 2003).
Organisations are under increasing pressure to recruit the right people
for the right job. The economic cost of getting this wrong can be vast.
Numerous factors are to be considered during this process including the culture
of the organisation, legal implications, attracting and employing the correct
candidate and the cost in time and resources. Therefore it is paramount that
the process is fair, reliable and valid (Armstrong, M. 2001).
As Beardwell and Holden (1994) emphasise “essential to a good HRM
practice is recruitment and selection, which must consider correct “fit”
between personnel and job in order to maximise efficiency in terms of retention
and HRM strategic planning” The organisation can use the recruitment process to
continue, enhance or even change the organisational culture. When a change of
strategic direction is required, recruiting the right candidates is a important
factor to increase the chance of success (Beardwell, I. & Holden, L.
1994:225)
There are various recruiting sources, but their success rates are not
equal. In a survey the top three sources of successful candidates are employee
referrals, college recruiting and executive search firms. All these methods
should be considered for effective recruitment (Terpstra, D. 1996).
The cost of replacing workers who have left can amount to two and half
times a worker's annual salary. These costs are rarely specifically identified
in any accounting records. Retention
plans are vital for organisations. Kets de Vries stated that “today’s high
performers are like frogs in a wheel barrow, they can jump out at any time”
(Kets de Vries cited in Beardwell, I. et al 2004:176).
3.5 Mentoring and Induction
There are simple methods that will address retention of employees in the
vital first few weeks. Accountco have not addressed these issues.
Organisations that run mentoring and induction schemes lose fewer
employees shortly after appointment. Employees who have just started can feel
alienated from new colleagues, with little work load to occupy their minds.
This can lead to the feeling of making a mistake. Mentoring will introduce the
employees to the organisational networks, giving them a point of contact when
there is a problem (Mullins, L. 2005). By inducting the new employee will know
about the organisation, structure and goals. Orientating new employees is part
of good practice, and will allow the employee to start to feel part of the
organisation (Marchington, M. & Wilkinson, A. 1996).
3.6 Motivation & Reward
Motivation is not just on the employers’ side, it is about self worth.
Accountco are not attracting and retaining the correct personnel. The reward
system does not motivate employees.
Motivation is an individual’s perception of their worth, role and work
environment within an organisation. There are common motivational factors that
employees share, although when satisfied will lead to different levels of
motivation. Both Intrinsic and extrinsic rewards add to the motivation level of
employees, if managed correctly. Although the perceived equitable reward varies
amongst employees, those who receive less than their perceived value will feel
undervalued, and not motivated. This
will impinge on job satisfaction, with employees feeling dissatisfied with
their award (Mullins, L. 2005). Satisfaction in the employees’ role, pride in the work produced. The
work itself fulfils the employees motivation, even with some set backs, they
obtain satisfaction from a job well done (Blyton, P & Turnbull, P. 2004).
Reward systems are one of the four key policies within strategic HR. the
organisation can use this tool to raise commitment, competence, and congruence
and it is cost effective. With individuals having more control on their reward,
at a basic level this can motivate, at a higher level can introduce self esteem
and self worth. These values are congruent to the organisations values and
principals (Beardwell, I et al 2004).
3.7 Appraisals
This tool will work with and enhance the reward system.
The objectives from the appraisal Employees appraisals are a tool used to
identify development issues within the organisation. Harrison (1993) suggests
that they are “a system and process for the provision of both feedback to
employees on all aspects of their performance, and the opportunity for
discussion to agree actions to assist their future development” (Harrison, R.
1993:256). Mullins defined the
advantages of regular staff appraisals as “a formalised and systematic
appraisal scheme will enable a regular assessment of individuals’ performance,
highlight potential and identify training and development needs” (Mullins, L.
1996:639).
The capability of the organisation to achieve its business strategies
depends largely on the abilities of the managers to meet particular demands and
circumstances. Therefore the
organisation needs to create a climate that is focused on learning and
improvement (Armstrong, M 1999).
3.8 Control
Although the notion of an organisation without rules can seem attractive,
rules are the basis of society.
One theory of managing organisation is that “to manage you have to
control”. The idea of control is there are predictability, reliability, order
and stability. With control the members of the organisation know what they have
to do, and customers know when to expect the product or service. Mullins
discussed that most people did not wish to have “control applied to them, but
they recognised the need for a control system” (Mullins, L. 2005:832).
Without rules in place organisations can find themselves on
the wrong side of the law. Employers employing 20 or more employees are
required to have a grievance procedure in place, and this will be extended to all
employees in 2004 (S36 of the Employment Act 2002). If this is not in place
ACAS procedures can be followed (Palca, J. (2004).
(edit 12/02/08 - link no longer online)
4.0
Recommendations
The introduction
of Strategic HR should be reviewed by the partners, with the appointment of an
experienced HR Manager. With the recommendations to introduce HR practices, the
experience of a Manager would be vital to the success.
A formal
reporting structure is to be introduced. Every employee will have clear
channels of communication. Introducing an employee handbook will add to the
structure, this will combine the values of the organisation with current
employment legislation.
There are
several cost effective methods of attracting candidates, advertising at
universities and on the internet can attract the right calibre and number of
applicants. A continuous presence on the internet will allow for a steady
stream of applicants. Accountco should place emphasis on family values when
recruiting.
A flexible
employee package is to be offered, with individuals having control on their own
package. The core salary will be
uniform, dependant on experience, and employees can then chose which benefits
they would like on top. This flexible package is attractive to a wide range of
candidates.
Orientation into
the organisation will be supported by the use of the mentor. The mentor will
introduce them to colleagues and the layout and structure of the organisation.
This will reinforce the induction that will be completed on their first day of
employment. The induction not only
familiarises the new employee in the organisation, information such as health
& safety, terms of employment and company policy and procedures.
The cost to the
organisation would be that time committed by the mentor to the new
employee. This can be justified against
the high cost of recruitment and selection, reducing employee turnover. This
will also help the new recruit to network and be a part of the organisation.
They will always
have a contact within the organisation that can help with problems when they
occur. This contact can prevent problems escalating by encouraging new
employees to discuss problems.
An induction
program will be introduced into Accounto; this will be given to all new
employees. It will be part of the employee’s line manager’s role to induce the
new employees within their department.
Appraisal will
provide the employee with the opportunity to formally discuss and review their
work. This will demonstrate the commitment from Accounto to the individual’s
development.
This system of
reviewing employee’s performance is vital, not just for the new employees but
everyone at Accounto. This again will
be part of the line manager’s role. The line manager’s skills will need
reviewing, to ensure they can be impartial during the interview. The cost can
be offset against identifying and reacting on training issues, allowing the
culture to be predominant in the organisation.
The HR
department will review all legislation to ensure Accountco are acting within
this. Once introduce these HR practices will be reviewed regularly with the
partners.
6.0
Bibliography
Armstrong M, (1999) (5th Edition) How
to be an even better Manager Kogan Page Limited, London
Armstrong, M. (2001) (8th
Edition) The Handbook of Human Resource Management Practice,
Kogan Page Limited London,
Beardwell, I. & Holden, L.
(1994) Human Resource Management.
Pitman Publishing, London.
Beardwell, I. et al. (2004) (4th Edition) Human
Resource Management a Contemporary Approach Prentice Hall, Harlow.
Blyton, P & Turnbull, P. (2004) (3rd edition) The
Dynamics of Employee Relations. Macmillan, Basingstoke
Farnham, D (2002) (2nd Edition) Employee
relations in Context
CIPD, London
Hacker, C.A.. (1996)
(2nd edition) The
Costs of Bad
Hiring Decisions &
How To Avoid Them St Lucie Press, Florida.
Harrison, R. (1993) Human
Resource Management.
Addison-Wesley Publishing
Company, Wokingham, England
Marchington, M. & Wilkinson,
A. (1996) Core Personnel and Development
IPD Publishing London.
Mullins, L. (1996) (4th
Edition) Management and Organisational Behaviour Pitman
publishing, London.
Mullins, L (2005) (7th
Edition) Management and Organisational Behaviour
Prentice Hall, Pearson Education,
Edinburgh
Palca, J. (2004)(3rd
edition) Employment law
checklists
Oxford Press, Oxford.
Journals
Paauwe, J
& Boselie, P. (2003) Challenging 'Strategic HRM' And The Relevance Of
The Institutional Setting Human
Resource Management Journal 2003Vol.13,
Stern, S (2002) Enhancing your talent
Management Today. London:
Oct 2002
Terpstra, D. (1996)
The Search for Effective Methods
HR Focus May. 1996 Vol.73
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