STRATEGIC HUMAN RESOURCE MANAGEMENT (jameson)

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STRATEGIC HUMAN RESOURCE MANAGEMENT (jameson)

  1. 1. Graduate Business School Assignment Cover SheetStudent name: Sumeet DuhanStudent number: 2804324Course: MSC INTL Business Stage/year: 1Subject: Strategic Human Resource ManagementStudy Mode: Full time Yes Part-timeLecturer Name: Jackie KennedyAssignment Title: Jameson Irish WhiskeyNo. of pages: 14Disk included? Yes NoAdditional Information: (ie. number of pieces submitted, size of assignment, A2, A3 etc)Date due: 25th Nov 2011Date submitted: 25th Nov 2011 1|Page
  2. 2. Jameson Irish WhiskeyTABLE OF CONTENTPage no1. Introduction ……………………………………………………………………………………22. Executive Summary……………………………………………………….………………..….23. Strategic HR Plan……………………………………………………………………….……..33.1Strategic Resourcing………………………………………………………………….……….33.2 Reward Management………………………………………………………………….……...53.3 Performance Management and Performance Appraisal………..…………………………….63.4 Learning, Training and Development…………………………………………………….…..84. Application of SHRM Model………………………………………………………………….94.1 Best-Fit HRM………………………………………………………………………………...94.1 Schuler‟s Employee Behavior Model……………….…………………………………..…....104.2 Merits and Demerits of Best- Fit HRM………………………………………………………105. Conclusion……………………………………………………………………………………..116. Reference………………………………………………………………………………………127. Bibliography…………………………………………………………………………………...14 2|Page
  3. 3. INTRODUCTIONJameson is produced by French distiller „PernodRicard‟ it is a single distillery Irish whiskey.Jameson was established at Street Distillery in Dublin in 1780 by John Jameson established.Jamesonnowadays distilled in Cork, but vetting still takes place in Dublin. Jamesonhas annualsales of around 31 million bottles, which makes Jameson the best selling Irish whiskey in theworld. In 19thcentury John Jameson along with his son started producing a million of gallonsannually when they started selling it internationally. In 2010 Jameson sold over cases of whiskeyin US alone. Today Jameson is the third largest selling single distillery in the world. EXECUTIVE SUMMARYChina is the one of fastest growing markets in the world weather it automobile, food or alcohol.China‟s alcohol market is increasing rapidly it has rose rapidly from last year i.e. 2010 with riseof almost 37 % since 2010. Increase in sales clearly indicates the constant increase in demand forquality spirits. After studying market statistics and comparing figures with long consideration Idecided to launch Jameson in China to help Jameson reach its annually also to become becameAlcohol Industry by penetrating new markets like China (PRWEB 2011).HR Director of Jameson will formulate the companies HR Plan in coming two years to enterchina market. For this HR will undertake various step including strategic resourcing, rewardmanagement, performance management and learning, training and development.As we all know there is rapid growth in the size and status of the Chinese Market so thereforethis will bring huge demand for human capital. Almost every multinational company in Chinafaces common HR challenges as China lacks qualified talent to meet foreign employers demand.McKinsey Global Institute 2006 study shows thatvery little percentage almost less than 10percent of the new Chinese University graduates have the skills required by multinationalcompanies. Sowe can easily make out thatforeign firms in China often face problems in trainingand retaining employee in China. (www.chinabusinessreview.com) 3|Page
  4. 4. So after keeping all these factors in mind our team suggests HR Director of BSS to consider atotal rewards strategy to retain efficient employees and to lay emphasis on training anddevelopment of employees.Finally I will study Chinese market in detail and will tryto apply theBest FIT HRM model to Chinese market.STRATEGIC HR PLANStrategicHuman ResourceManagement , with the development of a strategic business approach for theoperation of company personnel (Patrick G, Noreen H & Michael M, 2006), is scheduled to be done herein a way to supplement the main strategy of the business. A detailed plan is prepared for this applicationis mainly focused for the next two years. Includes the main practices in human resources and how thesecan be well implemented in Jameson.Strategic ResourcingTo start with human resource management, the initial processes include recruitment and selection. Theinternational success of a company depends largely on human capital allocation more appropriate at theright time and right place (Duerr M, 1986). At the beginning of a business, or when some employeesleave or other more personal needs, recruitment and selection is the initial stage. The recruitment andselection of employees in the Chinese labor market has been especially difficult given rotation rateincreased (Wang, X., Bruning, NS & Peng, S., 2007). Resources employees have to be done at all levelsof management as Jameson is the creation of a new subsidiary and as always almost the entire recruitmentand selection of management at both operational and half is done locally. However, in case of high levelmanagement, it is worth giving a thought whether to carry out inside or outside recruitment (Scullion H,1994).Depending on the business strategy to provide high quality products, the effect on recruitment andselection procedures will be to conduct an explicit analysis of work, as is evident from the model ofSchuler Employee Behavior (1987).Recruitment"Recruiting is defined as seeking and obtaining potential job candidates in sufficient numbers and qualityso that the organization can select the right people to meet their work requirements" (Shen J. & V. 4|Page
  5. 5. Edwards, 2004).Attract eligible persons, preventing the wrong people and maintaining the employer brand is the mainpurpose of recruitment, it is always desirable that such a low cost way (Torrington, D., Hall, L. & Taylor,S., 2001). Jameson will have to come through the process of hiring a profitable and efficient.First, the Jameson that the design of the different jobs to cover the organization and provide agood description of the jobs and the requirements for eligibility of employees. We need toemploy staff at all levels of management rights from the management level to operational levels.However, China is an important market attractive to companies around the world, nocompetition, even for the acquisition of the large force of skilled labor. The terms and conditionsshould not refuse to consider this fact because they may deter good candidates for the applicationto be part of Jameson.Much of the staffs at all levels of management can be rented from the Chinese labor market and theChinese staff would have a better understanding of the Chinese market.Selection"Selection is the process of gathering information for the purposes of evaluating and deciding who shouldbe employed in certain jobs" (Dowling et al., 1994).Jameson will have to focus primarily on interviews, psychometric tests and benchmarks for the selectionof candidates. Interviews were conducted in a structured way, but nice to provide a reasonable view to theapplicant about the job and collect the details of his / her (Torrington, D., Hall, L. & Taylor, S., 2001).Psychometric testing is used primarily to evaluate the aptitude of the applicant. This also helps in theanalysis of personality and its importance in the organizational context. The end-use reference helps toverify the facts and the nature of control of a person who can be anyone who is familiar with theapplicant, as the former employer or any official in any previous institutions such as schools, universitiesand so on.After implementation of these screening methods, the final decision will be based on job specificationsmeet the participant. The employee selected will be sent an offer of employment with the employmentcontract. The rejected candidates are thanked for their interest in Jameson as this will help create a goodimage as an employer. 5|Page
  6. 6. Reward Management “Reward management is concerned with the formulation and implementation of strategiesand policies that aim to reward people fairly, equitably and consistently in accordance with theirvalues to the organization” (Armstrong M. & Hay Group., 2007). It is also essential to managethe reward system as it has the ability to attract and retain staffs, affect the profit and mostimportantly the motivation of the employees thereby affecting their behaviour and performanceleading to attainment of the organizational goals (Torrington D., Hall L. & Taylor S., 2001).In the past time, reward was considered to attract, retain and motivate staff (CIPD, 2010). Now adays, salaries play the important role to attract people to a certain job, benefits kept them on thejob and bonuses motivated them to work better and harder. According to Bratton and Gold(2003) reward management is a core facet of the employment relationship (sandersaar 2010).In China, many companies are throwing lot of money on their most skilled and desirableemployees to retain them and often employees are promoted beyond their skill level. Manycompanies do not pay sufficient attention to training, career development, and pay forperformance. Besides this companies should consider a total reward strategy, which consider notonly bonuses and salaries, but also benefit packages, training and career developmentopportunities, other long and short term incentives.As the competition is very high because of the tight market so an efficient reward system shouldbe developed. After providing all the training then as a company you cannot lose a potentialemployee.Scope of Reward Management 1. Pay:It describes to the salary that an employee get. I have to make sure that employees receive salary according to their responsibility and capability and also keep an eye on our competitors what they are paying?? 6|Page
  7. 7. 2. Incentives:It defines that giving the reward to an employee whose efforts outcomes in higher performance than expected performance. Incentives will motivate and encourage employees to perform better again and again. 3. Benefits: It refers to indirect rewards such as pension premium, insurance cover that an employee gets as a part of the organization. Presently, employees are giving more preferences to extra benefits that come with salary package. Before joining any organization they review the overall package.The pay levels of the efficient and skilled employees will be higher in China because of the fear of skilledemployees, high gross domestic product rate and also company needs to retain employees so it might paymore.Jameson has to continue their employees motivated at all times to crop high performance of the overallorganization. In the Maslow‟s need hierarchy and the hygiene factor in the Herzberg‟s two factor theory,the extrinsic reward like pay can be a motivator like the physiological needs, even though this is not amotivator but still avoids dissatisfaction. However, both monetary and non-monetary rewards will be usedto motivate the employees.Performance Management and Performance AppraisalPerformance Management SystemPerformance management system is the process whereby the performance of individual ofindividuals are controlled and motivated through the establishment of a support structure(Torrington D., Hall L. & Taylor S., 2001). In short, it leads to the achievement of theorganizational needs in an efficient manner. The line manager will be responsible to do theperformance management and will have to fulfillvarious duties. These include setting standardsand objectives and communicating these to the employees, supporting the in meeting theexpectations through coaching, mentoring and other ways, assessment of their performance and 7|Page
  8. 8. giving feedback and advice for continuous improvement of their performance. The HR managerwill be supporting the line manager in framing and carrying out these responsibilities.Jameson will be executing a series of processes for performance management. Primarily,performance objectives will be set on the basis of business strategies and other departmental orindividual objectives in a well described manner. Then, with the set objectives the results will beanalyzed and then feedback will be given to the employees stating their performance andopinions. Through positive and negative feedback the continuous improvement will befacilitated. The next process is linking reward to the performance based on the contribution ofevery individual. The last and the final stage involves making essential changes onto theobjectives and the operations as Jameson will be continuously changing the strategies inharmony with the changing environmental situations in China. Moreover, meetings would bedone continuously discussing the performance over the last six months or the year based on thefeedbacks and sharing ideas for the future improvement and development.Performance Appraisal SystemPerformance appraisal system is one of the unique methods to measure the performance of theemployees. There are different aspects on which performance can be measured such as behavior,personality,and job performance and communication skills. This is usually measured on yearlybasis with each line manager appraising the performance of their employees. This usuallyrequires the manager and the staffs to take part in a performance review meeting.Moreover, the appraisal system is expected to deliver in so many fields as suggested by theEmployment Studies Institute (IRS 2001). Systems may focus on development, reward,identifying future potential, motivation or identifying poor performers. According to the IRSsurvey (IRS 2003), 40% of the private sector companies used appraisal for both development andpay. This will be conducted in the simplest of forms, ranking method as a mean of competencybased system and keeping of the performance standard and objective (Redman T & Wilkinson A,2006). 8|Page
  9. 9. 360-DEGREE FEEDBACKWith this approach we use the different type of sources from which feedback can be collectedabout any individual. Feedback is collected from every aspect on the way that the individualcarries out their job like from line manager, subordinates, peers, internal customers, externalcustomer, senior managers and from individual themselves.This feedback gives a better way to capture the complexities of performance stated by Atwaterand his colleagues (2002). Edward and Evan(1996, p.4) states that “no organizational action hasmore power for motivating employee behavior change than feedback from credible workassociates”. With this individual understand how they may be seen different by differentorganizational groups, and how this may contrast with their own ideas of their strengths andweaknesses. So this feedback approach provides great information for the development of self-awareness.Hence 360 degree feedback will be a truly powerful tool to measures the performance of theemployees and also makes them aware of their strengths and weaknesses.Learning, Training and DevelopmentAccording to Foot & Hook (2009), learning and development is one of the main aspects in betterperformance. Training and development mostly done to increase the employee‟s motivation, to adoptlatest methods and technologies, to increase effectiveness in processes, to reduce employee turnover, gainemployee‟s knowledge, innovation in strategies/products etc. (McNamara, 2010).As we know that China is large pool of labor and we can get cheap labor here and no need to spend highon the training and development of employees (Landy F. & Conte J., 2007). At the same time Jamesonwill be keen to develop its productivity and to achieve its accomplished growth therefore training anddevelopment is essential to bring the man force into real quality. The series of knowledge, aptitude andcompetencies of the employees are developed through the training and development programs and 9|Page
  10. 10. different stages are involved in this program. Firstly, Jameson has to find the training needs of itsemployees relating to the attitude, knowledge and skills they must possess. Secondly, the requirementsshould be screened and only the suitable requirements for the operations of Jameson should be consideredfor the enhancement by training. Then after that the objectives and plans for training should be set and thetraining techniques should be designed.For the design purpose, divide the employees into four categories based on how learning occurs as per theHoney and Mumford learning styles; the „Activist‟ who look for challenge and immediate experience;„Reflector‟ who are thoughtful and slow at approaching to conclusion; „Theorists‟ who are logicalthinkers and conclude from experience; and „Pragmatist‟ who look for and try out new ways and makesquickly decision. The evaluation is taken out for the future improvements in the learning, training anddevelopment after these activities have been carried out. This assessment helps to maintain a mastery ofthese programs and their results and impact analysis. Jameson to get information from people involved inthe training program as students, educators, administrators, managers and customers, including obtainingcredit information so that future improvements can be made.Jameson also focuses on being a learning organization with staff learning seen as a competitive strategy.Employees convinced to learn and develop their skills and knowledge together through the environmentcreated. This ongoing learning method help Jameson renewed through organizational learning.APPLICATION OF HRM MODELThe two major approaches to Human Resource Management described by Purcell are Best Fit HRM andBest Practice HRM model (1999). Out of these, the Best Fit HRM model has been applied and the humanresources practices are been implemented in line with this model. The Best Fit HRM model is applied toJameson considering the fact that this approach centers on how the HR practices and other functionsachieve the overall business strategy and on the connection between the HR practices and theorganizational strategy (Berghe L. & Verweire K., 2004). There is a vertical linkage between the businessstrategy and the HR functions in this approach.Best Fit HRMThe Best Fit approach assigned to when organization use HRM to their selective strategies andaccommodate to organization‟s condition and environment such as workforce character and business 10 | P a g e
  11. 11. strategy. For example: By using the Best Fit approach, SHRM become more flexibility to responsechange of organizational life cycle which is start-up, growth, maturity and renewal (Wiriadinata 2011).The HR practices like rewarding, performance management, recruitment and selection and training anddevelopment in Jameson will be carried out depending on the business strategy. This type of HR practiceswill be aimed at fulfilling the employee standards such as skills and knowledge level required for thedevelopment and future of a successful business. Moreover, Schuler‟s strategy or employee behaviormodel has been used in Jameson as a means of putting the Best Fit HRM approach.Schuler‟s Employee Behavior ModelSchuler‟s Strategy is a framework that was developed from the Porte‟s three generic strategies forachieving competitive advantages that included cost leadership, differentiation and focus (Gunnigle P,Heraty N & Morley M., 2006). Cost leadership also known as cost reduction which means thatmaintaining the image as a low cost producer; Differentiation also known as product innovation whichmeans that the product is uncommon in some viewpoint different from the competitors and the customerswill be willing to pay premium prices for it; and Focus means that a narrow market segment is beingtargeted and adopt either differentiation strategy or cost reduction. Schuler‟s employee behaviour modelis a revised version based on this Porter‟s model and it concedes HRM very crucial in achieving thebusiness strategy when these are properly coordinated. Furthermore, he identified various employeebehaviours that are essential in getting the organizations selected competitive strategy. In this model, thethree different HRM strategies recognized are accumulation, utilisation and facilitation and these areconnected to Porter‟s three generic strategies. Now it means that if Jameson decides to be a cost leaderthen it has to select utilisation strategy in respect of the human resource strategy, accumulation in case offocus strategy and facilitation in case of differentiation strategy.Merits and Demerits of Best- Fit HRMAccording to Schuler and Jackson, organization will enjoy higher performance if they fit their humanresource strategy to their competitive strategy. 1. Desired Competitive Strategy (eg. Low-Cost) 2. Require Operation Cost Decrease 3. Supportive Human Resource Practices(eg. Employ Part-timer) 4. HR Outcomes(eg. Labor Cost being reduced). 11 | P a g e
  12. 12. Above there are some advantages of the Best Fit could help organization become more competitive as it“meeting the business needs”. If we take an example of Wal-Mart, to sustain its position in merchandisefield, it had chosen low cost strategy. By using Best-Fit approach, supportive HR practices such as newfresh graduates, part-timer and apply standardize training system will be applied. With these costs isbeing reduced and achieve the goal (Wiriadinata 2011).Despite that there are some disadvantages as well of Best-Fit approach. Primarily, Overlook employeeinterests. This approach emphasize on competitive advantage might neglect the needs of the employee.For example, Wal-Mart hired the employee at lower price than the market price in order to reduce theoperation cost. But this results that it become hard to hire and retain talented employee for Wal-Mart andaffect firm‟s performance. Secondly, Lack of sophistication to strategy.Alternatively blindly just thinkingof firm‟s competitive strategy by emphasizing Best-Fit approach, HR should think beyond its presentcompetitive position. For example, offer high rate of paid to their skilled and talented employee is a longterm investment to the firm instead of giving less pay because lot of money firm spend on trainingprogram for the new employees (Wiriadinata 2011).ConclusionHuman Resource is one of the main elements in the achievement of competitive advantage.Adopting HRpractices such as recruiting, training and motivation are very rare in the achievement of the overallbusiness goals (Pfeffer J. & Veiga J.F., 1999) and for this purpose a strategic HR plan has been made withthe help of a most suitable SHRM model. In conclusion, when systematically applied, the strategic HRplan could crop improved potential for gaining its competitive advantage in the Chinese Alcohol industryof Jameson in the next five years. 12 | P a g e
  13. 13. ReferencingArmstrong, M. & Hay Group. 2007. Reward management: a handbook of remuneration strategy andpractice 5th ed., London; Philadelphia: Kogan Page [Accessed November 23, 2011].Armstrong, M. & Baron, A. (2005). Managing performance: Performance management in action.London: Chartered Institute of Personnel and Development [Accessed November 23, 2011].Berghe, L. &Verweire, K., 2004. Integrated performance management: a guide to strategyimplementation, London; Thousand Oaks Calif.: Sage[Accessed November 24, 2011].Bratton, J. & Gold, J. (2003). Human Resource Management: Theory and Practice. 3rd ed. London:Palgrave Macmillan [Accessed November 22, 2011].Dowling, P.J., Schuler, R.S. and Welch, D., 1994. International Dimensions of HRM, 2nd ed. Belmont, CA:Wadsworth [Accessed November 22, 2011].Duerr, M. & Conference Board., 1986. The commercial development of new products, New York N.Y.: ConferenceBoard [Accessed November 24, 2011].Foot, M. & Hook, C. (2009). Introducing Human Resource Management.5th ed. Harlow: PearsonEducation Limited [Accessed November 23, 2011].Landy, F. & Conte, J., 2007. Work in the 21st century : an introduction to industrial and organizationalpsychology 2nd ed., Malden Mass.: Blackwell [Accessed November 23, 2011].Pfeffer, J. & Veiga, J.F., 1999. Putting people first for organizational success. Academy of ManagementExecutive, 13(2), 37-48 [Accessed November 24, 2011].PRWEB, 2011. As China‟s Alcohol Market Booms, Branded Spirits Ltd Is Featured at the Hong KongInternational Wine & Spirits Fair. Available at: http://www.prweb.com/releases/beverage-sales-china/fmcg-china/prweb8945757.htm [Accessed November 22, 2011]. 13 | P a g e
  14. 14. Purcell, J., 1999. Best practice and best fit: chimera or cul-de sac? Human resource management journal.,9(3), 26 [Accessed November 24, 2011].Redman, T. & Wilkinson, A., 2006. Contemporary human resource management: text and cases 2nd ed.,Harlow England; New York: FT/Prentice Hall [Accessed November 24, 2011].Sandersaar, 2010. People and Organisations. Available at: http://sandersaar.blogspot.com/ [AccessedNovember 24, 2011].Shen, J. & Edwards, V., 2004. Recruitment and selection in Chinese MNEs. International Journal of HumanResource Management, 15(4/5), 814-835 [Accessed November 24, 2011].Schuler, R & Jackson, S. (2007) Strategic Human Resource Management (2nd Edition), Oxford:Blackwell publishing [Accessed November 24, 2011].Scullion, H., 1994. Staffing Policies and Strategic Control in British Multinationals. International Studies ofManagement & Organization, 24(3), 86-104[Accessed November 24, 2011].Torrington, D., Hall, L. & Taylor, S., 2001. Human resource management 5th ed., Harlow Essex:Financial Times/Prentice Hall [Accessed November 24, 2011].Wang, X., Bruning, N.S. & Peng, S., 2007. Western high-performance HR practices in China: a comparison amongpublic-owned, private and foreign-invested enterprises. International Journal of Human Resource Management,18(4), 684-701 [Accessed November 24, 2011].Wiriadinata, M., 2011. “Best Practice” and the “Best Fit”. Are the approaches substitutes or complement?Why? « Michael Wiriadinata. Available at:http://mamikikeyu.wordpress.com/2011/07/31/%E2%80%9Cbest-practice%E2%80%9D-and-the-%E2%80%9Cbest-fit%E2%80%9D-approaches-to-strategic-human-resource-management-are-the-approaches-substitutes-or-complement-why/ [Accessed November 23, 2011]. 14 | P a g e
  15. 15. BibliographyIBEC, 2011. IBEC - Employer Services - HR best practice / Performance management. Available at:http://www.ibec.ie/IBEC/ES.nsf/vPages/HR_best_practice~performance-management?OpenDocument[Accessed November 24, 2011].Saritha, P., Opportunities in China‟s Alcoholic Beverage Market--CBR July-September 2011. Availableat: https://www.chinabusinessreview.com/public/1107/pingali.html [Accessed November 26, 2011].Schuler, R., Dowling, P. & Cieri, H., 2011. An Integrative Framework of Strategic International HumanResource Management. Available at: http://jom.sagepub.com/content/19/2/419.short [AccessedNovember 24, 2011].2011. Guidelines - Performance Management Development Scheme - Trinity College Dublin. Availableat: http://www.tcd.ie/hr/pmds/guidelines.php [Accessed November 24, 2011].The History of Jameson Whiskey. Available at:http://www.celticbydesign.com/index.cfm/feature/2_153/the-history-of-jameson-whiskey.cfm [AccessedNovember 22, 2011]. 15 | P a g e

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