Organizational Analysis: Deloitte & Touch Tohmatsu Limited - Essay Example

? Organizational Analysis: Deloitte & Touche Tohmatsu Limited The current study analyses DeloitteTouche Tohmatsu Limited, a group of multinational organizations that provide a variety of accounting services such as audit, consulting, financial advisory, risk management and tax services to its clients all over the world. Deloitte operates in different countries and follows their respective legislation and professional regulations. This paper focuses on Deloitte’s HRM perspective in terms of policies and business ethics, employee training, development and progression, compensation, diversity management and other employee-welfare related activities. Deloitte’s human resource management is integrated with organization’s strategic management, as evident from a report published by its Chief Human Resource Officer (CHRO). This report highlights various challenges, process and performance measures. Price quotes a medial release published by Deloitte, which states, ‘they are leaders who not only manage the HR function and operations team, but also collaborate directly with the CEO and board of directors on a range of critical business issues’ (p.48). This indicates the significance of HRM at Deloitte. Deloitte considers HR as one of the core functions and includes this function at strategic management by considering HR officers as HR business partners that share critical responsibility of the organization in managing employees. Price elaborates on the HR function at Deloitte and the CHRO’s responsibilities into four main categories namely, workforce strategist, organizational and performance conductor, HR service delivery and compliance and governance regulations. These responsibilities also indicate the nature of HRM at Deloitte, which considers HRM as one of its core business strategies and includes HR officers in strategic planning levels. From HRM perspective, the strategic involvement would include managerial strategies in terms of performance management, HR practices and policies; these would also include designing employment and labor relations, adherence to state legislation as well as economic perspectives such as wages, compensation, working hours etc. Secondly, strategic integration of HRM with business and operations involves performance management, at large. This includes operations management across the world; managing virtual and real teams; planning contingencies and communication channels; job-sharing, job enrichment and other motivational practices; and finally, diversity management. Besides the normal HR administrative functions, HR officers liaise with business and operations’ executives for risk management, regulatory compliance management, maintaining ethics and integrity (Price, 49). Deloitte adopts diagnostic model to HRM, like the ADRM model, which refers to acquiring, rewarding, developing and maintaining and protecting human resources. Ivancevich highlights this approach adopted at Deloitte to retain its own female employees during 2005 (p.34). The ADRM approach involves diagnosis of the issue; prescribing the best solution and implementing the same; finally, evaluating its effectiveness and modifying if required. When Deloitte was challenged with huge women employee turnover during 1980s, Deloitte set a goal that it would include 25% of women in the promotions list and launched an aggressive campaign to encourage advancement of women employees. Managers and other leaders were trained on diversity management; Deloitte hired, promoted and retained more women through specific programs, which have later been replicated by many other organizations (p.35). Deloitte’s knowledge-based work requires highly experienced and competent staff that can sustain the organization’s position through competitive performance. This is a major challenge for the HR department. For this, Deloitte adopts many sophisticated measures for recruiting and selecting employees. The most recent strategy is the Deloitte Project-Based Recruitment Solutions, which is an outsourced recruitment methodology that provides highly talented employees within less time (Executive Selection, 2). The recruitment process outsourcing is applied to a specific function or all of the organization depending upon the requirement. This approach helps in reducing costs and time; better quality-of-hire and reduce employee turnover; and also better recruitment costs. Moreover, Deloitte provides this service to other organizations also. Deloitte uses comprehensive recruitment and selection procedures to ensure the right people are hired for the job. To recruit fresh graduates, Deloitte uses the campus recruitment process wherein the recruitment staff visits graduate colleges to recruit the best talent. This approach provides wide opportunity to recruit the best candidates (Efrat, 111). However, campus recruitments cannot provide experienced candidates. Work that requires experience needs other recruitment and selection procedures. For instance, psychometric tests provide good assessment of individuals’ capabilities; however, these paper-based tests can be extremely time-consuming when recruitment and selection is aimed in large numbers. To address this issue, Deloitte initiated the online verbal and numerical reasoning tests in collaboration with Kenexa, a firm involved in providing business solutions for HR related activities. These online tests have proven extremely advantageous for Deloitte and also the candidates as it provides the flexibility of time, space and location of taking the test. Graduates that clear this test will appear for next round of face-to-face interview (“Improving Graduate Selection at Deloitte”). While online and psychometric tests help in assessing the candidate’s ability in decision making and knowledge, face-to-face interviews are also equally beneficial because it provides ample opportunity for the interviewer to question the interviewee; however, this process requires much time for both interviewer and interviewee. Another noteworthy recruitment and selection approach at Deloitte is its internal recruitment, which provides its employees ample opportunity to apply for different roles within the organization. This not only helped employees to look for their interests but also significantly lowered attrition rates. Internal recruitment is cost-effective because it reduces costs of induction and orientation, and marketing and recruitment costs. This approach also helps in motivating employees as their contributions as well as interests are valued. However, relying only on internal recruitment can block new ideas from outsiders. Employees that remain unselected can feel unmotivated, which will hamper performance (David & Gowan, 154). To address this challenge, it would be best to combine external and internal recruitment and selection so that new employees’ skills and expertise can be introduced as well as existing employees are motivated by providing them different opportunities. The unselected employees that may eventually leave can be replaced by the new employees from outside. Deloitte reveres diversity as one of the critical factors of organizational success. Deloitte and its subsidiaries follow specific policies on diversity, which are directly linked to the organizational values and vision. For instance, at the Deloitte’s Consulting Group, differences in the form of culture, background, experience, and perspectives are considered as advantages that can add to innovation (Connery, 123). Talking about the 2011 Talent Strategies, Jeff Schwartz, principal of Deloitte Consulting LLP, highlights most organizations still feel the need for diversity management at global and local levels, a strategy that would eventually be one of the tools that can help organizations out of toughest predicted crises such as the global recession. The UN Global Impact reports that its specific diversity management practices promote cultural diversity and equal employment opportunities for all. Deloitte has made special efforts to increase the black population in South Africa. At the ground level, diversity management at Deloitte is focused on various facets like recruitment of diversified workforce; providing equal employment and growth opportunities based on merit and performance; encouraging women employment and growth etc. Deloitte’s CEO, Quigley, and the Chief Diversity Officer, Redia Anderson Banks, had quoted Deloitte and Touche as one of the best workplaces for women, which offer personalized leadership training to multicultural employees by company leaders and senior officers. As a part of diversity management, Deloitte offers many e-learning programs to its employees. Deloitte lays special emphasis for women employees and their growth (Suzanne, Lapinski & Palagano; 62). Deloitte is known for its tough employee compensation package, which provides a very good compensation package that includes tax services and highest pay in accounting field (David, 310). A combination of base salary, bonus and other fringe benefits forms the compensation at Deloitte, which varies in different countries and according to the nature of job. Taxation laws are as applicable for respective locations. Salary packages at Deloitte also include pay form stock options and overtime pay. Plunkett’s research indicates that other benefits also include tuition assistance, flexible work arrangements, employee assistance, reimbursement, emergency backup day care, medical insurance, educational programs, etc. With such flexible compensation and strong salary pattern, Deloitte has attained much success and also retained its revered employees; by providing other working benefits, Deloitte has also continued to motivate its employees all over the world. However, competition and replication of these practices have continued to trouble this organization as employee expectations continued to change. Besides compensation benefits, Deloitte also invests large money and time in training and developing its employees all over the world. These programs are again distinct for every region. For example, Nelson and Quick report that in England, Deloitte provides an educational program, known as Teach First, which recruits top university graduates and provides them intensive training and certification in various subjects such as finance, mathematics, engineering and philosophy (p.112). In addition, the verbal reasoning aptitude test helps in identifying talented prospective employees for career progression. In the US, the Deloitte Career Connections (DCC) program is meant for the dissatisfied staff to acquire skills and competencies that could benefit them in other roles. These programs help candidates to accomplish their career objectives within the organization. Deloitte reported that the DCC has saved about $83.4 million for the company by retaining employees (Nelson & Quick, 113). Another research conducted in its China branches, which employ over 8000 people, Deloitte scored above average rating for employee training and development as well as career advancement opportunities (China’s Top Employers, 274). According to the findings, Deloitte institutionalizes employee training as a mandate, especially in fields like proficiency training, technical training and behavioral skills training delivered by experts. Every employee undergoes a Continuous Professional Development (CPD) and is assessed for improvement in skills on a regular basis. Deloitte also provides e-learning facility to its employees, which enables learning from anywhere and anytime (276). For instance, in South Africa, China, the US and the UK, Deloitte provides world-class learning and career development opportunities for its employees. Deloitte’s corporate governance is regulated by code of ethics, corporate responsibility, as well as compliance to policies and business ethics. Previously, ethics and employment relations surveys spelt satisfied and committed workforce at Deloitte. The code of ethics at Deloitte is based on nine principles that heed to unison of its people and adherence to business ethics. The code of ethics is based on its shared values that include integrity, outstanding value to markets and clients, commitment to each other and strength from cultural diversity (Parrett, 162). In fact, Deloitte associates its performance management to the effectiveness of its ethics and shared values. The code of ethics and values are applicable to all its employees and clients; any non-compliance would be subject to serious counseling, remedial behavior, warning letters, disciplinary actions and even dismissal. These shared values and code of ethics are meant to promote employee commitment, loyalty and morality. In conclusion, the groups of organizations owned by Deloitte adopt a variety of practices in terms of employee relations and development, staff training, diversity, and human resource strategies. These practices have certainly provided a competitive advantage to Deloitte, which have eventually helped the group to sustain its position in the market. Though these practices are not uniform, they are modified as per the local requirements and legislative requirements of the country they operate in. In all countries, Deloitte strives to recruit and retain the best people through best remuneration, best employee practices such as internal recruitment and selection, and best employment relations. Challenges involved in external and internal recruitment and selection procedures complement each other; hence these two procedures can be used in a balanced manner in order to minimize the challenges to large extent. Secondly, employee training and development in terms of multi-cultural education can help in also moving employees cross borders, which will not only motivate the employees but also help in bringing different perspectives to business. Surveys indicate that employees are satisfied with training and development opportunities at Deloitte; however, considering the global competition, Deloitte should continue to explore more employee retention and growth opportunities. Most of the employee-welfare practices and policies are replicated by other organizations, which is a serious threat. Deloitte should continue to come up with newer policies and programs that would benefit its employees and also the business. Works Cited China’s Top Employers 2011. Every Effort Pays off at Deloitte. Deloitte, 274-279. Accessed from,www.topemployers.com Connery, Julie. Diversity in the Workplace. InfoWorld. InfoWorld Media Group, Inc. Vol.20, No.40. 5 Oct 1998: 119-123. Accessed from, http://books.google.co.in/books?id=sFEEAAAAMBAJ&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false David, Lepak and Mary Gowan. Human Resource Management: Managing employees for the competitive advantage. New Delhi: Dorling Kindersley India Pvt Ltd, 2009. Efrat, Zilla. Investment banking. NSW: Career FAQs Pty Ltd, 2006. Executive Selection: Recruitment Process Outsourcing. Recruitment Services. Deloitte. March 201. Accessed from, http://www.deloitte.com/assets/Dcom-Ireland/Local%20Assets/Documents/Consulting/IE_Cons_RPOpresentation_Apr10.pdf Improving Graduate Selection at Deloitte. Kenexa, 2007. Accessed from, http://events.kenexa.com/newsletter/Deloitte%20Case%20Study_email.pdf Nelson, Debra L and James Campbell Quick. Organizational Behavior: Science, the Real World, and You. Edition 7. Ohio: Cengage Learning, 2010. Parrett, William G. The sentinel CEO: perspectives on security, risk, and leadership in a post- 9/11 world. New Jersey: John Wiley and Sons, 2007. Plunkett, Jack W. Plunkett's outsourcing and offshoring industry almanac 2009. Texas, USA: Plunkett Research, Ltd., 2008. Price, Alan. Human Resource Management in a Business Context. Edition 3. London: Thomson Learning, 2007. Riss, Suzanne, Susan Lapinski, and Teresa Palagano. 2006 Best companies for Women of Color. Working Mother. Vol 29, No.5. Jun 2006: 57-67. Accessed on 10 August 2011 from, http://books.google.co.in/books?id=yo1TIHBYxOcC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Schwartz, Jeff. 2011 Outlook on Talent Strategies: Interview with Jeff Schwartz, principal, Deloitte Consulting LLP. Deloitte. Accessed on 10 August 2011 from, http://www.deloitte.com/view/en_US/us/Insights/hot-topics/2011-business-outlook/f4512529d426d210VgnVCM1000001a56f00aRCRD.htm United Nations Global Impact. Leadership statement of continued support 2007/8. United Nations Publications, n.d. Accessed from, http://www.deloitte.com/view/en_ZA/za/about/ourexecutiveleadership/deloittestakeholderreport/e20ec35a4c296210VgnVCM200000bb42f00aRCRD.htm Read More