Comparing Strategies in Nampak and Ginsters Company - Case Study Example

? Comparing strategies Comparing strategies A strategy is a laid out plan and methods on how to achieve the set objectives as an individual, institution, a group or an organization. There are different strategies, which have different impacts, on the performance management in every business. Any strategy used by a business, determines its success or failure and, therefore, there is a need to place the strategic performance management at the heart of realizing sustainable business success. In addition, those in managerial positions of a business should look out for unexpected outcomes. This requires rational thinking and attempts in order to arrive at the best solution (Melvin, 2010). In an attempt to lay out strategies that will bring results, managers should keep in mind that success is not guaranteed by extensive planning since there will always be surprises and unexpected events. Nevertheless, for a strategy in performance management to work, there is need for knowledge and understanding in keys areas such as managerial and business environments; why performance management is required; knowledge on how to mobilize people to meet and surpass their objectives and sustain competitive advantage; and effectively communicate the links between personnel development among others (Bangs, 2002).Vivid knowledge and understanding in these areas will enhance the performance management strategies towards success. First and foremost, a proper understanding of management of the business environment is essential for performance management strategies to work. There are two major types of business environments namely the macro environment and the micro environment. The macro environment consists of factors that affect businesses, but they cannot exercise control over them. Some of the major areas that make up the macro environment are the political - legal environment, technological environment, and social cultural - environment. On the other hand, the micro environment influences the business and at the same time the business has much control over it unlike the macro environment, which comprises of seven large parts. These parts include employees, owners and the board, consumers, contractors, competition, financial organizations, and the government. All these environments are interrelated and, therefore, form a vital part in performance management strategy. For instance, a social-cultural environment with a very high population which translates to a high potential market will subsequently require a large number of employees to satisfy that market (Ellis, 2010). However, in relation to employees and political-legal environment, there are laws and policies set in place concerning handling and treatment of employees in a working environment. Therefore, both the macro environment and micro environment play a major role in performance management strategies (Hiriyappa, 2009). Even so, the employees are the centre of performance management strategies, for the reason that, a performance management strategy is established on supplying a vivid understanding of employees' obligations and privileges related to a given position. For example, in Nampak’s case study, Eric Collins, a managing director at Nampak Plastics Manufacturing business says that it had been a tradition for manufacturing businesses like Nampak, to be focused on cost with an outlook on investment in processes and machinery since labour was cheap thus forsaking the process of investing in people. This traditional act in Nampak usually brought results, but in every month there were 25 customer complaints at Paul Noble's, the plant manager at the Gloucester site. This happened bearing in mind that Nampak relied on three main customers with contracts that were to be renewed in the following years, due to a lack of procedures on people management at Nampak. An employee satisfaction survey, conducted by Collins at the Nampak revealed that, about 80 per cent of the employees would never advocate Nampak to family and friends as a place they should consider working. Nampak needed to mobilize its employees to meet and exceed their objectives and maintain the competitive advantage. In an attempt to change the situation, Collins initiated a strategy to make employees feel that they formed the most important part of the business, which involved having one on one session with employees (Dressler, 2004). This strategy aimed at finding out the good and bad sides of the business. However, the decision was fostered by Cathie Wright-Smith, whom Collins hired latter as the head of Human Resource. Cathie took some initiatives like training off line managers on how to give the employees the feeling that they were the most important people in the business. Her aim was to cultivate the attitudes of employees towards their work and the overall management. Nampak, having line managers develop their teams, realised almost instant positive outcomes. As a result, the managers began influencing those who they worked with through the newly acquired skills, by developing and motivating their team to a degree where the managers demanded for their own growth. At that level, in an attempt of creating employees with appropriate skills and attitudes which support lifelong employment, a business leader’s programme for managers was started. At this stage those who were not on board were performance-managed out of the business. After the training programmes, there was the introduction of the CSR (Corporate Social Responsibility) programme which led to the turning of events in Nampak Business (CPA Australia, 2013). The image of Nampak was improved and the second survey conducted revealed that 80 per cent of employees were now willing to recommend family and friends to work at Nampak, 90 per cent were happy with their jobs, and 98 per cent believed that their managers paid attention to them. In addition, the business encountered a 6.7 per cent advance on operating costs in every million bottles made, having achieved customer satisfaction with no single customer complaint in over eight months. In terms of package, Nampak's record revealed that there was a reduction in reportable accidents by 23 per cent, 36 per cent in labour turnover rates, and 26 per cent in absence levels over a span of three years. This led to Nampak being awarded as an overall winner of CIPD People Management Awards in 2010 (Melvin, 2010). In a similar situation was a portion of Samworth Brothers group, with fifteen food sites Ginsters Company, which did not have a good image because the employer had a big challenge in integration of 18 per cent of the workforce to the rest of the team. Different sections of the production line distrusted each other and the annual survey reporting usually lowered the staff morale. Fitness testing was offered to employees at Ginsters and the results for the half of the workforce, that volunteered to be tested, showed that they were not fit at all. According to the results, Caradon Council the senior manager at Ginsters, had a big responsibility for performance management in the company. This stimulated his response where through Council's health officer, Jane Abraham; he rolled out an Active Work place employee wellness programme (Werbach, 2009). Using a different strategy from Nampak Business, Ginsters started an endeavour of getting employees involved in its activities, through partnerships and investment. The company also gave the staff a chance to try a chain of activities like kayaking, golfing, surfing, canoeing, skiing among other activities. The company went an extra mile and funded all sessions in the first year. This made the employees to start getting their families involved in business trips even after the funding was changed to 50/50 between the company and employees. In addition, they went ahead in making free fruit and other healthy food choices available in the canteens (Cokins, 2009). With the weekly activities organised, the company was able to attain unity of employees and improved employee relations in the working environment. Ginster Company was, therefore, able to solve its employee’s poor relations in the work place, as well as, other different production work forces. With its first achievement, Ginster Company realized its potential in implementing and running its initiatives. This created an environment for rolling out another part of the programme for tackling difficult issues such as domestic violence, drugs and drink. The company attracted significance interest even at government level which gave Turner, the council leader, boldness to suggest a number of awards for the company. Indeed, the company acquired three consecutive awards and they include the Municipal Journal award, the Local Government award, and the world Leisure Organisation's Innovation Award. Not only did the company get rewards, but it also gained a reduction in recruitment advertising costs from €55, 000 to €15,000 in their last three years, as well as, a decrease by 14 per cent in staff turnover. Ginsters Company has a stability of 90 per cent, a rare trend in the food industry. The engagement and confidence displayed by the staff has played a role in getting contracts for the company (Berry, 1999). Nampak and Ginsters Company had a poor image on both the public and employees to a point where people would not recommend their friends or family to work in any of these companies. The companies did not cater for the welfare of their employees and, therefore, the workforce felt neglected. They were also cost oriented and focused on production solely. This resulted in blaming, complaints, poor relations between the junior and senior employees and low morale in the workforce. However, these companies took note of the situation and started working towards improving their relationship with the employees and latter on the image to the public changed likewise (Bowles, 2009). The strategies used by the Companies had a common approach, the employee focus, which displays the importance of an employee in performance management strategies. The programmes initiated by both Nampak and Ginsters, aimed at first improving the relations in the workforces across all boundaries. After establishing a good relationship, the companies were able to roll out other parts of their programmes that targeted development of their workforces. In Nampak’s case, they educated both their junior employees and line mangers with skills that promoted the improvement of employees’ attitudes which supported lifelong employment. Corporate Social Responsibility programme at Nampak’s played a role in shifting the image of Nampak to the public (Allen, 2012). Employees at Nampak were also motivated by other programmes such as a fast-track programme for high potentials, a suggestions scheme, and excellence awards among other programmes. Ginsters took a different angle which involved social and physical activities and provision of health based services such as health food choices and offering advice on diet and exercise. Ginsters’ programme also tackled issues on drugs, domestic violence and drink. The activities, football matches, and allotments that were made available, by Ginster Company, motivated the employees to be more engaged. The different development strategies used brought about changes encountered in the companies. In conclusion, both Nampak and Ginsters realized that they had critical situations in their companies and the need for performance management. They came up with performance management strategies that entailed programmes that were rolled out in stages until the desired changes and outcomes were achieved. Therefore, we can learn from the two case studies that there is no specific performance management strategy to apply in any business. However, all performance management strategies involve engagement and motivation of employees, as well as, readiness to handle unexpected outcomes. References Allen, D.T. & Eby. L. 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