Big Idea - Relocation to Suburban-Rural Areas - Essay Example

?The Big Idea: Relocation to Suburban/Rural Areas Introduction Moving from place to place is the nature of humanity. Time spent by a person in employment includes the travel time from his residence to the place of work. However, due to urbanization accompanied with industrialization, problems associated with transportation like traffic, conditions of the road and pollution or crowded platforms in railway stations have become the major hurdles in movement of people. Rodrigue, J. (2013) stated “The most important transport problems are often related to urban areas and take place when transport systems, for a variety of reasons, cannot satisfy the numerous requirements of urban mobility. Urban productivity is highly dependent on the efficiency of its transport system to move labor, consumers and freight between multiple origins and destinations.” Congestion or increased density of population paved way for pollutions of various kinds in cities. Housing in city is an important issue that affects millions of people in the modern times. The rentals are skyrocketing mainly due to imbalances in demand and supply for housing. Ideas relating to the best utilization of resources and efficiency in human resources management for improved organizational performance call for innovative mindset in organizing, controlling and directing the workforce. Aghazadeh, S. (2003, p. 201) stated “Human resource management must change as the business environment in which it operates changes.” Competitive edge in business operations leads to sustainable growth and development. A strategy that takes care of transportation and housing problems of the employees can be considered as the best idea from the view point of corporate social responsibility also. This paper seeks to highlight the benefits that could be attributed to this idea from the perspective of human resources management, profitability and sustainability of the organization and corporate social responsibility. Convergence of technologies Mishra, A. and Akman, I. (2010, p. 243) stated “Technology and HRM have a broad range of influences upon each other, and HR professionals should be able to adopt technologies that allow the reengineering of the HR function...” Ever since the man started living in groups, he wanted to communicate with others, because, communication is the basis for relationship, business, travel, etc. Technological developments in the field of information and communication technology could be properly leveraged in this idea to mitigate the hardships arising out of transportation and housing in cities to the people as well as society at large due to pollution. Digital convergence of technologies created synergy in business operations resulting in an array of opportunities. Even Alvin Toffler in his ‘Future Shock’ could neither predict the use of mobile phones by a common man nor its impact on the business and society. Digital convergence has provided an excellent platform for the big idea in relation to human resources management in business organizations. According to the Society for Human Resources Management (2008, p. 17) “Organizations that formally offer telecommuting from a satellite location or telecommuting from other locations deem this flexible work arrangement to be very successful.” Human resources management Matiza, L. (2013, P.2) stated “Human Resources Management is basically a way of managing humans at their workplace in search of performance and rating it well in order to also remunerate them well.” Managing humans at their workplace signifies that the people work for the company assembles in a firm’s place of work at a particular time for performance of their duties. Human Resources Management involves rating of their performance as well. The firm should remunerate the employees based on their performance. Kayode, O. (2012, p. 1) stated “Now, more than ever, organizations need to place greater emphasis on attracting human capital rather than financial capital... effective human resource management is the best way to differentiate one company from another.” In the idea what we propose, the place of work could be anywhere near the firm or with access to the firm and need not necessarily be within the firm. This will not only give competitive edge to the organization in terms of productivity and cost but also promote ethical practices in the business as a whole, considering its positive impact on the welfare of the society. Sustainable growth and development of the organization in the long run is assured in this process. Victoria Transport Policy Institute (2013) stated “As a community becomes more automobile dependent, the people who rely on alternative modes becomes an increasingly small minority, so decision-makers become less familiar with their needs and their political influence declines.” Generally, the problems faced by the people are not properly understood by the employers, society and government. Under this plan, the employee can reside in suburban areas far off from the city. Most of the work relating to functions like secretarial and accounting can be handled with a computer at the employee’s house. In the case of marketing people, it is not necessary for them to report for duty at the office and go to field work and report back at the office at the end of the day. Distribution of work as well as reporting could be handled online. Some of the factory operations can also be shifted to suburban areas. For example, Assembly Department can be shifted to suburban areas along with the workers since it does not involve any use of machineries. Koldewijn, R. (2009, p. 38) stated “The policies and practices used are highly standardized, and paper forms are digitalized where possible, which also results in cost effectiveness. Furthermore, congruence is likely since e-HRM or the self-service center helps to structure the internal organization.” In this scenario, rating of the performance including output and quality is standardised so that it could be measured on completion of the work online by using communication facilities like computers and mobile available to-day. Since, an employee spends less on account of rent and transportation he is in a position to save more from his income. Therefore, remuneration package becomes competitive in the industry standards. This method of decentralization is already followed by several companies in some of their operations like marketing. However, there is no strategy formulated for the company as a whole with a view to reorganize the whole set up to reduce the cost and pressure on civic amenities. Organisational performance could be improved for sustainable growth and development in the long run by restructuring the corporate objectives and reorienting the methods of operations in the light of the changes in the external and internal environmental factors. Effective implementation of the proposal envisages strategic planning, efficiency in decision making, effective coordination at all levels, creativity in management and talent for team building with leadership qualities. This could be achieved only with proper analysis, evaluation, estimation and risk management policies. Establishing appropriate systems, standards and internal control procedures are important in achieving the objective in line with the budget or forecasts. Communication system should be strengthened for being prepared to deal with the unexpected crisis. According to Frauenheim, E. (2013) “One way to prepare for predicaments is to communicate regularly with the workforce through a company portal, for example. Organizations that do this are less likely to have to scramble to set up communications channels.”  Plan for decentralization According to Kaplan, D., Wheeler, J. O. and Holloway, S. (2009, p. 3) “Different countries of the world have varied definitions of city, urban area or regions, and metropolitan areas.” The plan would be finalised after taking into account the unique problems pertaining to the particular city after carefully considering all the related environmental factors. A well thought out plan would increase efficiency in performance, ensure simplicity in measurement of performance to avoid frictions, improve efficiency in cost management and efficacy in mobilization and utilization of resources. This will also result in flexibility in operations, labour management and enhance corporate social responsibility (CSR) at all levels of the management. The corporate plan in this regard involves: 1. Identifying the operations which could be conveniently shifted to suburban areas. 2. Establishing suburban offices for coordinating the activities like delivery of components, tools and collection of products. 3. Discussions with the suppliers and contractors for shifting their operations, simultaneously if possible, or making necessary arrangements in line with the firm’s policy. 4. Making arrangements for providing facilities to the employees for working from their residence. 5. Establishing the standards for measurement of output and quality levels relating to in relation to measurement of performance and remuneration. 6. Designing proper reporting system to achieve the objectives. 7. Preparing cost estimates in relation to the proposed plan for obtaining necessary approvals. Efficiency in performance Since travelling time and the hardships associated with travelling is eliminated, marked improvement in performance can be expected in this plan. Moreover, since the people are made to work at a time that is convenient to them instead of imposed official timings, they can plan their work with more comfort. These advantages enjoyed by the workforce will reflect in productivity and quality of their work. The advanced communication facilities will be useful in contacting their friends and colleagues for any assistance needed to accomplish their tasks. Mokhtarian, P. L. (2009, p. 8) observes “Today, telephony, the internet, and other ICTs are operating in such the same way: both as a direct stimulus to the development of new markets, and with a multiplier effect as cost savings are redeployed to further support commerce.” Measurement of performance Under this plan, the standards of performance and quality are finalised in advance so that the people know how their performance will be assessed and measured. Here, the measurement of performance is objective. Subjectivity in dealing with the persons results in misunderstandings many times in office atmosphere. Control over the performance can be exercised with limited supervision on the part of the supervisors or managers. The pressure on employees on account of ‘time’ factor is considerably reduced since the employees are not constrained by time while working from their homes. “The decline of manufacturing employment and the rise of service sector employment is interpreted as the loss of manual jobs and its replacement with white-collar work” (Webster, F. 1995. p. 14). Online measurement of performance of output has become easier to monitor and record. Deviation from the norms could be detected easily for taking appropriate action to rectify the issues involved. Efficiency in cost management This plan is cost effective from the point of the companies as well as beneficial to the employees in terms of savings and avoidance of hardships associated with travelling and timings. Primarily, expenses like electricity charges related to lighting and air-conditioning and refreshments and food supplies to the employees will come down drastically. It also avoids overtime since the available work is allocated on some scientific basis agreed between the employer and employee. In a survey it was found “that three-quarters of all companies believe they should support the use of public transportation in their communities. Easing employees' commute costs is cited as a key factor, although employers say it enhances their overall benefits packages” (Beyer, L. 2011). Elimination of these expenses associated with transportation increases efficiency in cost management. Mobilization and utilization of resources Majumdar, S. K. (1998, p. 825) observes “Firms may have skills in accumulating and organizing resources; but these are irrelevant if the resources are not utilized efficiently.” Leveraging a firm's internal resources for effective performance is the key to survival. Mobilization and utilization of resources could be handled in a very cost effective manner since the resources provided to the workers are in line with the performance expected. Therefore, wastages are avoided in this process. Since the utilization is linked to the resources provided or inputs for example in the case of assembling, planning will be more accurate. Also, in many cases transportation facilities are provided to executives by companies. Company can save money incurred on expenses in this respect. Flexibility in operations This plan makes the employees result oriented. Since the tasks to be performed are allocated based on the standards relating to performance, scaling up or scaling down of the operations due to exigencies can be handled effectively. Since the employees are mostly working from homes, they can adjust with timings if it is required. Frances Cairncross has in the book ‘The Death of Distance’ commented “on several major changes likely to result from the so called “IT revolution”, including the fact that workers do not need to be physically attached to a city to perform their duties” (Cuberes, D. 2013, p.1). These changes have enhanced flexibility in operations. Flexibility in labour management This plan ensures privacy of the people in dealing their problems in work without any fear of adverse comments or criticism by the co-workers. This will avoid frictions in official transactions. Complaints with regard to facilities provided at the work place can be completely dispensed with. Problems associated with diversity in workplace, gender differences or other interpersonal relationships are common in most of the offices. Under the proposed plan these problems are successfully avoided. Competitive advantage According to Harvey, M. G., Novicevic, M. M. and Speier, C. (2000, p. 159) “In the global competitive arena, the organization, at various points of time, makes long term, quasi irreversible commitments of internal and relational resources to specific domains of expertise.” Increase in productivity, quality and efficiency in cost management increases competitive advantage of the companies. Since salaries and wages are the important components of cost to the company in business operations, reforms inherent in the plan ensures satisfaction of the employees since salary is accompanied with flexible working conditions. Under this plan, the employees are satisfied with the normal wages in view of the benefits arising out of the plan. Therefore, the companies are in a position to attract superior talents at the nominal cost. It is very important to note that even if the additional cost involved in relocation of the operations under decentralization concept of the plan is just equal to the benefits accrue to the companies, it is preferable due to the intangible benefits attached to the proposal. The intangible benefits are related mainly to human resource management and employee welfare. In this case, the company as a responsible corporate citizen is efficient in utilization of resources to the maximum advantage to the society. The society is also benefited by reduction in pollution and congestion in the cities. Corporate social responsibility The important feature of the plan is conservation of scarce resources. If this plan is meticulously followed by the companies, it will reduce oil consumption significantly. Most of the countries import oil for their consumption which severely affects the country’s balance of payment position. Reduction in consumption of oil leads to reduction in emission of greenhouse gases. Apart from these obvious benefits, the society is benefited with balanced economic growth in the decentralisation process adopted by the industries in restructuring their businesses. "We view alternate commute programs as an employee benefit and a corporate responsibility," Daryl Wilmeth, HP environmental program manager for the Americas, said in a statement. "Employees who use them tell us they feel healthier, and are more productive and less stressed at the job. That’s a win for us." (Frauenheim, E. 2013a) Benefits to the society Prokopeak, M. (2013) quoted Charan, R.: “The risk of not moving is the extinction of some of the businesses here.” This message is applicable to globalization as well as decentralization. There will be some initial resistance always exist in an organization towards changes or new ideas due to fear of unknown. Therefore, educating the employees and reassuring them about their safety and job is very important in the process. Any big idea to succeed should stand the test of acceptability based on its usefulness to the society. An idea which is developed based simply on commercial basis with a view to improve profitability of the company cannot be considered big, unless it has social dimensions. The idea’s positive impact on the welfare of the society will force the government to reorient its strategies in line with the needs of the time in the long run. Sheller, M. and Urry, J. (2006, p. 26) “Until the late eighteenth century, urban or suburban traffic was of lesser significance than transnational traffic.” However, we could not widen the roads in tune with the increased traffic due to restrictions in availability of space that resulted in congestion. The government can encourage construction of housing complexes with facilities for shopping, educational institutions and recreation and community centres in suburban or rural areas for balanced growth in the country as a whole. This will attract the companies to relocate their operations to these developed sites. The following are the benefits accrued to the society at large, apart from affordable housing for all, especially the economically weaker sections of the society. 1. Reduce congestion on roads and traffic in congestion zones. 2. Aid pollution control. 3. Reduce parking problems for vehicles in the cities. 4. Reduce pressure on infrastructure in the cities. 5. Control rampant urbanization. 6. Aid decentralization in corporate companies. Peters, P. F. (p. 14) observed “The new focus on congestion as the most urgent mobility problem brought road pricing back on to the stage.” Increasing Awareness about pollution and its effects on health among the public can make the plan successful in the long run. If this idea catches up with the industries and people, they will realize its benefits and enjoy their stay in countryside. In the city life people are spending longer times on roads in travelling in congestion, on toll gates for payment of road user charges or simply waiting for parking the vehicles. Generally, driving in cities leads to frustrations and mental tensions to people. Insurance companies may come out with novel plans if the cars are mainly used outside the cities due to lesser accident risks. The people living in cities, especially those who shun public transportation systems spend considerable portion of their income towards transportation apart from housing. In view such hardships many companies are giving city compensatory allowances to the employees. Living in countryside would be cheaper. Fresh air, green trees, gardens and orchards are something of a rarity in cities. People in European countries have to travel long distances for sun tanning, which is normally possible in country side. There are many among us who like to live a life in natural surroundings, rather than concrete jungles. The disposable income available towards savings and spending on other items other than food and dress by the people increases, consequently the standard of living goes up. Also, from the organization’s point of view, productivity of the employees would phenomenally increase due to these factors. Role of the Government “The jobs are available. The people are qualified. Where’s the disconnect? This was the situation faced by United Parcel Service in the late 1990s as the company tried to staff its largepackage-sorting plant outside Chicago. The problem was - and is –transportation” (Soupata, L. 2001). This statement clearly underlines the importance of developing infrastructural facilities in suburban and rural areas. This idea can become a success, if the government takes necessary initiatives in this respect by:  Give industry status to Housing Sector with tax benefits. 1. Earmark areas for the development of housing complexes based on the industrial developments in various parts of the country. This will enable the real estate players to develop housing complexes with common facilities. 2. Pass suitable legislation for acquisition of land, allotment of land for creation of infrastructural facilities and introduce necessary rules and regulations in this connection. 3. Fix targets for movement of population away from the cities in phases for a healthy growth of cities and the country. Conclusion The big idea of leveraging technological developments in the field of communication to the maximum advantage for sustainable growth and development involves multi pronged strategy on the part of the companies. Trust and understanding on the part of all the stakeholders like management, employees and contractors is a prerequisite for its successful implementation. When the concept catches well with the industries in the country as a whole, the pressure for the government to undertake infrastructural developments and labour reforms is expected to increase. The government’s involvement will enhance the efficacy of these plans in the long run in view of the benefits to the society associated with such initiatives. References Aghazadeh, S., 2003. The future of human resource management.  Work Study, Vol. 52 Iss: 4. Beyer, L., 2011. Commuter Benefits Drive Savings for Employers and Employees. Workforce. 2 December 2011. [online] Available at: [Accessed 1 December 2013]. 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