An Important Part of the Continual Improvement Process - Essay Example

IInvestors in People Running head: INVESTORS IN PEOPLE Investors in People in APA Style of or Corporation) Investors in People 2 Chapter One Introduction Companies are realizing more and more that their number one asset is people. Although products, raw materials, services, etc. contribute to the success of a business, a business's staff is its top resource. Even if a company refuses to acknowledge this very fact and invest in its employees, the results will be evident. Lack of knowledge, motivation, poor skills, less quality of work, and minimal customer results are just a few of the consequences of not investing in the staff. Companies now realize that they should not only invest in their clients/customers but also in their people. In 1990, a group of top businesses and national organizations formed what is known as Investors in People. The Investors in People Standard, also known as the Standard, is a flexible framework, which companies can implement to meet their goals, experience success, and increase performance by investing in their people. In 1993, Investors in People UK was developed. According to Investors in People UK (1996-2005), "From business development to employee relations, Investors in People can help with improving working life." The rationale for this study was to investigate the Investors in People Standard in order to understand its purpose, roles, advantages, and disadvantages in providing a flexible framework for companies to use. Due to a personal interest in a fitness center with a resort feel, the writer selected the study of implementing the Standard to the corporation Fitness First. The organisation is service oriented and its focus is on the clients. This study examined Fitness First's implementation of the Standard in order to extend the UK company's clientele focus on to the staff who are employed with the health club organisation. The hypothesis was that the Standard would be beneficial in improving all aspects of the company as the staff, like the clients, are placed as top priority. Aims and Objectives The aim of this study was to investigate and research Investors in People and to implement it into a business whose focus seems mainly to be on the external people, their clients/members, to provide a haven from the everyday stressors. The business selected was Fitness First. As the leader in the leisure industry, Fitness First's staff focuses on quality services in order to take care of the members. Employees work so that members can take care of themselves and recuperate from the stressors of daily life. Perhaps by implementing Investors in People, the largest health club operator, which caters to people can also provide cater to their people (employee) and reach its objective more effectively. Hence, the focus of this project was to evaluate how the Investors in People Standard, can be useful to an organization, Fitness First UK, and to evaluate the changes, advantages and disadvantages and possible problems. Objectives of the Research The objectives of this research included: -To critically review the literature on Investors in People, or the Standard, companies that use, and the implementation of the Standard to Fitness First and similar organisations -To identify the strategies in implementing the Standard with Fitness First UK's policies -To find the result of investing in the people who take care of people as an occupation -To investigate the possible impact of the necessary changes, acceptance and rejection of staff, management, clients, and vendors when incorporating change -To monitor employees' motivation and attitude via training, benefits, empowerment, etc. -To examine management's role (this will even involve training managers) -To discover, implement, examine, and find the results of the planning, learning, and development to achieve organization's objectives as the Standard is implemented The Subject Area and the Areas in which the Subject will Reach The subject areas included every aspect of the Fitness First UK Corporation. Its current policies, physical structure, various departments and branches were reached. The corporation's entire staff, clients, and vendors were affected directly or indirectly when incorporating change. Chapter Two Literature Review Fitness First UK's employees work hard in order that client scan recuperate from the stresses of daily life. Perhaps by implementing Investors in People, the largest health club organization, which caters to their external people (clients) can also provide cater to their internal people (employee) and reach its objective more effectively. Hence, the focus of this project was to evaluate how the Investors in People Standard, can be implemented the current policies of Fitness First UK. The Investors in People Standard, or the Standard, provides a framework for organization to follow. However, the framework is kept open and flexible so that organisations can adjust and customize to meet its needs. Based on the actions of the planning cycle, the Standard's guidelines are to Plan, Do, and Review. It is not strictly structured in order that organizations can implement the Standard in the way that is best. This makes sense and is highly effective because each organization and its people are extremely unique. Investors in People UK list their framework: -Plan - developing strategies to improve the performance of the organization -Do - taking action to improve the performance of the organization -Review - evaluating the impact on the performance of the organization. Although organizations have to meet the requirements/criteria of the Standard, it is upon the organisations to determine how they want to meet them. There is not one framework, system, or route that everyone must take. The Standard's main actions based on the Planning Cycle's Plan are to develop strategies, take action, and to evaluating the impact of the performance of the organisation. Currently, there is not much literature on this particular out in the public domain. Many organisations use the Standard but not many leisure/spa/fitness clubs do so literature is not readily available. As just stated, there is much information regarding other industries using the Standard. For example, in Measure Your Improvements: Investors in People in schools and colleges (as cited in Online Publications for Schools, 1995-2005), the booklet "introduces the Investors in People (IIP) standard, and its straightforward process of assessment. It lists the benefits schools and colleges gain from adopting the IIP framework. The document also includes recent case studies." In another literature, the Equine Action Plan using Investors in People is discussed. Part of the Equine Action Plan (2003) to increase the number of Equine Modern Apprenticeships, includes "promoting the benefits of training (e.g. through employer support material, Investors in People literature, etc.) so that future development work can focus on supporting employers in accessing training". Scutt (1998) lists, "The current Director, John Layne, joined Airline Operations during 1994 and quickly identified the need to improve its business performance, customer service, and reduce costs. The Director was aware of the existence of Investors in People and saw it as the tool that would facilitate the implementation of a culture to achieve the required improvementsIt was formally communicated throughout the function and gained very strong support from the Trade Unions. Amongst the literature mentioned are many more regarding various industries' usage of the Standard. There are a few case studies and documents on the leisure industry such as hotels and restaurants. Investors in People UK (1996-2005) quotes Hewitt (n.d.) in a case study on Plough and Harrow Hotel: Teamwork is the key to success in any type of business. But in the hospitality and catering sector, making sure that all parts of the operation are working in perfect harmony is crucial"Improving our teamwork was the main motivation," says human resources manager Laurel Hewitt. Thanks to Investors in People, everyone is communicating much better with one another and has a much clearer idea of their role in the organization." (pp. 1-2) This was the full extent of the case study. As you can see, there is not much information regarding the hotel and leisure industry especially when focusing on fitness club and leisure industry. Hotel/leisure and fitness club/leisure are not similar in all aspects and some people may not consider them to be the same at all. Fitness First is the largest health club operator in the UK and Europe. Having grown from a single health club, twelve years later Fitness First has 1.2 million members in fifteen countries. There are 166 Fitness First clubs in the UK, which is the focus of this case study. They provide top-quality service and equipment at a value price in a non-intimidating environment. Regardless of an individual's current fitness status, they offer the opportunity to improve his/her fitness level.Fitness First strives to deliver its members the best experience each and every time he/she walks through their doors. Perhaps by implementing Investors in People, the largest health club operator, which caters to people can also provide cater to their people (employee) and reach its objectives more effectively. Taylor & Thackwray, (1996:1), as cited in Scutt (1998) stated that, "Investment in equipment depreciates whilst investment in people appreciates". As this quote points out, investing in people will deliver a huge return. Farthing (2002-2005) speaks of the improvements gained by GSM Primographic's addition of the Standard, "Achieving Investors in People is a key part our business strategy. Our success depends on our team and developing our people is the way that we will continue to grow the business". GSM Primographic produces parts for Land Rover, Saab, Ford, General Motors, MG Rover, Nissan and Bentley. Fitness First's Our Member Promise (2003) mentions the following guarantees to their members: We're here to help you get the results you want, and that means providing support, motivation, and guidance from the startYou won't be left on your own after you joinyou will receive a number ofreviews and updates, we will ensure there is a qualifiedconsultantat all times to answer your questionsalso provide (checks) so you can keep track of improvementsWe offer everyone, regardless of size, shape, or ability, the opportunity to improvein an affable environment. We will demonstrate howwe are committed to offeringguarantee of resultsfrom complimentaryyou'll be amazed at the added benefits of being a Fitness First memberwe want to Perhaps the promises to their members can be incorporated into the new policies, when implementing the Investor's in People Standard, and can be extended to their staff members. Longbottom (2001) states that "sceptics might argue that the rudimentary nature of the Fitness First gyms might prompt members to "trade up" in times of economic plenty or simply cancel membership in a downturn Disentangling underlying growth in the midst of all this is tricky, although the company said today that UK like-for-like sales were up 9% and German outlets were producing a cracking 14% on the same basis. That is an excellent performance, but the market is likely to worry whether the current management can cope with an empire operating across nine countries and two continents." This study explored the hypothesis that by using the Standard's flexible framework, Fitness first can customize its policies in order to invest in its people, which will enable them. In return the people of this organization can (and will want to do their jobs and management can be relieved of all the responsibilities of the increased growth. Managers can empower their people. It was the study's quest to examine the possibility that implementing the Standard will help the company meet its objectives in a customized manner. "many organisations are using a building block approach, where the organization has a general commitment but where different areas work towards the standard at their own pace, and in their own way," News & News (2005), tells its staff and students in their newsletter. Staff will feel more empowered as they are better trained and more knowledgeable. Management will have to be trained in viewing their staff differently if, perhaps, they have not viewed them as an investment and the organization's greatest asset. In fact, some members of management may view the implementing of the Standard to cost the earth. However, many organizations that already abide by the framework of the Standard, agree that it is more than exceptionally worth the investment. For instance, in the Teacher Training Agency annual report, Booth and Tabberer (2003) state, "the single most important achievement was to increase recruitment to teacher trainingWe would like to congratulate all our training providers on their achievements" Investment in People encourages work-based learning, which as Lester (2000) defines, is "(learning) engaged in practice related to what's being assessed". Freedom Broadcasting of Michigan (2005) announces Smith's report on turning bad habits around to improve healthy decision making in order to reach fitness goals. This can also be said for management and people, by locating the bad habits of an organization, healthy decisions can be made to reach organizational goals. Good habits, or policies and perks, that are applied to members should also apply to organization's people. Some Fitness First clubs offer training for free (Fitness First Health Clubs, 2001). GoodGymGuide (n.d.), offers free double passes. "head over to your participating health club and you'll be on your way to earning a cash reward To earn a prize reward, record your workouts on the Fitness First workout cards." (Unity Health Insurance 2005). These are just a few mentions of perks and benefits for club members. Each facility has its own to recruit, motivate, and maintain its members. Fitness First can do the same for its people via the Standard's format. What does Fitness First currently offer its people Fitness First Dorset (2004-2005), announces that "Every January we reward our stars with our own mini IRHSA. 'Momentum'" Fitness First (2003) lists at their website the benefits for working with their organization. The benefits will lure new recruits. However, I have yet to find literature on DAILY benefits such as contests, cash and prize rewards, and such as their members who belong to the clubs receive. There is much literature on training, such as personal training and training on how to use the gym's equipment, for club members (Fitness First Training Services, n.d.). Fitness First training passes are given out as rewards after sporting events (Blackmore's 2005). It is encouraging to know there is also plenty of literature out there on the training of personal trainers and gym staff (Fitness First Training Services, n.d.) Some clubs provide training courses as The Fitness First Training Academy in Chesterfield U.K. (n.d.), "accommodates up to 40 people and provides staff courses in management, sales and fitness training". However, as Safe Harbor (n.d.) begins its article, "Once a policy or procedural manual is written and approved, a copy should be available at every service desk, and, if possible, given to each employee", decisions organizational decisions are made by top management. The staff members, or an organization's people, are not usually involved in the decision-making process. Critically studying the Investors in People Standard highlighted how it differentiates itself from other standards through the method in which it pulls together strands of business development and human resource. Working to achieve and maintain the standard will ensure that organisations review their systems using best-practice benchmarking which leads to improved performance and a competitive edge to secure future prosperity. Organisations such as Fitness First who are constantly implementing new quality initiatives will find that the standard provides an ideal method for highlighting the training and development aspects required for successful implementation, flexibility and methods of dealing with intense customer pressure. Research has shown that the most effective organisations are the ones that communicate with their employees on a regular basis. With guidance from senior management, communication of strategic goals and understanding to individual level has significantly increased. However, communication in general requires improvement before the reassessment that will take place during May 2006. Fitness First practices good communication methods for example regular de-briefs, Business Launches, Newsletters etc. but the value of the content is highly criticised by the employees. Communication is still felt to be one way. Only 36% of employees felt that they were encouraged to provide ideas and were satisfied with managerial response. Fitness First has a clear concise Training & Development policy that underlines all Investor in People principals. What was apparent was the policy was not consistent across all areas. The findings indicated that only some departments placed great emphasis on NVQ's. Indicator 2.7 states specifically where appropriate to seriously consider linking training and development objectives with external standards for example NVQ's. NVQ's not only assess and encourage the development in new skills but a number of organisations for example the Rover group, trained managers to be NVQ assessors that have an additional advantage of encouraging improved people management skills. Again Fitness First displayed good working practices for example yearly staff appraisals, development cells, training matrices and training and development forms. However, the primary results illustrate that improvements are required before reassessment. Prior and post training evaluation would be significantly improved if the training and development form was utilised to its full potential. Managers themselves create company culture and thus ultimately they are the only people who can modify it. They have the responsibility for managing people to achieve the Investor in People status. The results clearly illustrate that Fitness First will not gain the full benefit of Investors in People for at least the next two years or possibly longer. This is primarily due to the age of existing management who have progressed through the ranks under a stringent 'task management' system. Greatly influenced by this traditional authoritative system managers would find it increasing difficult to alter their style. This is a major contributor of employees stating that communication still remains 'Top down'. To resolve this situation and in-bed the 'Team Management' style required to empower rather than control the workforce, the 'Challenge of Leadership' course was introduced. This influences, and through continual experience encourages the 'Team Management' approach, which in turn maximise the power held within the Investors in People standard. This type of management is clearly visible within the lower levels of management - the senior managers of the future. The primary research show that 67% of employees are committed to Investor's in People. However, only 42% of employees feel that there have been any visible changes since the introduction of IiP. A common factor that could explain the above was highlighted under the additional comments section of the questionnaire in which the following comments became extremely frequent. Many employees felt that there was "still management dis-interest" and it was "just another back slapping exercise". This again highlights the problem of the widely popular 'Task Management' approach to people. Further comments included:- "I feel that it is geared up for 'some' not everyone. A case in Investors in some People". "A few prosper (the same few). The majority pay for it through working harder, not smarter". "Because nothing has changed you have to wonder if it is another failed initiative". What the report clearly illustrates is that recognition is the first milestone along the continuing journey of Investors in People. The methods and policies in operation are always open to criticism; criticism is an important part of the continual improvement process. References Booth, S.C. , & Tabberer, R. (2003). Forward. Annual Report, 1. Why Work for Fitness First (2003). Careers with Fitness First. Retrieved December 26, 2005, from http://www.fitnessfirst.co.uk/vacancies/careerswithff.asp Case Studies. Investors in People UK (1996-2005). Retrieved December 23, 2005, from http://www.investorsinpeople.co.uk/IIP/Web/Case+Studies/Plough+and+Harrow+Hotel.h tm Equine Action Plan (2003). Equine National Occupational Standards. Retrieved December 23, 2005, from http://64.233.187.104/searchq=cache:4KtJysHrhYUJ:www.lantra.org/Equine/documents /IAPequinesummary.pdf+%22Investors+in+People+literature%22&hl=en Farthing, Andrew (2000-2005). Labels specialist gains Investors in People Award. Manufacturingtalk GSM Primographic. Retrieved December 24, 2005, from http://www.manufacturingtalk.com/news/gwo/gwo101.html Fitness First. (2003). Retrieved December 24, 2005, from http://www.fitnessfirst.co.uk Fitness First. (n.d.). GoodGymGuide Australia. Retrieved December 25, 2005, from http://www.goodgymguide.com.au/fitnessfirst/ Fitness First. (2005). Unity Health Insurance. Unity Health Plans Insurance Corporation. Retrieved December 25, 2005, from http://www.unityhealth.com/HealthyU/Fitness_First/ Fitness First. (2004-2005). 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Online Publication for Schools (1995-2005). Department for Education and Skills. Retrieved December 23, 2005, from http://publications.teachernet.gov.uk/default.aspxPageFunction=productdetails&PageM ode=publications&ProductId=IIP-1506-2005& Our Member Promise. Fitness First. (2003). Retrieved December 24, 2005, from http://www.fitnessfirst.co.uk/about/about_mission.asp Personal Trainers 1:1 (2003). Fitness First for Everybody. Retrieved December 26, 2005, from http://www.fitnessfirst.co.uk/vacancies/personaltrainers.asp PH.D. Comprehensive Examination for Research Methods and Statistics (October 22, 2002). Retrieved December 26, 2005, from http://dept.kent.edu/sociology/comp/MF02.htm Training Staff (n.d.). Safe Harbor. Retrieved December 26, 2005, from http://www.alliancelibrarysystem.com/safeharbor/index.cfmSectionID=97 Scutt, F. (1998). Investors in People: Can it be utilized effectively in Rolls Royce. Nottingham Trent University Syndney Running Festival, 2006. (2005). Blackmore's The Best of Health. September 11, 2005. Retrieved December 26, 2005, from http://www.sydneyrunningfestival.org/home Read More