Employment Resourcing - Coursework Example

?Introduction Employment resourcing can be defined as human resource management that is made a strategic business partner to the core activities of an organization. As a result human resource management becomes a critical component of the strategic focus. Employment resourcing ensures that employees are regarded as the most important assets of the organization and this strategic orientation leads to a sustainable competitive advantage. The HR strategies at the Taj Group of Hotels can be examined to provide an example of employment resourcing. The Taj Group is managed by the Indian Hotels Company Limited (IHCL). The group received the Hermes Award for its innovative practices in employment resourcing. It is one of the most prestigious awards in the hospitality industry and was awarded to the Taj Group in 2002 for the best practices in employment resourcing found in the hospitality industry. The management formulated the Taj People Philosophy (TPP) which incorporated the strategies implemented in employment resourcing. The key components of employment resourcing The management at the Taj Group recognized that employees were the company’s most important assets. In alignment with this prioritizing, the management formulated the TPP. This philosophy provides a framework in which the strategies in employment resourcing can be aligned to the strategies focus of the company, which is to provide the best customer service in the industry. Unless the employees are motivated to work for the company, they will not be willing to put their best efforts forward in providing the best possible customer service in the industry. Therefore the management has to pay attention to the fact that the organizational objectives related to customer service are aligned to the employment objectives of providing the best workplace for the employees to work in. The management has implemented different programs such as STARS, BSS and ESTS in order to create an organizational structure that meets and exceeds employee expectations. STARS stands for Special Thanks and Recognition System. According to this program, the employees could gain 5 recognition levels depending upon their performance. Whether an employee reached a special level was determined by points as defined by his performance. For example, the employees accumulated points for their acts of kindness and hospitality. Employees who gained the highest points reached the highest level. The STARS program motivated the employees to perform to the highest level possible so that they could gain the points to reach the higher levels of recognition. This program acted as a motivational tool for the employees to go beyond their usual duties and responsibilities and provide extra care in customer service. As a result the company attained enhanced service standards which enabled the company to generate repeat customers. The STARS program serves to illustrate that strategies in employment resourcing can lead to a sustainable competitive advantage from building a loyal customer base. The strategies of employment resourcing motivate the employees to perform to a higher level, thus enhancing the reputation of the company. The Taj Group also implemented the Balanced Scorecard System. This was a performance management system which was implemented even at the lowest levels of the organizational hierarchy. This performance management system enabled the employees to perceive how their work was linked to the strategic focus of the company. As a result the employees were able to take their own initiatives in enhancing the service standards. Because the employees were motivated to improve their own performance, the management could lower spending in formulating training and development programs. This was a positive outcome from employment resourcing because it is difficult to estimate the return on investment in training and development programs. Therefore the management’s objective is to minimize spending in training and development since the return from this spending is difficult to quantify. The Taj management had managed to attain this objective by combining STARS with the performance management system. Employee Satisfaction and Tracking System (ESTS) was part of the Balanced Scorecard System (BSS). This was an organization-wide survey that the management carried out in the year 2000 to assess the satisfaction levels among the employees in working for the organization. This survey enabled the management to collect information about the problems so that the framework for employment resourcing could be developed to focus upon these issues. These were HR initiatives which were the key components of employment resourcing at the Taj Group. As mentioned before, one of the key components was the STARS program which served to enhance the service standards provided by the hotels through rewarding the employees for exhibiting an enhanced level of performance. To this end a review committee was formed to evaluate suggestions from employees. Such suggestions from the employees were welcomed and if the review committee did not communicate with the employees within two days, then the employees received default points. In this manner the management implemented strategic employment resourcing. The STARS program The management at the TAJ group placed special emphasis upon human resource planning and talent management as the key components of employment resourcing. Employment resourcing in both areas was guided by the STARS program. The STARS program enabled the employees to perceive how their work related to the strategic focus of the company. As a result, the employees took their own initiatives to maintain their skills sets. As a result the organization had the most skilled employees in the industry. The STARS program facilitated the development of an organizational culture which involved employees in the decision making process. As a result the employees could see how they could contribute to the strategic focus of the company and develop their skills sets accordingly. The STARS program enabled the management to develop a people-oriented culture in which the employees participated in the decision making process. The Taj People Philosophy illustrated the management’s belief in the importance of human resource planning and talent management. Human resource planning ensured that the organization had the right people while talent management created human capital. In this manner a sustainable competitive advantage is created. By developing human capital, the management ensures that the organization has the resources and capabilities with which to provide service that meets and exceeds customer expectations. In this aspect of employment resourcing, the STARS program has been crucial. It motivates the employees to perform at the highest level, thus providing exemplary customer service and creating repeat customers. In fact the STARS program has served as a communications vehicle between the management and the employees so that the management has been able to provide organizational support to the employees. Some of the areas in which organizational support is provided to the employees are training, career development, counseling and self-development. In this manner the program has been instrumental in employment resourcing. Employment resourcing strategies that are implemented by the management at the Taj Group illustrate that the organizational culture is the source of a sustainable competitive advantage. A key component of the organizational culture at the Taj Group has been the HR initiative called the STARS program. As mentioned before, this program enabled the employees to link their work to the strategic focus of the company. As a result the program served as a communications vehicle which enhanced the transparency level within the operational framework. By fostering transparency, the management is able to create confidence within the minds of the employees that they are doing the right thing in working for the company. In this manner the motivational issues are addressed. As a result employment resourcing is aligned to business goals. The organization is able to retain the right talent by facilitating a high employee retention rate. Employment resourcing strategies ensure that employees are satisfied in working for the organization. The company developed a systems-driven approach to service. The cornerstone of this approach was the cultural emphasis on people-centric programs. The STARS program rewarded the employees for productivity enhancements. This program motivated the employees to improve their skills without demanding expensive training programs from the management. The recruitment was conducted so that new recruits came from the leading hotel management institutes in India. They were fresh graduates who could be easily indoctrinated into the organizational culture. In this manner the management was able to create a work culture which emphasized upon aligning employee objectives to organizational objectives. In this manner employment resourcing became synergistic. The employees were motivated to work for the organization while the organization was able to provide the best customer service in the industry. As a result employment resourcing became one of the key success factors for the organization in achieving its objectives. The strategic benefits of employment resourcing The Taj Group operated in an industry which had high competitive rivalry. These competitors tried to take the employees away from the Taj Group because of their skills sets. The Taj Group trained the new recruits in varied fields. These were finance, sales and marketing, front office management, hospitality and service, projects, food and beverages and HR. In this manner the company was able to create a highly trained workforce which was in high demand by the competitors. It was not only other hotel groups which sought the Taj employees but call centers, banks and others. Therefore it was a strategic imperative for the Taj Group to create an organizational culture which would motivate the employees to stay on with the company instead of leaving to join with the other companies. Employment resourcing was the framework which enabled the management to create an organizational culture which addressed the motivational issues in such a manner that the employees were motivated to invest their careers with the Taj Group for the long term. As mentioned before, the sustainable competitive advantage comes from the organizational culture, defined as the work environment shaped by the values and the attitudes of the management and the employees. At the Taj Group the values and the attitudes were shaped by the overall objective of aligning employment resourcing to the strategic focus of the company. The result was an organizational culture which aligned employee objectives to organizational objectives. As a result, the company was able to create a work culture which appealed to both the management and the employees. In this manner the strategies of employment resourcing served to strengthen the strategic focus of the company. Its customer service came to be recognized as the best in the industry and was given the most prestigious award in the industry in 2002. As can be seen from the different programs that were implemented as part of the Taj People Philosophy, at the root of this success was a work culture which recognized employment resourcing as a procedural framework of strategic importance that regarded employees as the most important assets. Because the Taj Group faced increasing competitive rivalry from both local and multinational hotel chains, the organization had to develop a sustainable competitive advantage. This can be achieved only temporarily by implementing the strategies of cost minimization, differentiation and total quality management. Since these tools are available to the competitors as well, they can implement similar strategies to develop similar efficiencies. Thus any competitive advantage is gone. However when the competitive advantage is rooted in the organizational culture then it becomes long term since the organizational culture of each company is unique. This objective has been met in the Taj Group through emphasizing upon employment resourcing. The company implements human resource planning in such a manner that it leads to talent management. Because the employees are able to develop their careers in the long term, they are motivated to invest with the company in the long term. The strategic benefits are the creation of human capital and an excellent business model. Employment resourcing at the Taj Group has been facilitated by the implementation of the Tata Excellence Business Model. The implementation of this business model has enabled the Taj Group to facilitate international benchmarking in hospitality with human resource management as the key component. Therefore this business model has provided the guidance in how to structure employment resourcing in such a manner as to make it the strategic focus. Combined with the balanced scorecard system, employment resourcing at the Taj Group has been linked to the business goals. In this organizational structure, the employees participate in the decision making process and the result is procedural transparency which allows the employees to assess how their performance links to enterprise performance. The management is anxious is track the employment issues and to continuously develop the organizational culture accordingly. As a result employment resourcing has brought multiple strategic benefits. Literature review of employment resourcing According to Gosling and Mintzberg (2003), employment resourcing can be one of the key success factors in managing change. The writers have analyzed the importance of managing change in the current environment which is characterized by a considerable level of competitive rivalry. They state that as a result an organization has to maintain the continuous improvement process in order to remain competitive. Their article has touched upon the industry-wide practice of hiring external change management consultants. However emphasis upon employment resourcing has been recommended for change management to be conducted efficiently. Gottfredson and Aspinall (2005) have defined employment resourcing as the part of human resource management which focuses upon strategically aligned recruitment and selection strategies. They have emphasized upon the importance of organizational culture as an instrument of ensuring sustained business growth and employment resourcing has been emphasized upon as one of the key success factors. According to Grant (2004), the effectiveness in employment resourcing can be enhanced by incorporating information systems. He states that human resource information systems can enhance the effectiveness of human resource planning and therefore the inclusion of information systems in employment resourcing is recommended. Greenley (1999) has included employment resourcing in analyzing marketing strategy. His article has emphasized upon the link between marketing strategy and employment resourcing. Greenley (1999) has defined employment resourcing as a procedural framework which is inclusive of several processes such as human resource planning, talent management, recruitment and selection and job analysis. He states that unless the management can focus the organizational structure upon employment resourcing, its marketing function will suffer. In his article we see the link between performance management and marketing with the link being employment resourcing. By enhancing the efficiency in the aforementioned processes, as stated in his article, employment resourcing can enhance the marketing function. Porter (2008) has mentioned employment resourcing as being part of the support activities in the value chain of a company. He states that the strategies undertaken in this area can enhance the effectiveness of staff training as part of talent management. In his article, Porter has emphasized upon the importance of value chain analysis in strengthening the competitive advantage of a company. He has defined the value chain in terms of primary activities and support activities. Employment resourcing has been defined as being part of the support activities. Raffee and Kreutzer (1999) has emphasized upon employment resourcing in the context of global operations. He states that HR strategies cannot be standardized across political boundaries because cultural values and attitudes vary from one country to another. Raffee and Kreutzer (1999) recommend that the management implement different incentive systems based upon the local values and beliefs. They state that international human resource management is crucial to maintaining the effectiveness in global operations. Sirkin, Keenan and Jackson (2005) have defined change management as the series of steps taken to facilitate organizational transition to the desired state. In this framework they have stressed upon the importance of employment resourcing. The authors state that employees should be involved in the decision making process in order to facilitate effective change management. Since the employees are in direct contact with the customers, they have the knowledge about changing customer tastes and preferences according to which change management should take place. Womack and Jones (2005) have stated the importance of cost streamlining to achieve a competitive advantage. They recommend that the management should strike a balance between mechanistic and organic organizational design to align employees needs with organizational needs. They state that this balance can be reached by focusing upon employment resourcing. According to Womack and Jones (2005), the management should take HR initiatives which will motivate employees to undertake their own initiatives in enhancing organizational productivity. Recommendations and conclusion The management at the Taj Group should consider implementing human resource information systems. Because the company operates in a highly competitive environment, the strategic imperative should be upon maximizing access to mission-critical information. This information will also aid in the process of managing change. Installing new information system entails managing change. The Taj Group is in an advantageous position to facilitate change because of its employment resourcing framework. This framework has led to the creation of a work culture which involves employees in the decision making process. Most projects of managing change fail because the management faces employee resistance. The management at the Taj Group is in an improved position to address this problem because of the employment resourcing strategies that they have implemented so far. This has created a built-to-change organizational culture. The advantage of implementing information systems is that it will automate those tasks in HR which are repetitive. As a result HR managers will have more time to focus upon the strategic issues. The management at the Taj Group has already recognized the importance of talent management. However the effectiveness of this function would be increased by facilitating greater access to information organization-wide. The information systems would enable other functional heads to coordinate their activities with those of HR in order to streamline costs. As a result employment resourcing activities would be made more efficient. The top management would also save costs from automation. Because repetitive activities such as payroll processing and record keeping would be automated, they would not need manpower and the resources would be freed up so that they could be focused upon activities of greater strategic importance. The result is an HR function which would become more of a critical business partner than before. As talent management is the source of the company’s competitive advantage, this framework would be a good business model. Implementing human resource information systems means that the management has to facilitate an organizational transition. This would be a project of managing change. In this respect the management has to pay attention to strategic alignment because there would be a substantial investment. However the benefits would be greater than the costs because of the enhanced efficiency in employment resourcing. The benefits however would only be realized if the strategic alignment is maintained. In this respect the management should change the software systems to suit the business goals. This would ensure that the strategic focus of the group is maintained but that its process efficiency is enhanced through automation and information sharing. Prior to embedding the information systems in the existing processes, it is recommended that the management should examine the existing processes for any problems so that they do not reduce the efficiency of the information systems. However as far as employment resourcing is concerned, the Taj Group appears to have built the right organizational culture that aligns it to the business goals. In conclusion it should be stated that in the modern business environment the management of a business organization should make employment resourcing a strategic business partner. In this organizational structure employee objectives would be aligned to the organizational objectives thus leading to a synergistic operational framework. The Taj Group has emphasized upon talent management as the source of the company’s sustainable competitive advantage. To ensure that employment resourcing is aligned to the business goals, the management has implemented many programs such as STARS, BSS and ESTS. These programs allowed employees to link their individual performances to organizational performance. As a result the employees were able to take their own initiatives in enhancing organizational productivity, leading to the best customer service and the most prestigious award in the industry. At the root of the Taj Group’s success has been employment resourcing. This can be an example for other companies in other industries to guide them in their efforts to link employment resourcing to business goals. Word count: 3300. References Gosling, J., & Mintzberg, H. (2003). The five minds of a manager. Harvard Business Review, vol. 81, 54-63. Gottfredson, M., & Aspinall, K. (2005). Innovation vs. complexity. Harvard Business Review, vol. 83, 62-71. Grant, D. B. (2004). UK & US management styles: different strokes for different folks? International Journal of Logistics: Research and Applications, vol. 7, 182-196. Greenley, G. E. (1999). An understanding of marketing strategy. European Journal of Marketing, vol. 19, 12-16. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, January, 78-93. Raffee, H. & Kreutzer, R. T. (1999). Organizational dimensions of global marketing. Journal of Knowledge Management, vol. 23, 6-14. Sirkin, H. L., Keenan, P., & Jackson, A. (2005). The hard side of change Management. Harvard Business Review, vol. 83, 108-118. Womack, J. P & Daniel T. J. (2005). Lean consumption. Harvard Business Review, March, 58-68. Read More