Resourcing Rewarding and Training System - Case Study Example

Essay Table of Contents Resourcing Rewarding and Training System 3 Policies 8 References 11 Resourcing Rewarding and Training System Welltasty, an organization which specializes in manufacturing pre-packed sandwiches and snacks is suffering from serious HR related issues due to sudden accelerated pace of growth in production. The workforce of the organization mostly comprises of unskilled workers, who are working as part time or agency workers. As the main activity requires limited skills, no training apart from the basic induction programme is imparted to the workers. Even the supervisors, who supervise the production process, are drawn from the production staff having longer period of service without any interview or specific management training process. More importantly as the management follows an autocratic style of leadership with a well defined hierarchy, communication and coordination mechanisms are seriously hampered. The unions are not allowed to participate in the decision making process. The reward system is also not properly structured which has led to serious problems of turnover. The minimum wage rate is provided after twelve years of service in the organization after which the employees receive a 5% increment which is lower than other local employers. As a Personnel Manager, I would focus on the resourcing, training and rewarding structure of the organization. Resourcing means to provide a person or an organization with materials, staffs, money and other assets that are necessary for the effective operation in any organization. The right resource in terms of quality The right cost The right risk The right time in terms of speed But above all I would focus on “People resourcing”. For any organization, it is important for the management to be aware of the organizations strategic directions and to be able to demonstrate that the resourcing systems, policies and procedure contribute to the achievement of its goal. Administering employment systems in congruence with the law and recognized standard of fairness and good practice is important. Recruitment selection, development, deployment and retention of people should add value to the organization in terms of its success in the market place. The recruitment and selection process should be sound because potential and talents of people are often neglected and dissipated, poor performers are sidelined and ignored, promoted or dismissed without any attempt to resolve the problems and the performance review system often fail to generate significant benefits for both the organization as well as the employees. People resourcing is concentrated on minor incremental efficiency or system changes or on the ethical, legalistic and procedural dimensions of resourcing instead of on the added value dimension which provides further scope for improvement. People resourcing should be based on the tools and techniques that are able to assess the potential employees, determine their suitability for specific organizational work and evaluate their effectiveness. Therefore people resourcing are the acquisition, development, effective utilization and retention of the people that the organization needs. It is the basis for workforce planning activities. All the human resource plans are implemented by means of the key resourcing activities of recruitment, selection, talent management and retention planning. The effectiveness with which human resources are used involves control mechanisms for absenteeism and providing for flexibility. People resourcing are a long term plan. It aims at achieving competitive advantage by attracting, employing and retaining more competent people than its rival. The aim of people resourcing is also to become “an employer of choice”, an organization that people want to work with and stay with. It also creates employee value proposition which consists of what the organization has to offer for existing and prospective employees that would help to persuade them to join or remain in the organization. It also involves offering pay and benefits that are important and can be over emphasized compared to other financial elements. This is important for creating the reputation of a good employer who acts responsibly, treats its people with consideration and provides diversity, work life balance and professional and personal growth. The employee value proposition can also be termed as employer brand which is defined as the set of attributes and qualities which are often intangible that makes any organization distinct, promises a particular kind of employment experience in which the employees will thrive and perform their best. Recruitment and Selection is the first most important step of people resourcing- Recruitment is the method of finding out and engaging all the people that an organization needs. Selection deals with deciding which applicants or candidates should be appointed to the job. In Welltasty, since most of the most of the supervisors are handpicked by the production director based on their period of service, a sense of complacency has set in among the employees. It is essential that Welltasty resort to other sources of recruitment such as advertising, online recruitment, recruitment agencies, job centres, educational establishment, etc (Armstrong, 2010, P.187- 202) Retention planning is also an important feature that needs to be undertaken since the turnover rate for Welltasty is very high. Turnover of key employees can have disproportionate impact on the business. Concerted action is needed for retaining the talented employees. It is also necessary to encourage greatest contribution from the existing talent and value them properly. Retention is planned based on employee turnover. The retention of an employee in the organization is also linked to the Reward he is getting for the task that he is doing. The purpose of any reward system is to attract, motivate and retain employees. As for Welltasty, the reward system is not linked to the job at all. The organizations compensation structure should be equitable and consistent to ensure compliances with the law and equality of treatment. Welltasty should also develop a compensation structure based on its own needs and condition. A well laid compensation package encourages performance, longevity, loyalty, attendance, responsibility and conformity. Apart from the base pay, other forms of rewards that can be introduced in Welltasty are: Incentive System- Incentives are additional compensation in return to a certain level of performance. These include: Piecework Programmes- it links a worker`s earning to the number of units that has been produced by him Gain sharing programmes- it involves granting additional earnings to the employees for cost reduction ideas. Bonus system- it provides managers with a lump sum amount from special funds based on the financial performance of the organization. Long term compensation- it gives managers additional income which is based on the earnings per share, return on equity and stock price performance. Indirect compensation includes payment for time not worked both on the job and off the job, social security contribution, life and health insurance programmes. Perquisites- it is the special privilege awarded to members especially top managers such as motor home, vacation home, executive dining programme etc. Awards- It is provided too many employees for their seniority, zero defects in work, perfect attendance, cost reduction suggestion etc. Another important issue in Welltasty is the autocratic system of leadership that is being followed which reduces the chance of worker participation in the decision making process. This can be corrected through the Participative Pay System. It involves the employee in the system`s administration, design or both. Employees’ participation in the administration of the pay system is also a natural extension of having employees participate in the organizational design (Griffin & Moorhead, 2011, P. 159-162). As for the Training and Development of the employees of Welltasty, it has been seen that there is no proper training programme that has been undertaken by the management. Training helps to improve the skills thereby increasing the productivity. Training can be both formal classroom teaching as well as informal ways of imparting job skills. For a mid size firm like Welltasty, on the job training programmes are the best suited (Eng Fong Pang, 1982, P.51). However even before imparting training, Training Need Analysis needs to be done. Training Need Analysis or TNA is the thorough review of the training that can effect improvements in knowledge, skills and attitude of the employees. It forms the basis for providing structured training by identifying the work based problems in performance standards (Drummond, 2008, P.6). Necessary training that needs to be provided in Welltasty, which is a snack manufacturing company should involve programmes on regulation of the snacks stable shelf life that will require no refrigeration for preservation, packing in a ready to eat fashion divided into bite size pieces that can be easily handled with fingers, training on the appearance (dry or oily) depending on the expectation of the customer for the specific product. As rapid globalization and increased rate of technological changes have resulted in intensified competition, introduction of new products by competitors, shorter product life, unanticipated customer shift etc. To combat such situations effective training is required. The development programmes should include Leadership training programmes provided to the superiors to enhance the compatibility. Tasks should be clearly defined and properly delegated. There should be more oral and written communication. The organization should also follow the minimum chain of command as far as the hierarchy level is concerned. The organization should be kept flat. Policies The policies that the organization follows are not very structures. As prominent, the organization has more female worker hence the policies that I would incorporate would mostly be women centric. Some of these are maternity leave, sick leave benefits, flex time policies, childcare facilities or subsidies. Family leave policy provides employees a period of job protected leave for different reasons that are related to their family responsibility. Pregnancy or maternity leave and parental leave fall under this (Waldfogel, Higuchi, Abe) Pregnancy and Maternity Leave Policies- under the EEOC and PDA guideline, a female employee must be given leave for maternity. The EEOC lies down that termination of an employee who is temporarily disabled by pregnancy violates Title VII. More importantly the employer has keep the job open for an employee who is pregnant unless she informs the employer that she will no longer return to the job. Parental Leave- EEOC also lies down that employees must be given parental leave irrespective of their sex. Under this law an employer must provide parental leave for the proper care and nurturing of the new born child (John F Buckley Iv, John F. Buckley, IV, 2012, P.4-11) Other policies that should be introduced are- The right to form trade unions- for industrial peace every employee of an organization has the right to form trade unions where some of the members of the employees will represent the entire group of employees and form a bridge between the employees and the employers. It is the duty of the management to inform them and keep them updated on each and every decision that is being taken especially those relating to employment. In Welltasty the management discourages the workers participation in the decision making process although they should involve the workers about them. Economic services- The employees should provided with loans, insurance and other services whenever needed. Employee education- it can include library, literary classes, news bulletin, AV unit etc. Policies relating to the welfare measures may include comfortable, hygienic residences, sanitation along with water disposal, proper roads along with lighting facilities, proper drinking water facilities, transportation facilities etc, health and medical services. Policies are relating to washing facilities, rest rooms, first aid, and canteen. Workers should also be provided with educational and recreational facilities. All the above measures can help to curb the HR issues that are prevailing in the organization. Emphasis on the welfare of the workers will help the organization to meet the expansion problems and also retain its employee. References Griffin, R. W & Moorhead, G., 2011. Organizational Behavior: Managing People and Organizations. U.S.A: Cengage Learning Armstrong, M., 2010.Armstrongs Essential Human Resource Management Practice: A Guide to People Management. U.S.A: Kogan Page Publishers Pang, E. F., 1982. Education, Manpower & Economic Development in Singapore. Singapore: NUS Press Drummond, K., 2008. How To Conduct A Training Need Analysis. Australia: Gull Publishing Waldfogel , J., Higuchi Y & Abe, M., Maternity Leave Policies and Womens Employment after Childbirth: Evidence from the United States, Britain, and Japan.[ Available at] (Pdf) [Assessed on 4 March 2013] Buckley Iv, J. F & Buckley IV, J. F., 2012. Equal Employment Opportunity 2013 Compliance Guide. U.S.A: Aspen Publishers Online Read More