Innocent Drinks - How Company Develops Its Talent to Pave the Way for Future Success - Case Study Example

HR Strategy Name: University: Date: Table of Contents Table of Contents 2 HR Strategy 1.0 Introduction Numerous scholars have related HRM to the strategic concerns and aspects of best-fit, in vertically bringing the human resources of the organisation into line so as to meet the organisation’s needs as articulated in the organisational strategy or by making ‘horizontal’ or ‘congruence alignment’ between diverse HRM and managerial policies. SHRM model can simply be described as association between the HR architecture of the firm as well as its performance. In this regard the human resource architecture comprises of the competencies, practices, systems, as well as worker performance behaviours, which mirror the management and development of the company’s strategic human capital. Some scholars such as Wilkinson and Holden (2001) have acknowledged the inflexible nature of strategic human resource management through its business efficiency contribution. Basically, SHRM is the basis of creating value in the succeeding HR architecture outcomes, and have superior distinctiveness based on its alignment with the strategy of the capital. The paper is divided into two parts; first part analyses the extent to which strategic human resource management is evidenced in the innocent drinks case and how HR practices are connected by Innocent Drinks to its competitive strategy. In the second part, an analysis of factors that an organization might consider when designing and introducing a talent management programme is offered. Part One 2.0 The Extent to Which Strategic Human Resource Management Is Evidenced In the Innocent Drinks Case Ever since 1980s when HRM was introduced as a managerial agenda, Wilkinson and Holden (2001) posit that there has been a substantial debate regarding its value as well as its nature to organisations. From the ground-breaking works developed by the Chicago school and the HRM matching paradigm, the highlighting has largely concerned the organisational strategic role of HRM (Wilkinson & Holden, 2001). Certainly, the current enormous literature hardly distinguishes between strategic human resource management (SHRM) as well as human resource management (HRM). Intertwined with this discussion is the broader dispute regarding the business strategy nature, through which strategic HRM takes its theoretic paradigms. Based on innocent drinks case, as a three-man start-up business, innocent drinks has expanded to other European countries; thus, turning into an iconic brand (Brown & Grayson, 2008). Since its start, innocent has made ethical as well as sustainable business practices, which as a result, has become an essential part of its identity, together with its nourishing fruit smoothie brands, viral promotion campaigns as well as modest, entertaining advertising. Innocent has successfully built solid consumer loyalty; thus, developing into a powerful role model for upcoming entrepreneurs. Akin to other businesses, innocent experiences a lot of competition from global and own labels drinks companies and it is more challenged to develop and maintain its commitment as well as ethical business practices for sustainability (Brown & Grayson, 2008). Thanks to SHRM innocent drinks have become a strong brand, and this has also been attributed by its values of making certain that it knows the drinkers’ tastes and continuously remain innovated in product development. The attitude of its brand has been developed through its state-of-the-art packaging as well as astute communication use with its customers, welcoming calls through telephoning the innocent banana phone or going to the company’s website. Moreover, innocent’s packaging has become part of its appeal and consequently, has reduced the necessity for advertising. Rather than utilizing advertising for building brand awareness, innocent drinks has rather utilized robust marketing at point of sale (Brown & Grayson, 2008). Innocent has as well concentrated on event marketing so as to boost the awareness of its products, through its London-based yearly music festival known as Fruitstock. As mentioned by Brown and Grayson (2008), the innocent brand is not only built on healthy drinks, but also on a set of robust, moral values that attract a cohort unhappy with corporate brands. As mentioned by Brown and Grayson (2008), consumers are ready to pay more for a brand, which utilizes ingredients of high quality and produced by an organization that is socially conscience. Through innocent’s five values, the company has managed to maintain its general objective of creating a business that consumers are proud of. By being natural the company has managed to maintain produce that is 100% healthy and natural, and to treat all people equally (Binary Moon, 2011). Another value of innocent drinks is being entrepreneurial by staying true to the roots of the company, pursuing all possible opportunities. The HRM needs all new employees to be generous like the company who partake in charities (Brown & Grayson, 2008). Being commercial is another value that makes innocent drinks unique, where employees are expected to act authoritatively and think clearly so as to create business profit and growth (Innocent, 2014). Finally, employees are expected to be responsible and adhere to the company’s promises and being effective, mulling over the significances of their actions and aim to leave innocent drinks better than they found it. Management of people at Innocent lies at its heart of business strategy and since the company believe that success depends heavily on the wellbeing as well as happiness of its employees; it has tried to invest both in their environment and people (Innocent, 2014). By utilising small touches so as to make all workers feel valued, innocent drinks endeavours to generate a working setting that everyone desire to spend time in. The turnover rate at Innocent has been exceedingly low (considering that in the first five years of its existence, just one worker left the company) and its workers are contended, positive, happy, inspired and satisfied. The company has enormously espoused a conventional method to its marketing depending comprehensively on above-the-line advertising so as to build evenhandedness in its products, which until now has been fruitful, as demonstrated by its big market share. However, Innocent has in the past tried to use relationship marketing methods in its attempt to boost its customers’ loyalty as well as motivate them to buy more of its brands (Brown & Grayson, 2008). For instance, ‘Fruitstock’ was created by Innocent in August 2003, and it was marketed for the company’s loyal customers. In the event, there were food stalls and live music, and the company used almost 35 per cent of its yearly marketing budget in the first Fruitstock event and the event was repeated in 2004 when more than 80,000 people were attracted. As stated by Wilkinson, Bacon, Redman, and Snell (2009), the field of human resource strategy is different from the conventional research on HR management in two crucial ways. Firstly, strategic HRM concentrates on performance of the organisation instead of the individual performance, and this is evident at Innocent. Subsequently, it as well stresses on the role of HRM systems as solutions to organisational issues (which includes desirable and undesirable complementarities) instead of individual HRM practices separately. However, as mentioned by Odden (2011), strategic connotes more than focussing on systems even fiscal performance, rather it is about developing a competitive advantage that is sustainable, and which consequently generates above-average financial performance. Firm performance (above-average) related to the human resource architecture reveals the wannabe rents related to that strategic resource (Lin & Shih, 2008). The HR architecture perception as a system for creating value raises the question of the suitable strategic value creation locus (Lin & Shih, 2008). Focus on the strategic HRM literature as indicated in Becker and Huselid (2006) ranges from the human resource system, the ensuing workers competencies as well as skills, worker engagement and commitment, to performance of the workers. 2.1 How Innocent Connects HR Practices to Its Competitive Strategy When Innocent grew to six units, the team of management worked tirelessly so as to maintain the attitude as well as personality that were fundamental in its early working setting. At the start, only five individuals (working in an open space) were tasked with finding the correct fruits, work on the packaging, market and distribute to the stores and supermarkets as well as interact with the drinkers to get feedbacks about the drinks (Brown & Grayson, 2008).  During Innocent evolution, the founders established that when workers were allowed to work in close proximity, it positively impacted the company’s culture; enabling them to share as well as resolve issues collectively, while equally contributing to the evolving business (Brown & Grayson, 2008). Initially, the founders had no master plan for working space instead they had an intuitive sense of how to make the business, the culture, and brand successful. A different feature of the firm’s brand is its amusing sense of humour as well as straightforward business approach, which has not just assisted Innocent to produce a unique brand in the market, but as well backs an innovative culture where workers are free to share ideas and enjoy themselves. When designing an HR plan, Turner (2002) posits that it is imperative to take into account what workers may need or want as well as what the organisation can rationally supply. A big firm can meet the expense of benefit and training programs that smaller firms cannot afford to provide. However, this does not connote that firms with limited financial ability should not involve in SHRM. Offering focused on-site training, even if offered by top organisational members, as well as providing individualised coaching and assessment sessions, may assist workers perform remarkably. A crucial feature of SHRM is employee training and development. According to Horwitz (1999), this process starts when HR department is hiring and cross-examining potential workers. Enhanced interviewing methods may assist to remove candidates that do not meet the values of the company. After being employed, a strong mentoring as well as training program has assisted new employees at Innocent get informed on the policies of the company as well as on any on-going projects that they are supposed to work on. So as to assist workers perform effectively and efficiently, Innocent does follow ups through repetitive coaching, training programs, as well as regular appraisals. Innocent understands that investing on employees’ development can help the fir to produce products that are more consistent. Innocent has been competing in an environment that has been complex and dynamic, and so as to achieve competitive advantage and keep growing the company takes into account the external factors like legal, economic, and political as well as scores of others. Competitive advantage is defined by Haan (2015) as when a company gets profits that surpass its industry average. As mentioned by porter, differentiation advantage as well as cost leadership are the key forms of competitive advantage. At Innocent, the company concentrated on the healthy fresh smoothie drinks so that customers can become more productive in what they do. The firm had espoused a cost-effective strategy so as to add value through activities that increase satisfaction level. As mentioned by Brown ad Grayson (2008), Innocent’s internal capabilities as well as resources have been the force that maintained its competitive advantage for the long run. According to resource based view, to realize competitive advantage the organization’s internal resources must be unrelated with business strategy. To create competencies, Innocent’s human capabilities as well as resources had to be met., and to sustain its competitive advantage, the company had to create value, be unique, immobility, and be non-substitutability. HRM business strategy stresses on the significance of individual relationships as opposed to shared relations between workers and their managers (Uysal, 2014). HRM according to Uysal (2014) connotes to an activity, which relies less on mandates, orders and hierarchies, and emphasises the significance of active involvement of every worker within the firm. The intention is to promote an accommodating relationship between employees as well as management so as to prevent recurrent conflicts arising from the conventional hierarchical relationship (Knox & Walsh, 2005). As evidenced at Innocent (low turnover rate), when SHRM is working accurately, employees become dedicated to organizational long-term strategic goals, enabling it to better adapt to markets changes. Basically, HRM activities entails taking different measures that involves: workers commitment with corporate strategic goals, remuneration based on productivity of every worker, unbiased treatment, on-going job-related training and connecting procurement policy with other features of organising production and work, sales as well as marketing (Needle, 2004). Some of these measures according to Needle (2004) have been carried out at Innocent, but have not applied all them concurrently. Part Two 3.1.0 The Factors That an Organization Might Consider When Designing and Introducing a Talent Management Programme A talent management programme according to Gelens et al. (2015) can help organisations understand the capabilities, experiences, and skills they require so as deliver its strategic business plans and goals. When workers together with their roles are reviewed, the organisation will manage to see what it already has, what they need, as well as what they have to develop so as to realise organisational goals. In spite of the present pressures on economic recession, diversity, and equality, Smilansky (2007) posits that talent is still a high priority. Actually, it is during the hard times when organisations have to invest in their workers. As indicated by Syed and Özbilgin (2010), a diverse labour force, which completely reflects the ever more diverse society, is vital to organisation’s capability in overcoming the future challenges; this is because companies need intellectual innovation as well as delivery brought about by diversity. Inability to make this investment connotes that the company will lose workers rich in diversity and talent. Managers who implement processes of talent management are more equipped as compared to their competitors to compete globally and to quickly capitalize on new opportunities. Success can be achieved only when firms go beyond adapting to long-standing trends; they have to expect and capitalize on new opportunities before their competitors. A strategic talent management program according to Butter et al. (2015)enables the company to: fill its critical needs of talent management as well as promptly manage industry and company changes; recognize crucial skills that must be developed in ever worker, and reduce costs of training by concentrating key areas of development; and improve the process of recruiting through identification of excellent candidates using job descriptions rooted in the skills of high performing personnel holding exclusively valued industry and company competencies. In this case factors that an organization should consider when designing and introducing a talent management programme includes: 3.1.1 Alignment of Individual Goals with Corporate Strategy As stated by Fulmer (2008) the most effective talent management program is aligned closely with the strategic plan of the company as well as general needs of the business. SuccessFactors (2014) posits that goal alignment is an influential tool of management that not only elucidates the individual workers’ job roles, but as well exhibits the continuing employees’ value to the organization. So, when workers are engaged in their work through alignment of goals, superior employee ownership is created in the organization’s eventual success, since the workers become more loyal and committed to the company and reach higher job performance levels (SuccessFactors, 2014). So as to achieve goal alignment within the organization, managers should first communicate clearly the organization’s strategic business goals to the workers. By enabling managers to view as well as access other departments’ goals, the company can impressively decrease redundancy. As stated by McAleer (2014), goal sharing assist heads of departments to search for ways to better support one another, and also to recognize areas that need improvement. With every person working collaboratively toward equivalent goals, the organization can implement the strategy more rapidly, with more adaptability as well as flexibility. Basically, goal alignment makes the organizational leadership stronger and results in organizational flexibility by enabling managers to: Concentrate workers’ efforts on the organization’s most crucial goals; clearly comprehend all duties related to certain goals; and support responsibility by assigning quantifiable and evidently articulated goals, which are perceptible widely in the company. 3.1.2 Build Internal Talent Pools for Highly-Skilled Workers Organizations that are strategically minded can change in advance of the curve in terms of developing as well as planning a labor force with the needed competencies. Such organizations according to SuccessFactors (2014) have a profounder strategic insight into their workers, and may utilize that insight to prepare workers to efficiently respond to urgent needs of the marketplace. Often, majority of companies find themselves experiencing a situation with inadequate time for assessing feasible candidates because of a intended (or accidental) change in industry state of affairs or in leadership . For scores of such businesses, a lengthy void in leadership is excessively perilous since it raises questions concerning the internal talent pool of the company. Silzer and Dowell (200) assert that creation of talent pools is a crucial component of an efficacious talent management program in an organization. Talent pool is consistent and reliable internal talent source as well as a valued succession piece of the planning process (Silzer & Dowell, 2009). Developing skillful talent pools allows for the development of looked-for sets of skill in a wider group of workers, leading to improved performance across all functions as well as levels (Silzer & Dowell, 2009). By internally nurturing talent pools, the company will prepare trained and experienced workers to assume roles of leadership when the vacancy becomes available. 3.1.3 Develop Collaboration and Break down Information Silos Success in talent management program can only be realized if business managers work hard to overcome the silos in the organization that inhibit information flow all through the organization. As mentioned by Zack (1998), for organizations to perform with more flexibility as well as faster, experience and knowledge have to be readily accessible; or proactively distributed to the right individuals at the appropriate time. So as to promote a collaborative setting, management has to align the success metrics. Aside from promoting collaboration, Gramatikov (2012) posits that organizations must offer the tools to allow for stress-free collaborative efforts. In order to drive improved collaboration throughout the organization, management and workers require access to rich worker information, which includes interests, experience, as well as special abilities, like language skills. Locating this robust data brings success to talent management programmer since workers can reach across offices or departments so as to tap into a base of knowledge as well as easily collaborate, whereas managers can utilize the data to make well-versed talent management decisions so as to boost the performance of business.  3.1.4 Develop a Pay-for-Performance Culture In this type of culture, SuccessFactors (2014) claims that managers gain access to all needed information so as to reward employees for their actual performance, and the information can be accessed from goal alignment metrics, 360 degree feedback, performance notes, as well as review data achieved all through the year. This information enables managers to make quantifiably rational, consistent decisions, as a result, eluding unsuitable compensation.  Scores of companies make use of worker assessments so as to assist the company in inspiring their workers to realize their full potential. This according to Scullion and Collings (2011) offers improved outcomes given that all employees’ reason for working is distinctive. Managing all employees’ needs in the organization may result in a workforce that highly motivated and that endeavors for the best all together (Scullion & Collings, 2011). So, by assessing the vital factors, which mark the distinction between achievement and disappointment in certain jobs, the organization will manage to put workers into their suitable positions; thus, enabling them to use their talents devoid of limitations (Rey & Mignin, 2008). This as mentioned by Rey and Mignin (2008) results in higher morale and job satisfaction, as well as worker retention since the organization is staffed with employees who are extremely experienced, productive and loyal.  3.2 Advantages and Disadvantages of Talent Programmes Talent management as pointed out by Makhijani et al. (2009) is a big discipline just like HR function intended for organization and employee development. Various organizations use programs for talent management to benefit, but this is according to organization size as well as its belief in talent management. Some of the advantages of talent programs include: ability to select the right person for the right job. By properly determining employees’ strengths and skills, may help organization’s decisions gain a strategic agenda. Through competency or skill mapping, managers can be able to weigh up the skill inventories within the organization (Bhattacharyya, 2010). This as stated by Bhattacharyya (2010) is particularly significant both from the organization point of view and that of the employee since when the right person is deployed to the right position, worker productivity heightens. Moreover, given that there is an improved alignment between job profile and interests of the worker, then job satisfaction in the organization is increased. Another advantage is ability to retain the top talent; in spite of changes in the global financial system, attrition is still a key organizational concern. So, retaining most talented workers is crucial for market growth as well as leadership. As stated by Tulsiani and Allen (2014), organizations that are unsuccessful in retaining their top talents are in danger of coming off second best after the competitors. Currently, the emphasis is on charting programs for employee retention as well as strategies to retain, develop, recruit and engage people of high quality. Furthermore, talent programs result in better hiring: according to Singhapakd et al. (2015), the organization quality is anchored in the quality of employees it has. Having a talent at the bottom is the best way to have a talent at the top. That is why trainings, hiring assessments as well as talent management programs have turn out to be an integral feature of human resources processes these days (SuccessFactors, 2014). Besides that, talent programs help manager to understand their employees better: Employee appraisals/assessments offer the management deep insights concerning their workers. Other than its advantages, talent management programs experience a number of challenges. First, it is costly since financial and resource costs of running a talent management program is exceedingly high, and this has become a burden for small business that lack the resources to implement this system. Majority of companies have more than one HR professionals spending a lot of their time implementing and developing talent management, but for companies with less workers find it hard to spend time in talent programs (Armstrong, 2006). Additionally, these programs involve utilization of software solutions in order to outline talent needs at every departmental level, which may ultimately become expensive. Besides that, talent programs result in leadership limitations since leadership tube is regularly not filled adequately to perform talent management. In this case, small businesses mat experience challenges to develop and bring in enough operational business unit leaders or store managers to compete with its competitors. The programs also results in human resource and management conflicts; As mentioned by Armstrong (2006) core shortcoming of talent management is that the programs are normally coordinated as well as developed by HR professionals. So, for companies without full HR personnel it becomes difficult, and this connotes that managers will not have the time to implement talent management. 3.3 Reactions of Employees In their study, Marescaux et al. (2013) established that workers not favoured by talent programs exhibited a considerable drop in their commitment to the organisation. This drop was even superior as compared to the equivalent increase seen amongst the selected talents. However, this effect according to, Marescaux et al. (2013) can be reduced, if managers ensure workers see the process of selection as unbiased. In research this is termed as Perceived Procedural Justice and scores of scholars such as Brender-Ilan and Sheaffer (2015) have revealed that it considerably diminishes the negative effects of not being chosen for talent program. However, for this perceived justice to be realised, Marescaux et al. (2013) posit that line managers must take time to enlighten the workers about the process: in terms of the criteria used, people involved in the process of selection, and so forth. Regrettably, majority of managers disregard this issue by considering it unnecessary, others perceive it as HR function. In either case, inability to be clear concerning talent initiatives is to inspire insights of injustice, given that it may result in suspicion as well as rumours amongst workers. As stated by Gelens et al. (2014), talent management has surfaced as a solution to present HR challenges and as the strategic to efficiency in the organisation, even in non-industrial environments. Study by Gelens et al. (2014) showed that, practices of talent management affect not just macro-outcomes, but as well more proximal ones, like worker behaviours and attitudes. A number of realities in the workplace obstruct talent management impact. 4.0 Conclusion As evidenced in Innocent Drinks case, SHRM is the basis of creating value in the succeeding HR architecture outcomes, and have superior distinctiveness based on its alignment with the strategy of the capital. Basically, when SHRM is working accurately, employees become dedicated to organizational long-term strategic goals, enabling it to better adapt to markets changes. Basically, HRM activities entails taking different measures that involves: workers commitment with corporate strategic goals, remuneration based on productivity of every worker, unbiased treatment, on-going job-related training and connecting procurement policy with other features of organising production and work, sales as well as marketing. Some of these measures have been carried out at Innocent, but have not applied all them concurrently. Factors that an organization should consider when designing and introducing a talent management programme includes: alignment of individual goals with corporate strategy, building internal talent pools for highly-skilled workers, developing collaboration and breaking down information silos, and develop a pay-for-performance culture. 5.0 References Armstrong, M. (2006). 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