Human Resource Planning for Brook Company - Case Study Example

Running Head: HUMAN RESOURCE PLANNING Human Resource Planning for Brook Company Name Course Tutor’s Name Date Human Resource Planning for Brook Company Program Description Brook Company (a fictitious company) has been making wooden doors for the last three years. When Brook’s owner first started off the business, he wanted to hire the cheapest labour there was to carry out the sales function in the company. Courtesy of the professional timber handlers and constructors that Brook had in its workshop, the company has been producing some quality doors which have the potential to sell easily and fast. The construction industry has also been expanding fast, hence creating a potential market for Brook. Reviewing Brook’s human resource development (HRD) needs, it emerged that while its warehouse and construction sites are well resourced with the right people who have the necessary skills and expertise, its sales department has loopholes which have been affecting the rate at which Brook’s products penetrate the consumer market. To start with, it emerged that Brook hired fresh high school graduates, who had no professional training in sales or marketing. High school graduates were targeted for hire because at the time, the company was operating on a shoestring budget. Three years down the line, the company is making some decent income from its sales but has not changed its recruitment policy nor improved the skills of its existing sales people. Specifically, the HRD needs assessment has revealed that the absence of professionalism among existing sales people means that they are poor in communicating to customers, following up on orders made by customers to ensure they have been delivered, and that most customers do not receive after-sales services. The HRD assessment also revealed that the owner of Brook Company is a competent businessman, but a relatively poor manager. The HRD program described in this paper is therefore meant to enhance the management function at Brook Company, while enhancing the sales functions of the organisation. Specifically, since the business owner has agreed to pave way for a more competent manager, the program intends to design a method through which a new manager will be hired. Additionally, the program intends to design ways through which the existing sales people will be trained and their skills in communication, sales follow-up and after-sales services enhanced. Finally, and for purposes of ensuring that future recruitment considers professionalism and competencies in sales and marketing, the program will identify a method for hiring new employees in future. Program Objectives Werner and DeSimone (2011, p. 143) note that the objectives of a HRD program describe its purpose and desired results. In other words, the objectives explain what it is that the program needs and how whatever is needed will be attained. Objectives form the basis for the HRD methods that a company uses in order to attain specific outcomes (Werner & DeSimone, 2011, p. 143). Based on the deficiencies in Brook Company as identified in the program description part above, the objective will be: i. To improve the management function in the company within the next three months ii. To develop a competent sales workforce within the next six months through equipping existing staff with desirable skills and competencies within the next six months, and through hiring competent staff in future. iii. To increase product sales (wooden doors) by at least 30% in the next one year iv. To register increased customer satisfaction by 50% in the next one year. Program Benefits to both Employees and the Organisation – A discussion The Brook Company has one major problem – lack of professionalism. The absence of professionalism is evident in its management practices as well as in its sales and marketing processes. Arguably, in its line of business, Brook needs a competent manager who will be responsible for accomplishing all management functions, which include making organisational plans, organising different functions in the organisation, staffing the organisation, coordinating different functions, and controlling the same. The current manager cum owner is not a professional and as Marks (1999, p. 698) observes, there is a risk that an incompetent manager/owner would lead his business to fail or perform sub-optimally. Marks (1999, p. 699) observes that when the owner/manager paves way for more competent people to be recruited in the management position, it becomes much easier for managerial performance to be objectively evaluated, hence ensuring that managers are hired and retained based on their contributions to the firm. Supporting the cause to separate management function and ownership, Fama and Jensen (1983, p. 305) note that entrepreneurs do not make good managers, because they are always risk averse. Arguably, their intention is always to make the most profits from a business while exposing it to minimal or no risk. In their attempt to shield themselves from risks, owner/managers arguably miss out on opportunities that would have benefited their organisations tremendously (Fama & Jensen, 1983, p. 305). By recruiting a professional manager who is separate from the owner, this program will enhance the capacity of a competitively recruited manager to attend to all managerial functions effectively. In staffing for example, a professional manager may choose to avoid cheap labour like the owner/manager did, and instead, choose to hire workers who have the skills and expertise needed to market and sell the products manufactured by Brook Company. Consequently, the program would most likely enhance sales and profitability in the company. It would also most likely help build the company’s brand as a professional wooden door manufacturer that is not only interested in increasing sales, but also satisfying its customers. Brand building is especially possible if the new manager is able to coordinate and control different aspects of the company well in a manner that creates a positive image among customers. D’Netto, Bakas and Bordia (2008, p. 4) also indicate that good management results in organisational benefits, which include enhanced customer service, productivity and lower rates of absenteeism. The second reason why the program will benefit employees and the organisation is because as Smith and Pilling (2008, p. 134) observe, employers usually expect employees to have specific competencies – an expectation that is not always true. At Brook Company for example, it is rather obvious that the high school graduates were expected to be naturally good in communication. The HRD needs assessment briefly discussed in the introductory section of this paper however reveals that the sales people fail in effective communication. With the proposed program, their communication skills will be enhanced, hence making them better communicators and sales people. The desired result of training the sales people is to make them better able to initiate sales pitches, follow up on consumers, and conduct after-sales services once a sale has been made. Ideally, satisfied customer will refer their friends to the company, or if in corporate construction business, they can be converted into loyal customers. As Edralin (2004, p. 1) notes, training also increases the commitment that employees have towards their employers. In addition to improved performance, employees also register high morale in the workplace. Training further enhances the employees’ flexibility, hence making them more able to adapt to changing work environments. Edralin (2004, p.1) also notes that training leads to lesser conflicts in the workplace and reduced employee turnover, and this helps the organisation to achieve its goals and objectives. To the organisation, the HRD program will have several benefits, which include better management practices and increased job performance by the sales people. As a result, it would be expected that the company will register increased sales, and based on the follow-ups made to customers, it is also expected that high customer satisfaction rates will be registered. With high customer satisfaction rates, it is also expected that customer loyalty will increase, and this basically means that the organisation’s revenue stream going forward would be assured. Training Methods or HRD Practices to be used and their Rationale Edralin (2004, p.2) defines training as the process through which an existing workforce’s skills, abilities and knowledge are improved systematically. On their part, Von Bergen, Soper, Rosenthal and Wilkinson (1997, p. 291) observe that HRD’s main goal is to optimise organisational performance by strengthening individual and team performances. Von Bergen et al. (1997, p. 291) further note that most organisations are willing to train their workforce since they realise that enhancing the human performance in their respective organisations will enhance their competitive advantage. Overall, and as Werner and DeSimone (2011, p. 217) note, training method needs to be chosen in consideration of the expertise needed, the available resources, the characteristics of the trainees and the objectives that need to be achieved. Since the program will target recruiting a new manager who will take the place of the current owner/manager and empowering the current sales force through training, it will consist of two methods. The first method will target the manager only, while the second method will target the sales people. Mentoring/Coaching Once the manager has been recruited through a competitive process, a professional coach and mentor will be hired by Brook Company to train him. The rationale for using coaching or mentoring for the new manager is founded in literature, where it is argued that coaching or mentoring can be used to achieve work-related improvements, which is the same thing that HRD improvements seek to attain (Hamlin, Ellinger & Beattie, 2009, p. 22). According to Clutterbuck (2009, p. 485), coaching and mentoring is done in stages, which include initiation, goal-setting, progress-taking, winding up and moving on. During initiation, the manager and the coach/mentor meet and build a rapport. At this point, the mentor/coach understands what the manager knows and what skills or knowledge areas need improvement. The second step (goal setting) involves identifying why coaching or mentoring is necessary (Clutterbuck, 2009, p. 485). During the second stage, the manager and the mentor/coach sets goals that are specific, time-bound, relevant, attainable and measurable. In other words, the two parties identify what their relationship should accomplish in a given time. Progress making is the third stage in coaching or mentoring, and as Clutterbuck (2009, p. 485) observes, this stage involves focused conversations. During the third stage, a lot of learning takes place, and it is here that the coach/mentor imparts the person being coached or mentored with the knowledge or skills that he or she might have lacked. The final stage involves winding up, and here, the manager and the mentor/coach disengage. The disengagement process ideally consists of reviewing what has been learnt and indicating the next course of action. If the coach/mentor for example feels that the manager has development needs that were not adequately catered for during the mentoring/coaching session, he or she would recommend other training or HRD programs that would help. Moving on is the penultimate stage, which Clutterbuck (2009, p. 485) describes as the redefinition phase. In this stage, the manager and the coach/mentor have an ad hoc relationship, which enables the manager to consult the coach whenever the need to do so arises. This stage also allows the coach/mentor to draw the attention of the manager to a specific thing in the organisation, hence enabling the manager to work on it. Coaching or mentoring can also take a different approach, especially if there are time lines within which the mentor/coach and the manager have to work. Clutterbuck (2009, pp. 485-486) suggests that a more dynamic form of engagement involving a contractual phase, a transactional phase and a review phase can be used. In the contractual phase, the two parties define the relationship and the purpose of working together. In the transactional phase, the coach/mentor helps the manager explore their skills, leadership methods and behaviours with the goals of the program in mind. Finally, the two parties review their relationship and its outcomes and determine whether the goals of their engagement have been achieved. In this program, the first approach will be adopted for use because it provides a more detailed engagement between the manager and the coach/mentor, hence increasing the chances of the manager benefiting more from the insight offered by the coach/mentor. Classroom Method of Training Since Brook Company has a large number of sales people who do not have basic skills needed to effectively engage with targeted consumers, follow up on orders made by the consumers, or offer satisfactory after-sales services, a classroom method of training is considered more appropriate. The rationale of classroom training as a method for use in this program is partially found in Noe’s (2008, p. 3) indication that training is a necessity for any company that wants to compete in the highly competitive market. Another reason why the classroom method of training was picked is based on Rothwell and Kazanas’ (1998, p. 3) observation that training methods should be picked after a critical analysis of the performance problems that exist in a company. After analysing the situation at Brook for example, it was revealed that a high percentage of all sales people do not have basic competencies in communication and after sales services. Combining them in a classroom setting will thus arguably enhance the trainer’s ability to disseminate knowledge and skills to more people at the same time. According to Cennamo and Kalk (2005, p. 102), an instructor-led classroom involves a knowledgeable person (instructor) standing in front of a room and training people who are usually seated in the room. The instructor-led classroom is ideal for teaching basic skills such as communication, but is also ideal for imparting the trainees with new concepts or content. A lot of benefits to a wide audience can be attained if the instructor has a presence and is a dynamic communicator hence succeeding in engaging the trainees (Cennamo & Kalk, 2005, p. 102). Additionally, the instructor-led classroom can be designed in a manner that enables the instructor consulted by Brook to enhance their understanding of specific concepts through group projects, discussions or presentations. Bersin (2004, p. 2) also observes that the instructor-led classroom gives a chance to an instructor to convey his or her experience, knowledge and enthusiasm to a group of trainees, who can then benefit from the same. As Werner and DeSimone (2011, p.197) observe, the classroom method can use different techniques. In this program’s case, a combination of conference/discussions and behavioural modelling will be used. The foregoing techniques have been identified because the objective of the program is to impart the sales people at the Brook Company with the skills and knowledge needed to communicate better with the customers, make follow-ups on orders placed by the customers, and provide after-sales services to the customers. According to Edralin (2004, p. 2), conference/ discussions involve two-way communication where the trainer engages with the trainees and even encourages the trainees to have some kind of dyadic exchanges or discussions. The exchanges or discussions can be planned to involve two or more people, but could also be structured as a panel discussion, a whole group discussion, or an intergroup discussion. Behaviour modelling was chosen for inclusion in this program because as Fox (2009, p. 1) observes, it integrates experiences and knowledge to create an authentic role that is essential in effective skills training. For example, Brook Company’s sales representatives do not just need to sit in class and be taught about effectively communicating to customers; they arguably need to see a model salesperson communicate to a customer, seal a sale, conduct a follow-up on the customer, and offer after-sales services. According to Fox (2009), behaviour modelling is also essential in skills training because it offers “guided practice, feedback, and adjusted practice” (p. 1). Additionally, behaviour modelling training would enable the sales representatives at Brook Company to practice the new skills, receive feedback on the same, receive remedial action where needed and benefit from reinforcement, which is necessary for the mastery of the new acquired skills. Training Outline and a Tentative List and Description of Training Material Needed Training outline for the manager I. Definition of coaching and mentoring a. The coach/mentor will explain what coaching is b. The coach/mentor will explain what mentoring is c. The coach/mentor will introduce the Goal-Reality-Options/Obstacles-Will (GROW) model, which is critical for identifying the goals of coaching/mentoring, the reality facing the manager, the options they have or the obstacles they face, and the will or commitment to attain identified goals. II. Setting goals a. Working together, the coach/mentor and the manager will set goals based on the GROW model identified above b. Ensure that the goals are specific, measurable, attainable or realistic, relevant and that a specific time is set for attaining them. III. Comprehending the reality a. Explore Brook Company’s past b. Get a picture of where the company is c. Identify possible managerial obstacles IV. Developing options a. Identify the management approach best suited for use at Brook Company b. Structure a plan to learn about effective management c. Choose the final management approach that the manager wants to learn about, and for which the mentor/coach is willing to offer guidance on V. Wrapping it up a. Identify the sequence of the mentorship/coaching program b. Get motivated to start learning VI. Providing feedback a. Providing feedback about the learning process VII. Overcoming obstacles a. Identifying prevailing obstacles and establishing how to overcome them b. Re-evaluating the mentoring/coaching goals c. Identifying what needs to be done in future in order to enhance management performance. Training Outline for the Sales Representatives I. Introduction of key communication skills that sales representatives will need to master for purposes of effective communication with customers a. Communication theory b. Two-way communication c. Verbal and non-verbal communication II. Effective customer follow-up techniques a. Thank you notes b. Follow-up calls c. Brochures or newsletters sent through email d. Checking the product’s performance e. Incentives that enable customers to recommend the company to others III. Effective after-sales services a. Handling customer’s concerns effectively b. Creating time for the customer c. Creating the right attitude towards the customer d. Providing solutions to customers who may be encountering problems with the product IV. Behaviour modelling a. Modelled effective communication b. Modelled follow-up on customers c. Modelled after-sales services An Evaluation Plan (Short- and Long-Term Evaluation) where appropriate Evaluating a HRD program is necessary if its implementers are to determine whether it met its objectives or not. As Werner and DeSimone (2011, p. 201) observe, evaluating a HRD program enables an organisation to measure the effectiveness (or the lack of it) of a program, based on which the organisation can decide what to do next. Based on the evaluation results, an organisation is able to determine: whether the program accomplished its objectives; its strengths and weaknesses; the cost-benefit ratio of the program; and possible future participants (Werner & DeSimone, 2011, p. 203). The evaluation results also provide data for future marketing programs and also assist the managers in future decision-making. The effectiveness of a HRD program depends on whether the program achieved the goals that had been set when the program was conceptualised. Notably, the evaluation plan is a process that starts with the organisation or the department charged with the responsibility of evaluating the program selecting an evaluation criteria. Next, an evaluation design is determined. The third step in the evaluation process involves the actual evaluation, where results of the program’s effectiveness are determined. Finally, the results are interpreted and a verdict regarding the program’s effectiveness given (Werner & DeSimone, 2011, p. 202). Dye (2003, p. 7) states that developing a plan for evaluating a HRD program requires one to have an understanding of organisational needs. Such an understanding enables a person to make good judgements about the effectiveness of the HRD program. While there are several evaluation criteria for evaluating a HRD program as indicated by Werner and DeSimone (2011, p. 206), this plan will commence its HRD evaluation by understanding what Brook Company wants in regard to evaluation. Determining what Brook Company Needs to Know in Order to Make a Judgement regarding the Effectiveness of the HRD Program. In this step, and as suggested by Dye (2003, p.7), the organisation will answer the following questions: What will be measured? What information will be used, and why is the evaluation important? Who will collect the information needed for the evaluation and who will participate? What are the possible complaints that will arise from the exercise and how will they be handled? Who is interested in the evaluation, what agendas or interests do they have? Based on the answers to the questions above, Dye (2003, p.7) indicates that the people charged with the responsibility of evaluating a HRD program will have a basic idea of what exactly to look out for in the evaluation and how to satisfactorily serve the interests of different stakeholders who are represented in the organisation. In Brook’s case for example, the owner may be interested in knowing how the HRD will contribute to the company’s bottom-line; the employees on the other hand may be interested in understanding how the training will enable them meet specific sales targets. The evaluation, therefore, should ideally serve the information needs of all stakeholders. From the answers obtained in step 1, the organisation should then form an evaluation strategy, which should detail how the needs of different stakeholders will be met. Since Brook Company has two programs, one targeting the manager and another targeting the sales representative, two strategies will need to be developed for each program. Brook Company intends to use Kirkpatrick’s four-level framework, which according to Werner and DeSimone (2011, p. 206) measures the trainee’s reaction, their levels of learning, their job behaviour, and the impact or outcome of learning. When evaluating the effect of mentoring/coaching on the new manager at Brook Company for instance, the evaluator will assess how the manager reacted to the coaching/mentoring; assess the manager’s learning, which is attributable to the coaching/mentoring sessions; monitor how the manager is using his newly acquired skills; and determine whether the new managerial skills have the desirable outcome in the company. The evaluation will be continuous throughout the training phase, and as such, will most likely provide short-term results. However, and for purposes of obtaining the effect of the training program in the long-term, the evaluation will not end when the training stops. Rather, the manager’s performance (and the sales representatives’ performances in the different program) will continue being monitored in the longer-term (more than three years) in order to determine whether the training had long-term effects on the manager’s managerial approach or on the sales representatives’ ability to utilise the skills and knowledge acquired during training in future. Since the four-level framework does not measure the economic impact that the training has, and seeing that the business owner may be interested in understanding the financial significance of the program, a fifth level as suggested by Reid and Barrington (2003, p. 56) and Abdullah (2010, p.17) will be added. The fifth level will specifically assess the training program’s return on investment (ROI). In literature, various authors (Swanson, 2001, p. 1062; Swanson & Holton III, 2001, p. 364) and have reiterated the importance of evaluating the economic significance of a training program by arguing that most corporate organisations intend to understand whether the program had any financial benefits. Conclusion This paper provides a HRD plan for Brook Company – a fictitious company that has hired high school graduates as sales representatives. The company’s owner also doubles up as its manager despite not having any theoretical knowledge of management. The program described in this paper is twofold, with one program seeking to train a new manager to take the place of the owner/manager, while the second program seeks to train the existing sales representatives on effective communication, effective customer follow-up, and effective customer service. The two programs are based on a needs evaluation, which is briefly explained in the introductory part of the paper. The paper explains that the two programs may enhance job satisfaction among employees, thus leading to higher productivity. At the same time, the organisation may benefit through increased productivity especially as a result of the higher productivity by employees and increased customer satisfaction. The paper has identified coaching/mentoring as the ideal training method for the manager; and the instructor-led classroom training as ideal for sales representatives. A training outline which is anchored on the objectives that the program has is also given. In the final segment, an evaluation plan that uses Kirkpatrick’s four-level framework is given, in addition to a fifth framework, which will be used to assess the program’s ROI. References Abdullah, H. (2010). Delineating and charting the systematic approach of HRD process. The Journal of International Social Research, 3(11), 11-22. Bersin, J. (2004). The blended learning book: Best practices, proven methodologies, and lessons learned. San Francisco, CA: Wiley & Sons. Cennamo, K., & Kalk, D. (2005). Real world instructional design. Belmont, CA: Thompson Wadsworth. Clutterbuck, D. (2009). Coaching and mentoring in support of management development. In Armstrong, S. J. and Fukami, C. V. (Eds.), The SAGE handbook of management, learning, education and development (pp. 477-497). Thousand Oaks, CA: SAGE. D’Netto, B., Bakas, F., Bordia, P. (2008). Predictors of management development effectiveness: An Australian perspective. International Journal of Training and Development, 12(1), 2-21. Dye, K. (2003). Dye’s two-Tier framework of evaluation: A practical approach for determining the effectiveness of HRD activities. Retrieved May 27, 2014, from http://www.kathydye.com/IDEAS/2tier.pdf Edralin, D. M. (2004). Training: a strategic HRM function. Notes on Business Education, 7(4), 1-4. Fama, E. F., & Jensen, N. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301-325. Fox, W. M. (2009). Behaviour modelling training for developing supervisory skills: Trainee manual. Charlotte, NC: Information Age Publishing Inc. Hamlin, R. G., Ellinger, A.D., & Beattie, R. S. (2009). Organisation development and human resource development. International Journal of Evidence Based Coaching and Mentoring, 7(1), 13-38. Marks, S. G. (1999). The separation of ownership and control. Encyclopaedia of Law and Economics, 5630, 692-724. Noe, R. A. (2008). Employee training and development (4th ed.). New York: McGraw-Hill/Irwin. Reid, M., & Barrington, H. (2003). Training interventions: Promoting learning opportunities (6th ed). London: CIPD. Rothwell, W. J., & Kazanas, H. C. (1998). Mastering the instructional design process: A systems approach (2nd ed.). San Francisco, CA: Jossey-Bass. Smith, R., & Pilling, S. (2008). Supporting the transition from student to professional – a case study in allied health. Australian Health Review, 32(1), 134-138. Swanson, R. A. (2001). Assessing the financial benefits of human resource development. Personnel Psychology, 55(4), 1059-1062. Swanson, R. A., & Holton III, E. F. (2001). Foundations of human resource development. San Francisco: Berrett-Kohler Publishers. Von Bergen, C. W., Soper, B., Rosenthal, G. T., & Wilkinson, L. V. (2004). Selected alternative training techniques in HRD. Human Resource Development Quarterly, 8(4), 281-294. Werner, J. M., & DeSimone, R. L. (2011). Human resource development (6th ed.). Mason, OH: South-Western Cengage Learning. Read More