StilSim Personnel - Internal Analysis - Case Study Example

StilSim Personnel - Internal Analysis Introduction: StilSim Personnel has been instrumental in providing skilled workforce to companies in need of personnel, and has successfully helped people in finding jobs that are best suited for them. The activities involved in this process form the value chain of the organization, and the most important part of it is the human capital, i.e. the employees working in the organization. The total value of an organization involves value-adding activities and potentials that comprise its value chain. These value-adding activities encompass human resource functions and help in generating employee motivation, while potential refers to the qualities and innate capabilities of an individual that develop as a result of these value activities. The following report provides an internal analysis of StilSim Personnel, discussing its strengths, weakness and core-competencies. This report also sets the stage for a strategic plan that addresses these strengths and weaknesses to help the company in overcoming its current crises. Weaknesses of the firm: Stating that StilSim personnel has a lot of weaknesses and loopholes in its organizational structure, employee attitude, office environment, business processes and policies, would be an understatement. The main shortcoming of the firm is that it has a weak leadership, which is very detrimental to the efficient functioning and health of a business. The weak leadership is a result of lack of availability of knowledge and lack of synchronization of the top level of the firm with the remaining employees. This does not imply that the top leaders and the CEO are incompetent in themselves. Although the personnel at the top management are well experienced and excellent at what they do, their output is affected due to lack of good communication with the remaining employees. Because of this, the top management fails to avail real facts and timely news about the firm at the right time. This hampers the managerial process of the organization. Each of the three branches of StilSim has its own agenda and business policy. Because of a lack of synchronization with each other, these three branches work autonomously rather than working with each other. This lack of integration and harmony has resulted in employee disillusionment, and is also affecting the decision-making process of the company. Apart from weak leadership, another significant weakness of the firm is its out-of-date technology and lack of an Information Technology integrated infrastructure. The company is stuck in the technological Dark Ages, with obsolete technology rendering the entire business process incompetent and inefficient. This coupled with the absence of innovative marketing policies have lost the company a lot of profitable contracts and business opportunities. This has also led to difficulties in customer retention, with many clients moving on to other better firms. The Lakeside branch in particular has been losing many clients, and strategies will have to be devised in order to gain back the lost clients. A loyal and long-term clientele is necessary for establishing a good brand image and this is where StilSim should lay its main focus. Another major cause of concern for the company is its workforce. The employees at StilSim lack focus, work ethic and harmony. The employees have failed to incorporate new methodologies and concepts in their work plans. The company lacks substantial documented guidelines, job descriptions and self-improvement workshops for its employees. This has resulted in depletion of organizational values and work ethic. Conflicts and discords are commonplace among the employees, so much so that the firm has even witnessed fights at the workplace. In addition, the employees lack loyalty towards the company. Strengths of the firm: StilSim has continued its operations ever since its inception 25 years ago. This indicates that the company does have strengths that have enabled it to survive for so long. Its long track record has earned it a lot of reputation and loyalty from clients. The company has established a strong foundation and some of its clients are loyal and still continue to seek its services. The employees, in spite of their cynicism and discord, have good job skills and relevant long-term experience. The company has continued to remain in business because of its earlier achievements and customer loyalty to a certain extent. Value Chain Analysis Value-adding activities form a value chain that represents the value of a business process. The value chain of StilSim begins at the inbound logistics that are concerned with proving workforce to employers who are in need of qualified employees. As the firm lacks efficient workflow due to lack of modern technology, these operations are affected. StilSim therefore needs to address this by training its workforce and encouraging the adoption of new technologies in the workflow. The employees will have to be trained to identify the right candidates for each job profile they provide personnel for. StilSim’s marketing and promotional strategies will have to be renewed and made more innovative. If StilSim is to retain its present clients and gain new ones, it will have to re-work its marketing strategy for building a better and reliable image and for further promoting its brand. An economical yet easy and effective way for brand promotion is to adopt e-marketing via social networking platforms and online promotional banners. Value chain analysis also concerns support activities that strengthen a value chain. Support activities include procurement, HR management, technology development and administration. As far as technology management is concerned, StilSim will have to replace its out-dated technologies with new ones. As for HR management, StilSim needs a lot of improvement. Developmental activities carried out by the firm for its employees are almost none. It should organize workshops and training programs to enhance the skill sets and work efficiency of its employees. As for the general administration at StilSim, there is a lack of efficient planning and management. There is an urgent need of increased collaboration and synchronization between the company’s top management and staff. Core Competencies of StilSim: The main core competency of StilSim is its past repute and 25-year old establishment. The company has a strong foundation, and also has a huge potential in gaining back its past glory with the right strategic approach. The company has garnered a significant social capital and good networking with hundreds of past and present clients. Another core competency of StilSim is the location of its offices. StilSim offices are located in Capital City, Mountainview and Lakeside, all of which provide great opportunities for increasing its client base. Stakeholder Analysis: Stakeholder analysis provides a means of evaluating the needs of key stakeholders that will be affected by policy reforms and strategic modifications in organizational structure and processes. The stakeholders at StilSim include the company’s clients, employees, owners, heirs, and the community. All these stakeholders have not only invested their time and money, but also their hopes and trust in the company. As the role of stakeholders in the success of a firm is an important one, StilSim must consider their best interests whenever making any decisions or introducing any policy reforms. Mission Statement and Vision StilSim Personnel provides personnel to companies that are in need of qualified professionals. Therefore, StilSim is basically a recruitment agency. The company helps professionals in locating appropriate jobs best suited to their skills and qualifications. The company provides its services at a competitive cost and it hopes to maintain excellent services and quality personnel. The company is responsive to the needs of the community and has continued operations for over 25 years. The company’s visions are highlighted below: The company aims at providing high quality services efficiently and effectively. It aims at expanding and increasing its services through new intitiatives. It hopes to build upon its expertise and reputation as a specialist in personnel provision for companies. It aims to develop, incorporate and enhance the skills and potentials of its employees. It aims to promote equal opportunies for all. Conclusion: The preceding report highlighted the strengths, weaknesses and core competencies of StilSim personnel through a brief internal analysis of the company. It provides an insight into the company’s present state-of-affairs, and discusses why the company is now failing in spite of the strong foundation and good repute it garnered in its past days of glory. The changes that are needed to restore it back to its earlier reputation are also proposed. To sum up, the company suffers from a disillusioned workforce, outdated technology, staff discord, weak leadership, insufficient HR management, lack of co-ordination between employees, between staff and the top management and among the three separate offices. In addition, there are no documented guidelines for employees, resulting in lack of work ethic. The company needs to build up on its strengths and core competencies, which include a strong foundation, over 25 years of establishment, past repute, a few loyal customers, good social capital, and well-experienced employees. With better management, coordination, incorporation of new technology, innovations in marketing and promotion, developmental workshops and training for employees, etc., the company can go back to being one of the best personnel providers in the region. Reference: Dess, G. G., Lumpkin, G.T., & Eisner, A. B. (2010). Strategic management: Creating Competitive Advantage. (5th). New York, N.Y Gummerus, Johanna, Veronica Liljander, Minna Pura, and Allard van Riel. (2004). "Customer Loyalty to Content-Based Web Sites: The Case of an Online Health-Care Service," Journal of Services Marketing, 18 (3), 175-86. Strategic Management. (2010). SWOT Analysis. Quick MBA Knowledge to power your Business. Retrieved on November 27, 2010 from: http://www.quickmba.com/strategy/swot/ Ross Wirth. (May 11, 2010). StilSim Simulation. Retrieved on November 27, 2010 from Franklin University Website. http://video.franklin.edu/Franklin/BSAD/495/StilSim/index.html Read More