The Concept of Human Resources - Case Study Example

Introduction: The industrial revolution saw thousands of people migrating to cities, leaving their vocation as farmers, to settle down in industrialized areas in search of jobs that would ensure them a regular income. While this was achieved to a certain extent, the working and living conditions of those people were extremely harsh. The concept of Human Resources Development evolved when theorists like F W Taylor began to understand the importance of caring for the people working in an organization. But even then the thrust was on better wages than on other factors. It was only later when behavioral theories began to emerge that the other factors like living conditions, safety, job satisfaction and career advancement began to receive serious consideration as motivational factors for employees. This paper analyses the human resources department of a Canadian multinational company called Alcan, in order to evaluate its HR functions. Presently, the concept of human resources have taken an important place in the policies of not just organizations, but of governments as well. There are many functions related to human resources. It starts from having a strategy for recruitment, because finding the right employee to fill a certain job vacancy is an advantage. The hiring process comes next with applications being scrutinized and different levels of interviews being conducted. Then comes the actual selection process by which the best possible candidates become employees or trainees in the company. The next process is to train the new recruits. Training includes activities directly related to the nature of a person's job. Then comes training in areas that are common to all employees. They include code of conduct, avenues of career advancement, safety procedures, bonus and other compensation plans etc. Performance appraisal is also a part of the HR department's functions. Devising plans for promotions and redundancy and their implementation come next. Another important function is employer employee relations. Maintaining a good relationship with company trade unions is of crucial importance. Proper recording of all relevant data of the employee including personal data, attendance, performance appraisal, eligibility for bonus and promotions is also a responsibility of this department. Another area is maintaining confidential and self appraisal reports of the employees. One of the most important functions of HR department is handling the career development possibilities of its more productive employees. Alcan: Alcan was incorporated in 1902 as Northern Aluminum Company. At that time it was the largest aluminum company in Canada and the world's third largest, next to its parent company Alcoa. It was renamed as Aluminum Company of Canada in 1925, and separated from the parent company Alcoa in 1928. In 2001, the company was renamed as Alcan Inc. Alcan and Rio Tinto Aluminum joined forces in the year 2007 to create Rio Tinto Alcan, in order to create new leader in the aluminum business. Alcan Inc is a leading global material company delivering high quality products and services worldwide. Alcan provides world class technology and operation in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions, packaging materials, delivery increasing productivity, competitiveness and profitability to customers around the world. The organization's aim is to serve the interest and needs of global and regional customers in all aspects of the aluminum, fabrication and packaging markets in order to deliver best value to the company's shareholders. Alcan's head offices are at Montreal, Canada and Paris, France. It mainly focuses on corporate strategy and growth initiatives, human resources and strategic capital allocation, corporate governance and compliance function. Another important focus is developing a strong leader and empowering employees. Alcan's strength is based on synergy of skilled people, market driven solution, advanced technology and its value creation. Today Alcan is a strategic operating company and they have become more responsive to market opportunities. Alcan, along with its joint venture employs 68,000 people. They are located in different countries and continents having a variety of social characteristics. Moreover, they lay emphasis on ensuring the safety and security of their employees. Alcan supplies various products like Bauxite, alumina and aluminum and has become a reputed provider of engineered and packaging material. They market their products around the world and are considered as the world's third largest company supplying aluminum products. Alcan is considered as global turn key supplier of integrated packaging solution to the world's leading pharmaceuticals and medical equipment companies. Alcan is concentrating more on providing innovative product to their customers in order to meet markets needs and wants. Alcan's competitive strength is their brand name and reputation. The wide range of lightweight technologies available with them and the research and development centers help this company to establish their position as a solid market leader. Recruitment: Recruitment process involves the searching of prospective employees for an organization. It is a vital function for the organization to maintain a suitable number of personnel to handle various job responsibilities. Recruitment starts when a vacancy arises in the organization. Sometimes employees are selected from within the organization, and sometimes the company recruits from outside. The main reason for recruitment is because of company expansion or it may be due to the existing vacancies in various categories. Alcan's strategy basically lies on the principle that all people are entitled to equal employment opportunities and they do not discriminate against its employees or applicants on the grounds of race, color, sex, religion, nationality, disability, age status, age, martial status, sexual orientation, or any other protected group status. For applying for a job in this company the prospective candidate should visit the website. their primary recruitment platform is the internet. The applicant can apply through internet and if the company is interested they will send a mail to take it to the next step. Alcan takes in several hundred interns in a year, in all areas including engineering, R &D, production, logistics, marketing, finance, sales and human resources. Internship is the most effective way to identify possible recruits. This practice is mainly intended to identify future employees who can provide valuable contributions to the company. It is to the company's credit that at least fifty percent of its recruits are those who have completed their internships or have some earlier connection with the company. Alcan provides internships in all markets where the company operates. But the company allows each country's head to formulate his or her own guidelines regarding internships. A person in any country where Alcan operates is free to apply for internship. Students perusing their masters or bachelors degrees can apply and the company offers tasks that are suited to the level and type of qualification of the student. Students also have the option of registering for internship through the company website from anywhere in the world, which ensures equal consideration and representation for all categories applications. "Internships are the most effective way for us to identify possible recruits and for you to see if you would like to continue with the Company." (Students Corner). Organisation chart for human resource department of Alcan: The above diagram represents the organization chart for HR department in Alcan. The hierarchical structure is formulated in such a way as to cover all the functions of the HR department. The department is divided in to several smaller departments for the convenience execution of various functions. Every department has separate departmental heads. This enables each department to perform their tasks efficiently. Human Resource Committee: There is a human resource committee in Alcan to view all the human resource activities and employee relation matters. The fact that the company has formed such a committee shows that it is taking the issue of human resources seriously. The responsibility of this department is to review the effectiveness of the company's overall management structure, succession planning for senior management and reviewing recommendations for executive appointments etc. The committee is also responsible for establishing the company's general compensation philosophy and the development and implementation of compensation policies and programs. A review of the above chart will give a correct picture of the human resources policies of the company. The committee is bound to meet at least three times in a financial year. It has the power to invite any member of the management to such meetings if it feels necessary. The most important responsibility of the committee is to develop an overall compensation plan and to see that all compensation policies are implemented correctly and on time. It also can review the management structure of the company. Further it is empowered to moot proposals for improvement to the Chief Executive Officer. The committee has to see whether the HR policies on development and promotion of its senior managers are properly implemented. It appraises the work done by senior managers and evaluates their potential for holding higher level positions within the company. The company has equity linked compensation plans, and the committee can make recommendations to the board of directors regarding this. Alcan has several compensation plans for its employees like Executive Performance Award Plan and the Alcan Executive Share Option Plan which are similar to a long term incentive policy. It has other compensation plans called the restricted share unit plan and total shareholder return performance plan. The head of the Human resource department is the Senior Vice President, who reports to the CEO of the company. The head of the department is a member of the executive committee. The main responsibilities of HR professionals are recruiting, training, career and skills management, personnel administration and negotiations with employee representatives, compensation and benefit etc. They also advise the management on personnel strategy and also help the employees in career transition. Apart from these functions each professional has to perform different other functions according to the requirements of their departments. Strategic role of human resource: Alcan is giving a lot of importance to its human resource activities. They developed many programs for quality enhancement of the human resources in the organization. The company projects itself as an employer of choice. It has a separate section for 'career' in its website which states that the company is a 'recognized leader' in the area of its operations and one of the reasons is that it has committed employees who are not afraid to innovate. The company believes that it has achieved a perfect balance between operational goals and the welfare of its employees. It encourages employee growth along with company growth and believes in sharing this culture among all its employees worldwide. It further claims that it tries its best in maximizing personal and professional growth of its employees. The company has individual compensation plans for senior level officers and such plans are also reviewed by the committee. The committee also has the power to review termination pay and pension plans of the company. The company has a strong policy with regard health and safety of its employees. Since its activities involves mining and manufacturing company, there are inherent risks involved and Alcan provides safety equipment to all employees exposed to such risks. There are health assessment and monitoring policies and action plans in place to meet all requirements. Working with heavy equipment and underground conditions can damage hearing and therefore the company has equipment that is designed to protect employees from loss of hearing. The company also takes the same steps to protect employees from having respiratory problems. The company has taken steps in identifying potential hazards and has mechanisms in place to eliminate risks like explosions. Some jobs require employees to work in very confined areas and necessary safety equipment is installed wherever necessary. Other initiatives in employee safety include protection from machinery, molten metal, working in high places and working in very hot environments. Conclusion: Alcan is a company that takes its human resources activities seriously, in a manner that conforms to its stature as a respected multinational company. Its HR policies, compensation package, incentive schemes, and other welfare measures favor employees. Its focus on HR is such that employees feel comfortable working for the company. The HR activities cover a whole range of issues and special commitment is shown regarding the safety of its employees. The company's strategy of ample focus on HR is one of the primary reasons for its success. A lot of information was obtained through the telephone, actually through a long talk with the Director, HR Shared Service Centers. This writer would like to express appreciation at his patience, kindness and knowledge. Works cited Students Corner, Student Internships, Internships: Eyes on the Future. Alcan. 2008.28 Mar. 2008. . Read More