Managing Human Resources - Jinnikins Jeans Approach - Essay Example

CASE STUDY – JINNIKINS JEANS How far do you think JINNIKINS JEANS approach to reward supports their business objectives, drawing on past and current data presented in the case study? 1. Introduction In order to increase their competitiveness in modern market, firms have to develop their strategies in all their operational sectors; HRM is one of the most important business sectors having the power to influence the performance of the firm both in the short and the long term. It is for this reason, that managers in modern organizations are urged to support employees by offering appropriate incentives in order to increase their productivity. However, it has been proved that ‘the traditional HR functions of staffing, recruiting, compensation and benefits are losing ground to a new generation of value-added core HR functions that include career planning, executive development, training, succession planning and organization development’ (Rowden, 1999, 22). In any case, the importance of human resource management (HRM) for the development of business activities cannot be denied; in fact, HR can help a firm to improve its position in its industry; in order for this target to be achieved it is necessary that the knowledge available in all organizational departments is appropriately evaluated and processed (Lawler et al., 2003). On the other hand, the cost involved in the development of various HR policies could be a reason for the limitation of relevant business initiatives; the specific issue is highlighted in the study of Haines (1997) where it is noticed that most firms worldwide ‘view their human resources as an expense rather than an asset -- an element that is expendable and perhaps discarded when the skills possessed becomes obsolete’ (Haines, 1997, 95). Indeed, in a survey conducted by the National Statistics of UK – the most recent available data on this issue – it was proved that ‘‘nine out of ten employers (90 per cent) had provided any job-related training (either off- or on-the-job training) to their employees in the 12 months prior to the interview’ (National Statistics Online, UK, 2002). In the above report it is noticed that for previous years, the indications regarding the behaviour of employers towards their employees are similar. Current paper focuses on the examination of the various aspects of rewarding in a specific firm: JINNIKINS JEANS. The practices of the firm regarding the specific issue are presented and explained trying to identify the potential effects of these practices on the firm’s objectives – either in the short and the long term. 2. JINNIKINS JEANS approach to reward – aspects and characteristics In the firm under examination, the reward system is based on specific actions – in hierarchical order; the benefits for the firm’s employees are not sufficient in order to ensure the improvement of the firm’s performance. It can be assumed that the measures taken were not based on the needs of employees but they rather reflect the views of the firm’s managers. As noticed the case study, the full – time employees of the firm are just 252; the high percentage of employees work in a part-time scheme. The investments made on the IT infrastructure have supported the firm’s employees; the most important feature of the firm’s HR policies is the reward given to employees in accordance with their performance; this reward has many different aspects being expressed as a review of the salary after six months or the year end bonus for all employees in accordance with the firm’s benefits. The above two policies prove that equality is promoted in the specific firm. Moreover, particular rewards have been developed for the employees in marketing and sales (rewards in accordance with the level of sales achieved). The decisions of managers in the firm under examination could be possible explained using the views of theorist published in the literature; however, it seems that different approaches have been developed regarding the effectiveness of HR policies in modern organizations. The view of Howard et al. (2004) that ‘rewards should be used to encourage employee activities that support organizational goals, but reward strategies often have confounding effects on employee attitudes and behaviors’ (Howard et al., 2004, 41). From another point of view, it is noticed that ‘only when recognition and reward are treated as two distinct phenomena will the effectiveness of employee motivation initiatives be improved’ (Hansen et al., 2002, 64). In the case under examination, the rewards offered to the firm’s employees do not seem to be related with the aspects of employer on the employees’ value – indeed there is no indication that the efforts of employees are appropriately valued and respected; equality is promoted among the organization but no sign of focus on personal development seems to exist. Another issue that needs to be highlighted is the fact that the promotion of team efforts throughout the organization – using relevant rewards/ benefits as an incentive do not seem to have the required result; in fact, there is no particular scheme promoting the team work across the organization – rather personal performance – competitiveness is rewarded. The specific issue is highlighted in the study of Kirkman et al. (2000); for the needs of the specific study a survey was conducted in a firm listed among the Fortune 50 firms; through the above research it is revealed that ‘employees were generally more receptive to team based rewards (TBRs) when they were collectivistic, preferred teams’ (Kirkman et al., 2000, 175). In other words, team based rewards can be effective only if the organizational culture but also the educational/ cultural background of the firm’s employees is taken into consideration for the development of any relevant strategy (Fischer et al., 2003). 3. Effects of JINNIKINS JEANS approach to reward on the business objectives In order to evaluation the effects of the HR policies applied on JINNIKINS JEANS it is necessary to examine primarily the procedure followed regarding the examination of the firm’s HR needs. The issue of ‘fit’ as accepted by many theorists is of significance importance for completing the specific task. In accordance with Wright (1998, 56) ‘the basic theory behind "fit" is that the effectiveness of any HR practice or set of practices for impacting firm performance depends upon the firms strategy (or conversely, the effectiveness of any strategy depends upon having the right HR practices)’. It seems that in the firm under examination, managers did not appropriately examined all aspects of the existing HR policies; the implementation of the firm’s reward system was based on the views of the firm’s managers but the actual needs of the firm’s employees were not taken into consideration – at least this can be a primary assumption after examining the performance of the specific policies – as these data are presented in the relevant case study. The effects of the firm’s HR policies – and the employees’ rewarding schemes on the firm’s objectives could be identified through the firm’s performance – as it is revealed in its financial statements. It seems that the HR policies adopted – including the rewarding policies – are not so effective as expected; the firm’s performance has been declined (19m pieces were produced in 2005 while in 2004 the firm’s production was estimated to 27,500m pieces). The establishment of quite satisfactory rewarding-schemes did not have the required result; the firm’s objectives were not supported as expected. 4. Conclusion The development of a firm’s HR strategies can significantly support business objectives but only under specific conditions; in other words, it is necessary that appropriate measures are taken in advance within the organizational environment; any required change could be then established – referring to any business activity – and monitored accordingly. Focusing on the significance of diversity as part of HR policies in modern organizations, Mathews (1998) supports that ‘before diversity strategies are implemented, the organizations cultural environment, management and evaluation systems should be examined to ascertain if existing personnel/human resources processes will support or hinder diversity in the organization’ (Mathews, 1998, 175). In other words, the effectiveness of the HR policies implemented within a specific organization is depended on a series of criteria the most important of which is the alignment of any policy chosen with the firm’s current/ existed characteristics (Sims, 2002). The appropriateness of any HR policy chosen is examined and evaluated by a firm’s leader; however HR managers could intervene in the procedure and make necessary proposals towards the improvement of a firm’s existing HR strategy. The methods available to HR managers in order to improve the productivity of employees have been examined by Ulrich (2000); the following strategic policies are proposed by the above researcher towards the above target: ‘new and stretch job assignments, membership on project teams, action learning in training experiences, leaders running training programs, 360[degrees] feedback, coaching and so on’ (Ulrich, 2000, 18). In any case, HR policies developed within a specific organization have to be in accordance with the firm’s aims and visions but also the organizational culture; i.e. the alignment of HR strategies – as of all organizational strategies – with the firm’s objectives and priorities is required (Conner, 1996) in order for these strategies to be valuable towards the increase of a firm’s performance. Of course, monetary rewards to employees in accordance with their performance are always welcomed by employees but in order for the specific policies to be supportive towards the promotion of the firm’s objectives they should be followed by the appropriate management of knowledge available in all organizational departments (Bartol et al., 2002); the needs of the employees should be aligned with the needs of the organization; only under this term any HR policy would be supportive for the organizational objectives. References Bartol, K., Srivastava, A. (2002) Encouraging Knowledge Sharing: The Role of Organizational Reward Systems. Journal of Leadership & Organizational Studies, 9(1): 64-76 Conner, J., Ulrich, D. (1996). Human Resource Roles: Creating Value, Not Rhetoric. Human Resource Planning, 19(3):38-46 Fischer, R., Smith, P. (2003) Reward Allocation and Culture. Journal of Cross-Cultural Psychology, 34(3): 251-268 Haines, R. (1997). Discrimination, Harassment, and the Failure of Diversity Training: What to Do Now. Quorum Books. Westport, CT Hansen, F., Hansen, R., Smith, M. (2002) Rewards and Recognition in Employee Motivation. Compensation & Benefits Review, 34(5): 64-72 Howard, L., Dougherty, T. (2004) Alternative Reward Strategies and Employee Reactions. Compensation & Benefits Review, 36(1): 41-51 Kirkman, B., Shapiro, D. (2000) Understanding Why Team Members Won’t Share. Small Group Research, 31(2): 175-209 Lawler, E.E., Mohrman, S.A. 2003. HR as a Strategic Partner: What Does It Take to Make It Happen? Human Resource Planning, 26(3): 15-31 Mathews, A. 1998. Diversity: A Principle of Human Resource Management. Public Personnel Management. 27(2): 175-183 National Statistics, UK, Learning and Training at Work, 2002, available at http://www.dfes.gov.uk/rsgateway/DB/SFR/s000378/v4sfr02-2003.pdf Rowden, R.W. (1999) ‘Potential Roles of the Human Resource Management Professional in the Strategic Planning Process’, SAM Advanced Management Journal, 64(3): 22-29 Sims, R. Organizational Success through Effective Human Resources Management. Quorum Books. Westport, CT. Publication Year: 2002. Page Number: 165 Ulrich, D. 2000. From eBusiness to eHR. Human Resource Planning, 23(2):12-22 Wright, P.M., 1998. Strategy - HR Fit: Does It Really Matter? Human Resource Planning, 21(4): 56-59 Read More