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Case 1: Motivating through Total Reward Introduction The Royal Bank of' Scotland Group (RBS) is one of the largest financial services companies in the world. It provides a range of services including banking and insurance. The RBS` Group operates in Europe, the US and Asia, serving more than 36 million customer’s world-wide. It employs more than 140,000 people. Roles As a major company, RBS needs to recruit the best employees it can. RBS is a leading employer and therefore offers a range of great job opportunities. People can start their working life by joining from school or from university. There are many types of job available, for example. working in a branch of the bank, or at head office in roles like marketing or sales. Motivation What is it that makes people want to work harder than others? Some key theories are: * Taylor and 'scientific management’. This theory said that every job could be measured by the amount of work done or the number of pieces made (this is known as the 'piece rate'). Workers would work harder because they would earn more. * Herzberg and the 'two factors'. Herzberg's theory showed that certain motivation flews needed to be in place first. These were called Wed 'hygiene' Wtors, for example, a clean work place and good bade pay. Only once these were in place could other factors be brought in to motivate workers. RBS uses a number of factors to motivate its people. These include recognition for a job well done, promotion and other rewards. * Maslow and the hierarchy of needs’. This theory showed that workers had to have their basic needs, such as feeling safe and secure, met first. Only then could they move on to be motivated by other things. However, RBS believes that meeting these higher needs, for example, by recognizing achievement, will motivate employees and help the company to grow. It has put in place a number of benefits to meet these needs. Total Reward RBS has a special benefits scheme called Total Reward. At the one of the scheme is good basic pay. RBS also provides many flexible benefits in areas like health cover, pensions and childcare. It uses this as part of its strategy to motivate employees. In addition to these benefits, every employee
Developing aims Kellogg's managers set aims. It sets clear aims and objectives. motivation theory comes to life. 3. at every level. It has 39 brands and a 42% share of the UK market. The market is worth 1. . This is called product positioning. Kellogg ensures that each brand has a unique place in the minds of its customers.is set targets. It provides a world-class employment package of benefits for every employee. RBS also supports community projects and charities that is people care about. It does this by trebling any money the employees raise. It then uses the strength of its brands to help it reach them. Name two motivating factors at RBS. consumers have shown that they want to lead more healthy lives. It promotes the message 'Get the Balance Right'. the NSPCC and youth charities. All employees are paid a bonus of 10% if the company as a whole does well. Kellogg makes a range of products for the various segments of the UK's market. Employees can earn a bonus if their targets are reached. There is also a profit-sharing scheme. This is the trade off between time spent at work and spent outside of work. Describe the differences between the theories of Taylor and Maslow. They may want to spend more time with their family or perhaps take a career break to go travelling. These are measured to see how well he or she is doing. Conclusion RBS knows its employees are its future and rewards and encourages them. This means showing that it is a company that cares for both its consumers and the environment. Work-Life Balance RBS knows that it is important to have a good work-life balance. Kellogg's aim was therefore to reinforce the idea of a healthy lifestyle. It also wanted to show that it corporate responsibility. The RBS “Your Time” programme also helps by recognising that employees may need time off work for reasons other than sickness.1 billion a year. How does RBS’ Total Reward package fulfill Maslow’s higher levels of motivation? 4. for example. Kellogg's success is achieved through careful planning. Kellogg wanted to be part of this debate. Issues for Discussion 1. An aim is a broad statement of where a business wants to be. How does Total Reward contribute to RBS’ overall strategy? Case 2: Using aims and objectives to create a business strategy Introduction Kellogg is the world's leading supplier of breakfast cereal. These must match what consumers want. In RBS. RBS employees have the opportunity to work more flexibly. 2. In recent years.
These should be SMART. Kellogg's strategy included helping people become active. Kellogg has also sponsored other walking events. is also a family activity and a skill for life'. Communication Kellogg's success in reaching its aims is due to the clear ways by which it conveys them to customers. providing over 1. This led Kellogg to develop a cycling based promotion. sugar and fat. It has also produced leaflets. These closely match those of Kellogg. The ASA's want everyone to 'enjoy swimming as part of' a healthy. These can be obtained from its website. A free pedometer given away with All Bran inspired people to walk further.8 million per The link with the ASA also helped Kellogg to support active lit stylesin other ways. It uses cartoon characters to advise children and parents about exercise. Swimming. Kellogg uses its in-house magazine to promote the message. lit style'. It linked with Sustrans. It has worked with the Amateur Swimming Association (ASA) since 1997.Objectives Once a broad aim is put in place. This helps consumers to make choices. Kellogg became the main sponsor of swimming in the UK. This stands for: • • • • • . It is communicating this message through its brands and promotions. which promotes sustainable transport. It also encourages walking. * Describe the difference between an aim and an objective . Strategy A strategy is a set of' plans designed to reach the aims set. Kellogg uses symbols on its packs to show healthy Guideline Daily Amounts of ingredients such as salt. Conclusion Kellogg knows from research that a balanced diet and regular exercise help people stay Healthy. Specific: Measurable: Achievable: Realistic and Time related. objectives can then be set. They were set in three main areas * promoting physical activity for health * using packaging to promote a balanced lifestyle * using food labeling to help consumers make healthy choices. Issues for Discussion * Explain what is meant by a premium brand. Internally.
Lots of these small steps can lead to big improvements. evaluate how Kellogg communicates and discuss how this enables it to position its brand. Added efficiency also keeps costs down and helps to protect jobs. Leyland aims to gain a 20% market share. It uses it made sure that it had the views of everyone who had been involved in a previous change and learned from this. Continuous improvement is vital for Leyland to meet its targets.* Outline the purpose of Kellogg's work with the ASA. Setting goals_ Leyland sets itself targets. Leyland clusters its KPIs under themes. Before going ahead. * Using examples to support your dialogue. These are: • • • • • • • on-time performance productively quality. using a Quality Index target financial pleasures stock control health and safety Kaizen Information from these KPIs is charted. It uses measures to see if it is reaching its goals. It has a strategy to help it reach this target. keep customers happy and stay c ompetitive. as well as in Holland and Belgium. A good example is Leyland's introduction of robots in its paint process. Case 3 : Continuous improvement within an organisation Introduction Leyland Trucks is part of a US company called Paccar Inc. It makes trucks under the DAF brand at Leyland. Managers can see from charts how close they are to targets and set new targets. This is a set of plans linked to its aims. Kaizen A Kaizen action is one designed to bring about improvement. near Preston. This system of continuous improvement is called 'Kaizen'. Leyland Trucks improves through many small steps. These are called Key Performance Indicators (KPIs). Often this involves teams meeting to see where problems might lie. Kaizen is measured through a statistical tool called Six Sigma. Sometimes a business can improve by taking a giant leap forward. Culture .
What is Kaizen? I low is this different from a one-step leap forward? 2. All tried to spot problems and suggest solutions. Kaizen in action The success of Kaizen can be seen through a recent example. A team of project leaders worked with other staff. Case 4 : Managing risk through effective.`Culture' describes the way in which a business works. There is a risk involved in all business activity. How does Leland Trucks measure Its continuous improvement? Can you suggest K KPls for another type of business organisation e. Its values are based on team building and training. there were: • • • multi-million pound savings from Six Sigma a rise in on-time delivery to 95% a fall in both defects on units and injuries. Conclusion For Leyland Trucks. Energy Companies have a responsibility to maintain supplies of energy 24/7. It involves everyone in decision making and gives them responsibility and power. It is based on all being involved. It encourages everyone to try out new ideas. team-based decision making Introduction RWE npower is an integrated energy company. This led to more than greater efficiency in a number of areas. This means that they have to be aware of and manage risk. It is the third largest supplier of electricity. Everyone is trusted to take part in the process and to contribute where they can. 200 ideas for improvement and greater efficiency in a number of areas. How is Kaizen expected to help Leyland Trucks to increase its market share? 3. which is one of the largest European energy Utilities. cost and returns. . Kaizen is a key part of its success. event was held in the vehicle finishing part of the plant. The culture at Leyland Trucks is one of continuous improvement. Why is continuous improvement most likely to be achieved in a company with a culture of trust'? Start your answer by explaining what is meant by a culture of trust. Managing risk successfully means striking a balance between risk. People 'live the values' every day by sharing working in teams and celebrating success. It is part of the RWE Group. In 2006 alone. This led to more than suggest solutions. through its npower brand and one of the largest electricity generators. a Kaizen. Kaizen has helped it to achieve results across all of its KPIs. a retailer or a leisure centre'? 4. In May 2006. Issues for Discussion 1 .g.
Teamwork encourages team members to bounce ideas off each other so can be fun as well as leading to solutions have saved RWE npower millions. Graduates RWE npower employs graduate engineers straight from university. Some solutions can save the company millions so RWE npower knows its investment in graduates is worthwhile. small defects in turbine blades in power stations are inevitable during their working life. • Improvement problems.e. helps people maintain and increase their standard of living by supplying energy and invests in large capital projects. up the various options (shutdown. however. Here Solutions need to address how the business can become for example more efficient or more green. repair. • Deviation problems are where targets are not heing met. managers need weigh up the various options repair. but then they consider commercial criteria. It provides jobs. Problem solving in this case is centred on closing the gaps. Creative problem-solving. including cost and customer needs. Solutions must take into account the needs of the customer. New solutions mean new risks. develop creative solutions to problems. • Open-ended problems where conventional solutions will not work. The first priority is health and safety. This is linked to open-ended problems.). replace etc. Conclusion . It seeks green or sustainable solutions to problems wherever possible. Engineers at RWE npower have to handle these problems all the time. Some solutions can save the company millions so as its investment in graduates is worthwhile. The most visible face of the business is its huge power stations but it is also involved in developing alternative forms of energy such as biomass plants and wind farms. They have to take into account possible costs and health and safety issues along with the technical aspects of the solution. coming up with new and untried ideas. and engineers need to understand these. They are trained and have a good career path in the company. When these are reported. For example. Team work brings together engineers with different skills and experience. Types of problems There are different types of business problems and therefore different solutions to them. Solutions are generally linked to the idea of 'thinking outside the box' i. They are encouraged to think for themselves and solutions to problems. In the first two cases. there are often proven techniques and solutions which can be worked out in teams.Importance RWE npower is an important contributor to the economy.
They may want more training. This means that everyone share One shares the same vision and. but able to solve. These engineers need to be not Just skilled at their specialisms. 2. Siemens is built on a high performance culture. It consists of four main elements: * achieving a high performance culture * increasing the global talent pool . Siemens products touch all our ranging from kitchen equipment to power generation and from traffic lights to hospital scanners. It Is something that is created over time by the organisation and the people that work for it. Its global headquarters are based in Germany but has sites around the world including around 100 in the UK with its UK HQ in Berkshire. This is a key plank of Siemens' business strategy. HR development Siemens is committed to helping its employees to develop and fulfil themselves at work. Siemens knows that to maintain and develop the excellent workforce that. 4. How does encouraging thinking outside the box help RWE npower to make improvements in the way in which it operates? 3. problems in a creative way. 'thinking outside the box'? Give an example of how this can be applied to engineers working for RWE npower. more interesting jobs or just a better work-life balance. Recommend wavy in which another organisation of your choice might improve its employees to think in creative ways about work.RWE n power needs good engineers to be able to fulfil its commitment to supply energy 24/7. What do you understand by the term. Issues for Discussion 1. It believes that its human resources should be actively involved (called 'engagement') in its activities. values and busts each other's contribution. People Excellence This is the name given to the part of the strategy that relates to people management. results through encouraging its employees to think in creative ways about work-related problems. it has good people management. Siemens is a global electronics business with a turnover of around £60 billion a year. Explain how encouraging engineers at RWE npower to think outside the box has led to increased motivation for these employees. Case 5: Creating a high performance culture Introduction The culture of an organisation is a way of describing the typical way in which that organisation operate.
How effective do you think the Siemens approach to people management will be 2 in creating great results? . Talent management is applied to the business globally as a key par! the business strategy. In this way. Talent management Siemens makes sure that all of its employees. Creating the culture The high performance culture is based on teamwork. Performance management is Used to monitor progress and set objectives for employees. This feeds directly into the high performance culture. How important is the appraisal system in helping to create shared understandings the objectives of the organization and personal objectives of individual employees? 4. Issues for Discussion I 1. Siemens uses a number of ways to make sure that it shows its appreciation of employees. It is closely linked to performance management. so does the business. Conclusion The success of an organisation can be traced back to its people. are supported to reach their potential. where extra tasks or responsibility can make a job more rewarding and * job enlargement. It matches individuals' talents with tasks. not just the high fliers. This all helps them to feel part of a successful team and helps Siemens compete more effectiveIy. As team performance improves over time. Employees know that they are valued and busted and this helps to motivate them. everyone is working towards better results.* strengthening expert careers * Siemens Leadership Excellence Programme (SLE). It allows an honest dialogue to take place so everyone knows how well they are performing and how they might improve. At its heart is the building of a high performance culture. Its high performance culture supports people and helps them to reach their potential. Talent management allows for: * job enrichment. Targets are set for the business and these are related to individual and team targets. where the scope of a job is widened and extra skills developed. This helps Siemens to be competitive. Siemens demonstrates thins well. Describe one of the systems that Siemens has created which provides development opportunities for employees at work 3. How does Siemens seek to provide good career opportunities for employees? 2.
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