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MBA

Human Resource Management Assignment 2013


Denver Manickum MBA1130524F
denver@icube.co.za 28 September 2013

Address: P.O Box 947, New Germany, 3620 Office: 0317010474 Home: 031 7010474 Cell: 0834828525
I hereby confirm that the assignment submitted is my own original work.

Question 1

Mod CSF, a business established in the 1950s has endured many changes and challenges over the past years. Counter measures had to be put in place especially in the HR sector. These changes need to be sustainable in the long run to ensure longevity of the company.

Possible sustainability challenges faced by Mod CSF New market entrants The import of Goods from Kenya and Botswana created lower priced competitors Move to Hammersdale could have lost key skilled staff members due to travelling challenges The Importation of completed garments from China poses a threat o sales in Larger chain stores The South African economic decline. The falling rand leads to a higher raw material purchase price hence lower profit margins Online retail stores offering lower prices in lieu of overhead savings by taking manufactured product direct to the consumer. Affirmative action employment introduces unskilled employees to the market. These employees need to be skilled at a further cost South African Stringent labour laws with regards to minimum wage poses an affordability challenge, compared to Kenyas and Botswanas more relaxed labour laws Current clothing trends change at an alarming rate and keeping up would be a possible challenge due the diverse mix of cultures Low staff moral due to being over worked i.e. Working a full week and training over the weekend Lower production due to low staff moral. Loss of production as a result of increased absenteeism

The Effect of Mod CSF sustainability challenges on HRM Practices Increased staff training new employees not only need to be up skilled but also orientated into the company Specialized training for managers who need to be skilled in terms of production processes. Employee engagement helping employees understand the benefit of training and explaining the long terms effects of the extra time required for training Increased staff employment for new plant and training of same Design of training programs specific to the companies prerequisites

Further recommendations in HRM

Staff Incentives to increase moral. Assuming the general majority of staff id within the LSM 4-6 Range. Paid Leave in lieu of training - allowing time off per training time. This should be scheduled on a rotational basis to minimize loss of production.

Increased productivity could be rewarded with cash or vouchers. Team Building exercises introduced to allow better cohesion of staff members.

Given the above statements and recommendations Mod CSF should be able to define a appropriate HR practice that is sustainable and conducive to longterm goals

Question 2

According to, http://highered.mcgrawhill.com/sites/dl/free/0070984549/567212/samplech01. pdf, High-leverage training is linked to strategic business goals and objectives, uses an instructional design process to ensure that training is effective, and compares or benchmarks the companys training programs against training programs in other companies

To develop training strategy aligned to Mod CSF Strategic Business Goals the following elements must be included: Training must be aligned to business goals and strategy Mod CSF is an employee centric company with its main assets being the skilled staff. Training should be aimed at empowering staff and focus on individual strengths Any form of training should have a compelling business reason. Training should therefore be relevant. Each individual should be evaluated first before sent for training. Advanced designing courses would not be suitable to a cutter but an cutting course may be given to a designer so that he/she may understand the limitations of the job therefore design more effectively Training should be an enabler to enhance performance of employees resulting in improved company result and performance. By focusing on an employees needs one can determine the level to which that employee want to improve. It also needs to be assumed that that an individuals mental capacity is limited. Training out of reach of the individuals capacity would be impractical and may leave the pe rson feeling inadequate. Training programs should be benchmarked against other training programs to determine the effectiveness, level and standard of training interventions. Research and evaluations need to be made on past attempts. Past failures and challenges will be a platform for improvement on future developments

The company should embark on a process of continuous learning that requires employees to understand the entire work process and expects them to acquire new skills, apply them on the job. This will obviously assist in production losses due absenteeism where every employee has a backup to support production lines.

Management should identify training gaps and ensure that training is applied on-the-job. Management needs time on the floor and at times physically assisting in the production lines. This will allow them the foresight to identify the flaws in effective production.

Training must be linked to specific outcomes. Mod CSF can easily lose money on training because it is poorly designed. Training needs to be linked directly to challenges and goals.

Importance should be place on creating learning opportunities at all levels. The focus on employment equity is imperative and by Identifying strengths in employees Mod CSF can allocate training to the correct individuals and ensure excellence.

Establishment of a single point of access for learning. Should the desired choice remain in-house training, this should be available to all employees including upper level managers. This will also create an atmosphere of cohesion as it will allow for team building as well as enhance employee manager relations through mentoring.

Training should also enhance employee satisfaction. Being a company thats focused on employees being the prime asset, Mod CFS should take human motivation into consideration. According to Maslows hierarchy of needs, Self-esteem is essential to performance. The increase in intellectual capacity via training will bring an individual closer to mastery thereby enhancing ones self-esteem. Mastering ones ability also increases job security, which will appeal to the safety needs of the individual.

With the above elements taken into consideration the development of the training strategy is still necessary. This will involve multiple processes summarized in the diagram below.

Training Strategy Development Process.

Conducting Needs Assessment


Organisational Analysis Person Analysis Task Analysis

Ensuring Employee Readiness


Basic Skills assesment Motivation for training Highlighting Benefits

Creating a Learning Enviroment


Learning Objectives and Material Employee Feedback / Input Programme Modelling and Administration

Ensuring Transfer of Training


Self Management Peer to Peer support Manager to Peer Support

Develop Evaluation Plan


Identify Learning Outcomes Choose Evaluation Design Plan Cost - Benefit analysis

Select Training Method


Traditional - OnSite Traditional - OffSite E-Learning / Correspondence

Monitering and Evaluating the Program


Conduct Evaluation Identify Gaps and Flaws Implement Improvements

Question 3

According to Herman Schwind, Hari Das and Terry Wagar, Human Resource Management: A Strategic Approach, Strategic HR management is defined as:

Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders.

Strategic HR planning is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization. All organizations should develop a strategic HR plan as it creates a guide to make decisions about the future. It is the process of systematically reviewing human resource requirements to ensure that the number of the employees matches the required skills. Strategic Planning Is the determination of the overall organizational purpose and goals and how they are to be achieved.

The strategic HR planning process has four steps: Assessing the current HR capacity Forecasting HR requirements Gap analysis Developing HR strategies to support organizational strategies

3.1 The Importance of Strategic HR Planning is:

Supports the budgeting process Using process previously used by competitors HR managers can create plans for recruitment and training whilst working with existing budgets or motivating for extra funding

Supports the business planning process Strategic HR planning is an embedded part of the annual and multiyear business planning process and long-term goals. A Strategic HR plan allows the organization to envision placing the right people in the right positions at the appropriate time

Identifies lack of qualified talent to fill important positions Strategic HR planning helps highlight talent shortages, speeding up the process of identifying sources of new talent that could make significant impact in the production process.

Serves as a mechanism for retaining critical talent Strategic HR Planning improves communication between human resources and production. This subsequently assists to identify and retain the most important talent.

Identifies skills gaps in the workforce Strategic HR Planning improves communication between human resources and production. This subsequently assists to identify the lack of talent in areas of production requiring improvement.

Becomes a mechanism for identifying critical roles Strategic HR Planning allows for evaluation of individuals in important roles within the organization, using their strengths more effectively.

Career management determining Planning and monitoring the career aspirations of each individual in the organisation and developing them for improved productivity

Management Development Assessing and determining the developmental needs of managers for future succession requirements.

Common problems that occur in Strategic HR Planning

Lack Of Support From Executive Leadership Results-oriented human resources planning require the support of executive leadership. Older school upper management may be resistant to advice or orders from a newcomer.

Inexperienced Human Resources Specialists A suitably qualified specialist may not have the necessary experience within the industry in question. For example a HR specialist in the tobacco industry may not have the common knowledge that is required in the clothing industry

Budget Allocation The human resources department itself is not a revenue-generating source. Human resources budget is often overlooked.

Health Care Act Implementing health care reform has been an ongoing challenge to HR departments, Acceptance from employees in seeing the benefits as well as acceptance from upper management in smaller concerns due to budget constraints

Generational Shifts As baby-boomers begin to retire, more Generation X and Y workers will ascend into management positions. Statistically, members of these generations tend to be less concerned about company loyalty than their parents and more concerned about what the company can do for them. There also are fewer of them. These factors mean a gap in leadership will occur in some companies. The company may experience the challenges posed by having so many different sets of values, expectations and work styles in the workplace.

Recruiting Many human resources departments are struggling to recruit the right workers, especially for technical jobs e.g. Designing, Maintenance engineers.

Retention during transitions An improving economy results in employees examining their options, especially if they've felt under-appreciated during the downturn. For example, a long-standing worker from Mobeni who lives some distance away from the new premises may want a transportation subsidy. .

Technological Advances And Workplace The workplace setting is changing because of technology.

Telecommuting and online reporting relationships are becoming the norm. Working from home requires motivation and discipline. Some employees lack these traits and would not be productive workers if allowed to work from the comfort of home.

Resistance to Change As with any change in the workplace, changes in technology may result in anxiety and even resistance among employees. Employees who envision that a machine will replace their roles within the company or computer that can do the job cheaper or faster can see technical changes specifically as threats.

Workforce Shortages A shortage of skilled workers exists in many industries. With Mod CSF human resource mangers may find it difficult to find workers who are adept at using new technology. Hence they must train their current employees to keep up with technical changes and they must motivate

and encourage employees who they bring on board to be the best they can be at using new technology.

Training and Retention Employees are trained at a cost and the loss of that employee to a competitor is a challenge.

Managing Information Human resource managers have a vital role to play in managing information and securing the privacy of information.

Question 4 The importance of synchronising Mod CSF HR Strategy with The Business Strategy

Mod CSF Business Strategy To increase revenue and share price Increase Client base To be more competitive against imports To create an employee-centric environment To increase production and plant To up skill existing staff To create a more efficient production environment To create the structure to support the business strategy

Recommendations for aligning HR Strategy with Business Strategy. Invest in financially savvy expertise. Consult with economists that are knowledgeable on a global scale. Due to globalization trends Mod CFS needs to have international business intelligence. Train cutters and designers to work cost efficiently together. This may include basic cutting training for designers to allow maximum use of materials Create a consumer savvy Sales team. This needs to be a driven group knowledgeable in the production and fashion environment to market the company within its means. Invest in a strong buying team. This could be from up skilling existing staff who have knowledge of existing suppliers and materials required bust also new members who dont have a relationship and will easily negotiate with mills and manufacturers without prejudice Arrange Teambuilding initiatives with middle managers and Production staff. This will increase moral and will motivate production staff to work more effectively Invest in researching equipment thats saves time and money. New technologies are mushrooming constantly. Keeping up with trends is

imperative, as competitors will have an edge on cost saving in terms of speed and efficiency. Provide training for staff so that they may climb within the ranks, as it is more economical to train existing staff with basic skills than to start fresh with a new employee. Educate staff and management on the importance of change and the long term benefits of aligning Business and HR strategies

Aligning the HR strategy with the business strategy is of utmost importance as the key elements for success in business is placing the right people in the correct positions at the appropriate times. If this process is timed perfectly Mod CFS will enable itself to maximize on each decision. Structure and strategy go hand in hand. Since it is appropriate for Strategy to follow Structure it is crucial for strategy to support structure. With the appropriate business goals set in place at Mod CFS, The HR Manager can then set the HR Strategy in Action to support the Long-term goals of the operation.

The outcomes of a synchronized Business and HR Strategy Plan if implemented correctly could lead to: Lower production costs The correct Training and placement allows for efficient work Increased productivity Efficient workers lead to Increased productivity Lower payroll Increased productivity alleviated the need to increased labour Decreased Training - Up skilling existing workers leads to minimal training required hence increased production Decreased training costs The Decreased Training is a cost saving to the company thereby increasing net profit Staff retention Allowing staff to be empowered creates a sense of loyalty

Business intelligence to compete globally Knowledge of where your competitors are and want there weakness are allows the organisation to concentrate on internal strengths.