STRATEGIC RESOURCE

MANAGEMENT

JANE .I. ODONWODO

10/15/2012
SA 10/11 ODJA-MBAGEN- ABJ
Table of Contents
INTRODUCTION .................................................................................................................................. 3
HUMAN RESOURCE MANAGEMENT ............................................................................................ 4
Defining Human Resource Management & its place in an Organization ................................ 4
How HRM Contributes to Organizational Objectives .................................................................. 4
The Role of HRM within an Organization ..................................................................................... 6
Models of HR Management Roles ................................................................................................. 6
Process of Planning HRM Requirements ..................................................................................... 7
Recruitment and Retention Strategies in an Organization ............................................................ 8
HR Metrics ..................................................................................................................................... 9
Techniques for Employee Development ....................................................................................... 9
Effect of HRM Development Techniques on Employee Engagement ................................... 10
The Effectiveness of HRM Strategies in supporting Organizational Strategies ................... 11
PHYSICAL RESOURCE MANAGEMENT ..................................................................................... 11
What are Physical Resources? ........................................................................................................ 11
Evaluating the Role of Physical Resource Management in an Organization ........................ 14
An Appraisal of ASO’s Process in Planning Physical Requirements ..................................... 14
MARKETING ....................................................................................................................................... 17
An Overview of ASO’S Marketing Environment & Strategy ................................................. 17
How Marketing Activities Contribute to the Achievement of Organizational Objectives ..... 18
The Role of Marketing Operations in ASO ................................................................................. 19
The Role of Marketing at ASO ................................................................................................. 19
Market Process Development in ASO ........................................................................................ 21
INFORMATION SYSTEMS .............................................................................................................. 23
How Information Systems Contribute to the Achievement of Organizational Objectives ... 23
The Role of Information Systems within an Organization ........................................................ 24
Process Appraisal of Information System Requirements in ASO ........................................... 24
CONCLUSION .................................................................................................................................... 26
REFERENCES ................................................................................................................................... 27

2|Page Strategic Resource Management by Jane Odonwodo

INTRODUCTION

Be it human resources, skills, technology, funding and time, welding all together and
aligning to achieve an Organization’s prime goal of being in business is the core
function of Strategic Resource management. At the base of this function is the
planning, efficient and effective distribution of an Organization’s resources as when
needed. This essentially leads to better utilization of resources, cutting out waste and
ultimately yielding greater productivity. Strategic management of resources will also
see an Organization working smarter rather than investing longer hours in getting a
job done.

When resources are properly managed, it helps to determine when resources need
to be maintained, when they are misused, underutilized or insufficient. It can also
help a business competitive advantage earned through the application of appropriate
methods in retaining best hands for the business and in meeting customer’s
expectations.

In the body of this work, we will be looking at how Human Resource Management
contributes to achieving the Corporate Objectives of ASO Savings & Loans Plc. We
will also be evaluating other areas in HRM that bother on requirements, recruitment
& retention strategies, employment development & engagement and the
effectiveness of HRM strategies in supporting Organizational strategy.

Furthermore, we will be learning how physical resource management contributes to

the achievement of Organizational objectives; the role of physical resource
management within an Organization and the processes that an organization uses to
plan its physical requirements.

Other areas covered in this work are the impact of marketing activities in achieving
business objectives. This will include an evaluation of marketing operations and the
process an organization uses to develop its markets.

Lastly, we will also be examining the role of information systems, how they contribute
to the realization of organizational objectives and the processes that an organization
uses to plan their requirements.

As mentioned earlier, the Organization to which references will be made to in this

work is ASO Savings & Loans Plc. This organization is a Primary Mortgage
Institution which was incorporated in Nigeria as a limited liability company on
November 9, 1995. The Bank currently has the Vision “to be the Mortgage Bank of

3|Page Strategic Resource Management by Jane Odonwodo

Choice” and a mission “to build mutually profitable relationships, anchored on a
passion for excellence”.

HUMAN RESOURCE MANAGEMENT

Defining Human Resource Management & its place in an Organization

To clearly define Human Resource Management, it is important to first understand its
place in an Organization and the place it occupies in the big picture of Business. In
describing what an organization is, Certo (1992) made three basic points which are
(i) A business with particular goals to be achieved with (ii) limited resources through
managing the efforts of (iii) a work force. He explained that of these three basic
components, the workforce/people is the most complicated and challenging. As true
as this is, an organization cannot operate without People because they are the ones
who make things work .Their impact on the other two elements cannot be ignored
because the choice of corporate goals are determined by them and also how
resources are to be distributed to achieve them.

So in defining what HRM is, Michael Armstrong (2008) states that it is the “Strategic
and coherent approach to the management of an organization’s most valued assets-
the people working there, who individually and collectively contribute to the
achievements of its objectives”. Adding to this, John Storey (1989) proposed that
HRM can be likened to a “set of interrelated policies with an ideological and
philosophical underpinning”. He offered four components that make up the
meaningful version of HRM. They include;

1. A particular constellation of beliefs and assumptions

2. A strategic thrust informing decisions about people management
3. The central involvement of line managers
4. Reliance upon a set of levers to shape the employment relationship

More explicitly, Boxall et al (2007) defined HRM as “the management of work and
people towards desired ends”. In their opinion, HRM is the unavoidable outcome of
initiating and growing a business.

How HRM Contributes to Organizational Objectives

In today’s business where the management’s focus lingers on the Organization’s
Return on Investment (ROI), it is imperative that effective HRM is geared towards
effective use of a workforce in realizing its overall strategy and corporate objectives.

How does this happen? Let us examine the various characteristics of Human
Resources because in it lays their very capabilities of impacting on managerial
practices.

4|Page Strategic Resource Management by Jane Odonwodo

HRM is strategic in nature: HRM policies are often fashioned in such a way as to fit
in to an organization’s strategic business plans. It also seeks to employ employee
programs such as Profit sharing, attitude surveys, performance related pay and the
likes, in motivating the workforce to strive towards achieving corporate goals. It is a
common practice in ASO to use variable pay to motivate Staff to meet their individual
targets in the unit they belong to. The decision on who gets what is determined by
the scores made at the end of every appraisal period (done quarterly).

Commitment Oriented: Killian (1976) in his work clearly states that the investment on
human capital is uncertain. This means that you cannot predict accurately that
certain investments in Human resources must lead to a particular or measured work
output. So with Strategic Human Resource Management, the application of proven
techniques is usually applied to build a capable, reliable and committed workforce. In
ASO commissions and incentives are usually pegged on Staff recovery of bad loans
and the sale of the Bank’s funded properties to customers. They also make long
service awards to Staff who have served the Bank for 5years and beyond and make
it a practice of offering mortgage loans to employees who are confirmed and have
spent at least two years in the Bank’s employ. Employees of the Bank also enjoy car
loans, personal loans, Salary Advances, medical allowances and car loans from the
Bank. All of these help to instil a strong sense of responsibility and ownership in the
employees, towards the Bank.

Other characteristics of HRM that also help contribute to corporate goals include;

-It operates on the basis that a workforce should be regarded as assets which must
be developed and properly nurtured. The HRM in ASO makes it a point of duty to
send its management Staff on overseas technical training once a year and invests
on training the rest of it work force locally all year round. The Bank hopes to achieve
competitive advantage through this by developing a formidable workforce to achieve
its strategic objectives.

-It approaches employee relations issues from an individualistic angle rather than
collective. An example of this is the practice of individual employee contracts with the
organization which encourages higher commitment on the part of the employee who
perceives that keeping to his end of the bargain will guarantee his self-interest and
individual reward.

AN EXCERPT FROM ASO HRM POLICY MANUAL: ASO is guided by the

following in contributing to the Bank’s corporate goals

i) ASO’s human capital management strategies, policies and procedures shall be

derived from the Bank’s strategic intent.

5|Page Strategic Resource Management by Jane Odonwodo

ii) HCM and the business units shall collaborate as strategic partners in staff
management. The roles of the various entities shall be clearly defined in all Human
Capital strategies, policies and processes.

iii) Human Capital strategies shall be driven by strategic alignment to the business
strategy, effectiveness, efficiency, synergy and ROI.

iv) Key Performance Indicators (KPIs) shall be defined to determine (measure) the
extent to which human capital initiatives successfully support the Bank’s goals and
objectives.

v) The HCM function shall define key performance indicators for the articulated human
capital roles, namely, strategic partner, change agent, employee champion and service
expert, which shall be used to measure HCM‟ s level of support to the corporate vision
and goals/objectives.

vi) The major roles of the HCM function shall be strategic business partner, change
manager, competency builder, process innovator and relationship manager.

vii) To ensure continuous improvement and consistent support to the Bank’s business
goals, the human capital strategies shall be reviewed periodically.

The Role of HRM within an Organization

Originally, what we know as HRM today evolved from the 20th century as a
personnel function during which it duty comprised only of Record keeping of
employee information. It specifically served the function of a caretaker. Now the role
of HRM can be described as that of a Strategic Partner, seeking to employ dynamic
and technological approaches in propelling cost effectiveness and maximum outputs.
This present role of HRM includes the fusion of the traditionally administrative
personnel functions with employee relations, resource planning and performance
management. At the core of it is to guarantee Organization’s return on investment by
performing the following roles;
-Recruitment and Selection
-Training and Development
-Career Development
-Performance Management
-Tracking employee Hours
-Pay and Compensation
-Promotions
-Staff Welfare and Confidential advice to employees in relation to problems at work
-Redundancy related issues

Models of HR Management Roles

Considering the diversity of people and Organizational functions, different models of
HR models exist to help the smooth running of HRM roles. Some recognized models
include;

6|Page Strategic Resource Management by Jane Odonwodo

John Storey (1992a): This model proposes a two-dimensional map namely,
Strategic/tactical and Interventionary/Non-interventionary. In these he enumerates
the following roles;

Change Masters i.e. Interventionary/Strategic

Advisers (non-interventionary) i.e. they play minimal role in HR practices as
the bulk is passed to line managers. They are more like internal consultants.

Karen Legge (1978): In his model, Karen identifies two types of HR Managers.
They are the Conformist innovators and the Deviant innovators. The first are
always tended towards allowing their Organization’s goals to justify their means
of achieving them while the latter seeks to propose and obtain approval for a
different set of objectives, as its contribution to overall organizational success.

Tyson and Fell model (1986): This model proposes three variations of HR
practitioners.

1. The Contracts Manager: With a solid background in Industrial relations, he

acts solely to ensure that traditional/fundamental HR policies are
implemented. He is hardly tended towards innovations and the like.
2. The Clerk of works: More on the side of carrying routine employee
relations functions, the bulk of carrying out HR activities is left to the line
managers. Here HR policies are created only after a specific need, and
are short lived.
3. The Architect: Based on sophistication, HR policies are closely tied to
corporate strategy; attention is given to resource planning with a long term
view. The HR Head is very professional and his or her contributions are
often sought on the board to which he/she is a member of.
It is imperative to Note that ASO Savings & Loans employs this particular
role of HRM.

Process of Planning HRM Requirements

The decision to plan the future requirements for an Organization’s human resource is
usually born out of the company’s business plans for a particular period. These
requirements may include a need to open doors to recruitment, downsize, right size
or reshuffle job functions through deployments. Whatever the requirements are at
the moment, at the end of the line is always the goal to increase organizational
efficiency. Donald et al (2008) identifies three basic phases involved in human
resource planning. They include;

Identifying the size and skill requirement an organization needs for it

workforce in the future

7|Page Strategic Resource Management by Jane Odonwodo

 Determining the availability of qualified hands to Staff the Business in the
future. i.e. are there internal Staff who will be eligible enough to fill up key
positions in future when promoted?
Designing specific course of actions to ensure the Organization will have the
required number of Staff with the appropriate skill, at the right time to achieve
business goals.

Recruitment and Retention Strategies in an Organization

Although Organizations differ in their functions and operations the goal to recruit and
retain the best of hands cuts across all.

The methods employed to recruit may include an indefinite list of check lists but can
be divided into two categories;

You find us: A very common method where organizations posts vacancies on its
website, the national dallies or any where public. This attracts an influx and the HR
department will have to sift through to pick qualified candidates. Much as this method
is usually termed ineffective and time consuming, if a Company must adopt this
strategy, a recommended sourcing tool will be Employment Branding.

We find You: This is a more proactive approach where an Organization identifies

top achievers where ever they are and reaches out to them. This strategy tends to
be more focused, less time consuming, minimizes volume of applicants and
maximizes quality. In ASO Savings, this is method is usually employed when there is
a need to fill top management positions.

In retaining good hands, the following strategies will prove very helpful

Creating Career opportunities alongside good salary packages

Expanding training opportunities and tying them to compensations
Job rotation offers; This helps to break monotony and keep employees
interested in their work
Implement talent management programs. This can be tied to benefits of merit-
bases promotions
Convenient work environments
Establishing community service programs that will involve the voluntary
participation of employees. This will serve to boost employee pride in the
brand
Trading to sponsor part or whole of employees’ postgraduate tuition in
exchange for number of years of service (the golden handcuff). Employee will
however be required to reimburse training expenses should he/she move to
another employer.

8|Page Strategic Resource Management by Jane Odonwodo

HR Metrics
However, in addition to the above, it is often a professional practice to evaluate the
cost and impact of these activities because it helps organizations keep track of the
changes in these important variables. An excellent way to achieve this is through HR
Metrics. They include;

Recruiting metrics: They measure the action plans carried out in recruiting talents for
the Organization. The indices considered here are performance of new hire, new hire
turnover rates, impact of poor hire, and return on investment on newly hired
employees. All of these help to determine if a recruitment process has been
successful or not.

Retention Metrics: Often management like to know the financial impact of staff
turnover and average tenure of veterans. This helps an organization proactively plan
towards retaining its good hands.

Learning & Development Metrics: This will help management to ascertain the
success of the development programs it employs in achieving its corporate goals.
Variables considered include time and cost expended on training new employees, on
the job trainings and the processes involved.

Staffing Metrics: This seeks to show return on investment on each employee. This is
sought through recruiting efficiency ratio, cost per hire and cost on replacing an
employee.

One of the selling points for employing the HR Metrics in evaluating recruitment and
retention strategies is the advantage of knowing exactly where work needs to be
done and resources channelled to.

Techniques for Employee Development

Some of the techniques used for employee development by most organizations
include;

Technical Trainings

Tuition reimbursements

Managerial Trainings

Interpersonal skill trainings

Employability Trainings

External Conferences/ Seminars

Mentoring programs

Job Rotations

9|Page Strategic Resource Management by Jane Odonwodo

 Formal succession planning processes

Formal career mentoring (Internal & External)

Leadership Trainings

Critically accessing the Employee development techniques in ASO, the different

colour highlights indicates techniques that receive more investments than the other.

The techniques highlighted in orange are most used and enjoy higher investments

The techniques highlighted in green are used but not as much as the first
P
o
While the techniques highlighted in black are seldom used.
lP
io
c
l
y
i Effect of HRM Development Techniques on Employee Engagement
c
An employee is said to be engaged if he/she is committed both emotionally and
y
i intellectually in the accomplishment of an organization’s missions and visions. It
) shows itself in the employee’s readiness to go the extra mile to satisfy their internal
i and external customers and by extension, the overall success of the organization.
A
) Below is how HRM development techniques contribute to employee engagement.
S
O
A 1. Employees are quick to leave an organization if they sense that it does not provide
‟S
sO
opportunities for career growth of self development. Employees tend to feel more
‟ valued and attached to an organization when they are sent on training programs
h
s from time to time. It gives them a positive feeling of being needed by the
u establishment. As mentioned earlier, organizations who invest considerably in
m
h developing its employees, subsidizing tuition fees on graduate and post graduate
a
u
n
program and the like, for their employees, will certainly have more employees
m
a interested at giving their best to support organizational growth (scratch my back I
cn scratch yours).
a
p
c The downside of this though is once learning and development becomes an
ia expected norm, it ceases to have considerable impact of engagement. Employees
tp will begin to see as one of the value propositions due to them and nothing more. The
a
i effect is even lower in areas with very low unemployment rate and in economies that
lt
a are knowledge based.
m
l
a 2. Also part of employee development, constructive Feedback from employee
n
m mentoring, works like magic on most employees. People like to know how well they
a are doing and what they need to be done to get better. Apart from the fact that it
g
n helps sharpen their focus on how things need to be done and helps them realize
e
a their core competence, it acts as a super morale booster. The thought that one’s
m
g
e supervisor is genuinely interested in ones performance for the better, is enough to
n
m keep an employee coming to work every day.
te
n
st 10 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo
t
rs
a
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3. Leadership Development also contributes in some way to employee engagement.
Some Managers who return from Leadership programs become more engaged and
encourage does around them, by exploring their new skills. There are also records of
those who don’t because they are forced to attend to more critical pending issues
when they return.

The Effectiveness of HRM Strategies in supporting Organizational Strategies

Unarguably, cost expended on Human Capital usually forma the bulk of operational
cost for most organizations. In view of this, it is a natural conclusion that HRM plays
a vital role in ensuring that an organization meets its strategic objectives. This is
more so because not matter how profit driven a well thought out strategy is, it yields
no result without an effective workforce driving it. Edward et al (2006) identified three
ways HRM contributes to organizational success.

1. The first is the HRM familiar role of Human Resource Management through
building performance management capabilities, linking competencies to job
requirements and career development, enhancing organizational change capabilities
and building organization-wide HR Framework.

2. The second role sees HRM as a Business partner. Here it advocates and ensures
that an organization’s workforce is equipped with competent and motivated hands to
realize corporate objectives at any given time. Leveraging competencies, managing
learning linkages and redesigning work capabilities are some of the ways it employs
to achieve this. It also focuses on improving its processes for better effectiveness
and has a say in business decisions with a view to highlight the HR implications of
conclusions to be drawn. In this role, HRM works to evolve Organizational culture to
fit the new strategy and vision.

3. The third way HRM plays out in supporting Organizational success is in its role as
Strategic Partner. Edward et al (2006) states that “In a knowledge economy, a firm’s
strategy must be closely linked to its human talent”. In other words, as strategic
partner, it is imperative that HRM be deeply involved in strategy formulation and
implementation. This is because its core function at recruitment and retention,
motivating, grooming and deployment of an effective workforce is pertinent to
Organizational strategy success. This is even truer if one considers that where most
strategies fail, is not at conception but at execution.

PHYSICAL RESOURCE MANAGEMENT

What are Physical Resources?

Physical resources can be termed as those resources accessible to a business in
form of land, buildings, Vehicles and equipments that are essential to the day to day

11 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

operations of an Organization. The success of an Organization’s goals is greatly
determined by the effective management and use of these physical resources. More
so, a brilliant Organizational Strategy must be supported by adequate and
appropriate resources.

In ASO, the resources available to the organization and the way they are managed
have a considerable impact on the Bank’s business success.

Office buildings and facilities: ASO has a total of ASO has a total of 25 office
spaces with 17 of them in the Federal Capital Territory and the remaining 10, in
Kaduna, Minna, Akure, Port Harcourt, Ikeja, Victoria Island, Kano, Benin. All
buildings are the sole property of the Bank. My findings reveal that all of these
branches are strategically located in areas that have great potentials of attracting the
kind of customer their services are meant for. Their Corporate Head office is wisely
located Very close to the Federal Mortgage Bank of Nigeria (FMBN). FMBN is the
statutory body that governs and overseas the collection and distribution of the
National Housing fund.

ASO’s choice of location close to the Body immediately sends a signal to existing
and respective customers that they are always in touch with updates in the mortgage
industry, and enjoy a very proximate relationship with FMBN as it relates to
processing and disbursement of housing funds. This location is also in the Federal
Capital’s Central Business District which also plays host to the Central Bank of
Nigeria’s Corporate Head Office.

The Location of its other offices is tied to attracting different categories of customers.
For instance, its branches in Wuse and Gudu markets are in business to attract and
serve the business men and women in that location. The branches in the National
Assembly complex and the Eagle Square (Abuja), were strategically positioned to
capture and serve customers in the Senators/ Honourable members and the civil
servants in the Federal secretariats. Same goes with the location of the rest of its
branch network.

In addition to these, its other branches especially those outside the FCT, are
specially designed to attract and create the impression of an organized, responsible
and forward moving establishment.

Maintenance: In ensuring that this assets continually delivers on its strategic

objectives, the Supply Chain unit of ASO has policy manuals that hinges on Branch
standardization for purpose of uniformity and Office space maintenance.

Plant and Machinery: Considering the inconstant power supply in Nigeria, ASO
relies a lot on generating sets to power electricity in its buildings. The provision of
this helps to keep its network servers up and running for business at all times. This
especially helps to back it 24 hour 7 days a week service on its ATMs around the
country. The effective and uninterrupted power supply from its generating set helps

12 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

to keep business operating optimally serving to prevent breaks in its product and
service chain.

Maintenance: Conscious of how important its power generators are to the smooth
running of the business, ASO has a maintenance policy which includes schedule and
process of maintenance.

Motor Vehicles/ Dispatch Motorcycles: Essential to every Business is the need to

move around for the purpose of disseminating ones products and services. ASO has
a total of 35 pool cars and 28 Dispatch motorcycles. In helping to support
organizational objectives, the cars are used to get the marketers to location of their
clients (existing and prospective). In addition to this, the physical presentation of the
cars is intended to boost the corporate brand image of ASO. The dispatch helps to
facilitate the transfer of physical documents such as cheques, memos, customer
account statements and the like, in the course of business.

Maintenance: The above is obviously essential to the value chain of ASO Savings
and also has a manual and a process in place to monitor and preserve its service
life.

Furniture & Fittings: The furniture and fittings help to create the right ambience and
appropriate environment that will attract customers and help employees feel
comfortable working in. The ambience and the general look and feel of the branches
are a function of the furniture and fittings put in place. The go a long way in sending
the right signals to customers (if effectively used) on ASO’s outlook to business.

Office Equipments: These are the working tools which comprises of laptops,
desktops, photocopiers, scanners, time stamping machines, telephones and
everything else the ASO Workforce needs, to get the job done. The value to the
realization of organizational objectives can never be over emphasized. Their
maintenance is also paramount to the smooth running of day to day operations.

Security/Insurance: All is lost without safety and insurance on physical assets.

Mindful of this, the Bank has an outsourced security agency that carters for the
safety of its office facilities. This is to ensure that investor/customer funds are safe in
the vaults and bank properties are not vandalized and stolen. Ensuring this helps to
make sure that the Bank does not lose money and that the confidence of
customers/Investors is safeguarded.

These assets (e.g building & cash) are insured to carter for unforeseen mishaps.

Maintenance: The Internal Control Unit of the Bank ensures that the security
personnel are trained and retrained often on how to use security gadgets to better
perform on their jobs. The IT unit also has a policy on the maintenance of the Bank’s
soft ware security systems, CCTV Cameras and the like.

13 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

Evaluating the Role of Physical Resource Management in an Organization
The role of Physical Resource management in an organization can only be
evaluated by the level of Return on Turnover (ROI) management records, from its
procurement or acquisition to its service life end. This can further be determined with
its impact Competitive Value Generation, Stake Holder Value Generation and Value
Generation for Customers. The more value created by an organization’s physical
resources Management, the more management will be inclined to invest in them.

An Appraisal of ASO’s Process in Planning Physical Requirements

All requests placed for Physical resources in the Bank are guided by policies, budget
and management approvals which are usually backed by justification (always tied to
the Bank’s ROI). In some cases as will be sited shortly, CBN approval may be
sought. A case will be sighted on the processes involved in planning Branch
Expansions in ASO.

This appraisal covers all activities involved in the branch expansion process. This
process relates to:

I. Strategic Review
II. Site Location and Analysis
III. CBN (Central Bank of Nigeria) Approval
IV. Legal Delivery
V. Site Structure
VI. Hand Over
VII. Site Manpower

I. Strategic Review: ASO usually holds a strategy sessions periodically where the
plans for the year are articulated to achieve a particular purpose and also place the
organization in a vantage position.
At the strategy session, possible locations for branch expansion are proposed and
communicated to the Branch Expansion Committee (BEC), with set time lines for
implementation. The pioneer or assigned personnel of the session will be
responsible for communicating this directive to the BEC.

II. Site Location: As a fall out from the strategy sessions, the identified locations will
be communicated to BEC for implementation. It is also the responsibility of BEC in
liaison with the Products & Markets (P & M) Division and Management to scout for
possible locations for branches. It is the responsibility of P&M to provide a feasibility
report of any identified locations.

Consultants and agents can be contacted to assist with the search for new branch
locations but this has to be expressly approved by the Management Committee.

14 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

A report will be submitted to Management stating recommendations, comments and
findings of proposed possibilities.

When Management approval is obtained, a letter of intent will be sent to owners of

properties identified (or their representatives) expressing the Bank’s interest to either
purchase or lease, and requesting their confirmation of the cost. At this time the
Legal department will perform searches on the possible properties where necessary.
Real Estate Risk Management (RERM) will also conduct sales/rental values of
identified properties and present reports.

III.CBN Approval: All the identified locations must be approved by CBN in writing.
Where it is not available BEC must liaise with the Financial Control Dept. (FINCON)
to get the necessary approvals. The approval requests should include location,
branch type and Saturday banking.

As required for approval, a cover letter and feasibility studies of proposed property
must be made available to CBN.

The approval request will be directed to OFID (Other Financial Institution

Department) at CBN unless otherwise stated.

IV. Legal Delivery: The Legal Department is responsible for performing

checks/searches on all properties that have been identified. Legal is also responsible
for reviewing all legal documents sent in by the lessor or property owner for the
purpose of leasing or outright sale.

(a)Leasehold option: A search will be carried on any property irrespective of the

lease period. Depending on the result of the search, the tenancy agreement will be
prepared and circulated between parties involved.

(b)Purchase option: A search will be carried out regardless the cost of the property.
In most cases, owners or representatives will send in a draft deed of assignment
which will be cross checked by Legal Department, and any change will be
communicated to BEC.

In most cases, owners or representatives will send in a draft deed of assignment

which will be cross checked by Legal Department, and any change will be
communicated to BEC.

V. Site Structure: ASO has ONE brand throughout the entire organization that is
aligned with the strategic growth/expansion. Therefore all branches of ASO Savings

15 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

& Loans Plc MUST be uniform in design, structure, finishing and most importantly
service delivery.

I. Appointment of contractors for Renovation Works:

a. Branch sends requests to Supply Chain Management (SCM) for renovation works
after which budget has been approved and approval gotten from line ED and Group
Head.

b. SCM receives requests and liaises with Real Estate Risk Management (RERM)
Department to provide unpriced Bill of Quantity (BOQ).

C.RERM visits the site to ascertain the works to be undertaken and then prepare an
unpriced BOQ which will be forwarded to SCM

D.SCM identifies 3 registered vendors to visit site and provides unpriced BOQ.

E. SCM receive BOQs, work program and designs (if necessary) from vendors and
forwards to RERM for vetting.

F. RERM forwards tender report and recommends vendor to execute the job.

G. Offer letter is prepared by SCM and project monitoring team is informed to

monitor renovation works.

The contractor is to sign a performance bond with ASO which will provide a three (3)
month warranty from the date the project is delivered, and 5% of the total contract
sum will be held back as retention fees and will not be paid until the defect liability
period is over and RERM is satisfied with the work.

VI. Appointment of contractors for new construction works:

a. Supply Chain Management (SCM) will contact various contractors/architects and
invite them for a collective briefing on the project specifying the requirements for the
proposed branch.
b. Thereafter, the contractors/architects will submit their detailed proposals.
c. Proposals must include design, bill of quantity (BOQ), and work program, resume
of construction team as well as evidence of work previously done. Contractor’s
familiarity with local environment of the proposed branch will also be a deciding
factor. All contractors must be subjected to the bank’s vendor selection process.
d. On the recommendation of SCM, contractors will make presentations to BEC
independently within 7 working days of notification.
E.BEC will deliberate on the proposals submitted. If further explanations are
required, conference calls will be made to the affected contractor(s).

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BEC will communicate its recommendation to SCM who requests for Management’s
approval. Upon Management’s approval, SCM will issue the contractor a contract
award letter.

Construction Funds: When all formalities have been concluded, appropriate

approvals will be obtained for the mobilization of the contractor to site.

Work Program: Each contractor will be required to sign-off a work program with
ASO. This will specify the quality of the deliverables, timelines, payment terms and
other pertinent issues affecting the project. This program will be approved by BEC on
behalf of Management. This document is used by Construction Monitoring & Status
Evaluation Unit to monitor the project.

Each contractor will sign a performance bond with ASO which will provide a six (6)
month warranty from the date the project is delivered.

Total initial sum paid to contractor must not exceed 60% of the contract price.
Further payments to the contractor will be made as specified in the work program.

d. Construction Monitoring & Status Evaluation Unit: The Bank’s Project

Monitoring Unit will carry out inspections on proposed sites to ascertain the level and
quality of work done. If satisfied with the work done, the Head, Project Monitoring
Unit or assigned personnel in that unit will issue a Certificate of Job Completion to
BEC/Management before final payment is made to the contractor/vendor.

VII. Handover: Once BEC, Management and CBN approves, the completed project
(premises) will be handed over to Supply Chain Management. It is the responsibility
of SCM to equip the building with fixtures to fit category or use.

IX. Deployment of Security Guards: In the absence of a Security Unit, the Supply
Chain Management is to deploy security personnel to the branch premises once
items have been deployed to the branch.

MARKETING

An Overview of ASO’S Marketing Environment & Strategy

Secondary research reveals that the Mortgage industry in Nigeria is far from being
explored and somewhat unstructured. Although the Country has experienced

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considerable urbanization with at least 50% of it population living in the cities as
against the 10% recorded in 1952 and 38% in 1993, this growth has been termed
unplanned and uncontrolled leading to the birth of slums and shanty towns, scattered
around. Of these, little consideration was made for the construction of low cost
houses for the middle and low income earners which invariably translate to high cost
on rents.

Amidst all of this, Nigeria has a record of 102 PMIs with only 52 functional ones.
Impressively, ASO is recorded to have carved a niche for itself in occupying the No.1
positing in the Mortgage Industry (Augusto & Co reports, 2012).

The Bank’s records shows that it controls more than 25% of the market loans and
advances as well as industry assets. This strong leadership position places it at a
great advantage in comparison with its competitors. ASO rides on this leverage to
attract interests from investors, regulators, government and large corporate clients.

The Bank currently has the vision to be the Mortgage Bank of choice and hopes to
achieve that by generating mutually beneficial relationships from existing and
prospective customers, which is anchored on a passion for excellence.

How Marketing Activities Contribute to the Achievement of Organizational

Objectives
Essentially, marketing activities help organizations achieve a great deal of their
objectives in many ways but for the purpose of my study; we will be limited to the
following;

The ability to sense emerging opportunities: It is a plus for an Organization if it is

able to anticipate emerging prospects in the market and act on them ahead of their
competitors. This is what Marketing does for an Organization. It is constantly seeking
for ways to do business differently and better. Marketing brings creativity into
business by following market trends and predicting its every turn.

Aids in anticipating Competitors’ next line of action: In helping an organization

achieve its goals, effective marketing focuses not only on meeting the needs of the
customers, but on watching and anticipation the steps competitors in the market will
be taking. Marketing helps the management to be on alert for surprise attacks from
competitors. Their activities are geared towards detecting any move competitors
make, reasons for their moves and any edge gaining possibilities. Acting like watch
dogs, they help the Organization to remain very competitive while being customer
oriented.

Marketing activities spur organizations to be customer centric. In other words, it

helps promote the ability to attract and keep valued customers by efficiently
exploring the company’s market position and investments.

It helps Organizations to make fact-based conclusions: With marketing,

Organizations don’t have to base their decisions mainly on instincts, intelligent

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guesses or qualitative findings. Business strategies can be based on actual
behavioural pattern of customers and business rivals because marketing activities
are inclined to predict future market trends and its inherent risks. In achieving this
they base their knowledge on market segment evolutions, what drives customer
value and how competitors and consumers will react to them; what earns the
organization greater returns on investment.

Providing high value added service to customers: Marketing activities in an

organization, spurs the workforce to understand what value its customers desire and
drives them to be committed in delivering on them. It makes them highly conscious
of their target market and particularly focused on making them do all it takes to serve
them right.

The Role of Marketing Operations in ASO

The Role of Integration: One of the roles marketing operations play in an

organization is that of Integration. Since the responsibility of ensuring
organizational success does not depend only on marketing but also on other
functional units in a business, marketing in its unique function of identifying customer
values, market trend and the competition, helps to integrate other departments in the
pursuit of organizational success. With this role of integration well performed, the
results are far reaching because of the synergy it creates amongst other units.

The Role of Providing Competitive Advantage: Marketing also plays a major role
in corporate strategy formulation by providing diagnostic support through market
environment scanning, identification of emerging opportunities and pioneering
changes in the organization.

The Managerial Role of Marketing: In addition to scanning for and analysing

market opportunities, the role of marketing in an organization includes the
formulation of aggressive marketing plans that will drive strategic objectives of the
organization; the the development of tactical plans and the execution of marketing
plans; the development of control/appraisal mechanisms. One of such control
mechanisms is Metrics. It is often said in business, “If you can’t measure it, you
can’t manage it”

The application of an investment appraisal will also help an organization know where
it should invest or not invest in future. It seeks to use measuring tools such as Net
Present Value (NPV), Payback period, Internal Rate of Return (IRR) average rate of
return.

The Role of Marketing at ASO

The function of Marketing at ASO is to actively promote ASO’s core services by
employing appropriate promotional techniques and communication media, in close

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collaboration with relevant divisions/units. The marketing subunit acts as a guide
and lead ASO’s other departments in developing, producing, fulfilling, and servicing
products or services for their customers.

i. ASO’s Marketing Objective is to;

Create and generate awareness of ASO Savings and its products and services so
potential customers can convert to customers and existing customers can be
elevated loyal advocates of our products. They deliver on this objective by:
1. Focusing on the Customer.
2. Monitoring the Competition.
3. Creating new ideas to acquire new customers and to retain existing customers.
4. Setting the Marketing Strategy, Planning the Attack, and Executing.

ii. Focus of Marketing Activities

Their focus on marketing activities includes;

Research and Analysis: This encompasses Customer analysis, Company analysis,

and Competitor analysis. The focus of customer analysis is to develop a scheme for
market segmentation, breaking down the market into various constituent groups of
customers which are called customer segments or market segments. They then
develop detailed profiles of each segment, focusing on any number of variables that
may help them in further understanding how and where to reach their potential
customers.

In making company analysis, focus is made in identifying the Bank’s core

competencies and other distinguishing factors that can be used to create a sustained
competitive advantage.

In making competitor analysis, efforts are made towards building the profiles of each
competitor in the market, focusing especially on their relative competitive strengths,
weaknesses, opportunities and strengths.

Defining Marketing Strategies

Backed by an adequate understanding of the customer base and its own competitive
position in the industry, the marketing team uses this information to develop
marketing strategies designed to maximize the revenues and profits of ASO.

Market Planning & Implementation

Once the strategies have been identified, the appropriate target market, company
positioning and competitive information are used to develop an integrated marketing
plan. This also involves the selection of relevant tactics such as:
o Advertising
o Promotions
o Marketing tactics such as Radio, print, TV, Guerilla marketing etc

20 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

Ultimately, results are then monitored and adjust on marketing plans made if
needed.

Market Process Development in ASO

In developing and growing its business, ASO pays special attention to

Stimulating increased demand from potential customer base

Put in place effective strategies and initiatives to retain existing customers

(Send Product Life cycle messages to active & inactive customers)
Monitor the competition

Develop integrated marketing plans and select relevant tactics

Set overall bank wide marketing strategy

Conduct Customer segmentation

PROCESS FLOW

Stimulate increase demand from potential customer base

Step Responsibilit Task Job Aid Time taken
y
1.01 Marketing Conduct meetings with Product Meetings Quarterly
Officer Development team to identify
products of focus
1.02 Marketing Liaise with the Corporate Strategy Computer system – Quarterly
Officer for ideas and feedback Microsoft outlook

1.03 Marketing Prioritize products (based on Computer system – Quarterly

Officer reach/savings potential) Microsoft excel
1.04 Marketing Highlight portfolio of products and Computer system – Quarterly
Officer define what we want the brand to Microsoft outlook and
represent word
1.05 Marketing Research Target Markets and Computer system – Quarterly
Officer align operational strategies with Microsoft explorer
marketing plans
1.06 Marketing Define measurement criteria As needed
Officer
1.07 Marketing Seek marketing plan and budget Computer system – 48 hours
Officer review/approval by forwarding Microsoft outlook, word
findings to Management via Head and hard copy
2.00 Head Receive proposed plan, vet, edit if Computer system – 24 hours
Corporate need be and forward to Microsoft outlook, word
Management Management and hard copy
3.00 Management Receive proposed plan, if Computer system – 48 hours
acceptable approve and forward Microsoft outlook, word
back to Corporate Management and hard copy
4.00 Marketing Receive approved plan and Computer system – Based on plan
Officer implement Microsoft outlook, word

21 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

 and hard copy

Retain existing customers via Promotions or Retention tactics

Step Responsibilit Task Job Aid Time taken
y
1.01 Marketing Conduct meetings with Customers Monthly
Officer Service, Product and Marketing
and Operations to brainstorms
ideas for customer retention
1.02 Marketing Analysis customer database for Computer system – Monthly
Officer quick wins Microsoft explorer
ICT to provide
updated customer file
1.03 Marketing Present recommendations to Computer system – Quarterly
Officer Management committee Microsoft outlook,
word, power point and
hard copy
2.00 Management Receive proposed plan, if Computer system – 48 hours
acceptable approve and forward Microsoft outlook,
back to Corporate Management word, power point and
hard copy
3.00 Marketing Receive approved plan and Per plan
Officer implement

Monitor the competition

Step Responsibilit Task Job Aid Time taken
y
1.01 Marketing Visit competitors’ Motor vehicle Quarterly
Officer branches/websites to secure
materials and to critique branch
setting
1.02 Marketing Review trade publications and Trade publications and Daily
Officer newspapers Newspapers
1.03 Marketing Meet with Product Development Computer system – Bi annually
Officer team to document new products Microsoft outlook,
from competitors and share word and hard copy
findings with P&M before
developing strategies
1.04 Marketing Develop strategies to mitigate Computer system – Bi annually
Officer findings Microsoft outlook,
word, power point and
hard copy

Set overall bank wide marketing strategy

Step Responsibilit Task Job Aid Time taken
y
1.01 Marketing Develop integrated marketing
Officer plans and selects relevant tactics Customer file, internet,
such as: research
o Advertising
o Environment
o Signage
o Web
o Promotions

22 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

1.02 Marketing Present plans to Management and
Officer seek approvals

1.03 Marketing Find & Direct Outside Vendors to Computer system –

Officer execute plans based on budgets Microsoft outlook,
and approved plan word,

1.04 Marketing Manage all vendors to develop Computer system –

Officer quality and cost effective Microsoft explorer and
marketing materials past offer letters or
placement(reports, jingles, and brochures
adverts
1.05 Marketing Implement plans Computer system –
Officer Microsoft explorer,
branding manual and
past offer letters or
brochures

Conduct Customer segmentation

Step Responsibilit Task Job Aid Time taken
y
1.01 Marketing Conduct comprehensive customer Computer system – As necessary
Officer segmentation studies Microsoft outlook, word,

1.02 Marketing Interview vendors to conduct As necessary

Officer analysis of customer database
1.03 Marketing Select vendor based on needs and Computer system – As necessary
Officer budget Microsoft outlook, excel

1.04 Marketing Present to Management committee As necessary

Officer on plans and timing

INFORMATION SYSTEMS

How Information Systems Contribute to the Achievement of Organizational

Objectives
The Information Systems in ASO, is largely responsible for a wide variety of
communications and connectivity’s which enhances productivity, efficient turnaround
time (TAT) and deliverables. In a world that has become grossly computerized, it can
in a sense be seen as the engine room of the Bank. The hardware, software and IT
human ware components that constitute the Bank’s IT assets represent a sizable
monetary investment that must be protected. The same is true for the information
stored in its IT systems, some of which may have taken huge resources to generate,
and some of which can never be reproduced.

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The use of Bank’s IT assets other than in a manner and for the purpose for which
they were intended represents a misallocation of valuable Bank resources, and
possibly a danger to its reputation or a violation of the law. Some of the ways
Information Systems help in the realization of ASO’s objectives include;

It helps the Bank to identify its strengths and weaknesses through the
generation of employee appraisal reports, revenue reports, error rate reports
and any other data that can help in analysing and improving on business
processes.
It provides valuable customer data that can provide feedback to the company
with a view to aligning and modifying processes to better suit customer
expectations. Efficient management of this information can help businesses to
launch promotional activities and direct marketing.
In the competitive world of business, Information Systems are veritable tools
for the bank in monitoring trends, understanding customer behaviours and
making future predictions on sales and revenue reports of the Bank.

The Role of Information Systems within an Organization

Below are three major roles Information Systems play in an organization;

Assist in the Decision Making Process: In the formulation of a formidable strategic

plans for an organization, the role of the IS cannot be over emphasised. It is used to
secure data which are used for evaluations and analysis which are needed for
quality strategic decisions.

Comprehensive Data Base of Information: The Information System serves as a

prime source and storage of sophisticated data on the Organization. These data
base keeps the company abreast with internal score cards external opportunities and
possible threats.

Streamlining Business Processes: The Information System plays an exceptional

role in helping employees concentrate on high-level functions through the integration
of multiple functions in the organization, removal of repetitive tasks, elimination of
unnecessary activities, implementation of controls mechanisms plus ensuring that
only authorized users have access to respective functions. These features ultimately
contribute to better project planning, implementation and monitoring.

Process Appraisal of Information System Requirements in ASO

The process followed to design an information system for the purpose of solving
organizational challenges is known as System Development. In ASO, the actions
include System analysis, System design, programming/implementation, testing,
conversion, production and finally maintenance. Following in the order listed, some
actions may however need to be repeated or concurrently accomplished.

24 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

 Below are the process requirements for Business process Automation in ASO.

BUSINESS PROCESS AUTOMATION

Process Objectives The objectives of this process include:

To reduce cost by reducing TAT
To access information easily and promotes back-up of information

Risks and Controls

Risks Controls

Errors during implementation Vendors should be seasoned and good in their field

For the bank to achieve a seamless and hitch free transaction, below are the critical
success factors;
Vendors
Correct software configuration

Key Performance Indicators The process flow would be measured using the
following criteria:

Software functionality
Solution should be user friendly
Process Ownership

ICT
Step Responsibility Task Job Aid Time taken
1.00 Software Architect works with various units Computer Systems, 3 days
Architect/Designer to understand their business Microsoft Office.
process and document it
2.01 Software Architect researches and architect Computer system, 2 days
Architect/Designer solution to automate the process. Internet, books,
Also the architect does a cost Microsoft Office.
benefit analysis of the solution.
2.02 Software Develops software to meet the Computer system 1 week –
Developer solution drawn in the architecture (Laptops), Visual 2months
Studio IDE, Net beans depending
IDE, ASP.Net, on the
JSP/JSF, SVN source
complexity
control, EXT JS Java
of the
Script library,
Application Server
solution
process
2.03 Quality Assurance Ensures the developed solution Computer system, 1 week
Officer meets the user requirements and Software stress testing
are bug free and regression analysis
tools.
25 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo
2.04 Software Developer User acceptance test Computer system, 1 day
Meeting rooms,
projectors.
2.05 Software Developer Deployment of solution and Computer system, 1–3
training of users Meeting rooms, days
projectors.

CONCLUSION

A very practical way of evaluating and appreciating the competitive advantage of an

organization lies in the special consideration of its tangible resources and
capabilities. This is because the effect of both on the strategic choices managers
make and their implementation, depend on their availability, effective distribution and
uniqueness. Amit & Schoemaker (1993) are however of the opinion that “Although a
given firm may possess more or less of any particular resource, only those resources
that are rare, valuable and difficult to imitate, provide a sustainable competitive
advantage”. Only when a business strategy is able to take advantage of these rare
and valuable resources are they able to gain competitive advantage.

In other words, once an organization is able to employ sophisticated machineries,

well branded office buildings and access cheaper sources of funds, it will succeed
more than its competitors.

In addition to this, research has also shown that organizations employ both tangible
and intangible resources in the achievements of strategic objectives. Here, Intangible
resources refer to Information Systems, innovative marketing ideas, operative
processes, brand and Human resources. Of these, Human Resources have been
termed as the most important organizational resource in attaining competitive
advantage because it is most difficult to replicate.

This is particularly true when the integrated nature of human resource is considered.
Largely responsible for this are the full effects of the skills training, motivation,
employee engagement, values, performance management techniques, supervision
and talent management that goes into a work force to form an exceptional
organizational that fires efficiency. An organization also needs an effective human
resource to drive the distribution and implementation of the other resources

In view of the above, it goes without saying that the effective management of
tangible and intangible resources of an organization ultimately leads to the
achievements of strategic goals, greater returns on investments and growth in
competitive advantage.

26 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo

For ASO Savings & Loans Plc growing a formidable workforce, successful
management of its tangible resources and the implementation of seamless
operational processes backed by innovative ideas, are catalyst for achieving
organizational success.

REFERENCES
1. Amit et Schoemaker; Strategic Assets and Organizational Rent; Strategic
Management Journal (January 1993)
2. ASO HRM Policy Manual (2012)
3. ASO Coporate Management Manual (2012)
4. ASO Branch Expansion Policy Manuel (2012)
5. Boxall et al. Between the Management of Human Resources and the
Governance of Employment? The case of Industrial Training in the UK (2007)
6. Donald et al, Staffing the Contemporary Organization: A Guide to Planning,
Recruiting and Selecting for Human Resource Professionals, Third Edition
(2008)
7. Edward et al, Achieving Strategic Excellence: An Assessment of Human
Resource Organizations (2006)
8. J. Storey, Human Resource Management in the Public Sector (1989)
9. Kevin O’Sullivan, 5TH International Conference on Intellectual Capital
Knowledge Management and Organizational Learning (2008)
10. M. Armstrong, Strategic Human Resource Management: A Guide to Action
(2008)
11. R.A. Killian, Human Resource Management: An ROI Approach (1976)
12. Rajan Saxena, Marketing Management (2005)
13. Rolf T. Wigand, et al; Introduction to Business Information Systems (2003)
14. S.K. Sharma, Human Resource Management: A Strategic Approach to
Employment (2009)
15. Susan et al; Managing Knowledge for Sustained Competitive Advantage:
Designing Strategies for Effective Human Resource Management (2003)

27 | P a g e S t r a t e g i c Resource Management by Jane Odonwodo