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The Changing Role of HRD

Part 1: HR Role Play and Leadership The modern day organisation depends to a great extent on the contribution and quality of its human capital. The human capital may be defined as that element of the organisations operational sphere that is a living, breathing part of the activities that put the innate resources and factors of production into application. This application results in profits arising out of the activities of the human capital and the efficiency with which this resource carries out its tasks. This in turn, has a bearing on the achievement of the organisations goals. (Johnson, 1996. P 13 to 18)

This paper seeks to discuss the new role of the Human Resource element that has emerged in the organisation. This role will be discussed through the use of the following categories:

Business Partner Change Manager Monitor Innovator.

These four categories are most basic to the functioning of the modern day organisation. The human resource or human capital element in the organisation ahs emerged as one

that perpetuates this role at every level of the organisation through an effective integration of personal and organisational goals. (Johnson, 1996. P 13 to 18) Business Partner

The first role of the human resource in todays organisation is that of a business partner. This has come to the fore with the emergence of various service oriented companies that provide intensive marketing services along with the products that are being produced. The emergence of a marketing network has been crucial to companies like Bajaj Allianz Life Insurance, Oriflame Cosmetics and many others. (Green, 2002. P 111)

The business partner method operates along the following lines, as depicted in the diagram below:

Branch Manager

Sales Team Manager

Team of Business Partners (Sales Agent)

(Green, 2002) These business partners work independently from home or under the name of their own business in order to cater to people exclusively and bring the products and services of the company to the doorstep of the independent clients. The role of these business partners is

to bring business to the company by exploring their personal networks so as to earn commissions on the sales that they make. This is a formal level of institutionalised operations where the organisation profits greatly. This is done by pushing the product in quarters where the effects of regular marketing and promotion cannot reach. It is also an elevated level of salesman ship where the sales agents are offered a share in the business that they make. The advantage of this is that the business partners take a personal interest in the development of a clientele. (Green, 2002. P 111)

Further, this serves the two fold purpose of sales and promotion. While there might not be immediate sales in some cases, there is a creation of awareness for future sales. This in turn, leads to increased sales and repeat orders through word of mouth and brand recall.

At an informal level, the term business partner can be used to denote the modern day human resource base. This is due to the fact that the human capital in an organisation today is motivated enough to integrate the personal goals with those of the organisation in an effective way. In this way, the goals are achieved at both ends. The management of an organisation attaches great importance to the act of motivating the human capital through the use of incentives that may be material or immaterial. The material benefits include bonuses, promotions and other such means, while the immaterial ones include good reports and feedback. This helps the employee gain confidence and self esteem. Also, it caters to the employees need to achieve a certain social standing. Thus, the employee begins to realise that only by forwarding the goals of the organisation will his or her own goals be met. In this way, the human resource has emerged as a business partner that

works in tandem with the organisation as far as goal achievement is concerned. (Green, 2002. P 111) Change Manager

The modern day economy is one that is changing with each passing day. The state of commerce is not what it used to be, say, a few decades ago. This is basically due to the fact that the new rule of thumb is that the only constant is change. The face of politics has greatly shaped the way the economy of a country and therefore, that of an organisation, operates. In this way, there is a sense of constant interaction with the dynamic environment within which organisations today thrive. The role of communication and technology in this regard, is also an important one. With the advent of the communication and information era, there is a slow redefinition of borders and geographical demarcations. It is now possible to sell products and manage businesses anywhere in the world, from anywhere in the world. This has had a large bearing on the state of the balance of payments of entire countries and the organisations that thrive within it. This balance of payments is dependant on the exchange that flows to and from it. In this way, there is an impetus to change with the changing world, depending on how that change might affect the balance of payments or any other socio economic aspect of the country and the organisation. Therefore, change has become a vital part of the organisations life, owing to the fact that there is a constant need for reinvention in order to keep with the changing times and the changing levels of exposure. In this regard, change management has thus become a vital part of every organisations agenda. (Jorge et al, 2005)

In this regard, the HR elements of the organisation, or its employees, are the major precursors of change within the organisation. They are the ones who implement the change management process at the following levels of activity:

Communication Planning Resource Utilisation Cost effectiveness in Operations (Jorge et al, 2005)

This makes the employees or the HR, change managers within the organisation. The impetus to change and grow with these changes comes from the fact that the modern day organisation is made up of people from various corners of the globe, with the ability to reach into their own varied personal experiences. Thus in turn, is a major factor that helps them cope with change and learn to keep changing with the changing times and trends. Also, sometimes change comes from within the organisation owing to the growth of exposure with the growth of the organisation or with activities like development and training. (Bender, 2000. P 125 to 127)

This initiates the employee into a process of embracing and implementing change in order to do away with any monotony that may exist in the operational area of the organisation that they thrive in, due to repeated activities and other such factors. The basic role of change management is to develop a system or structure within which there is a strong sense of being able to forecast change, and adjust to the same accordingly. This

change management structure is an informal one that is carried out by the employees in the organisation. The role of change management is as follows:

To help recognise change. To help recognise the areas in which these changes must be implemented within the organisation.

To help the organisation integrate its goals or modify the same, with a change in the external environment.

To help the HR understand the change and grow with it. (Bender, 200. P 125 to 127)


One of the most important roles or functions of the HR is to monitor various things within and outside the operational sphere of the organisation, so as to make the necessary modifications that will correct any deviations in the path towards the achievement of organisational goals. (Barrie, 2005. P 1 to 10)

The monitoring system in the modern day organisation thrives on a system of knowledge management. To monitor anything, there is a need for garnering knowledge about the same through communication and information. This needs to follow the flow of the organisational activities so as to give the right person, the right information at the right time. In this regard, many scholars have felt that there is a need to lay well defined lines

of informal communication as these are important to bridge any gaps that may have taken place in the formal lines of communication. (Bender, 2000. P 125 to 127)

Knowledge and information have become almost interchangeable in their ability to transform workplaces and make the rest of the aware of the various activities that take place within it. Recognizing this premise, the company is providing result-oriented solutions to various industries. It is working with its alliance partners with an unmatched level of domain knowledge. It empowers organizations with inventive and scalable technology solutions thereby increasing the industrys competitive advantage and return on investment. (Wilson, 2002)

(Source: Wilson, 2002)

This diagram depicts the growth of titles using knowledge management. In this regard, information management may be defined as something that involves deploying new technology solutions, e.g: content or document management systems, data warehousing and portal applications. It covers all the systems and processes in an organization for the creation and use of corporate information. Information is the most pervasive element across all human actions and interactions. Managing information has become one of mans most difficult tasks. Variety of information sources has changed information from mediocrity of data to a natural efficacy and requirement. Information management involves people, processes, technology and content. (Wilson, 2002)

Knowledge management encompasses strategy, method, practice and approach in an organizational context. Data represents facts or values of results and has the capacity to represent information. Patterns of relations of data, and information have the capacity to represent knowledge. This is important in monitoring the activities within the organization so as to curb any negative trends before they become a force. This shows a strong connection with the premise that the HR today operates on in terms of the use of various tools of information technology to integrate the knowledge within the organization. This also promotes a stronger and wider base for communication. In this regard, modern HR practices show that communication management is a vital phenomenon in organization and is extremely important in an organization. In general, efficient communication in an organization contributes directly or indirectly to improved organizational performance. (Barrie, 2005. P 1 to 10)

Effective information, communication and knowledge management should focus on recognizing and managing complexity, should deliver tangible and obvious benefits and aims to deliver faultless user experience. This helps in monitoring the quality of the work culture as well the deliverables that are sent into the world outside the organization.


Any modern day organisation and its HR need the strong backing of innovation for the following purposes: To meet goals effectively. For smooth flowing operations within the organisation. To imbibe an element of freshness into otherwise monotonous activities. To help the employees grow so as to fuel organisational growth and development. To gives the employees the satisfaction of learning something new everyday. To give the organisation the confidence to branch out into new fields. (Bender, 2000. P 125 to 127)

With these functions, it is important to have a process of training and development which will help show the employees how they can channel their energies into constant innovation so as to serve the organisational goals, and achieve their personal ones in the bargain. Training and development are essential activities for the maintenance of organizational health. Training takes place for strategic development of employees in

order to correct any deviations in their performance towards the achievement of the organizational goal, or to help them tap into a certain pool of potential which will further their standing in the organization. The second kind of training adheres to preparing the employee for promotions and other such activities. Therefore, training and development processes may either be diagnostic or based on future role play. In this case, the kinds of training followed by an organization may be categorized into on the job and off the job training methods. Both these kinds of training help imbibe a certain quality of innovation within the organization so as to give each member of the HR a unique identity that will be well utilized and appropriately respected within the organization. The need to tap into a pool of potential can be met only through the right training and development process which will steer the employee towards doing so for the benefit of the organization. The conversion of this need into a full fledged reality is the role of training and development. This role is a major element of innovation. (Barrie, 2005. P 1 to 10)

The need for innovation is met through training due to the following features of the latter, which form the necessary context for innovation within the organisation:

( i ) Identification of needs

an analysis of needs addresses the problems at hand

besides anticipating future demands. The benefit of this step lies in the fact that it considers the best and most cost effective way to meet those training needs right at the onset, which make the training strategy planning and implementation process more fluid. (Barrie, 2005. P 1 to 10)

( ii ) Definition of specific knowledge requirements - this stage to examines the skills and

knowledge level that is required to be developed in order to meet the new objectives identified by the training needs. This helps the management gain perspective as to which kind of training strategy will be the most effective one when adopted for the situation at hand.

( iii ) Planning process This includes paying special attention to the training techniques

that have been used in the past and their effectiveness. This helps show any deviations and how they may be modified or discarded entirely. Further, in the planning stage, one also decides on the locations of training which is generally based on the model being followed to meet training needs and objectives as well as other learning requirements.

( iv ) Trainer Competence For competence in communication and soft skills, it is

crucial to have the right mix of all factors. One of these factors include the trainer. While the organization itself may have a training department, it may also source its training projects to external trainers. These trainers are sent by training companies who conduct sessions over a period of a few weeks depending on the situation at hand and the employee requirements. Therefore, in choosing a competent trainer, the organization makes sure that it gets the best of development as these trainers know the knack of basing their training on the availability of suitable training methodologies and the degree of responsibility.

( v ) Evaluation of training this is where the planners evaluate the training needs and

prioritize them before carrying out a similar process of evaluation for the training strategy they have in mind so as to link the strategy with the needs and reach certain projections regarding success or failure. This helps bridge numerous gaps in the implantation stage and is thus extremely important and beneficial for a smooth sailing process. Through this process, there is also an increased focus on the specific training objectives so as to zero in on the best strategy which will produce the scope for improvement and enhance the effectiveness of training.

( vi ) Implementation process In this regard, the assessment of the existing training

methods are taken into consideration so as find the best option for making use of the training strategy in terms of development of individual areas. This helps save time and cut cost besides rendering a certain amount of effectiveness and authenticity to the whole process. This also brings about standardization of training practices which leads to more research and improvisation, into areas like skills, knowledge and attitudes, as well as the most effective ways of affecting these areas. (Bender, 2000. P 125 to 127)

Sociology in the Organisation

The organisation, in the modern day context, has become a body that is made up of its human resource and the quality that this resource base imbibes into the operational sphere of the organisation. The modern day organisation depends to a great extent on the contribution and quality of its human capital. The human capital may be defined as that

element of the organisations operational sphere that is a living, breathing part of the activities that put the innate resources and factors of production into application. This application results in profits arising out of the activities of the human capital and the efficiency with which this resource carries out its tasks. This in turn, has a bearing on the achievement of the organisations goals in the sense that the organisation is structured according to the quality of the HR within it. Also, it shows the principles that are followed by the management in manning the organisation. (Burns et al, 1994) In this regard, this paper will seek to pitch the rational systems theorists like F W Taylor, Weber and Fayol, against modern day theorists like Jackall and, Burns and Stalkers. This paper will delve into the matter of whether or not the process of formalising organisational structures is palatable for modern day organisations. The range of study will also include traditional principles like the division of labour, the authority of line versus staff as well as the hierarchy of authority in achieving optimal spans of control.

To begin with, let us describe the principles of scientific management as laid down by F W Taylor. Developed by Frederick W Taylor in the early 20 th century, Scientific

Management is a science based system of organizing the operational areas of the organization so as to ensure the existence of and implement various elements. These included placement of the right man at the right place, at the right time. Also, scientific management propagated a study of the motions and material handling practices within the organization, so as to find the fastest and easiest way of carrying out an activity. In this regard, there was a high level of focus on the implementation of cost accounting in all areas of operation activities so as make operations within the organization more cost

effective. Further, Taylor regarded the de centralization of responsibility and authority so as to place a group of men under the supervision of one man, as an important element that could trigger greater efficiency within the operational sphere of the organization. Finally, one of his most important principles was the division of work. He suggested this through the creation of room for four to eight functional foremen who will take care of various aspects of the overall task, so as to ensure that each sub task is carried out as regards minimum motion and cost per worker. (Taylor, 1947) These were the broad underlying principles upon which F W Taylor fashioned scientific management. This school of management thought followed experimentation and scientific rigor to demonstrate various findings. One of these, as will be tested below, adheres to the fact that through mediums like assembly line, it is possible for a group of people doing a few tasks, to out produce those doing all the tasks. (Taylor, 1947)

These principles were in keeping with the division of labour and the hierarchy of authority, as propagated by Fayol and Weber. According to this rationalistic view, everything in the organisation has a place. Thereafter, every man is to take care of a certain aspect of operation. This division of labour is supervised by the distribution of authority so as to form an appropriate hierarchy. Every activity in the organisation takes place according to this hierarchy, whether it involves promotions or communication. The modern day organisation sees it HR in diverse roles, enabling the same to form informal structures where there is a distribution of energy and a mutual understanding which enables one man to finish the job that another could not do. In this way, there is an optimisation of energy as well as resources to meet the common goal. Further, the

modern day theorists like Burns and Stalker have defined the role of the new HR in the following light in order to demonstrate how the personal goals can be integrated with those of the organisation. (Burns et al, 1994) These include business partner, change manager, monitor and innovator. These four categories are most basic to the functioning of the modern day organisation. The human resource or human capital element in the organisation ahs emerged as one that perpetuates this role at every level of the organisation through an effective integration of personal and organisational goals. (Burns et al, 1994)

Robert Jackall countered Taylor by saying that there is a requirement for more support and not mere participation of the employee in the management process. He was of the opinion that mere science would not help the organisation without a successful integration of personal and professional goals. If Robert Jackall is to be believed, the modern day organisation structures itself in accordance with the quality of the HR within it. The modern day economy is one that is changing with each passing day, which is a different assumption from that followed by Fayol and Taylor. The state of commerce is not what it used to be, say, a few decades ago. This is basically due to the fact that the new rule of thumb is that the only constant is change. The face of politics has greatly shaped the way the economy of a country and therefore, that of an organisation, operates. In this way, there is a sense of constant interaction with the dynamic environment within which organisations today thrive. The role of communication and technology in this regard, is also an important one. With the advent of the communication and information era, there is a slow redefinition of borders and geographical demarcations. It is now

possible to sell products and manage businesses anywhere in the world, from anywhere in the world. This has had a large bearing on the state of the balance of payments of entire countries and the organisations that thrive within it. Therefore, change has become a vital part of the organisations life, owing to the fact that there is a constant need for reinvention in order to keep with the changing times and the changing levels of exposure. In this regard, change management and knowledge management have thus become a vital part of every organisations agenda. (Jackall, 1989)

This change management function is one that operates closely with the business partner and innovator aspect of the HRs role within the organisation in order to give rise to structures that do not follow any informal lines of operation so as to make the most of knowledge and create a fitting knowledge management structure. This structure is one that is dependant on the knowledge base and the capability of the HR in changing roles as and when required. (Jackall, 1989) The modern day theorists are more concerned with the administration that the mechanics of the manufacturing arena. In this regard, there is a disparity in the thought process that underlines the basic criteria based on which they select the elements for study.

While Jackall and Burns believe that an employee initiates changes, Taylor was of the strong belief that the employee must merely facilitate change and change with the changing environment. The assumption underlying this principle was that there is little interaction between the employer and the employee on a regular basis. Burns and Jackall are of the notion that reactions within the organisation are an effect of the actions of the

entrepreneurs or employers which makes their role all the more important. This itself accounts for regular interaction between the employer and the employee. In this regard, the modern day theorists countered Taylor by saying that there must be a better platform to motivate the employees. (Jackall, 1989)

This platform, according to Jackall and Burns will follow as a result of the participation of the employee in change and knowledge management where he or she will be in a better position to monitor changes and partake in the actual goal achievement process. Taylor had depicted the employees as mere machines who needed to be run for the basic organisational benefit in terms of time and economics. Burns and Jackall second that principle by saying that motivation is the key to achievement of organisational goals. (Burns et al, 1994)

Further, Taylor believed in the principle of braking up units to depict time scales and motion study. Burns and Jackall believe that motivational factors as well as personal goals need to be seen as key elements in isolation through the perspective of organisational goal achievement. In this regard, it may be said that there are wide disparities between the modern day theorists and Taylor, in the understanding of the human resource base of an organisation. The new age understanding is an effect of seeing the employee as a business partner more than anything else, which gives the organisation a wider perspective in its operational sphere and functioning.

Implementing Persuasive and Conflict Handling Skills

The modern day organisation depends to a great extent on the contribution and quality of its human capital. The human capital may be defined as that element of the organisations operational sphere that is a living, breathing part of the activities that put the innate resources and factors of production into application. This application results in profits arising out of the activities of the human capital and the efficiency with which this resource carries out its tasks. This in turn, has a bearing on the achievement of the organisations goals. (Johnson, 1996. P 13 to 18) All these facts tie up to form the performance management system, which will be studied and critically analysed in this paper. A performance management system can make or break an organisation. This paper is based on the study of two situations where persuasive, conflict handling and influencing measures were implemented. These are as follows:

Situation One The first situation was in the Anukul Group where there was lack of leadership due to confusion in the assembly line. Anukul Designs is a company that has been in the business of manufacturing exclusive patchwork linen, for the last 20 years. The assembly line followed in this company will be tested during this experiment. The experiment was carried out through the following phases:

Recruitment Selection Placement Functionality Study

In the Recruitment stage, the applications are invited for positions like tailors, cutting experts, tacking experts, finishing experts and finally, supervisors. There is a need for 24 tailors, 8 cutting experts, 12 tacking and quilting experts, 12 finishing experts, and 4 supervisors to oversee these four activities.

In the Selection stage, there are interviews and practical tests to find which applicant is best suited for which job in the operational activities. Also, they are questioned regarding their leadership abilities so as to find four supervisors who also know enough about the job. In the Placement stage the following structure is defined along with role play of each person: Joining Department Supervisor 2 Supervisor 3 He is in charge of delivering pieces cut for 8 bedspreads / similar amount of linen accessories in a day. 8 Cutting Experts He ensures sure that the pieces from the prev. dpt are converted into 8 bedspreads/ equivalent in a day. 24 Tailors 12 tacking and quilting experts Makes sure that there is appropriate conversion of material from prev dpt in a day with tacking and quilting. He ensures that the backing and stitching is done. Also inspects for quality. Eg., 9 stitches in an inch. 12 finishing experts Tacking and Quilting Department Finishing Department Supervisor 4

Cutting Department Supervisor 1

The basic job of the supervisors in this assembly line is to do the following: Find the shortest time to do an activity and reduce movement between departments. Motivate each individual appropriately. Get maximum cost economy from each group. Restrict material handling quantum by dividing the amount of material to be handled among various individuals. Find ways to break monotony in repetitive activities. Decentralization for better sense of responsibility, accountability and importance within the organization.

Leadership: Implementation Aspect Leadership is an important factor in well functioning performance management systems. In his book titled Creating Leaderful Organistaions: How to Bring Out Leadership in everyone, Joseph A Raelin or Joe Raelin, as he is more popularly known, discusses the work based learning model which is a take off on the on the job training model. (Raelin, 2003) This is an action oriented learning model as far as picking up practical techniques in the course of everyday work goes. The key features of this model are its action oriented approach to learning and the fact that it is based on a study programme that reflects ones role at work. This model is different from the standard models of training and development owing to the fact that it offers hands on training at the workplace with special emphasis on the development of those skills in particular that have relevance to

ones growth in the role played currently. (Raelin, 2003) Also, unlike most models, this one caters for learning as a team activity. This model has been used in order to study the reasons why performance management systems fail as leadership is an important aspect in the implementation of performance management systems. (Wilkund et al, 1999) The major reason why a performance management system fails is due to the fact that the action oriented approach is not properly implemented. This happens due to the fact that the leadership method is not an appropriate on. The major reason for ineffectiveness of performance management system takes places due to the fact that the leadership patterns do not match the action oriented approach that must exist for goal achievement in the operational area of the organisation to garner better performance from all quarters. This essentially defines the essence of performance management. (Tang et al, 2007)

Situation Two At Anukul Group, there was a lack of performance evaluation methods. This created a lack of responsibility and there was no scope for motivation. This was corrected through the use of TQM as follows: TQM: Total Quality Management TQM or Total Quality Management may be defined as the strategy that the management makes use of in order to create a system of performance wherein all performance standards follow the following two premises within the operational sphere of the organisation: (Chenhall, 2003; Pp 128 168) Complete awareness of performance standards in all departments and corners of the organisation.

A clear cut system of embedding these standards into the operational realities of the organisation.

An important part of TQM is the 360 degree feedback process. In this regard, before forming a critique, it is important to understand various aspects of performance management, as follows. (Ireland et al, 2003)

How can an organization appraise its employees performance?

An organization can appraise its employees performance in the following ways: The use of reports and feedback forms More informal ways like discussions, quizzes, ratings Motivation through bonus or salary hikes The return on investment method. (Ireland et al, 2003)

Issues in Leadership Scientific Management Versus Modern Theories of Motivation and Learning

It has been believed that the modern theories of leadership based on motivation and learning are more applicable when it comes to effective leadership. This has been compared with the traditional theory of Scientific Management. Developed by Frederick W Taylor in the early 20th century, Scientific Management is a science based system of organizing the operational areas of the organization so as to ensure the existence of and implement the following elements: (Wrege, 1995)

Placement of the right man at the right place, at the right time. A study of the motions and material handling practices within the organization, so as to find the fastest and easiest way of carrying out an activity.

The implementation of cost accounting in all areas of operation activities. De centralization of responsibility and authority so as to place a group of men under the supervision of one man.

To create room for four to eight functional foremen who will take care of various aspects of the overall task, so as to ensure that each sub task is carried out as regards minimum motion and cost per worker. (Taylor, 1947)

These were the broad underlying principles upon which F W Taylor fashioned scientific management. This school of management thought followed experimentation and scientific rigor to demonstrate various findings.

The decentralization of accountability, authority and responsibility help in making better use of the human capital. It gives the workers the scope to bond with each other and know more about each others strengths and weaknesses. In this way, there is a strong support system within them and this helps integrate the personal aspirations with the organizational goals in a more effective manner. Therefore, it is imperative for group activities and groupism to thrive along more formal lines in the organization so as to avoid the pitfalls of individuality where it becomes difficult for one person to undertake all tasks effectively. (Taylor, 1895)

Factors that discourage improved productivity in group activities

The following are the factors that can work against the fact that a group generally out produces individuals working on the same job:

Lack of clear cut demarcation of job responsibilities. This can lead to the existence of confusion regarding ones actual job.

Paucity of men and material. This a factor that can lead to over loading the workers with tasks. Also, in the absence of adequate material, there will be an overall wastage of time and money.

Lack of motivation. If the employee or worker is not well motivated, he or she may not want to give his or her best to the activity or task at hand. This will greatly impede productivity.

Lack of proper communication channels. The laying of communication channels both formal and informal is a major pre requisite for coordination. The lack of proper communication between people in the group will lead to disharmony.

Lack of coordination. It is important for the people in the group to understand each other for the purpose of proper coordination of plans and the integration of personal goals with those of the organization.

Monotony in activities. If a task is repetitive in nature, chances are that the workers may not take adequate amount of interest. Thus, they will fail to produce enough.

Placement of the wrong man in the wrong job. This is a crucial factor. At the recruitment and selection stage itself, it is important for the organization to get a feel of the individuals skills. This will help in appropriate placement according to the skill sets of the individual, which in turn will help in proper production quantum, as well as non wastage of money, time and material.

Lack of training and developmental activities. In todays organization, the role of training and development is an important one. This helps understand the individual and motivate him to multi task more than anything else. By learning something new, the individual gains the confidence to grow, which in turn will help the organization grow. (Clegg et al, 2005)

Modern Theory: Performance and Learning Oriented Leadership Style

As a contrast to the above theory, Performance in the workplace has come to become synonymous with effective learning and training practices. It has been demonstrated that organizations gain a sense of identity through their manuals, training programs and organizational charts; while the human element within them derive a sense of identity through the development process that they are led through in the operational sphere. (Brown et al, 1991; Pp 40 to 57) This new style of leadership considers the question of the extent to which the employment relationships affect an organizations ability to create a working environment which is conducive to learning. This question may be regarded through the study of learning and innovation methods. More importantly, it will focus on the role of the HR in terms of building communities for formal and informal learning practices. (Brown et al, 1991)

The modern day organisation depends to a great extent on the contribution and quality of its human capital. The human capital may be defined as that element of the organisations operational sphere that is a living, breathing part of the activities that put the innate resources and factors of production into application. This application results in profits arising out of the activities of the human capital and the efficiency with which this resource carries out its tasks. This in turn, has a bearing on the achievement of the organisations goals. (Johnson, 1996. P 13 to 18) If studies are to be believed, informal learning has come to constitute over 75% of the learning that takes place in the organizations sociological and operational sphere. ( Max DePrees book is titled Leadership is an art. This book traces the realistic situations and how leadership, as a quality, emerges as the winner in such trying situations in the everyday life of an organisation. This book is not the typical management text as the author has refused to cram it with hypothetical situations and theories.

Gary Yukls book on the other hand is titled Leadership in Organisations. It is a book that can empower an organisation to make the best of its human resources. This has been done by the author through a focus on a plethora of scientifically tested theories, facts and concepts. The book is more academically oriented than that of DePrees.

To begin with, DePree speaks of leadership as the use of opportunity to demonstrate several qualities. (DePree, 2004) Yukl, on the other hand, argues that leadership is a function born out of the combination of responsibility and authority. (Yukl, 2006) Both

writers have managed to touch the pulse of leadership, but in different ways. While DePrees approach is all about learning through practice, (DePree, 2004) Yukl takes the more tried and tested path of practice only after learning. (Yukl, 2006) The teachings in DePrees book are more first hand, (DePree, 2004) while Yukl mainly makes use of hypothetical situations. (Yukl, 2006)

DePree speaks of the knowledge that he has gathered through his experiences. This shows a person how he or she might be able to make use of opportunities by relating his or her experiences with those of DePrees. (DePree, 2004) Yukl, on the other hand, provides a wider base for application by generalising most of the views that revolve around leadership. In this way, his teachings have a more universal appeal. His concepts and theories are tested scientifically and then put down on pen and paper. (Yukl, 2006) But DePrees concepts revolve around plunging into the unknown and then experiencing whatever the organisation or life throws at the leader. (DePree, 2004)

Part 2: Reorganisation of HR Case Study 1: Supply Chain Management Supply chain management is that genre of management that deals with the activities ranging from procurement to allocation, distribution and final utilisation of the resources so as to find any deviations that may have resulted in faulty use and correct the same to promote optimum utilisation of resources. This will facilitate better organisation in the

operational sphere of the organisation as well as a more systematic progression towards the process of achievement of goals. (Jesperson, 2005)

The Case Study Texan

The information gained from these literary works will be analysed and correlated to the concept of supply chain management as it has been adapted within Texan.

Texan Foods is a company founded and based in Texas, near Amarillo. Born in the year 1941, this company has grown from strength to strength to consolidate its standing as one of the best gourmet chain which specialises in grocery products. Their line of products includes croissants, English muffins as well as exotic sandwich breads, buns and other baked goods like tortillas. Besides being a household name by the mid 90s with ample support from a former oil businessman, R.L (Buddy) Howlett, who was its founder and a successful entrepreneur, this company had come to employ a major supplier who went by name of Valley. (Autry, 2005)

As a big manufacturing company, it has been demonstrated that Texan has a very poor system of supply chain management as far as its model of collaboration, planning, forecasting and replenishment (CPFR), is concerned.

To start with, let us describe the exact nuances of supply chain management, in context of the CPFR model. Supply chain management (SCM) may be defined as that sphere of activities that takes place in context of planning, implementing, and controlling the operations. These operations or activities, in turn, are connected with the management of the supply chain so as to effectively cater to the requirements of the customer and gain complete satisfaction of the same through a focus on optimum ulisation of resources. (Atlekar, 2005) In this regard, supply chain management deals with all activities pertaining to the mobilisation, storage as well as an account of the semi finished and finished products that are of value to the end user. (Hugos, 2005) In this context, various scholars have also refered to this form and area of management as logistics as it connects the quantitative areas of assessment with the qualitative goal achievement progress of the organisation.

These areas have been assessed in Texan, through inputs from two officials who are connected with the operational realities of the supply chain management system followed at Texan.

Problem Areas

In this regard, Texan has been described as a company that has a background of failed CPRF programs with a paticular supplier known as Valley, making various demands that was taking away from Texans efforts towards customer relationship building. Further, this had been asserted by the Category Director, Angela Preston, and the Vice President

for Supply Chain Operations at Texan Foods. They had noticed growing dissatisfaction among employees and customers alike through the initiation of the new pilot program called CPRF, which was dealing with Valley, one of their primary suppliers. (Autry, 2005)

As a supplier, Valley had always been like an insecure and demanding child who believed that Texan had kept a lot of secrets in terms of knowledge sharing and management. It seemed to the two officials of Texan, that the supplier was in constant need of motivation and more information, in the form of examples like a demand for increased collaboration. This had led to a fair amount of interference and thus added confusion in the supply chain that exsited in Texan. (Autry, 2005)

The trial phase of the CPRF program had shown various gaps in the sales forecast and the actual sales figures, leading to deep concern regarding the efficiency of the supply chain management strategy followed by Texan. In this context, through this paper I will try to lay down the options that the company has in terms of tackling its weaknesses, before going on to analyse these options and then laying down the conclusions and recommendations about the future course of action as far as the supply chain management model is concerned. (Atlekar, 2005)

Options for Supply Chain Management in Texan

Before laying down a diagram of the work flow pattern that must be adopted for suitable supply chain management within Texan, it is imperative to lay down certain assumptions on the basis of which the options will be laid down through the diagram. These assumptions are as follows:


Texan foods operates in areas where there is a requirement for a more sophisticated touch in various activities. Therefore, their purview of supply adheres to areas like high end hobbies like cookery classes, a sizable wine selection to choose from, and music like alternative or rock that plays within its stores live. (Autry, 2005)

Texan offers a host of services under one roof, like an in house kitchen in many of its stores apart from other facilities like catering and online shopping options for its regular clientele. This shows that the company has the potential to show diversity even in a field as specific as that of gourmet grocery products. (Autry, 2005)

Texan has a sizable customer holding who have been their patrons for many years and rely on the company for their most mundane gourmet needs. This shows that Texan is under high pressure for delivering a good performance every single day

as far as commitment and customer holding are concerned. This requires Texan to fulfil the role of a qualitiative and effective organisation. (Autry, 2005)

Texan needs to have a large supplier base that is reliable and efficient as far as collabortaive and planning strategies for meeting actual forecasts are concerned. This shows that Texan needs to pay special attention to various details regarding its suppliers in order to show regular profitability in operations. (Autry, 2005)


Based on these assumptions, we will discuss the options that Texan is confronted with, in order to formulate an effective supply chain management model.

This model is an integration of the weaknesses of the CPRF model followed by Texan and how these can be confronted and tackled through a focus on its potential as charted in the assumptions presented above. (Atlekar, 2005) This has been done with the view of tacking the primary problem of all the resources being diverted towards Valley as the foremost supplier whom Texan is most dependent on.

Further, this model is only a proposal of the options that are facing Texan as it seeks to operate in terms of having maximum competitive advantage. (Thomas et al, 2006) This has to do with Texans reputation as well as future forecasts.

Collaboration with more suppliers.

More than one supplier for finished goods.

Capacity to deal with all retailers and customers in one go.

Diversity in Operations.

Steady Conversion of Work in Progress.

Ability to reach forecasts more effectively. Various sources for replenishment.

Better Scope For Planning New Events.

Back up for sourcing goods.

Fig 1: Options for a More Effective Supply Chain Management Model for Texan (Anderson et al, 2003)

This model has been presented in the form of a flow chart with the aim of collaborating and organising the knowledge and information within the organisation to zero in on a strategy that makes the best possible use of the feature of the CPRF program in every step through a firm focus on back up plans. (Hugos, 2005) There is a need to diversify and divert resources for the sake of reliability and security of the same, besides finding ways to reach the ultimate goal of complete customer satisfaction through a steady and natural flow of collaboration, planning, forecasting and finally, replenishing, without the need to depend on one single party for all these needs. The best option facing Texan in context of the above diagram or flow chart is to test its supply management strategy on various

suppliers instead of Valley alone, in order to find the strengths and weaknesses of each of the suppliers. This will facilitate easy distribution of resources and efficiency in operations. (Copacino, 1997)

Chapter 3: Analysis of Options

This chapter will provide an insight into how the above mentioned options and the basic premise regarding diversification of suppliers that has been gathered from the same. It will look at the model through an investigative mode. (Anderson et al, 2003) This investigation will be based on elements like collaboration, planning, forecasts and replenishment as well the resulting CPFR program. (Copacino, 1997)

Criteria of selecting options

Before moving forward, it is imperative to study the criterion that has been utilised in order to reach the above mentioned options and the role play of various factors. (Anderson et al, 2003) This will help decide the influence of each element of the options during the subsequent analysis in terms of these factors. These factors that form the basic criterion are as follows:

Reliability: the collaboration methodology needs to be one that promotes reliability of both parties on one another. For example, Valley as a supplier does

not feel that Texan is providing it with all the relevant information. This can become a strong factor for dissent and mistrust in the future and it also shows no stability in the relationship between the two companies. (Jesperson, 2005) Competitive Advantage: As a serious supplier, Valley needs to support the competitive advantage and the market share that Texan enjoys on this account. Without the support of a reliable supplier, there will be almost no competitive advantage for Texan as will lack the basic elements from its external environment to support the cause of sustainable growth. (Copacino, 1997) Knowledge Management: the supply chain management system needs to integrate the tools of knowledge management within it so as to create a certain amount of awareness in terms of the transmission and development of communication and information, which in turn will put the end users at ease. (Thomas et al, 2006) Inter firm cooperation: Texan must remember in its supply chain management system that collaboration with external parties like suppliers and vendors will lead to cooperation. This is a significant pre requisite for building a strong base for furthering the relevance of forecasts and the achievement of goals through competitive advantage which is a necessary outcome of this collaboration. (Hanna, 2007) Diversity: there must be a keen focus on diversity in all areas of operational relationships, like the level of customer company interface as well as supplier company interface, so as to promote the development of an understanding of the diverse product and complementary service range that Texan has plunged into. (Autry, 2005)

Analysis of Options

To begin with, it is imperative to note that Texan Foods is a company with diverse interests as far as markets go. This has been fuelled by its product and service range. This kind of diversity can be explained by its gradual foray into gourmet food with studies in areas of needs of high end markets. In this regard, Texan Foods has been known to adhere to emerging and prevalent trends by making sure that it caters to needs like environmentally friendly food that does not deplete the ecological balance or resources in any way, apart from the use of plastic containers to serve pre prepared meals. (Autry, 2005) Also, there has been a gradual diversification as far as cultural elements go, through a focus on serving food that caters to various ethnicities and the tastes that have been developed and derived thereof. Therefore, to manage this kind of diversity, there is a need to strike a balance between knowledge management and personal interaction.

While personal interaction with the clients and end users happens over events like personal surveys and interviews, as well as wine and cheese parties or cookery classes, the personal interaction with suppliers is another issue. This issue deals with the integration and utilisation of knowledge management within the framework of the supply chain management. Considering the fact that Texan operates within a structure of over 3,000 suppliers, there is a need to break out of the usual means of interactions which revolve around emails and automated phone calls. (Autry, 2005) There needs to be a more personalised form of interface through a focus on the development and sharing of certain

forms of knowledge regarding the policies and products as well as niche customer groups. This can be promoted through the option of the creation of new events where the strengths and weaknesses of these suppliers can be assessed through the laying down of a standardised format for knowledge management and sharing of information. (Jesperson, 2005)

This in turn will support the option of distribution of resources along judicious lines depending on the potential demonstrated by each of these suppliers as well as the customer groups they can cater to specifically. This will also put the customers at ease once the company lets them know that choosing the right supplier for collaboration on certain strategic points is their way of catering to the specific whims of the high end crowd that demands exclusivity. (Thomas et al, 2006) Further, with diversification of products and services, the company also makes sure that it makes optimum utilisation in terms of innovation and creativity, by diverting the suppliers to specific areas. This will also ensure complete conversion of work in progress by not depending on a certain supplier for various areas. This kind of collaboration will help spread the multitude of tasks, which in turn will help divide the pressure of performance. Also, this will be an added motivation for the suppliers to perform better. In this regard, Texan will show a stronger focus on creating backup plans by spreading the risk and tasks evenly among its suppliers and making sure that there is standardisation and categorisation of these activities through the length and breadth of the organisation. This in turn will work in Texans favour as there will be a better approach towards achieving the forecasts, as well

as an exponential increase in the profitability through positive contribution to the supply chain management from all directions. (Jesperson, 2005)


Based on the above analysis of the options, I would recommend the following areas of operation where Texan needs to place certain amount of strategic importance. These recommendations are based on considerations like feasibility, sustainability as well as acceptability of the proposed model for collaboration.

Realistic Payback Terms At Texan, Gordon and Angela had come to the conclusion that an effective collaboration model would have to integrate features like realistic payback terms. This is due to the fact that in the case of fast moving goods like food items, there is a need for complete conversion of the food along secure and reliable lines before payment is made to the suppliers. (Autry, 2005) This was primarily due to the fact that the officials at Texan felt that Valley was reporting nominal profit figures so as to demand more out of Texan in terms of payback. In this regard, Texan asserted that it would be imperative to first make sure that the sales forecasts are met in the pilot project period, before taking a step in this direction. This requires Texan to use the option of more backup suppliers to boost its conversion frequency rates which will help it adhere to its forecasts. Thus, in case of payback terms, there needs to be stronger focus on the tools like tactics in the procurement of the relevant resources at the best possible prices. (Hanna, 2007) This also

includes decision making in terms of the locations, as well as transportation strategies that will cut costs.

Front End Agreements The pricing factor was another area where Texan felt that the front end agreements had been dishonoured by Valley. Price ceilings had been a major issue in the collaborative efforts where there had earlier been an approach towards sharing the cost in an equal ration. But as discussed above, with the disclosure of nominal profitability figures, Valley had found an excuse to pay less than its required share. With only small improvements to the tune of 0.65%, Valley had experienced a 2.7% decrease in its distribution costs. (Autry, 2005) This calls for Texas to use the option of finding more sources of replenishment so as to achieve better control when dealing with the management of suppliers and customers along the same supply chain for increased sustainability in development and growth. There needs to be ample discussions where there will be enough references to the aims and goals of both companies so as to formulate a strategy that will help promote an integration of these individual goals, to form one that will help derive a mutually beneficial relationship. (Hanna, 2007)

Cost of Technological Support With the increasing use of software as well as hardware, there had been a large increase in the cost of the project. This was an added disadvantage to this pilot project which had so far failed to perform up to the mark as far as reaching forecasts was concerned. (Autry, 2005) In this regard, the maintenance costs of information technology used for

monitoring and communicating had reached a peak. These costs need to be controlled through a larger focus on the option of collaborating with more suppliers. This will help secure optimum utilisation of the IT systems used as there will be more communication along the same lines with suppliers who fit into the same applicability zone in terms of knowledge management. This will also be more acceptable to the framework of the existing supply chain management program where there is a greater emphasis on collaboration. Technological support always costs more unless it has been developed internally. (Copacino, 1997)Therefore, for a company as huge as Texan, they must either tie up with various independent software and hardware vendors for more profitability, or develop the skills within their own organisation to develop enough intellectual capital on which future innovations can depend. (Thomas et al, 2006)

Conversion Rate of Inventory With a fall in the inventory conversion rate to 1.2% with the fall in orders by 5%, there has been a strong need within Texan to mobilise the physical inventory. This will support the use of the option of diversity in operations through which there will be better and more widespread use of the inventory. Also, this will involve more interaction at a personalised level, between Texan and its suppliers like Valley for the analysis of the needs and requirements of specific orders and the use and distribution of inventory to forecast the sales and achieve the same. This will lend feasibility to the collaborative aspect of the project. This will include plans and decision making processes for inventory and a step by step approach to the plan in terms of procurement and positioning within the organisation and among the suppliers, so as to promote complete competitive

advantage for the company. (Hanna, 2007) Such measures will also enhance the tactical positioning of the company on the whole where mobilisation of its various resources and diversion of the same will be concerned. Also, it will help suit the applicability of an inter firm cooperation model.


Apart from a need to communicate more strongly with each other regarding the progress of the project, Texan and Valley need to finalise a model according to which resources will be more equitably distributed. (Anderson et al, 2003) The elements of this model will depend on the options discussed in this paper, with a strong focus on the weaknesses of the project. There also needs to an assessment of the level of contribution of both companies towards the achievement of customer satisfaction, which is the ultimate aim of the mobilisation and utilisation of resources along a specific model of supply chain management.

As discusses by Taoist philosopher Sun Tzu, there needs to be stronger approach within all institutionalised efforts towards the achievement of goals and subsequent profitability, to adhere to the use of tactics and strategies that will promote greater efficiency in sourcing and production decisions. (Hugos, 2005) This will lead to the achievement of a wider network where there is more critical thinking involved in taking various decisions. This will not only lend credibility to such decisions, but also involve the optimum utilisation of resources for doing the same. In this regard, the options proposed in this

paper must form the research background upon which the relationships between the company, suppliers and end users must be clearly defined for more definite and decisive knowledge management as well as equitable distribution of feasibility in operations and sustainability in growth.

Case Study 2 Process Centered Management Through a process of manufacturing and supply to the end user, a product or service follows a sequential chain of events otherwise known as processes, in order to plan, design and implement a fool proof method of directing the flow of information and materials throughout this structure of process centered management. Process Centered Management is that branch of the reengineering process in the corporate world that is in direct context of the work culture and formulation of a structure that follows an independent process driven pattern to reach a set of goals. This kind of management is one where all activities leading towards the achievement of organizational goals, are process driven with a deep rooted influence on the channelization of material and information along the way.

This has been regarded as an emerging trend where work in progress is concerned owing to the fact that it provides observations of a revolution that's only just begun. The natural leaders are among the first to have taken to and moving already from a procedure-based culture towards a process-based culture; from micro to macro; from a microscopic view to a telescopic view. Procedure-based task analysis has now been very systematically

replaced by process-related performance technology where it is now believed that the kinds of work that people do, the jobs they hold, the skills they need, the careers they follow, the roles managers play, the principles of strategy that enterprises follow will shift towards handling processes that they are most suited to. The shift has been carried forth from the revolution of ideals, in which the key word is radical, to the organized reworking of a society in need, in which the key word is process.

Apart from banking, process centered management has been extremely effective in the IT industry as well. It is in this context that the as an invisible economic asset, there are important opportunities that are inherent in the concept of process centered management. This has been triggered by the paradigm shift discussed above, where the time spent in inventory cycle is more important than the size of inventory held.

We will now regard the company we are studying in order to reach more understanding of core processes as well as the marcoms outcome and other projections. Marcoms may be defined as the tryst between communication and marketing, a proportionate combination of which is required to give sales that vital push. It would be imperative here to establish that the company we are dealing with is from the field of banking.

Purpose of Promotional Activity: As a preliminary note, we will find that banks are now confronted with a situation where the competitive pressure has increased while banks have to become more customer-focussed. Simultaneously, an extensive network of branches as it exists today is not longer affordable. As an example, one will find that

expenses for the location of the 49.000 bank branches in Germany are estimated at Euro 7.5 to 10 billion (Salmony and Denck 1999). The only way out of this dilemma is for the banks to shift focus towards new distribution channels that are offered by technological innovations like the internet and smartcard technology. Also, it has been proven that Ecommerce and electronic financial services will be the motor of banking business in the future. In this regard, Forrester Research claims that the world-wide turnover of ecommerce to be $ 100 billion in 2000 and $ 330 billion in 2002 (Salmony and Denck 1999). With emerging innovations and effective process design, it has become imperative to reach out to new distribution channels, apart from making use of the new technologies at the fullest and supporting customer oriented business strategies. Therefore borrowing the techniques of process centered engineering will lend greater credibility to the improvement for banks.

Fortis Banque Luxembourg, long known as Banque Gnrale du Luxembourg, covers both general and specific banking needs for customers in Luxembourg and beyond. As a vital part of the Fortis Fortis Banque operations, this bank has a wide variety of financial services to individuals, businesses, and government institutions on offer. Further, it operates about 35 retail branches in the country of Luxembourg and also offers Internetbased banking for private consumers. Apart from this it offers such services as foreign exchange-transactions, international trade financing for businesses besides offering private banking for wealthy clients. As of now, the Banque General Luxembourg (BGL) is taking giant strides in the arena of process centered management in collaboration with Andersen Consulting. (Fortis Banque Online Banking)

BGL developed a structured model of the companys Business Process Architecture (BPA) which provides a comprehensive description of all business processes in the bank. This model consists of important information regarding the structure, functioning, and key parameters of BGLs business processes. This enables the company to establish process centered management. This model describes business processes at different levels of detail. It begins with a generic macrolevel representation of a banks global business processes, and goes ahead to classify the global picture to more detailed descriptions of processes. Four Macro Level Processes are used in the model to define the fundamental business mission of the bank: Fulfill demand, Generate demand, Develop products and services and Plan and manage the enterprise. This classification has been derived from a standard model of Andersen Consulting. By extending and refining this model BGL created a generic reference for companies in the financial service industry.


In conclusion, it is imperative to say that the role of the modern day HR has evolved to fit a variety of roles, such as the ones discussed above. This helps the organization define its goals and find a sense of identity through the effective motivation of its HR to play these roles in the operational sphere of the organization.


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