HR ACCOUNTING

ASSIGNMENT 3

Synopsis
Case01: Human Capital
Readiness at Global Restaurant
Franchise Autogrill

Name: Kritika Maloo

Class: MBA HR
Roll No: MBA18C18

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About the company
Autogrill is the world’s leading provider of food & beverage services for travelers. The Group is
present in 30 countries with more than 60.000 employees and manages about 4.000 points of sale
in around 1.000 locations. Autogrill serves people on the move and operates primarily under
concession agreements. The Group operates mainly in airports and motorways, followed by
railway stations and a selective presence in high street, shopping centers, trade fairs, museums,
and other cultural facilities.
Case Brief
The case is about the implementation of balance scorecard in Autogrill. The HR Manager has
strategically thought about the jobs that are crucial and important in the organization and prepared
a balance score card accordingly.
Problem Statement
The company had the pressure because of the increasing competition and new federal regulation.
The Telepass, an electronic pass system was introduced few years ago which has made it easier
for drivers to exit and reenter the motorway to patronize off-highway restaurants. Because of
all these reasons company faced a pressure to change its strategy.
Autogrill is the company which really believes and follow “people are everything” in its
organization.
Autogrill serves two kind of customers:
1. Consumers
2. Landlords who give their place for rent
Some locations have a partnership with their landlords, whereby the landlord helps drive customer
traffic in exchange for a royalty. For example, the landlord of an airport location might modify the
retail-store layout to optimize passenger flows during airport renovations and later help Autogrill
move its operations close to a new passenger flow when the work is completed. As the landlord
helps generate more traffic, Autogrill increases the royalties it pays accordingly.
Strategy in Italy
 Customer Strategy: Work both for its consumers and landlords. It follows dual customer
base.
 Financial Strategy: It believes in attracting more customers, selling more product as well
as optimizing the cost and long-term value of locations.
Process of Strategic Job Families
Autogrill made strategic job families. Jobs which are strategically more important were sort out
and competencies were defined for these job as per their importance in the organization.

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Autogrill’s Balance Scorecard leadership team had nine functional managers, three business unit
managers, and the managing director (the general manager for Autogrill Italy) they all worked
with HR specialists to identify the company’s strategic job families.
They analyzed the process perspective of the strategy map, split it into the main activities of these
processes, and identified the organizational roles accountable for the results of those activities. For
example, activities that support Autogrill’s brand and build its portfolio of offerings are carried
out by marketing employees. The team reviewed these key roles with channel and functional-area
managers companywide before gaining final approval from Italy’s HR manager and managing
director. The strategic job families were the crucial jobs in the organization like the store manager,
a store manager retention is necessary as compared to finance guy because store manager brings
business and has the full product knowledge if organization does not have enough store managers
for the future, there will be a problem. Area and store managers motivate workers and therefore
has significant impact on the company’s customer success and its bottom line. This signifies that
organization need to focus on training and on succession development for this group of families.
Employees in R&D creates new concepts the process of identifying these strategically critical roles
and ensuring they are adequately filled. To measure human capital readiness, an organization must
identify the critical internal processes on its strategy map and then identify, within the human
capital requirements of its learning and growth perspective, the set of competencies required to
perform each critical internal process.
The next step is to craft competency profiles detailed descriptions of the requirements for each of
these strategic jobs based on the goals of the strategic themes. A competency profile describes the
knowledge, skills, and values an employee needs to be successful in a given position.
With support from the company’s HR specialists, channel or functional managers approved each
competency definition and defined the required skill level for each position within the job family.
The team then assigned each competency five skill levels, with level 1 being entry level and level
5 highly skilled.
After the determination of competency profiles and skill levels. These profiles are used to
assess existing employees. Training was given by HR to employees to identify their skills levels
to identify competency gap. For example, if the manager were assessed as a level 3, he would
be asked to create a personal development plan to raise his skills one level. Autogrill conducts
formal training for employees at all levels.
Training for a level 3 and 4 employees in the technical construction job family includes
learning how to forge partnerships with suppliers to develop joint strategies to reduce the cost
of project components.
If 90% or more of the positions in a given strategic job family are at the required competency
level, the job family is rated a “green” in Autogrill’s human capital readiness chart. A rating
of between 80% and 90% is a “yellow”.
Competency profiling and training helped managers better understand how to focus on employee
behavior that affects strategic goals. For store managers, it highlighted the linkages between the

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behaviors of its salespeople and store revenue.
The training provided by HR increased employees’ motivation, improving their management skills
and satisfaction and it also reduced employees’ turnover in the organization all this was revealed
in the survey conducted by store manager.
By aligning human capital to its strategic priorities, in the first half of 2006, motorway revenues
increased 11.7% over 2005 levels during the same period, despite a motorway traffic increase of
only 2.7%.
Conclusion
The process done by the organization was appreciable as it has brought out many positive results
in terms of financial figures and employee experience. Dividing job into strategic and non-
strategic. It gives a better clarity to management about the jobs which are important and crucial in
the organization.