ASSIGNMENT COVER SHEET

TABLE OF CONTENTS

Description

Page Number

Q1

Nokias strategic approach to talent management

2 -5

Q2 Strategic fit between HR practices and its context (HRM) 6 - 8 and the overall strategy of the organisation

Q3 Reorganisations and massive layoffs affect employees in terms of their attitudes and morale and discuss how HRM can contribute to organisational performance and general employee well-being in times of organizational change (reorganization, downsizing).

9 - 11

Q4 Becoming an employer of choice

12 - 14

References

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Question 1 Nokia applies specific HRM practices that focus on attracting and retaining good employees. Discuss the significance of this strategic approach to talent management that is adopted by Nokia making them a leader in the mobile phone and telecommunications industry.

The changing face of business today sees a new trend emerging to ensure continued success. The criteria for determining this success is no longer measured in monetary consideration only but its HUMAN TALENT as well. The talent that an organization possesses in respect of employee skills and competencies enables them to remain successful in the competitive business landscape; therefore managing this talent is paramount to achieving strategic or business objectives.

According to the Society for Human Resource Management (SHRM) , talent management is broadly defined as the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs. The key objective of talent management therefore, is to provide the desired workforce necessary to achieve an organizations strategic or business objectives, NOKIA is no exception. Nokia applies the following HRM practices that focus on attracting and retaining good employees:

y y y y

Selective recruitment and selection Training and development Employee involvement compensation

Selective recruitment and selection involves the development of recruitment strategies that are more proactive in their approach to attracting well qualified candidates with specific skill sets. Before organisations venture into the open market for their talent search a talent audit must be undertaken, this must commence with the analysis of the existing skills pool that is available within the organisation. The results of the talent audit will identify the existing skills, highlight the areas of weakness and or need and also act as a benchmark for future talent requirements. It is this audit that will guide the organisation in its recruitment and selection drive. As with NOKIA, there are certain fundamentals that are non- negotiable in their talent search namely:

Person-job-fit, Nokia is a technology driven environment and therefore demands a high level of skill. One of the ways in which potential employees are selected on, is on the basis of their skill and knowledge in relation to the jobs technical requirements.

Person-organisation-fit, Nokia also ensures that potential employees share similar character and behavioural attributes as desired by the organisation. Diversity management, including potential employees of different nationalities, race and gender, especially when competing globally, contributes to creativity and innovation and is a key consideration for Nokia.

An incorrect decision in recruiting can result in negative financial implications as well as the potential to disrupt or interfere with company culture and or produce sub-standard work performance , to name but a few.

The main objective of training and development is to ensure that employees are equipped with the necessary skills that will enable them to perform their day to day activities. Organisations continually look to identify star performers within their workforce so that they can be trained and developed to fill existing and or future roles as might be available through operational requirements or through planned company objectives. Nokia uses the skill of existing employees to be mentors of existing staff thereby imparting relevant knowledge through the transfer of skills. Learning is also available through existing technologies, namely, the intranet with e-learning opportunities. Elearning is advantageous as it provides up-to-date information on all aspects of information for learning thereby ensuring employees are kept abreast of changes and new developments as they become available .

It is important that training and development is carried out on an ongoing basis due to the high levels of competition and also creating an environment where staff can achieve their personal growth objectives, it also motivates employees thereby ensuring loyalty and commitment to the organisation.

Employee involvement, has relevance in that Nokia ensures employee participation through surveys and general participation in decision making, it simply means that employees can make contributions in what happens within the company. It is imperative that employees make use of the training mechanisms and forms that are available internally for self development; this ensures staying relevant and ensures greater contributions when required. Employees are made to feel part of the team as they are placed in a privileged position that enables them to serve as mentors. Employee involvement stimulates a sense of belonging and stimulates employees to give off their best at all times.

Compensation is a form of exchange, employers are rewarded either through monetary or other means as agreed with the organisation and the organisation expects them to perform work for that compensation. Nokia tries to stimulate employees by allowing them to structure their packages to consider normal compensation, bonuses, and stock options but also allows them the flexibility of creating personal work-life balance. This means that employees can work remotely using the various technologies, namely, internet, telephone, etc. They are also given the opportunity to pursue their career objectives by furthering their studies; this ensures further commitment to the organisation.

To remain competitive and attract and retain the best talent, it is imperative that organisations become creative in the manner they employ to achieve this.

Question 2

Selective recruitment and selection, training and development, employee involvement and compensation are the key HR practices applied to achieve the organizational goals.

Provide a discussion on the importance of how a strategic fit between HR practices and its context (HRM) and the overall strategy of the organisation, as in the case at Nokia, lead to a more successful organization.

Human Resource Management refers to the policies, practices and systems that influence employees behaviour, attitudes and performance with its eventual goal of meeting organisational strategic objectives. Human resources management also seeks to ensure a fit between the management of an organisations employees and the overall strategic direction of the company (Miller 1989). According to Wright & McMahan (1992:298), fit means the pattern of planned human resource deployment and activities to enable a firm to achieve its goal.

In todays business landscape people have become a critical component of success and competitive advantage. The function of human resources has traditionally been one that played an administrative role only, however modern realisation of the value of people has somewhat changed that traditional level of thinking. Every strategic objective today, analysed, require people related business issues; it has therefore become imperative that human resource become part of strategy as there exists some link between human resource management and the strategic planning process.

Four levels of linkage seem to exist between the human resource management function and the strategic management function, namely: y Administrative linkage, human resources management simply engages in administrative work only and has no bearing on the companys core business needs; no input is required in respect of business strategy. y One-way linkage, the organisations strategy is developed and human resources is made aware of the said plan. y Two-way Linkage allows for consideration of human resource issues during the strategy formulation process. y Integrative Linkage, the organisation has their human resource management functions built into the strategy formulation and implementation processes.

Human resources provide information on the organisations human resource capabilities which assist in formulating the desired strategy. Once the strategy has been formulated, the role of human resource management changes to encompass the development and alignment of human resource practices that will ensure that the organisation obtains the skills required in order to achieve its strategy. The role of human resource management dictates that they ensure that the organisation has the appropriate number of employees that are adequately skilled in accordance to the strategic plan and develops systems that ensures that those employees are performing adequately to achieve the goals stipulated in the strategic plan, this alignment between Human resources practices and strategy is known as the vertical fit (strategic fit). Researches have argued that it is important to align HR practices with each other into a coherent and consistent system (Delery 1998). For the HR system to be effective, HR practices are assumed to have fit and support each other, (Baird & Meshoulam, 1998: 122). This fit is called horizontal fit, because it focuses on the relationship between the separate HR practices. Human resource practices and processes are aimed at achieving the strategic needs of the organisation; the link between strategy and human resource practices is through people.

Human resource management implements strategy through administering human resource management practices, as in the case of Nokia, they are: y Selective recruitment and selection, Nokia ensures recruiting the person with the right skill set and the right personal character traits. They also ensure that they staff come from diverse backgrounds and diverse ethnicities; the staff requirement is driven by strategic plan requirements. y Training and development, it is necessary for employees to be trained on an ongoing basis so that they are able to perform as per requirement of the strategic plan of the organisation. Nokia ensures training exits in various formats for staff development.

Employee involvement, it is important that employees are involved in decision making as it is good practice to analyse different views that enriches the organisation.

Compensation drives employee retention, compensation is not only gauged in monetary consideration but also a flexible component that provides work-life balance, Nokia prides itself on this philosophy.

Baron and Kreps (1999:16) states that the HR system should fit with the broad context of what the firm is trying to do, such as the external environment, the workforce, organisations culture, organisational strategy, technology of production and organisation of work. In order for business to achieve objectives as per its strategic plan it must ensure that the people that it requires to do so are provided for.

Question 3

Discuss how reorganisations and massive layoffs, (for example, Nokia in the spring of 2003), affect employees in terms of their attitudes and morale and discuss how HRM can contribute to organisational performance and general employee well-being in times of organizational change (reorganization, downsizing).

Organisations are encountering increasingly competitive and volatile conditions in the business environment today. To achieve success it is inevitable that organisations embrace the need for change; however, the ability to manage change is perhaps one of the fundamental imperatives for achieving success. As we understand Nokia and its business reorientation, it is clear that its reorganization and layoffs was largely due to the identification and pursuance of a new business opportunity. This bold step by Nokia required it to move out of its comfort zone and forage into new territory thereby precipitating the need for organisational change and massive layoffs. The resultant impact of change can be both negative and positive on the organisation.

Reorganisations and layoffs as part of change often affect employees in terms of their morale and attitude.

Negative Impact y Employees become distrustful of both the organisation and management, they often become fearful of future layoffs, the general view is that, it has happened and there is no reason why it cannot happen again. Talented staff that remains become uncertain of their future and are quick to look for alternate employment. y Employees become disloyal and are continually absent from work as a result of a lack of commitment to the organisation. Taking on new and more responsibilities increases the stress levels on employees, causing unnecessary illness thereby impacting absenteeism. y Employees often fear failure; they lose confidence in their abilities to perform their duties, either new or existing. They also become demotivated as they are unsure as to whether they can achieve their personal goals in the organisation.

Positive Impact y Employees are willing to try new things even though things are uncertain (KAYE 1998). y Employees learn, take on new assignments, assess their capabilities and contribute to their organisation by approaching their current positions with motivation and energy after the transformation process (KAYE 1998).

HRM can contribute to organisational performance and general employee well-being in times of organisational change.

Human resource management has an obligation to ensure that one of its key responsibilities; ensuring sufficient human capital; is always maintained in order for organisational objectives to be achieved. In times of reorganisations and downsizing the role of human resource management becomes even more critical

In times of organisational change it becomes critical that communication play a key role. It is important that should there be a need for organisational change, either in the form of reorganisation and or potential downsizing, that the prevalent reasons are explained and that the course of action to be followed is clear and fair. Human resources management becomes the conduit for the channelling of information between the organisation and the employees, the information can be communicated through various channels that exist, namely written communication, meetings with small groups of people, etc.

Employee participation goes a long way in ensuring organisational performance; participation ensures employee buy-in and therefore promotes commitment and loyalty in moving forward. Employees fully understand what they are subscribing to based on the anticipated changes and expectations required of them. This will improve staff morale and have a positive impact on productivity.

Human Resource Management can also ensure employee well-being by providing the following:

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Emotional support, it is important for organisations that undergo reorganisation and downsizing to ensure that they create a sense of stability after these processes occur, employees need to feel that the organisation cares for them. Human resource management can run courses on stress management and change management thereby ensuring that employees are able to deal with and adjust to the new environment accordingly. (Coudron 1996)

Role clarification, it is crucial that human resources management explain the new roles that the employees will play and what is expected of them. (Coudron 1996)

Career management assistance, it is important that employees are clear as to the future growth opportunities that might exist or that employees can grow into thereby ensuring that they can achieve their personal objectives as well. (Coudron 1996)

Training and development plays an important role in the future of the organisation after reorganisation and downsizing. The organisation often loses critical skills during these times and also the expectations are that existing staff take on additional or new roles and responsibilities. For this reason alone, it is important that training and development be implemented for staff to be able to perform their duties accordingly.

For organisations to achieve their objectives, it is clear that they must be able to embrace change and ensure that it is implemented in an acceptable manner to all stakeholders and employees alike.

Question 4 An organization needs to create an employer brand where the labour market will perceive the organization as an employer of choice. Examine how Nokia, through their various HRM practices endeavours to create this unique value proposition.

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The competitive business arena today sees a war for talent. The primary reasons that have been identified include, the scarcity of critical talent, the ongoing retirement of the BABY BOOM GENERATION, the widening skills gap and large-scale social integration. Of the many available solutions that organisations have used to combat this problem, one of them is to establish an employment brand thereby enabling them to become an employer of choice.

Marc R. Anderberg defines an employer of choice as being an organization whose employment policies and HRM practices give it an edge over its competitors in recruiting and retaining appropriately skilled workers thereby optimizing productivity while maintaining or increasing their profitability and market share. To successfully become an employer of choice an organization must create brand awareness, in context brand is your identity as an employer.

Nokia, become an employer of choice An employment brand must clearly define your organizational goals and ideals, or where you want to take your company. These are some of the characteristics of being an employer of choice: y y They are viewed as a destination workplace and have a recognized brand They have a stronger pull in the employment market place, through their strong identity and image y They are able to attract more of the right candidates, not just a higher number of candidates y y y They have high levels of employee engagement They are able to develop talented people at all levels in the organizations They are recognized by their employees, prospective employees and other employers as the place to work. (Stakeholder , May 2005)

Nokia as we know them today was forced to undergo organizational change due to an economic crisis in Finland and an internal company crisis as well. Nokia identified a new

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business opportunity and this gave birth to a telecommunications giant. It had the support of the Finnish government, trade unions and top management and employees within the organization. This was the first step in their brand building thereby positioning themselves to becoming an employer of choice. They went on to scoop business awards rating them as one of the best global brands and the one of the worlds most admired companies .These accolades ensured that they became a sought after employer. However, winning awards does not necessarily mean that you become an automatic employer of choice; you must build an employment brand that creates a vision of your organization in the minds of current and potential employees.

Nokia has developed a powerful employment brand by using its flat organizational structure that ensures quick decision making. The Nokia Way , of equality amongst employees , openness to people and sharing new ideas is one of the key factors that ensures a constant flow of job applications for Nokia. Your employment brand can even create a demand that exceeds the level of opportunity, which will position you exceedingly well for the future. Moreover, you will keep the best talent, because current employees will have vested their careers with you. These individuals will serve as ambassadors, and they will bring the right talent to you if they are loyal enough to your organization.

Nokia provides personal development opportunities through internal coaching and elearning opportunities , offers study leave for those interesting in further their education , adds further impetus for Nokia being an employer of choice as employees can us the resources available to them in order for them to achieve personal growth objectives.

The flexible in creating work life- balance appeals to many potential employees today as they seek to create balance between family and other personal interests with those of their current employment relationship. The structuring of compensation packages to individual requirements is appealing to most candidates as this provides a platform for them to work for high salaries and benefits as apposed to those that chose a base salary with those benefits associated with a more flexible arrangement.

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The ability to work with different ethnic groups stimulates a culture of learning , learning how other people think , how they do things and there ability to be innovative , people are consistently looking to be part of these working environments where they can teach and be taught. In the increasingly difficult labour market for attracting and retaining talent, organisations need to apply brand management thinking and techniques to this issue of creating meaning and relevance to current and future employees. Employer branding is one such strategy that ensures the organisation is able to attract, engage and retain the building blocks of what is now recognised as a firms source of greatest competitive advantage its human capital.

REFERENCES:

1. Coudron, S. (1996). Team downsizing survivors how to thrive. Personnel Journal, 75(1), 38-45.

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2. Kaye, B.L. (1998). The Kept on Workforce. Training and development, 52(10), 14 -21.

3. SA Journal of Industrial Psychology, (2005). The Perceived impact of downsizing and organizational transformation on survivors. 31(2), 14-21.

4. Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2010) Human Resource Management: Gaining a Competitive Advantage 7th Ed. McGraw-Hill.

5. Nel, P.S., Werner, A., Haasbroek, G.S., Poisat, P., Sono, T., Schultz, H.B., (2010) Human Resources Management 7th Edition Oxford University Press. 6. Global Talent Management and Talent Challenges: Strategic opportunities for IHRM. Schuler, R.S., Jackson, S.E. (Journal of World Business 2012 (in press).

7. Kapec, C., Wining the War for Talent: Nas Recruitment Communications.

8. Bersin, J., and Talent Management: What is it? Why now? The Hay Group.

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