1|Page

Jeffrey Pfeffers efforts in identifying and quantifying causal relationships in the workplace, and his insights into factors and forces that can be transformed into highly effective human resource strategy, place him in a unique category of academics who have made a genuine difference in the world of HR. Managers, Mr. Pfeffer says, frequently misunderstand the sources of corporate success. Contrary to conventional wisdom, he observes, there is nothing magical about being in the "right" industry, about being large, about being global or even having a barrier to competition in the form of some technological edge or brand equity. With the right attitude to people, his message runs, you can be successfully small, local and "low tech." Alignment of Skills and Behaviours to Strategy Pfeffer shows that if the skills and behaviors needed to support the firm's strategy or strategic intent are plotted against the organization's employee practices, the value of those practices becomes apparent, and a gap between intention and actual effectiveness can be measured. An assessment of a company's practices can then be made to ensure external congruence and internal consistency. Jeffrey Pfeffers 7 Practices Seven practices he says are found in most successful organizations (based on research in a wide range of industries in more than 20 countries):Provide employment security, Use different criteria to select personnel, Use self-managed teams and decentralization as basic elements of organizational design, Offer high compensation contingent on organizational performance, Train extensively, Reduce status distinctions and barriers, Share financial and performance information. Provide employment security. Employees surely can be fired if they do not perform, but they should not be put on the street quickly because of economic downturns or strategic errors by senior management over which they have no control. An example he frequently cites is Southwest Airlines, which sees job security as a vital tool for building employee partnership and argues that short-term layoffs would "put our best assets, our people, in the arms of the competition." Use different criteria to select personnel. Companies should screen for cultural fit and attitude, among other things, rather than just for skills that new employees can easily acquire through training. Use self-managed teams and decentralization as basic elements of organizational design. Mr. Pfeffer is particularly keen on the way teams can substitute peer-based control of work for hierarchical control, thereby allowing for the elimination of management layers. Offer high compensation contingent on organizational performance. High pay can produce economic success, as illustrated by the story of Pathmark: This large grocery store chain in the Eastern United States had three months to turn the company around or go bust. The new boss increased the salaries of his store managers by 40 percent to 50 percent, enabling them to concentrate on improving performance rather than complaining about their pay. Train extensively. The author notes that this activity "begs for some sort of return-oninvestment calculations" but concludes that such analyses are difficult, if not impossible, to carry out. Successful companies that emphasize training do so almost as a matter of faith. Reduce status distinctions and barriers. These include dress, language, office arrangements, parking and wage differentials. Share financial and performance information. The chief executive of Whole Foods Market has said that a high-trust organization "can't have secrets." His company actually shares salary information with every employee who is interested. Background to John Purcells Work One of the most important lessons of the twentieth century has been that economic progress doesn't necessarily translate into human development. Indeed progress, at least in the short term, has often been made to the detriment of humans and the environments in which they live. However, during the last decade it has become apparent that intellectual understanding, knowledge and the ability to apply that knowledge is the fuel for global competitiveness and growth. Increasingly companies are reliant on the knowledge and competence of the people who work for them as a source of competitive advantage. The final and largest research investigation in the CIPD programme was that carried out by a research team led by Professor John Purcell at Bath University and led to our report Understanding the people and performance link: unlocking the black box. This work studied a total of 18 organizations over a three-year period, with six of the organizations being in the knowledge-intensive sector. In each organization the team focused on a clearly identifiable unit of the business, such as a store or pair of stores within a large retail organization or the sales team in a financial services organization. Purcells Model The model demonstrates that people management practices in themselves do not create value. They do, however, create the building blocks of performance: ability, motivation and opportunity (AMO): Ability is the assumption that people want to apply for jobs, have their attributes recognized and are willing to learn new skills. Motivation assumes that people can be motivated to use their ability in a productive manner. Opportunity assumes people will perform well, engage in high-quality work and participate in wider activities such as team initiatives or problem-solving if they are given the opportunity to do so. It is these AMO factors that contribute to feelings of job satisfaction, commitment and motivation in employees which encourage them to exhibit discretionary behaviour. Discretionary behaviour means making the sorts of choices that often define a job, such as the way the job is done the speed, care, innovation and style of delivery. This behaviour is at the heart of the employment relationship, because it is hard for the employer to define, monitor or control. Whatever controls or sanctions the organization employs it will still lie within the employees power to either give or withdraw discretionary behaviour. It is therefore discretionary behaviour that drives performance and makes the differences between organizations that are 'OK' and those that are great. For AMO to be translated into business performance a number of other factors are important and must feature in the design of HR practices. The role of front line managers, Organizational culture and values, Managing the careers of professional knowledge workers (the retention/employability dilemma ,the development/focus dilemma ,the value/appropriation dilemma ) Summary of Purcells Model Where individuals get their primary source of satisfaction - from working with the team, from customers, the organization or their individual professional status - is important. The research challenges the notion that identification with the customer or the team is always positive. It argues that too close an identification with the customer may lead to individuals pursuing customer needs, which is detrimental to organizational value. Similarly, strong team identification may be positive for the individuals but may cause problems for the organizations if individual team members leave. Employee Relations is concerned with: Building a stable and co-operative relationship with employees that minimizes conflict; Achieving a commitment through involvement and communication processes; Developing mutuality, a common interest in achieving the organizations cultures based on shared values between management and employees; How has Employee Relations developed From early in industrial life the tendency has been for employer and employee to try to squeeze more out of each other,1970s Conflict resolution i.e. Managements view and opposing Trade Unions view, Modern approach to management has seen management become a facilitator rather the controller greater emphasis on employee using their skills and abilities for the benefit of the organization Changes in Employee Relations Changes in employee relations has resulted due to increased bargaining power of the employees, flexibility in working time ,changing job functions and this has occurred due to the increase in competition, product processes changes due to consumer awareness combined with the increasing essence in quality, productivity and skills. , An integration of all these factors has had impact on the practices and policies of the management Change and Employee Involvement While managing change in the firm, the employee involvement in making sure the change is effected is very important while the management has to ensure that the skills processed by the employees are compatible with those required in the market to meet the customer needs. Common Approaches Adopted by Employers Adversarial: organization decides what it wants to do and the employees are expected to fit in. Employees only exercise power by refusing to cooperate. Traditional: A good day to day working relationship but management proposes and the workers react through its selected representatives. Partnership: The organization involves employees in the drawing up and execution of organizational policies but retains right to manage. Power Sharing: Employees are involved in both day to day and strategic decision making. The Psychological Contract A psychological contract represents the mutual beliefs, perceptions, and informal obligations between an employer

2|Page
and an employee. It sets the dynamics for the relationship and defines the detailed practicality of the work to be done. It is distinguishable from the formal written contract of employment which, for the most part, only identifies mutual duties and responsibilities in a generalized form Psychological contracts exist when an individual and an organization's management each have expectations that are based on the aggregate obligations between employees and the firm (Rousseau, 1995). The Psychological Contract is dynamic It changes as experience accumulates, employment conditions change and employees reevaluate their expectations Developing a Positive Psychological Contract Guest suggests: Provision of opportunities for learning, training and development, Focus on job security, promotion and careers, Minimizing status differences, air reward systems, Comprehensive communication and involvement processes How has the HRM Approach changed Employment Relations? A drive for commitment An emphasis on mutuality The organization of complementary forms of communication e.g. team briefing alongside traditional collective bargaining A shift from collective bargaining to individual contracts Increasing use of employee involvement techniques such as Quality Circles and Improvement Groups Continuous pressure on total quality management Emphasis on team work Harmonization of terms and conditions for all employees Investors in People Investors in People is the national standard which sets out a level of good practice for the training and development of people in order to achieve business goals. The Investors in People Standard was developed in 1990 by the National Training Task Force, in partnership with leading business, personnel, professional and employees organizations. The Standard provides a national framework for improving business performance and competitiveness through a planned approach to setting and communicating business objectives and developing people to meet these objectives. The result is what people can and are motivated to do matches what the organization needs them to do. Principles of Investors in People The Standard is based on three main principles: Plan - develop strategies to improve performance Do - take action to improve the performance Review - evaluate the impact Plan A strategy for improving the performance of the organization is clearly defined and understood. Learning and development is planned to achieve the organizations objectives. Strategies for managing people are designed to promote equality of opportunity in the development of the organizations people. The capabilities managers need to lead, manage and develop people effectively are clearly defined and understood. Do Managers are effective in leading, managing and developing people. Peoples contribution to the organization is recognized and valued. People are encouraged to take ownership and responsibility by being involved in decision-making. People learn and develop effectively. Review Investment in people improves the performance of the organization. Improvements are continually made to the way people are managed and developed. Using Organizational Development Organizational development (OD)-A special approach to organizational change in which employees themselves formulate and implement the change thats required. (Usually involves action research. Applies behavioral science knowledge. Changes the attitudes, values, and beliefs of employees. Changes the organization in a particular direction) A planned approach to far-reaching organizational change designed to enable an organization to respond and adapt to changing market conditions and to set a new agenda. Organizational development is frequently linked to organization structure, which can act either as an enabling or restrictive mechanism for change. For organizational development to succeed, any policies or strategies introduced must fit with the corporate culture. (INSERT OD CYCLE DIAGRAM) OD Basics Although the field of OD is broad, it can be differentiated from other systems of organizational change by its emphasis on process rather than problems Management Challenge that OD initiatives focus on is identifying the behavioral interactions and patterns that cause and sustain problems. Then, rather than simply changing isolated behaviors, OD efforts are aimed at creating a behaviorally healthy organization that will naturally anticipate and prevent (or quickly solve) problems. Characteristics of OD Programs Long term efforts, collaborative management, Every organization is unique, Same solutions cannot necessarily be applied at different companies, Values teamwork and small groups Examples of OD Interventions Human Process T-groups Process consultation Third-party intervention Team building Organizational confrontation meeting Intergroup relations Techno structural Formal structural change Differentiation and integration Cooperative unionmanagement projects Quality circles Total quality management Work design Human Resource Management Goal setting Performance appraisal Reward systems Career planning and development Managing workforce diversity Employee wellness Strategic Integrated strategic management Culture change Strategic change Self-designing organizations Human Resource Development Human Resource Development is very important for every organization, in order to build up a smooth relationship between the employees and organizations. Benefits include: Developing competencies among individuals in the organizations that allow them to perform their present and future works thoroughly, by means of intended learning activities. Ensuring equivalence between an organizational and individual need. . Groups inside the organizations instigate and direct change. The Strategic Role of Human Resource Development Strategic HRD is concerned with the development of a learning organization and the provision of learning, development and training opportunities to improve individual, team and organizational performance Strategic HRD takes a long view about how HRD strategies can support the achievement of business strategies The HRD Process Human Resource Development is: A continuous process A sub-system of a large system oriented to the organization Proactive it copes with the changing needs of the people as well as anticipates these needs Develops the whole organization Involves the entire work force from top to bottom Developing human resources at multiple levels Managing Organizational Change and Development What to change? Strategy: mission and vision Culture: new corporate values Structure: departmental structure, coordination, span of control, reporting relationships, tasks, decision-making procedures Technologies: new systems and methods Employees: changes in employee attitudes and skills Products/services Overcoming Resistance to Change. Change initiatives Political campaign: creating a coalition strong enough to support and guide the initiative. Marketing campaign: tapping into employees thoughts and feelings and also effectively communicating messages about the prospective programs theme and benefits. Military campaign: Deploying executives scarce resources of attention and time to actually carry out the change. How to Lead the Change (in 10 Steps) Establish a sense of urgency. Mobilize commitment through joint diagnosis of problems. Create a guiding coalition. Develop a shared vision. Communicate the vision. Help employees to make the change. Generate short-term wins. Consolidate gains and produce more change. Anchor the new ways of doing things in the companys culture. Monitor progress and adjust the vision as required. Learning and HRD Maximizing learning and creating a learning environment is essential for building HRD in organizations Individual differences in the learning process should be encouraged and treated accordingly. Making full use of individual skills is the core essence of HRD. The Learning Organization Learning organizations are characterized by total employee involvement in a process of collaboratively conducted, collectively accountable change directed towards shared values or principles. (Watkins and Marsick 1992: 118) Characteristics of Learning Organizations learning organizations: Provide continuous learning opportunities. Use learning to reach their goals. Link individual performance with organizational performance. Foster inquiry and dialogue, making it safe for people to share openly and take risks. Embrace creative tension as a source of energy and renewal. Are continuously aware of and interact with their environment. (Kerka 1995) Learning Disciplines Thee core of learning organization

3|Page
work is based upon five learning disciplines, each providing a true dimension in building an organization that can truly learn: Personal mastery Mental models Team learning Shared vision Systems thinking Primary Goal of SHRM The primary goal of strategic human resources is to increase employee skills and productivity needed to achieve competitive advantage (DRAW DIAGRAM) Steps in Recruitment and Selection Process

Effective Recruiting External factors affecting recruiting: Looming undersupply of workers Lessening of the trend in outsourcing of jobs Increasingly fewer qualified candidates Internal factors affecting recruiting: The consistency of the firms recruitment efforts with its strategic goals The available resources, types of jobs to be recruited and choice of recruiting methods on recruitment HR issues and policies Line and staff coordination and cooperation Advantages of centralizing recruitment Strengthens employment brand Ease in applying strategic principles Reduces duplication of HR activities Reduces the cost of new HR technologies Builds teams of HR experts Provides for better measurement of HR performance Allows for the sharing of applicant pools Strategic Approaches to Recruiting Rynes and Barbour (1990) suggested three strategic approaches to the labour market: Changing attraction practices Changing inducement offered to applicants Targeting non-traditional sources of applicants Internal Sources of Candidates: Hiring from Within AdvantagesForeknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required Disadvantages-Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding of the status quo Finding Internal Candidates Job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages :( They are known quantities. They know the firm and its culture.)Disadvantages :( They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.) Succession planning The process of ensuring a suitable supply of successors for current and future senior or key jobs. Succession planning steps: Identifying and analyzing key jobs. Creating and assessing candidates. Selecting those who will fill the key positions. Outside Sources of Candidates Advertising The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets)Trade and professional journals Internet job sites Marketing programs Constructing an effective ad Wording related to job interest factors should evoke the applicants attention, interest, desire, and action (AIDA) and create a positive impression of the firm. Reasons for using a private employment agency: When a firm doesnt have an HR department and is not geared to doing recruiting and screening. The firm has found it difficult in the past to generate a pool of qualified applicants. The firm must fill a particular opening quickly. There is a perceived need to attract a greater number of minority or female applicants. The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies. The firm wants to cut down on the time its devoting to recruiting. Recruiting via the Internet More firms and applicants are utilizing the Internet in the job search process. Advantages of Internet recruiting(Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicant slinks to other job search sites Automation of applicant tracking and evaluation) The Importance of Selection Efficient and effective people resourcing is partly about getting the legal aspects right (i.e., ensuring there is no discrimination in the selection process)It is also about appointing people with a positive mix of capabilities, potential and the right attitude In many ways, attitude is more important than skill, because it is relatively easy to train people so that they possess the right skills Good attitudes mean that employees become enthusiastic contributors to the organization and willingly take part in continuous-improvement and change management activities. These employees exhibit the kind of discretionary behaviour which helps to construct a superior reputation for their employer Question 1.1Sinha (2007) defines strategic human resource management (SHRM) as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organisational culture that fosters innovation, flexibility and competitive advantage. Further, it accepts and involves the HR function as a strategic partner in formulating and implementing the company's strategies through HR activities (Sinha 2007) such as recruiting, selecting, training and rewarding personnel. According to Snell and Bohlander (2007), is the pattern of human resources deployments and activities that enable an organisation to achieve its strategic goals. Organisations uniquely utilise varying SHRM models in an attempt to manage their human resources and their business strategies. Cadbury is such an organisation. It has aligned strategies at different organisational levels to support its overall goal of delivering superior shareholder performance. The table below briefly describes six SHRM models, a combination of which has been employed by Cadbury in an attempt to manage its human resources and its business strategies. Cadbury has taken on an approach whereby a combination of the abovementioned SHRM models is employed. Cadburys ultimate 2004-07 goal was to deliver superior shareholder performance. As such, conscientious efforts were made by the organisation to integrate these SHRM practices into the overall strategic plan of the organisation thereby achieving its goal. At least ten SHRM strategies, in sync with SHRM models, have been developed and put into practice by Cadbury to achieve the aforementioned goal. These strategies would now be explored demonstrating how they align to achieve the goal. Importantly, Cadbury has Stack, an HR director on the main board thereby allowing for strategic HR leadership. This is essential to Cadbury as HR would always be on par with what is going on at top business levels in particular as to where the organisation is heading. Stack is also in a position to influence policy for employees because of his position. Developing leadership behaviours through Managing for Value - a five-day programme geared towards liking employee work to the financial goals of the organisation thereby increasing their understanding of how the company could be more profitable. The question is often asked are leaders born or made? Garic (2005) believes there are some people who demonstrate a greater ability for leading people than others and that they have become the best by practicing and learning from their practice. Developing leadership behaviours is therefore a SHRM step in the right direction for Cadbury. Share schemes such as Share Save have been developed to support the goal of ensuring that employees are one with the organisation ultimately attaining Cadburys strategic goals. It is an HR strategy in the form of rewards that encourages employee involvement. The end result is that the affairs of the organisation become a significant concern of employees. As such they work with fervour in an attempt to achieve goals knowing that they too are beneficiaries of the organisations profits. Andrew Gibson (HR director for Cadbury Schweppes- GB & Ireland) says: "Well over 90 per cent of employees said they understood the business's purpose and values and its local priorities; were proud to work for the business; and felt part of a team.Through a growth strategy Cadbury

4|Page
acquired a number of confectioners thereby engaging in related diversification. These acquisitions allowed Cadbury to increase market power thereby delivering shareholder performance. Such an approach to strategy led to the process of change management. According to Leis (2000), mergers and acquisitions have historically had negative connotations with the biggest challenge- handling the human side. Through SHRM Cadbury has however effectively managed change that resulted from its acquisitions by undergoing reorganisation and a speedily transitioning to a decentralised organisation structure. Greater change and uncertainty in the environment are usually associated with decentralisation (Daft 2005), making such a strategy suitable for Cadbury. Such a structure allows for devolution of decision-making power to lower levels of the organisation, allowing employees to take the initiative. Team work and collaboration was also dealt with via three strategies- Working Better Together, 50 Online Tools and a joint problem-solving SHRM strategy. These tools positively impact Cadburys business strategies fostering information-sharing, performance management, coaching, motivating and supporting decentralisation. Because it is a global company, online tools are a way of bridging the geographic gaps and allowing information to be readily available to all stakeholders. Cadbury employed a management development programme by way of their Growing Our People strategy. Developing managers has a long-term ripple effect on the whole organisation thereby contributing to the attainment of the overall strategic goal of Cadbury. Another SHRM strategy undertaken by Cadbury is its Passion for People initiative. This is a best practice/HPW system whereby the organisation focuses on both performance management and stakeholder management resulting in overall goal attainment. With the utilisation of SHRM models, Cadbury has been able to align manage its human resources and its business strategies. By embarking upon acquiring non-Cadbury originated business together with performance and development strategies the organisation has been able to grow thereby attaining its bottom line- delivering superior shareholder performance.Question1. 2Change is phrased quite effectively by Kanter et al. (1992) as the shift in the behaviour of the whole organisation, to one degree or another. The process of change: ...Organisations are attempting to recreate themselves and move from the traditional structure to a dynamic new model where people can contribute their creativity, energy and foresight in return for being nurtured, developed and entrusted (Jones, Palmer, Osterweil and Whitehead 1996).There is the consensus that change, being triggered by internal or external factors, see below, comes in all shapes, forms and sizes (Burnes 2004)... and therefore affects all organisations in all industries. Highlighted in table 1 are those that apply to Cadbury. Table 1: External and Internal Triggers for (of) change Cadburys approach to change knowing where the change lie is vital to the success of the change processes. However, it is equally important to establish how change comes about to ensure organisation objectives are achieved. There two main approaches planned and emergent. In the case of Cadbury from the study it can be seen where both planned and emergent approaches were used. These were ideally suited because the focus was on changing the culture and attitudes/behaviour on an individual, group and organisational level. Planned approach The planned approach to change was initiated in 1946 by Kurt Lewin. This approach to organisational change attempts to explain the process that bring about change. Planned approach to change is now closely associated with the practice of Organization Development (OD) according to French and Bell (1995:1-2 cited in Burnes 2004). There are four separate themes of Lewins work and he saw them as a unified whole, in bringing about planned change whether it be at the level of the individual, group or organisation (Burnes 2004). They are: Table 2 Lewin Four themes Field theory, that is, individual behaviour is a function of the group environment or field and any changes in behaviour stem from changes in the forces within the field (Burnes). Consequently, when in 2004 Cadburys goal became to deliver shareholder performance, the goals of individuals also changed as was realised in the new results-focused attitude and profit-driven approach t o work. Group Dynamics Lewin (1947b) maintained that it is fruitless to concentrate on changing the behaviour of individuals because the individual in isolation is constrained by group pressures to conform. Consequently, Schein, (1986 cited in Burens 2004) agrees that the focus of change must be at the group level and should concentrate on factors such as group norms, roles, interactions and socialisation processes to create disequilibrium and change. To buffer change such as that which resulted from the acquisitions, Cadbury employed 50 online tools, a working better together strategy and a joint problem-solving approach which focused on motivating and coaching. Action Research, stresses that for change to be effective, it must take place at the group level, and must be a participative and collaborative process which involves all of those concerned (Allport, 1948; ... French and Bell, 1984 cited in Burnes 2004). However, to be successful, there must be a felt-need1. When Cadbury embarked upon change its strategies employed catered to group needs which allowed for teamwork and collaboration for example working better together, joint problem-solving approach and 50 online tools. Three-step model, a successful change project, Lewin (1947b) argued, involves three steps of unfreezing the present level, moving to the new level and refreezing this new level (see figure 1). This model of change recognises the need to discard old behaviour, structures, processes and culture before successfully adopting new approaches (Bamford and Foster, 2003). Cadbury has changed from a paternalistic Quaker tradition taking on a growth strategy that has allowed the organisation to adapt to fit the worldwide competitive situation in which it operates.

Similarly, Bullock and Batten (1985 cited in Burnes 2004) developed a four-phase model of planned changed at the individual and group level that splits the process into exploration, planning, action and integration. The first three phases are similar to Lewins Action Research. In light of the case study we see the many advantages of using the planned approach ranging from being organised, structured, and flexible. Tasks were delegated to the correct members to achieve goals. Although the planned approach to change is still far and away the best developed, documented and supported approach to change, it has come under increasing criticism. A disadvantage to this approach is that it is based on the assumption that organisations operate under constant conditions, and that they can move in a pre-planned manner from one stable state to another (Bamford and Forrester, 2003 cited in Todem 2005). These assumptions are, however, questioned by several authors (Burnes 2005) who argues that the current fast-changing environment increasingly weakness this

5|Page
theory. Moreover, it is suggested that organisational change is more an open-ended and continuous process than a set of pre-identified set of discrete and self-contained events (Burnes 2004). Emergent Approach Arising from criticisms of the planned approach brings about the emergent approach. An emerging factor that forced Cadbury to change was the competitive market in which it thrived. As such they adopted this approach. From the proponents of the emergent approach, change is a continuous, dynamic and contested process that emerges in an unpredictable and unplanned fashion. Impact of change on Cadbury It is the uncertainty of the external and internal environment that makes this approach more pertinent than the planned. The emergent approach to change is more concerned with change readiness and facilitating for change than to provide specific pre-planned steps for each change project and initiative. The approach stresses a promotion of extensive and in-depth understanding of strategy, systems, people, style and culture and how these can function either as sources of inertia that can block change, or alternatively, as levers to encourage an effective change process. Adopted from Burnes (2004) Employee response- it is beneficial to both employees and the organisation as a whole to involve employees in the change process. According to the case, employees embraced the new profit-driven approach. Gibson says: "Well over 90 per cent of employees said they understood the business's purpose and values and its local priorities; were proud to work for the business; and felt part of a team. These were really strong results, especially at a time of great change, when you expect some fracture. That's testament to some of the programmes weve run and how we embrace change rather than fear it." The management of any organisation would be delighted with such an overwhelming response from its employees. Such results constitutes loyalty and fosters a feeling of ownership as is the case with the Share Save scheme, developmental programmes and the involved creation of a new culture after acquisitions occurred. Role played by SHRM techniques and processes SHRM techniques and processes are critical to change and the leading thereof. Transformational and transactional skills are needed to manage corporate politics and change effectively. Hence, there are four competencies that are essential to effective management of change as proposed by Carnall (2007). These include decision making, coalition building, achieving action and maintaining monument and effort. The table below illustrates SHRM techniques employed to foster change. Table 3 Source: Class notes (2009) Change is the constant, the signal for rebirth, the egg of the phoenix (Christina Baldwin). If organisations are not apt to change they are setting themselves up to be left behind in the race of competition. Like Cadbury, organisations must embrace the idea of change doing whatever necessary to achieve its bottom which for Cadbury, is to deliver shareholder performance. Question 1.3Barney (1991) reasoned that a managers ability to understand and effectively use firm resources is itself a valuable resource that has the potential for generating sustained competitive advantages for a firm. This is mirrored in the unique ways Cadbury engaged in strategies that has allowed them to gain a competitive edge. Cadburys HR strategy is about organisational performance. As indicated in the case, the number one goal for 2006-07... to deliver shareholder performance. Cadburys main goal of delivering shareholder performance is attained specifically through its main strategy- growth. The organisation sought to grow itself by way of related diversification, strengthening its strategic leadership, global penetration, and through market leadership. From a general perspective, another strategy employed by Cadbury is a generic competitive strategy known that Porter (1980) calls focus differentiation. Related diversification, according to Jones and George (2007) is entering a new business or industry to create a competitive advantage in one or more of the organisations existing divisions or business. Over the years Cadbury has acquired varying companies thereby exposing itself to new markets in the areas of non-cola beverages, mints and gum. In essence, competitive advantage could be equated to maximised shareholder performance. It is with this view that related diversification supports Cadburys business strategy Through global penetration Cadbury gained access to new customers. Foreign markets exposed them to increased revenue, profits and long-term growth. With this strategy Cadbury was able to spread its business risks across a wider market base. It spreads business risks by operating in a number of different countries rather than depending entirely on its domestic market (Class handout 2003). The fifty online tools, decentralised structure and devolution of decision-making have each contributed to the attainment of the organisations goals. Cadbury is also in a position to leverage its competences and capabilities to gain a competitive advantage thereby delivering shareholder performance. By strengthening strategic leadership Cadbury is able to harness a vast combination of strengths and skills needed to manage different cultures globally. Having an HR person on board is a very essential strategic level decision as he plays the role of a mediator between customers-employees and external- and the board. Cadbury has invested significantly into its leadership through its Managing for Value and Growing Our People developmental programmes. The results of such strategies would be learning and improved performance leading to the organisations bottom line. For Cadbury, market leadership came about because of strategic decisions to hold that market position- worlds third large soft drink company and first or second position in market share. Through this strategy Cadbury has been able to concentrate on a narrow market while providing customised products thereby increasing the worth f the product and adding value to customers. Customers are always willing to pay for value. The Share Save scheme supports this market leadership initiative. It is a reward strategy that motivates employees to do their best thereby delivering quality products hence delivering shareholder wealth.HR can best support an organisation going through change in a number of ways. One major effort to be made on HRs part is to inform all persons who would be affected by the change of the change. This is by no means limited to its employees. In many instances suppliers, customers and other stakeholders must be informed. It is also crucial that lower level employees get involved in the process of change. This reduces resistance usually associated with change and it also gives employees a sense of ownership off the organisation. The onus is on HR to put systems in place to facilitate and lead the process of change through organisational development. The issue of Lewins (1947) Three-step Model of Organizational Change come into play here. His model is known as Unfreeze Change Refreeze, refers to the three-stage process of change he describes. The concept behind his theory is if you have a large cube of ice, but realize that what you want is a cylinder of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mould the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze). Likewise as an organization goes through change the old has to first be undone before the situation could be fixed. In an effort to change Cadbury has employed a Passion for People programme, fifty online tools and has undergone an organizational restructuring becoming decentralised.HR must also plan for change. Three ways to do so are through scenario planning, contingency planning and succession planning.Alan Cohen once said It takes a lot of courage to release the familiar and seemingly secure, to embrace the new. But there is no real security in what is no longer meaningful. There is more security in the adventurous and exciting, for in movement there is life, and in change there is power Lewis (1998). An organisation which is able to mirror this view is well on the way to holistic success- individual employees, teams, departments, the organisation as a whole, thereby achieving its goals. Question 2Learning is the processing and assimilation of what we hear, see or experience that alters or improves our knowledge, skills and attitudes. Learning causes behaviour to change (Stockley 2006) Pedler, et al (1991) defines learning organisations as follows: Learning Company is an organisation that facilitates the learning of all its members and continually transforms itself". It is nicely defined by Dixon (1994) as "The essence of organisational learning is the organisation's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own". They are adaptive to their external environment; continually enhance their capability to change/adapt; develop collective as well as individual learning and use the results of learning to achieve better results (Farago and Skyrme 1995). Organisational culture comprises of the shared beliefs, expectations, values, norms and work routines that influence the ways in which individuals, groups

6|Page
and teams interact with one another and cooperate to achieve organisational goals (Jones and George 2007). As such managers seek to improve employees desire and ability to understand and manage the organisation and its task environment (Jones and George 2007); and in so doing creating a culture founded on learning. Senge (1990) identifies five principles for creating a learning organisation. See figure below. Personal Mastery is centrally to do with self-awareness that each person should develop and develop a sense of empowerment. Mental Models are sophisticated ways of thinking that challenge them to find new and better ways of performing task. Team learning is where learning is achieved through team work. Shared vision is where, as a whole the organisation builds a shared vision, one everyone works towards. Systems thinking allow managers to understand the effects of one level of learning on another (Jones and George 2007).Creating a learning organisational culture should be at the heart of every organisation as value is added. One such company is Toyota. Toyota adopted in 2001 what is known as the Toyota Way 2001. It expresses values and conduct guidelines that all Toyota employees should embrace. In order to promote the development of a global Toyota and the transfer of authority to the local level, this philosophy which had been implicit in Toyotas tradition, was published internally (Wikipedia 2009). Many authors share the assumption "that learning will improve future performance" (Fiol and Lyles 1985). That is, organizational learning has typically been linked to organizational change, and particularly to increased effectiveness. Conversely, the absence of observable change has been taken to mean that learning did not take place or, in fact, that learning was "impeded" (Jenkins-Smith et al. 1988).Creating a learning organisational culture can foster employee motivation. Employee motivation affects productivity, and part of a managers job is to channel motivation toward the accomplishment if organisational goals (Steers and Porter 1983, cited in Daft 2005). Motivated employees would be more inclined to embrace learning and change with the resulting bottom line being high performance levels (Class notes 2009). The individual and organisational learning stems from effective top-down communication and the promotion of self-development and confidence. In turn this encourages the commitment to, and shared ownership of, the organisations vision, actions and decisions that are necessary to respond to the external environment and take advantage of the opportunities it offers (Clarke 1994 and Nadler 1993 cited in Burnes 2004). Employees become committed to learning and personal development. There is support from top management; people at all levels encouraged to learn regularly; and learning is rewarded (Farago and Skyrme 1995). Such commitment can lead to overall total quality management. The psychological bond of an employee to an organization, the strength of which depends on the degree of employee involvement, employee loyalty, and belief in the values of the organization is what employee commitment is all about (BNET 2009). In light of this employees fervently give their all to the organisation, with total quality management being a significant driving force. By having a learning organisational culture there is a future, external orientation whereby organisations develop an understanding of their environment. It allows senior teams take time out to think about the future (Farago and Skyrme 1995). Use is made of feedback from not only within the organisation but from external sources such customers as well. Starbucks has systems in place whereby customers, while waiting in line for their order, can fill out feedback forms with useful information that the organisation can use to learn thereby becoming one that better satisfies its customers. This takes the company down the path of continuous improvement. Understanding the environment in which an organisation operates causes them to always look for ways to improve. The environment is what gives organisations their means of survival (Johnson et al. 2008). As such continuous adaptation becomes necessary to the organisation. This makes the organisation flexible in terms of policy and decision making thereby making it easier to adapt to change. Also, organisations with learning cultures would be more inclined to programmes geared towards growth and development of its employees (Class notes 2009).Most winning organisations are learning organisations (Class notes 2009). According to Fingar (1996), a quick review of the 1996 MIT Organizational Learning Centre sponsorship reveals a number of large corporations that have committed to building learning organizations: Amoco Production Co., AT&T, Chrysler, Electronic Data Systems (EDS), Federal Express Corp., Ford Motor Co., Harley Davidson, Herman Miller, Hewlett Packard, Intel Corp., Merck & Co., National Semiconductor, Pacific Bell, Philips Display, Shell Oil Co., Texas Instruments, and US West. The list could go on and on yet many organisations cannot seem to develop or work towards creating this learning culture. An effective way to do so is through its HRM/HRD strategies. Organisations must create effective learning activities that allow for flexible learning in the organisation. There must be a clear identification of the need of both the organisation and its customers- both internal and external, after which measures should be put in place to set the wheel of learning into motion. Kolb et al (1976) developed a learning cycle consisting of four stages which focuses on an integrated and planned approach based on experience. First, there is a concrete experience for the learner, a work experience or task performance. Then the leaner observes and reflects upon experience. Thirdly, deeper analysis of the implications of the learning allows the formation of abstract concepts and generalisation. The learner then experiments and applies the new ideas to working experience. Creating a learning organisational is a Strategic HRM/HRD function that allows for the moving away from formal courses to more person-specific development according to need; strategic secondment and projects for selfdevelopment; Total Quality Management schemes to untap employee knowledge and knowledge dissemination; on-job structured development via coaching, counselling and mentoring schemes to develop the individual (University of Sunderland 2007). University of Sunderland (2007) suggests that in order to support individual and organisational learning managers should draw form the strengths and weaknesses of staff; reward risk, experimentations and questions. Continuously identify learning opportunities; devote personal time to coaching and counselling activities beyond annual report; involve staff in organisation problems; and listen, encourage staff to implement their own development needs. Some companies reimburse their employees financially after the successfully completed work related studies. Change and learning go hand in hand. According to Huber (1991), an entity learns if, through its processing of information, the range of its potential behaviours is changed. As such whatever measures are taken to foster learning it must be accompanied by change. Some changes, although these may seem drastic are in fact necessary if organisations are to learn. Such changes include but are not limited to strategy: mission and vision; culture: new corporate values, structure: departmental structure, coordination, span of control, reporting relationships, tasks, decisionmaking procedures; technologies: new systems and methods; employees: changes in employee attitudes and skills; and Products/services (Class notes 2009).During the process of learning HR must find and implement avenues by which employees can make use of the knowledge and skills they have learned. One way of doing so is by giving them new challenges that would allow then to test their new skills. Kerka (1995) suggests some HRD strategies that organisations can employ to create a learning organisational culture. He suggests that learning organisations provide continuous learning opportunities, use learning to reach goals, link individual performance with organizational performance, foster inquiry and dialogue, making it safe for people to share openly and take risks, embrace

7|Page
creative tension as a source of energy and renewal, and are continuously aware of and interact with their environment. After training or learning has taken place a great idea is to place employees into groups whereby they are able to work at a cross-functional level. Many projects require a variety of expertise both skills otherwise. Ideally, cross functional teams are avenues by which these people can be brought together. Learning continues as they are able to draw from each other knowledge and skills while achieving a sense of self actualisation and esteem having contributed to the team accomplishing its goals. Effectively these teams are able to solve a problem that impacts on multiple parts of the organization. They can also improve a work process that crosses organizational lines; and coordinate ongoing processes or activities that cross organizational boundaries. Finally, thanks to the dynamic world in which organisations thrive, they can make use of Distance Conferencing and other technology which allows for learning and knowledge exchanges using computers and telecommunications (Class notes 2009). Distance conferencing is very useful in that it delivers training to the employee's desktop and allows people to communicate and participate when they are unable to be colocated. It also reaches large audiences while reducing travel and time while saving money. The individual and organisational learning stems from effective top-down communication and the promotion of self-development and confidence. In turn, this encourages the commitment to, and shared ownership of, the organisations vision, actions and decisions that are necessary to respond to the external environment and take advantage of the opportunities it offers (Clark 1994 and Nadler 1993 cited in Burnes 2004). Schon (1973) could not have put it better when he said We must, in other words, become adept at learning. We must become able not only to transform our institutions, in response to changing situations and requirements; we must invent and develop institutions which are learning systems, that is to say, systems capable of bringing about their own continuing transformation. (Schon 1973: 28). Thus strategically thinking organisations will realise that learning is vital to organisational development, competitiveness, growth, market leadership and in some cases, survival (University of Sunderland 2007).Question 4Performance management is a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved (Armstrong and Baron 1998). While performance management plays a significant role in the overall goal attainment of on organisation it can only stand alone to a minimum extent. In order for performance management to be effective and worthwhile, it should be integrated in such a way that it is aligned to other business elements, people management, and individuals and teams (CIPD 2009). Integration is made possible through vertical and horizontal alignment. Vertical alignment allows performance management systems to be tied to corporate strategy through mediators- HR strategy and business strategy. Through horizontal alignment, it supports other HR functions such as HR planning; recruitment, selection and placement; HRD; reward management; and separation. In a general sense therefore in needs the support of other systems to develop and manage people. Figure 1 demonstrates determinants of both types of fit. There are instances however, when performance management stand alone from an organizations overall approach to developing and managing people. One such case is short-term projects. This is so especially if the project team has been contracted. It would therefore not be the responsibility of the organisation to develop and manage the team. However the performance of the project team is managed in the sense that it determines whether or not the team is rehired to work on other projects. Secondment, the detachment of a person from their regular organization for temporary assignment elsewhere (Farlex 2008), is another situation in which performance management systems stand alone from an organizations overall approach to developing and managing people is in some contractual arrangements. Secondment can come in different forms. In the English football league players from other clubs are usually loaned to another for a stipulated period. He would only be rehired if his performance was on par with or exceeded what was expected of him. An example of a loan arrangement is David Beckham of Los Angeles Galaxy, who in January 2009 played four matches for Milan. He scored twice (CNN International 2009). As such he successfully returned to Major League Soccer in October again for Milan for the second half of the Serie A side. Whether he performed well or not, his development and management are the responsibility not the responsibility of Milan. However his January performance won him a spot for Serie (The 90th Minute Soccer Blog 2009).Hundreds of Chinese expatriates are hired as labourers to work on buildings in Trinidad. These workers developed their expertise in China. The HR department of the housing development ministry does not invest in developing these labourers neither do they reward them in any special way for excellent work. However there is a vested interest by the Government in how the Chinese perform. Other examples of performance management systems standing alone form an organisations overall approach to developing and managing people include outsourcing certain non-core activities to others specialising in them such as the cleaning service, interior designing, security services and cafeteria services. Organisations are not responsible for training and developing those of whom they have contracted but they have the power to hire and rehire based on performance. As such other aspects of human resource management do not come into play here. It can therefore be concluded that performance management systems can stand alone from an organisations overall approach to developing and managing people but to a limited extent. Performance management establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved (Armstrong and Baron 1989). The Business Dictionary (2009) defines employee development as encouraging employees to acquire new or advanced skills, knowledge, and view points, by providing learning and training facilities, and avenues where such new ideas can be applied. People development and performance management is the helix that runs through all organisations, aligned and connected to ensure sustained high performance (Evolve 2009). It is therefore vital that organisations seek to integrate these so as to get the best out of employees. In order to integrate the performance and developmental aspects of managing people there are a few general steps that management can take. Firstly the job to be performed must be identified and defined. Secondly, a measure of job preparation should be done in the form of training. The performance appraisal process then takes place followed by giving feedback. Fifthly, rewarding takes place with the final step being development employment defining the job and identifying standards helps the supervisor and subordinate to agree in the terms and conditions under which s/he will work. These standards should encompass all the dos and donts by which the employee should function. An early in the game tool that gives employees an idea of what is expected of them is an orientation session before the employee joins the organisation. For example, a person starting to work in the oil industry, at the orientation would be given instructions concerning safety practices, the use of cellular phones in unrestricted areas and attire among other things. In the food industry it is important that employees are aware of healthy hygienic practices such as washing hands and keeping away flies. At this stage it is necessary to define the purpose of the job as well as its duties, and responsibilities. There must be some goals and objectives to be achieved with strategic plans and systems in place to attain them. Objectives must be SMART and must be defined. Performance goals should also be set with measurable outcomes. The employee must know exactly what is expected of him or her. S/he must understand what has to be done and by when it has to be done for example daily, weekly, monthly, as the case may be. The standard by which tasks should be done must also be defined. It must also be made clear which responsibilities is priority and which are not and, how the accomplishments of individual tasks contribute to the overall goal attainment of the organisation. The employee must be aware of the standards set for performance especially for key components of the job. Training can come in different forms and include but is not limited to the following: On-the-Job training (OJT)- under the Trinidad and Tobago Government, this programme is designed to provide young persons with the opportunity to acquire work experience in order to develop the necessary skills and attitudes for their entry into the world of work. Additionally it is expected to develop a cadre of skilled persons from whom employers can source workers fitting their organisations needs. The OJT Programme is designed in such a way that the organisation providing the training benefits by accessing a ready source of trained/skilled persons from which to meet their organizational needs, while

8|Page
being reimbursed on 50% of the approved stipend rate. Probation- An offer of employment and the contract of employment should always include an initial probationary period, typically of three months, if allowed under local labour laws (People in Aid 2006). Under Australian law the purpose of imposing probation as a condition of engagement is to assess the employees performance and behaviour during the probationary period. A probationary period allows the organisation to decide if the person is in the right job. At any point I this period, the employment can be terminated. An important feature of probations is that performance appraisals can be done to determine of the employee is on par with defined goals and objectives. A written contract is then made to hire the employee give that performance was up to standard (People in Aid 2006).Mentoring- Usually peer mentoring, where an experienced employee in the organisation, programme or sector talks through problems, ideas and plans with the mentee. Other forms of training include coaching and sitting next to Nelly (Class notes 2009).Performance appraisals are necessary to examine and evaluate work behaviour by comparing it with preset standards. The results must be documented and feedback must be provided to the employee to show where improvements are needed and why. They help determine who needs what training, and who will be promoted, demoted, retained, or fired. One of the most important aspects of managing performance is the feedback aspect of the process. As such interim discussions must be held to provide meaningful feedback to employees on their performance. This should be done on a regular basis and the feedback should always be positive and constructive. It is important to keep proper documentation of employee performance whether good or bad. Rewards should be awarded if employees performance measure up to the satisfaction and expectation of supervisors. Rewards can be monetary or nonmonetary. Different forms motivate employees in different ways. See illustration in appendices. In every organisation there are those who are high achievers. HR must find new and challenging ways to foster continued learning and development for these. Pinpointing and developing high-potential employees key to ensuring continued success. Preparing them for a high-level role, helping them take on more responsibilities, and acknowledging top performers will help retain valuable employees and set organizations up for future success (Calipers 2009). Decisions on where a need for development/intervention/discipline exists must be made and the following questions should be asked. Were the standards met? To what extent? Where the objectives met? To what extent? Development of high achievers (Rewards Development- for promotion, new challenges, teams work, represent the organisation in meetings, etc. Performance management therefore plays crucial role in the success of any organisation. It goes hand in hand with development in bringing the whole organisation on one playing field where the vision, mission and objectives of the organisation are imprinted on their hearts. This in turn brings growth and enhancement to employees and the organisation at large. THE PRIMARY GOAL OF SHRM: The primary goal of strategic human resources is to increase employee skills and productivity needed to achieve competitive advantage Steps in Recruitment and Selection Process

The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Effective Recruiting External factors affecting recruiting: Looming undersupply of workers Lessening of the trend in outsourcing of jobs Increasingly fewer qualified candidates Internal factors affecting recruiting: The consistency of the firms recruitment efforts with its strategic goals The available resources, types of jobs to be recruited and choice of recruiting methods Non recruitment HR issues and policies Line and staff coordination and cooperation Advantages of centralizing recruitment Strengthens employment brand Ease in applying strategic principles Reduces duplication of HR activities Reduces the cost of new HR technologies Builds teams of HR experts Provides for better measurement of HR performance Allows for the sharing of applicant pools

Targeting Non Traditional Sources of Applicants

9|Page
The poaching of private bankers and a drying pool of good relationship managers have prompted at least one bank to start recruiting older Singaporeans between 38 and 50 with no experience in banking Level 1 support engineers: Instead of looking for 5-6 years banking IT project experience hire persons with 2-3 years experience with good attitude and communication skills and provide an in-house training on the business domain. Reasoning: Since L1 involves mainly phone and email support one does not require a seasoned software programmer to man the desk Internal Sources of Candidates: Hiring from Within Advantages Disadvantages Failed applicants become discontented Time wasted interviewing inside candidates who will not be considered Inbreeding of the status quo Foreknowledge of candidates strengths and weaknesses More accurate view of candidates skills Candidates have a stronger commitment to the company Increases employee morale Less training and orientation required

Finding Internal Candidates Job posting Publicizing an open job to employees (often by literally posting it on bulletin boards) and listing its attributes. Rehiring former employees Advantages: They are known quantities. They know the firm and its culture. Disadvantages: They may have less-than positive attitudes. Rehiring may sent the wrong message to current employees about how to get ahead.

Outside Sources of Candidates Advertising

The Media: selection of the best medium depends on the positions for which the firm is recruiting. Newspapers (local and specific labor markets) Trade and professional journals Internet job sites Marketing programs Constructing an effective ad Wording related to job interest factors should evoke the applicants attention, interest, desire, and action (AIDA) and create a positive impression of the firm. Reasons for using a private employment agency: When a firm doesnt have an HR department and is not geared to doing recruiting and screening. The firm has found it difficult in the past to generate a pool of qualified applicants. The firm must fill a particular opening quickly. There is a perceived need to attract a greater number of minority or female applicants. The firm wants to reach currently employed individuals, who might feel more comfortable dealing with agencies than with competing companies.

The firm wants to cut down on the time its devoting to recruiting Recruiting via the Internet More firms and applicants are utilizing the Internet in the job search process. Advantages of Internet recruiting Cost-effective way to publicize job openings More applicants attracted over a longer period Immediate applicant responses Online prescreening of applicants Links to other job search sites Automation of applicant tracking and evaluation Employer of choice Strategies

10 | P a g e
It is advantageous to be seen as an employer of choice because it then becomes much easier to recruit (there is no shortage of job applicants) It is also much easier to attract talented people (who believe that with an employer of choice they will be properly developed, trained, rewarded and recognized for their contribution).

Remuneration and Benefits Strategy Remuneration and benefits strategy is a complex element of the employment relationship. Employers make decisions such as: How to structure the remuneration package? Which benefits will be offered? What sort of employer provided vehicle will the employee drive and what is it worth? What flexible work options will be offered? Strategic Compensation Strategic compensation Using the compensation plan to support the companys strategic aims. Focuses employees attention on the values of winning, execution, and speed, and on being better, faster, and more competitive. IBMs strategic compensation plan: The marketplace rules. Fewer jobs, evaluated differently, in broadbands. Managers manage. Big stakes for stakeholders. Current Market Practices Employer provided vehicles Typically organizations adopt different vehicle policies for different staff levels. 75% of organizations provide a vehicle to CEOs and senior executives that is either owned or leased. More than half the organizations do not offer any vehicle scheme to technical and operations/support staff. The Importance of Selection Efficient and effective people resourcing is partly about getting the legal aspects right (i.e., ensuring there is no discrimination in the selection process) It is also about appointing people with a positive mix of capabilities, potential and the right attitude In many ways, attitude is more important than skill, because it is relatively easy to train people so that they possess the right skills

The Importance of Selection (continued) Good attitudes mean that employees become enthusiastic contributors to the organization and willingly take part in continuous-improvement and change management activities. These employees exhibit the kind of discretionary behaviour which helps to construct a superior reputation for their employer HUMAN RESOURCE PLANNING: The success of every industrial or commercial organization is heavily dependent upon the contribution made by employees as they perform various tasks to which they are assigned. Organizations tend to be successful when employees are productive and satisfied in performing their tasks. The activities of various individuals will be synchronized if somebody is there to undertake this work. Human resource planning strives to use human resources in an effective manner so as to transform them for realizing the objectives of the organization. Thus, it aims at relating the people at work with the activities necessary to achieve the organizational goals. Human resource planning include:- Recruiting, selecting, training, developing and motivating employees to perform job effectively. Planning, designing and evaluating employees jobs. Providing satisfactory relationship between the organization and people throughfringe benefits and labour relations. To contribute to the formulation of organization personnel policies and agreement to ensure their effective implementation. The main reason behind human resource planning is to help in achieving organizational goals. Co-operation is required by all the members in the organization for achieving business goals. Such persons should be employed who are ready to accept the challenges of new jobs assigned to them. It also aims at the material and psychological satisfaction to each employee in the organization. This is possible only when employees are provided with congenial work environment and job satisfaction. Job satisfaction include good salary, job security, better opportunities forpromotion, financial and other incentives for improving performance. Human resource planning also takes care of the welfare of the members of the community. An enterprise has certain responsibility towards the society at a large. It can serve the society by providing better employment opportunities and producing goods of better quality at reasonable rates. The HR plan needs to be flexible enough to meet short-term staffing challenges, while adapting to changing conditions in the business and environment over the longer term. Human resource planning is also a continuous process. Entrepreneur must provide for the employees development needs by developing appropriate standards for evaluation, conduct appraisal, fixed standards and plan for development of employees by apprenticeship training of unskilled and semi-skilled employees.

http://www.trivology.com/articles/415/what-is-human-

resource-planning.html
Definition of 'Human Resource Planning - HRP' The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply,and balancing projected labor demand and supply. Read more: http://www.investopedia.com/terms/h/human-resource-planning.asp#ixzz1gzFsLdBx

11 | P a g e

A performance management system is a set of activities you can use in your company to effectively achieve business goals and objectives. Performance management systems are designed to identify, eliminate and improve performance problems. The benefits your company will see after implementing a performance management system include increased profits, a motivated workforce and improved management. Businesses that use performance management systems are more competitive and profitable. While areas targeted in performance management systems are individual to businesses and industries, there are some main features common to any system of performance management. Goals

Performance management begins with goals. Set your corporate goals and objectives and clearly communicate them for performance expectations to be met. Effective goals must be clear and achievable, written in specific terms, measurable and timely, aligned with your corporate strategy and appropriately supported. For your goals to be effective, pair them with performance metrics such as historical and current data on sales, production and service quality. Performance metrics provide a framework for measuring progress toward goals and performance. Motivation and Coaching

Employees are motivated by intrinsic and extrinsic rewards--how they feel when they accomplish something and how they feel when they are rewarded for their accomplishments. Motivating your work force is not always as clear cut as it might seem. Use incentives and rewards to motivate your employees and to prompt achievement and performance improvement. If motivation doesnt get desired results and there are performance problems, coaching is the next step. Regular coaching and developing employees is part of performance management when other incentives don't work. Monitoring Performance

Monitoring your work force's performance as part of performance management requires observation, information gathering, discussion, active listening and measuring progress toward goal achievement. If you observe and identify problems discuss it with the employee to find out why and provide motivation and resources if necessary. Verify sources of performance problems and discuss solutions to get the employee back on track. If necessary, use on-the-spot coaching when appropriate or develop an action plan for improvement. The Role of Leaders

Ultimately, leaders are responsible for creating and communicating expectations. Performance management systems are the framework to develop and manage those expectations to achieve goals. Without a system to manage performance, your business may not be as competitive, profitable, effective and efficient as it could be.

CorporatePolicies,CompetitiveStrategy,and Compensation Aligned reward strategy The employers basic task is to create a bundle of rewardsa total reward packagespecifically aimed at eliciting the employee behaviors the firm needs to support and achieve its competitive strategy. The HR or compensation manager will write the policies in conjunction with top management, in a manner such that the policies are consistent with the firms strategic aims. Determining Pay Rates 1. Employee compensation All forms of pay or rewards going to employees and arising from their employment. Direct financial payments Pay in the form of wages, salaries, incentives, commissions, and bonuses. Indirect financial payments Pay in the form of financial benefits such as insurance. Composition of Rewards Intrinsic Rewards centers on the work itself 2. Praise, recognition, time off and other rewards given to the employee by peers or superiors.

StrategicRewardSystems: Need for Consistency with Other HR Systems

Developing an Aligned Reward Strategy

12 | P a g e
Questions to Ask: 1.What are our companys key What must our company do to be successful in fulfilling its mission or achieving its desired competitive position? 2. What are the employee behaviors or actions necessary to successfully implement this competitive strategy? 3. What compensation programs should we use to reinforce those behaviors? What should be the purpose of each program in reinforcing each desired behavior? 4. What measurable requirements should each compensation program meet to be deemed successful in fulfilling its purpose? 5. How well do our current compensation programs match these requirements? Basis of Reward: Needs and Motivation Abraham Maslows Hierarchy of Needs Five increasingly higher-level needs: physiological (food, water, sex) security (a safe environment) social (relationships with others) self-esteem (a sense of personal worth) self-actualization (becoming the desired self) Lower level needs must be satisfied before higher level needs can be addressed or become of interest to the individual. success factors?

Basis of Rewards: Needs and Motivation (contd) Herzbergs HygieneMotivator theory Hygienes (extrinsic job factors) Inadequate working conditions, salary, and incentive pay can cause dissatisfaction and prevent satisfaction. Motivators (intrinsic job factors) Job enrichment (challenging job, feedback and recognition) addresses higher-level (achievement, self-actualization) needs. The best way to motivate someone is to organize the job so that doing it helps satisfy the persons higher-level needs. Edward Deci Intrinsically motivated behaviors are motivated by the underlying need for competence and self-determination. Offering an extrinsic reward for an intrinsically-motivated act can conflict with the acting individuals internal sense of responsibility. Some behaviors are best motivated by job challenge and recognition, others by financial rewards.

Instrumentality and Rewards Vrooms Expectancy Theory A persons motivation to exert some level of effort is a function of three things: Expectancy: that effort will lead to performance. Instrumentality: the connection between performance and the appropriate reward. Valence: the value the person places on the reward. Motivation = E x I x V If any factor (E, I, or V) is zero, then there is no motivation to work toward the reward. Employee confidence building and training, accurate appraisals, and knowledge of workers desired rewards can increase employee motivation.

Compensation Policy Issues Pay for performance Pay for seniority The pay cycle Salary increases and promotions Overtime and shift pay Probationary pay Paid and unpaid leave Paid holidays Salary compression Geographic costs of living differences Salary compression

A salary inequity problem, generally caused by inflation, resulting in longer-term employees in a position earning less than workers entering the firm today Equity and Its Impact on Pay Rates

13 | P a g e
The equity theory of motivation States that if a person perceives an inequity, the person will be motivated to reduce or eliminate the tension and perceived inequity.

Theoretical Models of Pay and Performance: Equity theory (Adams, 1963) Assumptions: People develop beliefs about what is a fair reward for ones job contribution - an exchange. People compare their exchanges with their employer to exchanges with others-insiders and outsiders called referents. If an employee believes his treatment is inequitable, compared to others, he or she will be motivated to do something about it -- that is, seek justice.

Sources for Salary Surveys Consulting firms. Professional associations. Government agencies.

Establishing Pay Rates (contd) Step 2. Job evaluation A systematic comparison done in order to determine the worth of one job relative to another. Compensable factor A fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions.

Remuneration and Benefits Strategy Remuneration and benefits strategy is a complex element of the employment relationship. Employers make decisions such as: How to structure the remuneration package? Which benefits will be offered? What sort of employer provided vehicle will the employee drive and what is it worth? What flexible work options will be offered?

Strategic Compensation Strategic compensation Using the compensation plan to support the companys strategic aims. Focuses employees attention on the values of winning, execution, and speed, and on being better, faster, and more competitive. IBMs strategic compensation plan: The marketplace rules. Fewer jobs, evaluated differently, in broadbands. Managers manage.

Current Market Practices Employer provided vehicles Typically organizations adopt different vehicle policies for different staff levels. 75% of organizations provide a vehicle to CEOs and senior executives that is either owned or leased. More than half the organizations do not offer any vehicle scheme to technical and operations/support staff.

Health insurance Subsidized health insurance is available to employees in just over half the organizations surveyed, with 69% extending coverage to the employees partner or family. Leave Over half of the surveyed organizations provide additional annual leave, above the minimum four weeks, after 10 years of service. 69% of the surveyed organizations provide flexibility to use sick leave to accommodate dependent care responsibilities.

Workplace superannuation schemes The majority of organizations allow flexibility in employee contributions. For organizations recruiting talent from overseas a superannuation scheme is often a necessity; with many candidates expecting that superannuation will be provided by their employer. superannuation - a monthly payment made to someone who is retired from work

14 | P a g e
Short-Term Incentives for Managers And Executives Annual bonus Plans that are designed to motivate short-term performance of managers and are tied to company profitability. Eligibility basis: job level, base salary, and impact on profitability Fund size basis : nondeductible formula (net income) or deductible formula (profitability) Individual awards: personal performance/contribution

Job evaluation A systematic comparison done in order to determine the worth of one job relative to another.

Compensable factor A fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions Preparing for the Job Evaluation Identifying the need for the job evaluation Getting the cooperation of employees Choosing an evaluation committee. Performing the actual evaluation.

Job Evaluation Methods: Ranking Ranking each job relative to all other jobs, usually based on some overall factor. Steps in job ranking: Obtain job information. Select and group jobs. Select compensable factors. Rank jobs. Combine ratings.

Advantages Simple Alternation method ranks highest then lowest, then next highest, then next lowest Paired comparisons method picks highest out of each pair Fast Most commonly used

Disadvantages Comparisons can be problematic depending on number and complexity of jobs May appear arbitrary to employees Can be legally challenged Unreliable

Using Organizational Development Organizational development (OD) A special approach to organizational change in which employees themselves formulate and implement the change thats required. Usually involves action research. Applies behavioral science knowledge. Changes the attitudes, values, and beliefs of employees.

Changes the organization in a particular direction A planned approach to far-reaching organizational change designed to enable an organization to respond and adapt to changing market conditions and to set a new agenda. -Organizational development is frequently linked to organization structure, which can act either as an enabling or restrictive mechanism for change. -For organizational development to succeed, any policies or strategies introduced must fit with the corporate culture.

15 | P a g e

OD Basics Although the field of OD is broad, it can be differentiated from other systems of organizational change by its emphasis on process rather than problems A Management Challenge that OD initiatives focus on is identifying the behavioral interactions and patterns that cause and sustain problems. Then, rather than simply changing isolated behaviors, OD efforts are aimed at creating a behaviorally healthy organization that will naturally anticipate and prevent (or quickly solve) problems.

Characteristics of OD Programs Long term efforts collaborative management Every organization is unique Same solutions cannot necessarily be applied at different companies Values teamwork and small groups

Examples of OD Interventions Human Process T-groups-Process consultation-Third-party intervention-Team building-Organizational confrontation meeting-Intergroup relations Techno structural Formal structural change-Differentiation and integration-Cooperative unionmanagement projects-Quality circles-Total quality management Work design Human Resource Management Goal setting-Performance appraisal-Reward systems-Career planning and development-Managing workforce diversity Employee wellness Strategic Integrated strategic management-Culture change-Strategic change-Self-designing organizations Human Resource Development Human Resource Development is very important for every organization, in order to build up a smooth relationship between the employees and organizations. Benefits include:1.Developing competencies among individuals in the organizations that allow them to perform their present and future works thoroughly, by means of intended learning activities.2. Ensuring equivalence between an organizational and individual need. 3. Groups inside the organizations instigate and direct change. The Strategic Role of Human Resource Development Strategic HRD is concerned with the development of a learning organization and the provision of learning, development and training opportunities to improve individual, team and organizational performance Strategic HRD takes a long view about how HRD strategies can support the achievement of business strategies

16 | P a g e

17 | P a g e

18 | P a g e

19 | P a g e

20 | P a g e