ASSIGNMENT COVER SHEET Surname First Name Student Number Module Name Assignment Number Tutors Name Examination

Venue Date Submitted Submission () Durban 4April 2011 1st Submission 30 Clancy Avenue Morningside Postal Address Durban Re-Submission Kooverjey Ritesh 114386 Human Resource Management 1

4091 E-Mail Contact Numbers ritz.kooverjey@is.co.za Work Home Cell Course/Intake by myself. 087 353 0690 031 207 9294 082 889 4287

MBA YEAR 1 January 2011

Declaration: I hereby declare that the assignment submitted is an original piece of work produced

Date: 2011-04-04

Signature:

Table of Contents Question 1. 1.1 1.2 Introduction. Retention Strategy. 1.2.1 Compensation. 1.2.2 Performance. 1.2.3 Career Development. 1.2.4 Learning and Development. 1.2.5 Lack of group cohesion. 1.3 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 4.1 4.2 4.3 4.4 5. Talent management strategy. Introduction. Strategy Formulation. Strategy Implementation. The four level of Integration. Conclusion. HRM role in downsizing. HRMs Value propostion. Comunication. Legal. Skills Loss. Morale. Conclusion. Introduction. The makings of a Strong Employer Brand. Benefits of a Good Employer Brand. Conclusion. Bibliography. Question 2. Page 8 Page 8 Page 9 Page 10 Page 11 Page 12 Page 12 Page 13 Page 13 Page 13 Page 14 Page 14 Page 16 Page 17 Page 18 Page 19 Page 20 Page 3 Page 3 Page 4 Page 4 Page 5 Page 5 Page 6 Page 6

Question 3.

Question 4.

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Question 1. 1.1 Introduction.

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empl

ilit .

etenti n pl n must

ess

eas in

i ow

lack okia

edicati n and as managed to

dissatisfacti n can arise. Bel address t em.

1.2.1 Compensation.

are some of t e arrears and

People need to e compensated for t e work t ey do. Problems in compensation are caused by inequitable and uncompetiti e compensation systems. okia as two well established compensation methods the one being a financial compensation method that includes high salaries, bonuses and stock options. It is important that the high salaries are based on market surveys. Bonuses should be paid based on performance and should be reviewed to ensure that they are operated fairly. Employees must be made to ensure that they understand the link between performance and reward. he second method of compensation being a variety of possibilities to create a personal worklife balance.Some employees will deem this method of compensation more important than financial compensation. Employees are able to tailor benefits to individual requirements Armstrong , :

1.2.2 Performance.

ow does

okia improve its employees performance and motivation to aid the organi ation to

be more productive? otivation is a key factor in employees performance. Employees can be demotivated if they are unclear about their responsibilities or performance standards. A motivated employee will feel better about working for the organi ation. Employees should be informed regularly about how well they are doing. It is important that a good performance management model is used that is aligned to the overall organi ational strategy and goals. he performance management model addresses the individual employees attributes such as know ledge, skills and personalit y et al, : leads to results. oe . he employee translates his/her attributes into individual behaviors that then

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Nokia

needs to constantly keep staff motivated to perform, staff can be demotivated by a o keep staff motivated needs to address these in addressing aslows hierarchy of needs theory aids

number of internal and external factors. external and internal factors. employees motivation.

aslows theory is based on two factors:

. People always want more, and they needs depend on wh at they already have. Smit P , A need that has already been satisfied is not a motivator only unsatisfied needs can influence behavior. . Peoples needs arise in order of importance. Smit P , partially satisfied, the next one will come forward to be satisfied. Employees performance is critical to the organi ations, a demotivated employees will not aid the organi ation in achieving it goals and objectives in some cases it will cause the organi ations demise.
1.2.3 Career Development.

hen one need has been

Lack of career prospects is a major cause of staff turnover. Employees in most organi ations feel that to develop they career they need to move on. Employees should no longer provide a cradle to the grave career. he new job market is one with endless employment possibilities for the employee and a greater number of qualified and skilled people for the employer. owever it is important for an organi ation to maintain a stable core workforce and employers should plan to provide career opportunities. Nokia addresses promotion opportunities by advertising online on an internal job market intranet. ther methods that can be used are:

y y y

areer paths guidance and advice. Encourage internal promotion. he use of systematic procedures to identify potential i.e. Assessments and development entres.

1.2.4 Learning and Development.

he lack of learning and development can lead to high staff turnove r and resignations.

ithout

the adequate training , joining employees can go through an induction crisis. Employees should
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not be expected to perform without adequate training and development. experienced Nokia employees. Learning programs should be introduced that: Enhance existing skills and competences

Nokia has

addressedthis by providing intranet eLearning opportunities and personnel coaching by more

y y

New employee induction should be centeredon employees learning basic skills and knowledge needed to make a quick and fluid s tart. ive employees the confidence to achieve expected performance standards.

1.2.5 Lack of group cohesion.

Employeecohesion is a massive contributor to employee retention. Employees need to feel that they are a part of the team. Nokias corporate philosophy is focused on he Nokia reflecting equality amongst employees, openness to people and sharing new ideas. ay

his aids

employees to promote cohesion within the organi ation. he applicant selection process also aids with employee cohesion by selecting candidates that fit the Nokia culture person organi ation fit Boselie, P; .Nokia can further improve cohesion by:

eam building

rewards should be given for working effectively as members of teams

and developing teamwork skills.

y 1.3

eamwork

the setting up of autonomous work groups or project teams.

Talent management strategy.

he requirements by Nokia on the work force are one that is subjected to the current trends and challenges. he global labour shortage will impact Nokia negatively as the skilled and qualified employees will have the power to choose organi ation that meet they requirements. alent retention in an o rgani ation will become more challenging, as the power will shift from employer to employee due to labour shortage and skills requirements. he skills gap is another key factor within an organi ation. needs to be in tune with the skills will be faced alent , requirements of the organi ation and up -skilling of individuals is critical so as not to be faced by a skills shortage. ithout the correct training and successions plans emplace with skills exiting the organi ation, without skilled individuals capable of filling the gap.

needs to be acquired and nurtured wherever it is and wherever it is needed Armstrong

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1992: 131) and a number of policies and practices should be used to manage this talent. Nokia has developed a brand and as an employer of choice ranking in Business eeks Best becoming an employer of choice. By having a clear Employer Brand, this shows that Nokia is trying to attract a certain type of individual, with a specific set of skills and qualities who want to be praised for their creativity and flexibility. he excellent financial performance and market share worldwide further aids the organi ation with talent retention and talent recruitment. Nokias recruitment procedures ensure that quality people are recruited who are likely to thrive in the organi ation. Nokias selection process of employees that have the skills and knowledge in relationship to the jobs technical requirements person-job fit Boselie P, 2010)ensures that people will stay with the organi ation for a long time . a great place to work. Nokias

lobal Brands list of 2007 has aided the organi ation in

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Question 2. 2.1 Introduction.

he goal of S

in an organi ation is to evaluate, deploy and allocate resources providing defines the organi ations intentions , 1992:

management with a competitive advantage. Strategic

and plans on how its business goals should be achieved through people Armstrong 29).

rgani ations and companies succeed, or fail, based on the qual ity and efficiency of their employees. A strategy attempts to meet future demands by attracting, retaining and training strategy should aim to capture "the people element" orkinfo.com, quality employees. A

2006) of what an organi ation is hoping to achieve in the medium to long term, ensuring that:
y y y y

Ithas the right people in place Ithas the right mix of skills Employees display the right attitudes and behaviors Employees are developed in the right way. cMahan 1992) defined strategic human resource management as the pattern of

right and goals

planned human resource deployments and activities intended to enable the firm to achieve its

Ms integration into the organi ations planning process and the

activities that supp ort and

broad organi ation mission goals is critical in building a strong relatio nship between

management. odays successful firms recogni e that to compete inglobal markets, they must have world-classHR managers who are active participants inorgani ation strategy and operational decision.
2.2 Strategy Formulation.

Strategic management process first starts with analyzing a companys competitive situation, develops its strategic goals and mission, its external opportunities and threats, and its internal strength and weaknesses to generate alternatives. Strategy formulation consists of five
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components: 1. Mission is a statement of the organizations reason for being,customers served and their needs, and the technology used. Alsopresents the companys vision and values. HRM is responsible for governing and policing the companys mission and vision. 2. oals are what the firm hopes to achieve in the medium -to-long termfuture. HRM needs to aid the organization in attaining the goals by providing the human resources. or human resource planning to be effective, the organization's future plans and objectives must be communicated or understood. 3. External analysis examines the firms operating environment toidentify the strategic opportunities and threats. HR is responsible for providing the organization with information about the external environment the social and contempory issues. . Internal analysis identifies the firms strengths and weaknesses,focuses on the quant ity and quality of resources available. An analysis of the current workforce and how it can be improved to best achieve the organizations goals. . Strategic choice is done after the Strengths eaknesses pportunities Threats analysis, and thenachoice is made among these alternatives.Mechanisms for integrati ng the HR function into strategy formulation may helpthe strategic planning team to make the most effective strategic choice, since HR willimplement it. Strategic planning, aids human resourceto prepare the organization's future workforce
2.3 Strategy Implementation.

HR is responsible for supplying the company with a competent workforce, which is responsible for executing strategies. In an increasingly competitive global market place, instituting HR practices that build employee commitment can help improve an organizations responsiveness. A good company strategy can fail if it does not pay attention to the HR dimension. HR problems that arise when implementing strategies may be traced to one of the following causes: a. isruption of social and political structures b. ailure to match individuals skills with implementation tasks. c. Inadequate top-management support for implementation activities. HR needs to formulate a plan on how the strategy is going to be implemented. HR would need to formulate training programmes for management that would aid in the strategy
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implementation. Strategy implementation poses a threat to many managers and employees in an organization. HR must provide guidelines, which help ensure that human relationships facilitate and not disrupt strategy implementation .HR should facilitate open communication, inviting as many managers and employees in the strategyrollout process so as to encourage strategy adoption. HR should media te and aid managers and employees with issues associated to transfers, promotions, job enlargement and job enrichment that arise with the implementation of a strategy.
2.4 The four levels of Integration.

rganization ontrol osts

bjectives

HR

bjectives

Reducing headcount, improving productivity, reducing absenteeism Effective recruitment and selection methods, training and development, improved employee motivation ood organizational structure, job design, employee relations

Improved customer service

rganizational effectiveness Table 2.1 bjectives.

The above table shows how HR and the organizationalign its objectives. The integration between the HR functions and strategic management function swould aid HR and the organization to align its objectives. our levels of integration exist between the HR functions and the strategic management function: 1. Administrative linkage: HR functions attention is focused on day-to-day activities. This form of linkage lacks interaction between the HR function and the strategic management plan. This is a divorced approach. 2. ne-way linkage: the firm develops the strategic plan and then informs the HR. This form is when HR functions by implementing the strategic management plan without any input and implementation feedback. 3. Two-way linkage: strategic planning team informs HR of the various strategies; HR analyzes them and presents the results to the team. After deciding, the strategic plan is
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passed to HR to implement. . Integrative linkage: it is a dynamic process, based on continuing rather than sequential interaction, done by the HR executive who is a member of the senior management team.
2.5 Conclusion

SHRM must be developed to support the organizations mission vision goals and objectives. The strategic management process needs to be formulated with the involvement of HR. HR and strategic management needs to have two-way communication when developing the organization strategy. The success of the rollout of anorganization strategy is dependent on HR. HR is able to react and address the barriers that may exist when rolling out an organization strategy. HR and strategic management need to be in touch with each other and HR needs representation in strategic management.

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Question 3. 3.1 HRM role in downsizing.

HRM within anorganizationis seen as the department that has the wellbeing of the employees at heart. It is this department that most employees would turn to when the organization is about to downsize. HRM must play a highly proactive role in managing the issues of downsizing by helping organizations to enhance their abilities to learn, comunicate, manage legal, manage skills and morale. HRM is responsible to manage the organization to maximize the produ ctivity and efficiency at a minimal human captial cost which aids in maximizing profit. The downsizingis caused by a temporary economic downturn of the organization. HRM will be challenged by providing the organization with ways on howto increase productivity by decreasing human capital. HRM should minimise the impact on the organization and help with finding alternatives to downsizing.
3.2 HRMs Value proposition.

During the downsizing period HRM should be at the forefront with many value propositions on how to minimise the number of employers that are going to be laid off. HRM should propose to the organization ways to reduce human capital cost. By devising ways to decrease the number of employees that would be laid off. HRM can earn favour from the remaining employees and there would be a number of other impacts:
y y y y

Morale can be boosted. ompany Image would not be tainted. Skills can be retained. ontractual obligation can be met.

HRM can provide the organization with alternatives to downsizing. It is critical that HRM investigates alternatives prior to downsizing. Some alternatives that HRM can propose are:
y Part time Work Work at home

ork hours can be cut to a minimum which will alow the employees to find part time work.
y

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Allow eemployees to work from home and encourage vitual office working enviroments. This will reduce operationl cost.
y Redeployment

Before staff are layed off check if it would be possible to redeploy empl oyees within the organization.
y Working in Shifts

If posssible create shifts so that employees can be used efficiently.

3.3 Comunication.

HRM plays a vital role in communicattion when downzing. HRM can aid the organization by providing the employees with clear and precise comunication. During implementation, human resources must work to address rumor control and provide as much information to employees as possible. Employees should be informed as to why the organization is downsizing, how long the downsizing will last, and what downsizing strategy the orgnization tends to pursue. HRM needs to get the message out in a right way so that it will not harm the organization image and employees have positive perception after leaving the or ganization. Employee assistance programs and financial counseling are all services that human resources should consider offering to affected employees. Human resource department could assist the laid off employees in finding other job.
3.4 Legal.

Human resources must ensure that any policies or collective bargaining agreements are adhered to. rganizations can be subjected to unwanted court cases due to breach of employee contracts. HR can analyze if company contracts can be honoured with the limtied work force after downsizing. HR and payroll will need to ana lyze overtime claims and workers compnesation claims in more detail. The work load on remaining employees increase, employees work harder and longer which leads t o a increase in overtime. The ripple effe ct could be stress on employees which can lead to wokers compenstion claims.
3.5 Skills Loss.

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HRM can be used to indetify indiviuals that should be layed off during downsizing. HRM should be consulted about the profile of the employee before he/she is layed off. HRM can create a employees skills matrix so as to not re-trench employees that are of value to the orgnisation. During downsizing skilled emplo yees are laid off and the organization suffers a skills shortage only to have to re-hire skills that were lost during downsizing. Any downsizing of the workforce is likely to result in the loss of key knowledge and critical skills. In the case of a voluntary separation program or early retirement initiative, the problem i s compounded because the company has much less control over who leaves the workforce. HRM needs to structure the downsizing where possible to allow time for transfer of critical skills.
3.6 Morale.

Downsizing also impacts on the mind of employees working in the organization they feel insecure about their job. Downzising before and after afffects th e morale and culture of a organization. It critical for business continuatiy that HRM provides the employees with the necessary comunication. HR should detail future career opportunities that can be realized by remaining with the business. hen an organization has downsized the workload on remaining employees will increase the fastest and easiest way to move forward would be to divide leaving worker's responsibilities among those who remain. However, this has both positive and negative outcomes. Initially the workload will be seen as a challenge and it would motivate workers, they will receive recognition for it, and most importa ntly, they will feel a strong sense of achievement. Recognition and achievement are widely regarded as key motivators of just about everyone in most organizations. In some cases employees may begin to feel overloaded and overwhelmed. This can cause unnecessary tension and pressure. In these circumstances, many people begin to make mistakes, become irritable and often are less productive. Long term this could have negative outcomes, such as decreased morale, motivation and productivity.
3.7 Conclusion

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Downsizing is a huge strain on the organization. It affects the entire organization on a number of levels and can cause the organization greater losses than anticipat ed. Downsizing afffects the human factor in the organization which has a ripple effect on the entire organization. The ripples that downsizing causes within the organization could turn into waves, HRM has the abilty to stop these ripples from turning into wave.

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Question 4. 4.1 Introduction.

The present global village pre sents many opportunities for talented employees, a strong employer brand is regarded as the most powerful and valuable asset a business can possess. lobally, many organizations now use employer branding as bait for attracting and retaining talent. It gives a business a distinctive head start in the chase for attracting and retaining quality talent. Employer Branding represents a firms efforts to promote both within and outside the firm a clear view of what makes it different anddesirable as and employer. Backhaus and Tikoo, 2004 In simple terms, it is a perception: the way the market perceives your organization as a place to work. ikipedia defines it as the image of the organization as a great place to wo rk in the minds of current employees and key stakeholders in the external market active and passive job seekers, clients customers and other stakeholders). Employer branding is how an organization markets what it has to offer to both potential and existing employees. Employer brand is the linking of the core values, culture and HR policies to the organization. Employer branding is used as a sales tool, it is used to attract a loyal customers, the customers here being the employees internal and external. The employer brand should be taken to the next level where it is used as a talent brand Schuamann M, 2009). The talent brand being used as a tool to engage the current workforce for talented employees and as a magnet for future talent. See figure 4.1)

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igure 4.1 Talent Brand (Schuamann M, 2009:77).

4.2 The makings of a Strong Employer Brand.

The employer brand is built from a strong business culture and a solid business foundation. The employer brand needs to articulate the employee value proposition . Theemployee value proposition can come in various forms, financial, psychological and functional. The key question that the employee needs answered is hats in it for me? (Schuamann M, 2009:77). Below I have identified some of the employee value propositions that Nokia has to offer that is the makings of a strong employer brand. The Nokia way articulatesNokias promise to employees. The Nokia way is part of the corporate philosophy which gives a real meaning to employee value by linking equality amongst employees, openness to people and the sharing new ideas.
y

Leading company in the mobile phone and telecommunications industry and the rankings that Nokia has achieved in the industry gives the employee psychological well-beingand status. It also helps with public recognition the employee feels he is linked to an admired organization. The HR practices that support the business strategy are develop ed to help achieve organizational goals. Social integrity is supported by diversity management within Nokia and it being a
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corporate belief that a diverse workforcecontributesto creativity, innovation and success.

y

Person-job fit and Person-organization fit articulate the job experience that will support skills and create opportunity for personal and professional growth . Nokia being a global player in the telecommunication industry provide the employee with many global opportunities. ulture of learning and development is an important factor to many employees. Nokia provides many opportunities in this area with options like eLearning and personal coaching. Nokia has a strong emotional connection with its employees by making use of programs such as the listening to you survey and ask HR feedback channel. High financial rewards and compensation is provided in form of high sala ries, bonuses and stock options. ork life balance is critical to employer brand as it provides the employee with flexible working arrangements in line with employees interest and preferences. By having a clear Employer Brand, this shows that Nokia is trying to attract a certain type of individual, with a specific set of skills and qualities who want to be praised for their creativity and flexibility

Nokia speaks to its employees and has many employee value propositions to build a strong employer brand. The above definitely contributes to the employer brand and it adds many benefits to the organization.
4.3 Benefits of a Good Employer Brand.

An employer brand will enhance the overall organization reputation. It will show the world that the organization manages its human capital as efficiently and as good as any other part of the organization. It has a positive impact of the business as a whole in not just the HRM environment. Below are some benefits of a good employer brand:
y y y y y y

Reduced recruitment and tale nt search costs Lower recruitment costs reater numbers of higher quality applicants Higher performing employees Improve the ability to attract specialist talent Increasedloyalty and talent retention rates
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y y y

Better working culture, improved working environment. Employees being more committed to the organizational goals Improved reputation as employees recommend your organization as a good place to work.

A good employer brand has benefited Nokia in many ways, it aided Nokia to retain and attract employees who enabled Nokias transition in the 1990s to become a glob al player in telecommunications and achieve the ranking for its global brand value.
4.4 Conclusion

Nokia has developed a brand and as an employer of choice ranking in Business eeks Best

a great place to work. Nokias

lobal Brands list of 2007 has aided the organization in

becoming an employer of choice. Nokia definitely has a value proposition when trying to attract and retain employees. The Employer brand that Nokia has built definitely has aided the organization. Nokia has found a symbiosis with its employees and created an environment that most employees would prefer working for.

5.

Bibliography.
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Smit P ,

ronje de

, (2007), Management Principles A ontempory Edition for Africa,

ape Town: uta& o. Ltd

y y y

Schumann M, Sartain L, (2009), Brand for Talent, San rancisco: ossey -Bass Armstrong M, (1992), Strategic Human Resource Management, London:Kogan Page Boxall P, Purcell , (2007), Human resource Management, New York: xford University Press , (2009), Human Resource Management A critical approach, New

David

ood

York:Routledge
y y y y

Bach S, (2005), Personnel Management in Transition, ornwall:Blackwell Publishing Ltd Stringer H, Rueff R, (2006), Talent orce, New ersey:Prentice Hall Six igures, (2008),Employer Brand Development uide Adam (2009) http://www.soopertutorials.com/business/human -resourcemanagement/2255-downsizing.html(Accessed on 02 April 2011)

eHow, (2011), http://www.ehow.com/info_8050255_challenges -hr-management-staffcutbacks.html(Accessed on 02 April 2011) Sundararajan, (2009), http://www.articlesbase.com/human-resources-articles/challengesof-hrm-to-the-corporate-sector-in-the-era-of-global-recession-957838.html (Accessed on 02 April 2011) . avitch,

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asrotia P, (2003), http://www.itpeopleindia.com/20030512/cover.shtml (Accessed on 03 April 2011) RF South Africa, (2008), http://www.skillsportal.co.za/page/human -resource/680493Employer-branding-What-HR-generals-need-to-know (Accessed on 03 April 2011) hadha A, (2010),http://managehrnetwork.blogspot.com/2010/06/building -employerbrand.html(Accessed on 03 April 2011)

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