This report is a HR plan for an organization looking to hire a Chief Financial Officer. Human resources refer to the people of an organization. Human resource managers seek to facilitate the contribution people make to achieve an organizations goals and strategies. As a slogan at a Union Carbide Plant puts it, “Assets make things possible, people make things happen.” It is important that human resource strategies support organizations objectives because they play a significant role in helping companies to achieve their objectives and goals. The report includes selection tips, training proposal, recommendations, orientation script and HR issues.
The world has evolved dramatically with automobiles, steel, tire and various other industries had erupted during the industrial revolution. A number of countries came into the limelight like Japan, Germany, and Taiwan against the European Union. Organizations make up a nation because they provide jobs, earnings, standard of living; they influence lifestyles and at times culture. Without organizations a country can never grow. Some developing nations are dependant on imported stuff and that has adversely affected their domestic market which is the main reason why these countries never develop and are either taken over by an influential culture or vanish from the face of the earth. On the other hand who makes the organizations? It’s the people who make an organization and without people the organization is just a still building with equipment which is useless because it’s the human mind that commands control over these still things and turns them into gold for nations (HONEY, 2006).
Human resources refer to the people of an organization. Human resource managers seek to facilitate the contribution people make to achieve an organizations goals and strategies. As a slogan at a Union Carbide Plant puts it, “Assets make things possible, people make things happen.”1 It is important that human resource strategies support organizations objectives because they play a significant role in helping companies to achieve their objectives and goals.
The central challenge facing organizations is the continued improvement of our organizations, both private and public. The people make an organization so they are responsible.
The purpose of human resource management is to improve the productive contributions of people to the organization in ways that are strategically, ethically and socially responsible. Human resources determine every organizations success! HR simply manages the people of an organization and not the factors that shape the employee’s contribution in an organization like capital, materials and procedures. Thus, HR can be termed as ambitious in this sense of the word (HUTCHINSON, 2007).
HR perspectives or viewpoints include the following:
- Strategic approach: HR should be managed in a way that it contributes to the success of the organization
- Human resource approach: HRM is the management of people and each human being is important and has a certain sense of dignity and self respect that must not be ignored at any cost.
- Management approach: HR management is the responsibility of every manager in an organization. It’s a two way operation with the manager guiding and monitoring and the subordinate to interact, obey and work with utmost devotion.
- Systems approach: HR management takes place within the larger organization and the HR efforts need to be analyzed with respect to the contribution they make in an organization.
- Proactive approach: This is to manage HR effectively by anticipating HR challenges and taking the corrective actions before the thunder strikes.
The assignment will be focusing on a single designation that is Chief Financial Officer and it will further include the following:
- A Job Analysis
- Selection process and its criteria
- Training Proposal
Tips for the Selection Process
In order to recruit externally there is one important recommendation which will land up the company with the best candidates.
Benchmarks: It is important to set benchmarks and by paying careful attention to certain areas within the business and they are as follows:
- Strategic Planning
- Strategic Leadership
- Training and development
- Growth (personal and organizational)
- Balance in work and life (avoid abnormal working hours like till midnight since no one wants to work this late.)
- Quality of work life should be excellent
- A sufficient amount of growth and learning opportunities within the firm
- Competitive compensation plans and benefits.
- Corporate social responsibility
- Care and concern for the employees.
Surveys and focus groups can help conduct a research in the market to learn about the benchmarks and then adapting the most competitive strategies in order to be the employer of choice. Market research is a good tool to survey within the organization and also outside the organization to collect relevant data and adapt the most competitive strategy to become the employer of choice in the market.
In order to recruit internally one major recommendation which will keep all employees motivated and satisfied is as follows:
- Candidates should be evaluated on their potential rather than only on their proven successful track record. An appropriate balance between potential and past track record of candidates be considered for their selection internally.
- Salaries of existing employees must always be increased and brought up to par with new incumbents and this can be done with special salary increases.
A list of interview questions that can be asked during selection of a CFO for the organization is as follows:
- Q1) Do you think visionary leadership is significant in the discipline of finance?
- Q2) How did you perform as a CFO in the previous organization as a leader or a manager?
- Q3) What is your take on this particular statement? “The thinking process for a CFO of a company resides within the economic architecture needed in the particular environment.”
- Q4) Do you think the compensation package should be based on performance or seniority?
- Q5) What compensation package are you expecting on the basis of what you were earning in the previous organization?
- Q6) Why did you decide to quit from your previous organization?
- Q7) Are you a team player or more of an achievement oriented person?
- Q8) What are your expectations out of our organization?
Incentive plans that can be offered to the CFO in the short term and also in the coming five years have been discussed below.
- Medical benefit: The coverage of medical benefit (hospitalization) includes self, spouse and dependant children with an age limit of 21 yrs.
- Group life and accident insurance
Salary and Allowance
Salary is broken into following four components:
- Basic salary (64.51% of gross salary)
- House rent allowance (35% of basic salary)
- Utility allowance (10% of basic salary)
- Medical allowance (10% of basic salary)
It is provided according to the grades
Mobile Phone Reimbursement
It is provided according to the grades
10% of the basic salary is contributed by the employee which is deducted from the salary on a month basis. Only permanent employees are eligible for this.
Employee Loan Program
- House loan: set criteria for the entitlement.e.g. minimum numbers of years served, credit ratio etc.
- Vehicle loan: the confirmed employees after their probation period can enjoy this benefit.
- Emergency loan.
It is applicable only in special circumstances.
It is based on over all business performance and employee’s individual performance gauged through annual appraisal.
It is provided according to the grades
Employee Stock Option Plans and Profit Sharing Programs
The stock options give a certain percentage out of the stocks to the employees annually to which they get a return from time to time and profit sharing programs aim to share a percentage of the profits with the employees.
Script for Orienting New Employees
We in HR feel that it is important to address some sensitive issues during your early employment with the company. We recognize that Leadership, Empowerment & Accountability are essential for corporate success. We pursue the Highest Standards of Ethical Behavior & Integrity. We consider our people as the most important resource. We value creativity and innovation. We are committed to excellence in all spheres of performance. We work as a team and advocate Teamwork. We respect the Environment and are committed to its protection.
In our aim to protect our employees we have stringent regulations to protect our employees from sexual harassment. Any such case must be reported immediately and will be investigated thoroughly in order to protect our employees from any such advent.
A number of training programs have been included in our proposal which include the following: (It is important for an employee to undergo 24 months training in all areas in order to become permanent in the organization but our training program is very stringent which helps employees to grow personally and become much more competitive than their equal in the market but our organization retains employees by giving them high salaries. All programs will be instructor led or led by a mentor.)
- On the job training Scheme
- In House Training Programs
- Management Trainee Programs
- Internship Programs
- Foreign Training Programs
- Foreign Scholarship Scheme
Extrinsic benefits of the training programs are as follows:
- Rotated through important company job functions.
- Provided opportunities to experience hands –on training at various field locations.
- Opportunity to learn about the latest technology within the respective departments.
- Integration into the business culture.
- Equip trainees with practical skills in their profession.
- Develops their soft skills through teamwork.
Intrinsic benefits of the training programs:
- Highly competitive stipend.
- Annual Leave.
- Medical Facility for self.
Analysis of how the HR plan fits the company’s strategic fit
These actions will help to incur employee development, satisfaction and retention. The management will also learn a lesson and recruit and then place the right people for the right jobs. These actions will help to overcome the performance deficiencies and also go beyond them to improve the overall conditions in the working environment in order to benefit the manager, top management and the employees (Peter, 2004).
This plan will assist the organization to meet the environmental challenges that are faced by HR. Very few large organizations existed during the thousands of years between Moses and the Industrial revolution. But with the revolution numerous organizations erupted like lava out of the volcano. The industries for automobile, steel, locomotives, press etc spread like ants on the earth. From then emerged the problems of handling the people and satisfying because initially the people needed employment and a source of living so originations were taking advantage of it by using cheap labor for more work. Gradually, things evolved and there were more employment opportunities then people needed them so that is when human resources kicked in because companies had to take strategic steps to reduce turnover and retain the useful employees. The scientific management by Frederick W. Taylor emerged with its Fordist and Post-Fordist view. Henry Ford’s automobile giant was the beginning of HRM in organizations. Then from the World War I and until the Great Depression in 1930’s the Hawthorne experiments revealed certain facts (RANKIN, 2006). The study says that the organizations improved the lighting and hygiene (motivational or satisfaction factors) so the employee performance improved but later it was found out that it was the concern and that care shown by the organization that actually motivated the employees to work better (MILSOME, 2006). The theory also talks about dissatisfiers and that the absence of these factors is not enough because there have to be effective motivational factors. But although the presence of dissatisfiers can cause dissatisfaction among employees and that will result in poor performance and eventually increasing turnover (PURCELL, 2007).
The external challenges faced by an organization are as follows:
- Workforce Diversity: This occurs from differences in demographics like age, race, origin, religion, race, culture, creed etc. The differences in generations have also contributed to this factor. From the baby boom late 1950’s and to the bust into 1970’s. The trends changed by 1990’s and then the Generation “X” (20-24yrsold) turned out be independent, rebellious and different. Cultural differences are based on differences in attitudes, beliefs and lifestyles. Immigrants have also caused diversity because they migrate from different places with different cultures and lifestyles.
- Technological challenges: Technology has come a long way and has contributed a lot to HRM on the whole. Artificial intelligence, robots and other technologies have all contributed to a better and well managed organizations. But it has caused worker alienation because technology is replacing humans and this will adversely effect the world’s population.
- Organizational Challenges: There have been unions and information systems to complement the organization and its problems. Each organization has its own culture and philosophy and there are bound to be conflicts.
- Professional Challenges: Each organization now requires a formal degree or certificate in order to be applicable to work in the company. The education requires brains and money and not everyone has both. This is a challenge people have to face inevitably (Marcus, 2004).
This HR plan will retain and attract new employees. It is important to find out what is important to the staff and interaction is a better way to know the employee personally. But the company can follow certain strategies to retain staff and these strategies will also help to attract new talent and they are as follows:
- Ask: It is important to ask and inquire in order to know what the employee is going through and what they need. But there is a simple warning that asking increases expectations among the employees.
- Exit interviews: It is important to do exit interviews with the employees who are leaving the organization because they can tell the truth about what is going on within the organization. The data collected can be used to overcome the problems and that which is lacking within the firm. This will help to provide to the employees the best in order to retain them.
- Post-employment checkups: This is a proactive strategy since it suggests to interview employees when after a certain time period to which they have been hired. It is favorable to do check up interviews within 60-90 days.
- What works for you? The managers should themselves analyze their position to what they want from the organization and things they like or dislike about the company. This will help provide an insight of what employees would like or dislike. Since one should like for another for what one likes for oneself.
- MBWA: Management by walking around. This might lead to suspicion but employees will get used to it eventually. Walking around and carrying out significant conversations with employees will help to know what they are going through at work. Observing while talking rounds can be helpful in collecting a lot of employee related data (Brian, 2004).
Conclusion and Action Plan to enhance the HR plan and program
The corporation can run an audit to check its HR department since it is computerized and has an effective human resource information system but an audit will help to monitor the performance of the department and any desired changes can be implemented. The HR department is now benefiting from the client server management systems and the corporation must have a proper computerized system to keep track of activities of the Hr department. The software will help convert the data into a single format so checking will be feasible. This way the department can be monitored.
After collecting all the information the evaluation process will begin and this will evaluate all problems incurred in the department and also the way of handling issues. This is essential because evaluation help to analyze the situation and reach an appropriate conclusion.
The information will be at hand and personal files of each employees will be kept discreetly and these will include information like job description, problems and issues, performance appraisal and documentation of any disciplinary or grievance action. This should also include medical file and confidential compensation and payroll file.
The analysis of the situation, problems, issues and discrepancies should be considered and the reasons behind each decision and activity must be taken into account. This will help place an effective check on the department. The performance of the department can be appraised using certain methods mentioned above and these will help to enhance the human resource departments’ performance. When the weaknesses are in hand then they can be worked on and improvements can be made. The checks will ensure efficiency of the department and also productivity of the organization so it will help to enhance the human resource department’s performance (Beverly, 2004).
Becoming an employer of choice is important to all organizations because that determines the company’s image and demand in the market. It is an organization-wide effort that is required in order to become the employer of choice. This is a need of every organization whether large or small, local or multinational. There is one strategy that is the Vertical Bridge Employer of choice program that can help to achieve the desired position and success. This program helps companies understand that the demographics, changes in the labor market and changing business trends will influence and affect the way a business is run. 2Companies need to adapt to these changes in order to be competitive. The program analyses the current position of the company in the market that whether it’s a desirable place to work or not and then the program aims to work along with the entire management and staff in an organization to come up with strategies to make the company the Employer of choice. Becoming the employer of choice has certain advantages like succession planning that is planning into securing the future, recognition in the industry, increased profitability and the ability to hire and retain the best employees available in the market.
Beverly Kaye and Sharon Jordan-Evans, (2004) Love’Em or Lose’Em, Getting Good People to Stay (San Francisco, CA: Berrett-Koehler publishers, Inc.,)
Brian O Reilly (2004) The New Deal: What companies and Employees owe one another. Fortune, June 13, 2004. P.52.
Marcus Buckingham and Curt Coffman (2004), First, Break All the Rules New York, NY, Simon & Schuster.
HONEY, P. (2006) Line managers need all the help they can get, especially when they don’t realise it. Organisations & People. Vol 13, No 4, November. pp2-8.
HUTCHINSON, S., PURCELL, J. and WINKLER, V. (2007) Golden gate. People Management. Vol 13, No 8, 19 April. pp38-40.
MILSOME, S. (2006) Devolving HR responsibilities: are managers ready and able? IRS Employment Review. No 842, 3 March. pp9-16.
Peter F. Drucker (2004) Management and the World’s work Harvard Business Review. Sep-Oct. pp. 65-76
PURCELL, J., HUTCHINSON, S. and COTTON, C. (2007) Controlling interest. People Management. Vol 13, No 3, 8 February. pp38-40.
RANKIN, N. (2006) In the hiring line: boosting managers’ recruitment skills. IRS Employment Review. No 846, 5 May. pp42-48.
Robbins and DeCenzo. (2001) Fundamentals of Management. 3rd ed. Competitive Advantage. Delhi: Pearson education Pte. Ltd, Indian Branch, 482 F.I.E. Patparganj, 110 092. India.
SUFF, R. (2006) Managing underperformance: are line managers up to it? IRS Employment Review. No 854, 8 September. pp8-16.
TAMKIN, P., HIRSH, W. and TYERS, C. (2003) Chore to champions: the making of better people managers. Brighton: Institute for Employment Studies.
William B Werther, JR and Keith Davis (2004) Human Resources and Personnel Management. Arizona: Arizona State University Press
William B. Werther Jr; Keith Davis (2007) Human Resources and Personnel Management 5th ed. Miami: University of Miami.
- William B Werther, JR and Keith Davis (2004) Human Resources and Personnel Management. Arizona: Arizona State University Press
- Designing Total Reward Programs for Tight Labor Markets, Lofgren, Nyce, Schieber, Watson Wyatt Worldwide, presentation at conference, Wharton School, University of Pennsylvania, Philadelphia, April 2001