Dms_Hr_-_Scattergoods_Objections

Scenario 1 Scattergoods Objections 1. He believes that participation would not work in his organisation 2. Scattergood is afraid of losing his authority if he gives his employees a chance to share in the decisions made in his organisation. 3. He believes if he disagreed with their decision he would have to overrule them and his authority and support would be undermined. 4. There is not enough time to let his employees participate in any decision-making. Evaluation of Scattergoods Objections In this scenario it appears that Scattergood has little if any knowledge of participative decision-making or that it just doesn’t fit in to his operation. He uses or functions with an authoritarian style of management. Due to a lack of understanding of both these issues, he is anxious about involving employees, fearing a loss of authority and support. Scattergood also thinks that because his organisation is constantly under pressure with tight deadlines to meet, he doesn’t have time to let employees join in the decision making process. There are varying levels of employee involvement and differing styles of leadership. Managers have a basic choice between either authoritarian or democratic style of management. These styles should be looked at before deciding what level of employee participation is suitable to use. The styles of leadership approach There are many versions of this: Authoritarian-Democratic. Three examples of this approach to management style are as follows: a) D. McGregor’s Theory X manager – tough, autocratic and supporting tight controls with punishment-reward systems – the authoritarian. The contrasting style is that of the Theory Y manager – benevolent, participative and believing in self-controls – the democrat. These styles flow from the assumptions about people that are the original basis of ~ Theory X and Theory Y (see Appendix A) b) Renis Likert’s four management systems: a. System 1 the exploitive-authoritarian system, which is the epitome of the authoritarian style. b. System 2 the benevolent-authoritative system, which is basically a paternalistic style. c. System 3 the consultative system, which moves towards greater democracy and teamwork. d. System 4 the participative-group system which is the ultimate democratic style. c) Tannenbaum and Schmidt’s model of a continuum of leadership styles, ranging from authoritarian behaviour at one end to democratic behaviour at the other, as illustrated in Appendix B Cole G. A. 1990 Page 217 A more current idea is Theory Z: WS Ouchi, 1980s Well-managed companies in US and Japan had lifetime employment, collective decision making, promotion from within, and non-specialised career paths Characterised as a "democratic" management style [pic] http://www.comp.glam.ac.uk/teaching/ismanagement/manstyles1f.htm Summary There are many ways of looking at leadership, it isn’t clear from this scenario whether or not Scattergoods employees are happy with their leader but it is possible that Scattergoods organisation would benefit from some participation in decision making, because his employees are at the ‘coal face’ they would probably give some very helpful feedback that would benefit his operations and make it run more efficiently. Scattergood stated in the dialogue “We are constantly under pressure to meet production deadlines” this indicates that he relies on his own decisions, he is using an autocratic style of decision making which although has the advantage of a very fast decision, it also has the disadvantage of the decline of moral, especially if employees don’t like the decisions made or think they could do better themselves. Decision Making Styles are briefly explained below: 1. Democratic is when the leader gives up ownership and control of a decision and allows the group to vote. Majority vote will decide the action. 2. Autocratic is when the leader maintains total control and ownership of the decision. 3. Collective - Participative decision making is when the leader involves the members of the organization. The leader maintains total control of the decision, although outside information is considered, the leader alone decides. 4. Consensus when the leader gives up total control of the decision. The complete group is totally involved in the decision. For full explanation of all these styles see Appendix C http://www.leadershipmanagement.com/html-files/decision.htm Time is one of the most valuable, but limited, resources and it is important that the manager utilises time to the maximum advantage. By delegating those activities, which can be done just as well by subordinate staff, the manager is using to advantage the human resources of the organisation. Managers are also giving themselves more time in which to manage. Delegation One of the main phobias about delegation is that by giving others authority, a manager loses control. This need not be the case. If you train your staff to apply the same criteria as you would yourself (by example and full explanations) then they will be exercising your control on your behalf. And since they will witness many more situations over which control may be exercised (you can't be in several places at once) then that control is exercised more diversely and more rapidly than you could exercise it by yourself. Delegation leaves the manager free to make profitable use of time, to concentrate on the more important tasks and to spend more time in managing and less in doing. This should lead to a more even flow of work and a reduction in bottlenecks. It should make the manager more accessible for consultation with subordinates, superiors or other managers. This should also improve the process of communications. Mullins L. J. 2002 Page 185 Chapter 6 The nature of management. Management and Organisational Behaviour Conclusions I don’t consider Scattergoods arguments to be a strong case against a democratic style of management, the dialogue indicates that his views are borne solely on lack of knowledge and consequently fear of losing control. If Scattergood considered the skill and expertise at all levels of the organisation he would see his employees as a critical asset. By adopting a different style of management, which valued employee involvement in the decision-making process, his organisation could benefit Some of the main benefits of increased employee participation are: a) It encourages those employed in the enterprise to identify themselves more closely with its success. It is a way of creating better working relationships and improved industrial relations. b) It acknowledges people’s aspirations to have a greater say in events, which affect their work and increases the degree of job satisfaction achieved. Taken from DMS student notes If he includes employees in the decision-making process Scattergood need not have concerns about being either undermined or having to over rule group decisions. On the contrary, he would find that employees would have much more understanding of the overall aims and objectives of the organisation and he would gain much more support and co-operation. It appears that if Scattergood had more understanding of employee participation and management styles he would consider changing his own style. However he would also have to consider the culture and structure of the organisation to see where employee decision-making would fit in, so as to ensure that the organisation as a whole would benefit from this change. Daphnes’ Arguments 1. If you allow your employees a voice in the decisions that affect them, they are more likely to support the final choice. 2. I feel that the decisions I am making are better since I have included my subordinates in the process. They are often closer to the problem than I am and, as a result, they can raise questions that I have not considered. 3. I have as much authority as I ever had and perhaps even more. In terms of my ability to get things done, I would say it has definitely increased. 4. I think you have overlooked some important areas where your employees could contribute. I would agree with Daphne’s point of view that, if her staff are involved with the decision making process they are more likely to give their support to the final decision. She indicates that she has greater authority through sharing decisions and that her ability to ‘get things done’ has increased. This would concur with the Theories of Mayo, Likert and Maslow, who all concluded that participation, may develop a more creative, interested and therefore a more productive workforce. Summary It appears that Daphnes’ firm is better organised, and she may be better at delegating. Thus she has the time to give as a manager in meeting with staff and getting views and ideas from the people closer to the problem. With a more democratic style of management, the motivation of the workforce can be utilised and the whole workforce included in looking for the best way forward for the organisation. Other Advantages and Disadvantages of Participative Decision Making Advantages Increase in job satisfaction. Greater awareness of organisation. Ownership of work. Increased employee self-confidence. Greater loyalty and commitment. Better employee relations. Disadvantages Needs support of senior management to allow employees to make decisions. Relies on competence and commitment of employees. Dependant on co-operation of all employees. Possibility of slower decision making. On balance Daphnes’ arguments provide the best case, as can be seen from the scenario, it actually works in her company. I would say that a democratic style of management involving employee participation is a better approach. It would appear that a comparison of the advantages and disadvantages above would support this. With Scattergoods’ support the commitment and co-operation of his employees is likely to be harnessed. Although decision-making may be slower, a better outcome, based on the ideas of those closer to the problem may be reached. Scenario 2 Rationale Analyse the current recruitment process with a view to in-house recruitment at the same time improving staff retention. Current Policy The current system of recruitment and selection is done by a professional agency but over the past 3 years we have suffered an unusually high turnover of staff, although we know that money is not the influencing factor staff are still going to other companies. The current system of exit interview and appraisal is unstructured. The current recruitment of staff from the agency has not appeared to be suitable for our requirement of specialist staff. The issues are: A history of frequently changing jobs. Lack commitment to one firm. Have a poor medical history. The Proposal. Because the company relies on the quality and talent of its employees’ recruitment is one of the most important choices we make. The aim is to recruit, select, develop and retain a qualified and diverse workforce. At each stage of the employment process from, determining the staffing needs through recruitment, interviewing and selection we have the opportunity to make choices that will result in effective management of our operation. It is essential therefore to reassess our recruitment policies and procedures and it is important that we: Value the workforce at all levels. Analyse the current workforce to find their views. Comply with Equal Employment Opportunities. Plan the staffing needs well in advance. Recruit a qualified and diverse applicant pool. Interview top candidates. Select the best-qualified, most suitable person for the position. “It is not enough to recruit the person who appears to fit the immediate requirements. Once recruited, there skills must be developed to fit the company and the motivation maintained”. Taken from DMS student notes. Important points are: Induction Training Retention Staff development The costs of getting things wrong at the recruitment stage are difficult to quantify, but nevertheless are very real. They are summarised as follows: Loss of staff soon after recruitment Increased expenditure on recruitment and training Disruption caused by loss of departing staff Settling in time of new employees, which may cause low productivity Cost of training new employees Supervision of work done by new employees In order to try to overcome some of these issues we should follow a systematic approach to recruitment and selection as shown in the following flow chart. Mullins L. J. 2002 Page 740 Central to a planned and systematic approach is a job analysis and job design see Appendix D. From these we derive, the job description, leading to, person specification. The Job Description The job description will be derived from the information gained in the job analysis, and will include information gathered from: A survey of current employees (See Appendix E an example of a survey that can be purchased and adapted for our purposes, from The Business Research Lab Ltd.). Exit interviews (to be restructured, not included in this report). Appraisal (to be restructured, see later in this report). The current job description (not shown). The new job description will include (as a minimum) the following details: Job title (which must be explicit and indicate whether a new position or replacement). Department/section and location. Function of the Department. Reporting to. Wage/salary range. Purpose of the job (how it fits with the activities of the organisation). Main Duties and Responsibilities. (Giving precise and detailed information, indicating what is expected of the employee and must include any unusual aspects or drawbacks). Company policy on promotion and associated training requirements. Company compliance with Equal Opportunities/Disability requirements. Personnel Specification There are two very well known classifications for personal requirements: The five-Point-Plan produced by J. Munro Fraser (Cole G.A. Page 397) and The Seven-Point-Plan devised by Professor Alec Rodger, Of the National Institute of Industrial Psychology in the 1950’s and has proven to be the most popular model for personnel specifications in the UK. Its seven points are as follows: Adapted from DMS student notes. Physical Make-up What is required in terms of health, strength, energy and personal appearance' Attainments What education, training and experience is required' General Intelligence What does the job require in terms of thinking and mental effort' Special Aptitudes What kind of skills need to be exercised in the job' Interests What personal interests could be relevant to the performances of the job' Disposition What kind of personality are we looking for' Circumstances Are there any special circumstances that the job requires of candidates' The personnel specification attempts to list the requirements for any applicant usually under ‘essential’ and ‘desirable’ headings. This will form the basis of the advertisement and selection process. This can be best explained by means of this example of Personnel Specification for a personnel assistant: |Aspects of |Essential |Desirable | |individual to | | | |consider | | | |Impact on others |Able to communicate orally with confidence and |Enhances professional image of | | |sensitivity, and relate well to all categories |Personnel Department | | |of employee within the organisation | | | |Conscientious | | |Acquired Knowledge or |At least one year’s previous experience of |Previous experience of project work | |Qualifications |recruitment/general personnel administration |Previous experience of supervising staff. | | | |Knowledge of current employment law, good | | | |practice in R & S, EO CPP/IPM qualification | | | |Experience of computers in work environment | |Innate abilities |To learn job requirements and perform |Potential to pick up organisation’s culture | | |effectively in short time scale |quickly | | | |Writing job descriptions, person specifications, | | | |design of advertisements and introduction | | | |training programmes, maintain accurate records | | | |and produce statistical returns | |Motivation |Can cope with mundane aspects of job as well as |Wishes to develop career in personnel management | | |high profile activities | | |Adjustment |Achieves and reacts calmly to time pressure | | | |deadlines | | | |Conscientious and thorough in task completion | | Beardwell and Holden 1994 Job Advertisement First we need to decide how to go about the recruitment of candidates, it is important to know where suitable applicants are likely to be found, and how to make contact with them. This involves a thorough knowledge of our sources of labour and methods of recruitment, we need to identify and target multiple, rich sources of candidates and actively market to them. Potential sources to be considered are: In-house Previous applicants Job centres Career exhibitions Colleges Universities Headhunting The Internet Advertising Local and National Press Professional & Trade papers Radio & Television Career conventions An effective job advertisement should, ideally contain the following features: Clear job title Clear but brief description of job Details of essential personal requirements Concise description of type/size of organisation Location of job Salary and key benefits Prospects Any potential drawbacks e.g. shift work Clear reply instructions (to whom, by when and how) Interview date Adapted from DMS course notes & Cole G. A. 1990 Selection Process The selection process is as complex as any other aspect of recruitment Appendix F shows a flow chart recommending the process for both ‘The Applicant’ and ‘The Organisation’. Methods of selection involve short listing of candidates; drawing up the short list can be done, by comparing applications, with the job description and personnel specification. There are other methods of selection that could also be considered. Here are a few examples: Peer rating - involves the candidates nominating other candidates. Presentation. Work related tests. Ability/Aptitude test. Psychometric test. The selection process is about collecting the best possible applicants and turning them into potential candidates, with a view to interviewing and ultimately offering the candidate a position in the organisation. The Interview A standard interview takes around thirty minutes which is inefficient in terms of screening candidates and favours those who are good at interviews, not necessarily good at the job. It may be useful to consider using one of the other selection methods as well as interview. It is important to remember that for the candidate the interview is the first point of contact with the organisation so it is important to be professional and organised. The environment should be carefully chosen to be quiet and comfortable. The interview panel should receive formal training in interview techniques to ensure interviews are both valid and reliable, and adequate time for preparation of interviews is set aside. By taking a professional attitude to the interview we will enhance our chance of getting the right person. The purpose of the interview is to: Help to assess the candidates’ capacity, motivation, disposition, and ability to relate to others. Allows the candidate to formulate his assessment of the job, and the organisation It is important that the interview ‘feel’ right and be see to be fair to both parties. Taken from DMS Student Notes The following is a guide to good interview practice. |Be Prepared |Obtain available information e.g. Job details, candidate specification & application form. | | |Arrange interview room. Ensure no interruptions | | |Plan the interview. | |Welcome the Candidate |After initial courtesies, thank candidate for coming. | | |Explain briefly what procedure you propose to adopt for the interview. Commence by asking | | |relatively easy and non-threatening question. | |Encourage Candidate to talk |Ask open-ended questions. | | |Prompt when necessary. | | |Indicate that you are listening. | | |Briefly develop points of interest raised by candidate. | |Control the Interview |Direct your questions along the lines that will achieve your objectives. Tactfully, but firmly,| | |clamp down on the over-talkative candidate. | | |Do not get too involved in particular issues just because of your own interests. | | |Keep an eye on the time. | |Supply Necessary Information |Briefly add to information already made available to candidate. | | |Answer candidate’s questions. Inform candidate of the next step in the selection procedure. | |Close Interview |Thank candidate for his/her responses to your questions. | | |Exchange final courtesies. | |Final Steps |Write up you notes about the candidate. | | |Grade, or rank, him/her for suitability. Operate administrative procedures regarding | | |notifications etc. | Cole G. A. 1990 Page 404. The decision making process may be represented in the form of a flow chart as follows: Beardwell and Holden 1994 Page 253 Candidates Decision Selection is a two-way process and if selected the candidate also has a decision to make; Glueck (1973,) Schmitt and Coyle (1976), Liden and Parsons (1986) all found that the candidates were more likely to accept a job offer if they: Found that the image projected by the selector a motivating factor. Analysed the ‘recruiter behaviour’ on personalities and manner. If they liked the selector. Adapted from Beardwell and Holden 1994 Page 253 Induction Having selected the candidate and the post has been accepted, there is a need to nurture the individual to ensure they both fit in and enjoy working for the company. To avoid ‘early leavers’ it is necessary to provide the support to ensure the integration into the team and organisation as early as possible. It is necessary to ensure the structured induction programme is adequate in providing as much initial information as possible. There will be a mentoring system linked to the programme that will include regular reviews. The aims for employees should be based around SMART objectives as follows: Specific Measurable Agreed or Achievable Realistic or Relevant Time-bound Training and Development We need to consider the following: What motivates your employees: To come to work' To apply their talents to their jobs' To do better' To achieve more' Motivation As managers we need to understand what motivates people and we need to provide ways of helping them to satisfy those needs through the organisation. There are internal and external motivators or rewards. An internal motivator is something inside the employee that causes them to want to do better or causes them to want to continue working. An external motivator comes from outside the employee. External motivators are weaker, less effective, than internal motivators. Goals can be tangible, or intangible such as personal reputation, as shown in the basic model of motivation: Cole G. A. 1990 Page 36 Maslow produced The Hierarchy of needs, which was an attempt to explain motivation as a series of ascending urges see Appendix G: According to Maslows’ theory, once the lower needs are satisfied, the next level needs become motivators. These have been linked to these ideas in the workplace as follows: |Need |Workplace reward | |Biological |Pay | |Safety |Job security | |Socialization |Sympathetic colleagues | |Self-esteem |Praise/promotion | |Self-actualisation |Satisfying job | This is a well-known theory, but it is perhaps a simple answer to a complex problem; People seem to have many motivators, and these change continually, often relating to age and situation. It does however point out that money, whilst important is not the sole motivator: Adapted from DMS Student Notes It is necessary to create a work environment and culture that increases opportunities for internal motivation. Plus a work environment and culture that includes sufficient external motivators to satisfy employees’ basic needs. Employees want to believe that their views and opinions count, that management listens to them. They want opportunities for personal and career growth. They want opportunities to do what they do best. Training and development is important to the success of the organisation. According to Drucker, the one contribution a manager is uniquely expected to make is to give others vision and ability to perform. A basic operation in the work of the manager is to develop people and direct, encourage and train subordinates. Mullins L. J. 2002 Page 694 Investors in People (IIP) launched in 1991 by the Department of Employment, is as standard for the training and development of people within an organisation. It would be an advantage to the organisation to follow these standards, with the ultimate aim of gaining this award, at the same time as educating and motivating our workforce. The Four Key Principles of IIP A public commitment from the top to invest in and develop people in order to achieve business goals; Planning how individuals and teams are to be developed to achieve these goals; Taking relevant action to meet training and development needs throughout people’s employment; and Evaluating the outcomes of training and development for individuals and the organisation as a basis for continuous improvement Mullins L. J. 2002 Page 699 Performance Appraisal In the past we have missed the opportunity for upward communication by not having a structured appraisal system, the advantages of structuring our appraisal system would be: Measuring the performance of new employees’ against SMART objectives. Identify the current level of performance to provide a basis for informing, training and developing employees’. Identify an individuals strengths and how they can be best utilised Identifying weaknesses and how they can be developed. Reveal problems which may be restricting progress and causing in-efficient work practices. Improving communication about work task between managers and team members. An opportunity to encourage and motivate employees’ Adapted from DMS student Notes & Mullins L. J. 2002 Page 700 “James suggests that performance appraisal has its roots in three well-substantiated psychological principals. People work/learn/achieve more when they are given: Adequate feedback as to how they are performing, in other words knowledge of results Clear, attainable goals; and Involvement in the setting of tasks and goals.” Cited in Mullins L. J. 2002 Page 701 In order to implement a successful appraisal system we need to give careful consideration to a number of factors: What should be assessed' Who should be assessed' What should the frequency of assessment be' It should be related to the corporate objectives Do we use the opportunity to introduce 360( feedback The appraisal form should include the focus of the appraisal, performance criteria, and performance rating. Relevant criteria for assessment may be the job analysis, job description, and performance targets. What monitoring and follow-up action. There are basically three ways of approaching the appraisal interview: The tell and sell method: Manager tells the subordinate how (s)he has been assessed, and then tries to ‘sell’ (gain acceptance of) the evaluation and any improvement plans. The tell and listen method: Manager tells the subordinate how (s)he has been assessed, and then invites comments. The problem-solving method: Manager abandons the role of critic altogether, and becomes a counsellor and helper. Taken from DMS student notes After appraisal the manager should complete a report and present recommendations for follow up action, taking the following action: Inform appraisee of the results Carry out agreed action on training etc. Monitor the appraisee’s progress on agreed actions Take steps to assist appraisee to attain objectives providing feedback. If there is no follow up there is a risk that the appraisee will think the appraisal has been a waste of time, which will adversely affect on motivation. Conclusion From the information provided, I have attempted to show how we can put into place an in-house recruitment policy, which is linked to the company strategies, aims and objectives. Current employees should be involved in all aspects of job analysis, leading to the creation of new job description and personnel specification. If the market is analysed in order to recruit specialist people, then target that market with a well-designed advertisement, we will undoubtedly attract the best applicants possible. It is necessary to encourage our employees’ to adapt to new ways of induction, training and development. To restructure the appraisal system, following the guidelines indicated in this report and reconsider the structure of the exit policy. In order to ensure we keep up to date with current market trends both inside and outside the company, it is important that as well as continuously seeking feedback the system is actively maintaining. This will provide the company with a cost effective way of retaining its employees’, given the fact that the aim is to get the right people in the first place. It will also give the company the mechanism to strive for a healthy workforce. Scenario 3 The Case Study From the information presented in this scenario, Peerless Products Ltd are trying to integrate the work of all divisions, which means the transfer of personnel between locations. This will give the company the advantage of flexibility, but there are disadvantages, which are indicated below: Current Problems Workers being administered by different sets of rules De-motivation of the workforce Possible Industrial disputes The problems will get worse if the company is fully integrated through increased transference of staff Encourage conflict between different workgroups because of differing pay scales A full breakdown of the current situation is shown in Appendix H. This indicates that the company has the following issues: The Issues No corporate personnel Lack of co-ordination of salary administration Multiple union involvement Varying dates of pay review Inconsistent pay system Inconsistent performance system Duplication of administrative tasks Recommendations Assessments of pay and performance in all the divisions, and job evaluation schemes should attempt to address both harmonisation and elimination of differences that are likely to occur with integration. Personnel who must be supported by senior management should conduct consultation along with participation of employees and unions. Responsibility for recommending a pay policy and negotiating pay rates should come under a central personnel department, which operates a pay scheme as fairly as possible. The aims of a good pay system is to encourage long-term commitment and loyalty to the company, to ensure labour costs are responsive to the performance and hence profit of the company, also to achieve simplicity in operation as an aid to staff understanding and to minimise administrative efforts. There has to be a central objective behind the company wide scheme, to foster co-operation between all parts of the company, so that corporate objectives are achieved. The salary structure should be administered fairly by careful application of pay scales. The introduction of a pay banding system based on job evaluation across all divisions will allow for promotion within the company, and merit rating schemes and bonus schemes allow for recognition of performance. Employees’ perception of how fairly they are being treated by the company is of prime importance, which may affect retention and motivation. In order to integrate without causing conflict amongst the workforce I would recommend the following: Centralise personnel at Head Office. All salary administration should be done at Head Office. Introduce a standardised salary structure, which applies to the whole company. Standardise annual pay review. Standardise the performance review across the whole company. Review the company car policy with a view to standardisation across the whole company. Standardise relocation costs. ----------------------- CONSIDER SOCIABILITY AS WELL AS TECHNICAL COMPETENCE HR PLANNING AND PERSONNEL MANAGEMENT ACTION PROGRAMME COMPLY WITH LEGAL REQUIREMENTS AND RECOMMENDED CODES OF PRACTICE JOB ANALYSIS ATTRACT SUITABLE APPLICANTS METHODS OF SELECTION THE SELECTION INTERVIEW INTERVIEWING STYLE THE SELECTION DECISION INDUCTION AND FOLLOW-UP REVIEW EFFECTIVENESS OF PROCEDURE Preparation of job description and person specification Sources of labour and methods of recruitment Choice and application of methods; planning the selection process Collecting information; use of a clear interview plan Formality, mannerisms, postures; form of questions Clear reporting and use of grading scheme Introduction and socialisation of new members of staff Identifying possible future training needs. Referring to the person specification frequently. On assessments if panel interviewing. Each candidate. If panel interviewing assess individually before meeting with other members. After each interview, and check that all necessary information has been gathered. Make comparisons between candidates and take decisions Compare assessments with personnel specification Reach agreement Assess Repeat for candidate Discuss Tangible Selected Behaviour Motives or Needs Goals or Desired Ends Intangible