Renault_Case

Human Resources: Renault Table of contents INTRODUCTION I/ Overview of the company 1) Presentation of Renault 2) Vision and Mission statement 3) Strategic goals and Workforce philosophy 4) Organization chart II/Strategy & HR Planning in the company 1) Workforce Engagement, Capability & Capacity in the company 2) H&R goals and H&R Action Plans III/ Succession planning & The European Culture & International HR Management CONCLUSION References INTRODUCTION In this Assignment it is required to write a strategic analysis of Human Resources for a European company. In order to respond to this point, I choose to build my analysis on the company Renault, indeed this company is a French automaker producing cars, vans, buses, tractors, and trucks. Today the group designs, manufactures and markets vehicles under three brands: Renault, Dacia and Renault Samsung motors. The group operates in 118 countries and offering a range of vehicles tailored to today’s mobility needs and the requirement of its different markets. The goals of Renault are to develop sustainable mobility solutions and make them available to the greatest number of people around the world by innovating and pursuing research and development efforts. Nowadays, the sustainable development is a real direction especially for company like Renault which is making cars. This company has to find a new strategy in order to match the demand which is more concerned about the ecological issues and wants new kind of car with less emissions of CO2, less polluting... So the environmental protection is an essential part Renault's commitment to sustainable development. Renault decided to build a new strategy based on ecofriendly car and equipment. The company's environmental policy focuses on: implementing environmental management systems throughout the company  that prevent industrial risks, eliminating or reducing vehicle impact on the environment at every stage of the life cycle, developing product and service offerings that are compatible with environmental protection, and promoting communication on environmental initiatives. In order to apply this environmental strategy Renault needs to hiring, and develops its workforce. That is why in this assignment we will see how Renault thanks to its human resources department could achieve its objectives in order to be more competitive and more efficient. In this assignment we will see first an overview of the company and its Human resources goals, in the second part we will focus on Strategy & HR Planning in the company and in the third part we will interest about the succession planning and The European Culture & International HR Management I/ Overview of the company 1) Company‘s presentation The group Renault was created in 1899 by Louis Renault. The history of the group is linked to the history of France as it participates to the 2 world ware. Renault is the Group's historical, founding brand. Strongly present in Europe, the Renault brand is in a worldwide expansion. Renault S.A. is a French automaker producing cars, vans, buses, tractors, and trucks, and, in the past, autorail vehicles. Renault is evolving in the Automotive industry, we can also notice that the headquarter of the company is located in France (Boulogne –Billancourt). Renault has a strong presence worldwide; indeed the group is present in more than 118 countries. Renault owns the Romanian automaker Automobile Dacia and the Korean automaker Renault Samsung Motors. Concerning the current CEO of the company, his name is Carlos Ghosn. Its alliance with Nissan makes Renault the world's fourth largest automaker. Renault owns different subsidiaries: * DACIA * RENAULT SAMSUNG MOTORS * RENAULT SPORTS Renault‘s revenue in 2009 is about 33.71 billion euros and the operating income of the company in 2009 is about 955 million euros. Renault employs more than 124.300 persons. The company is the leading automobile brand in France (23.7% of the market in volume), in Portugal (12.3%) and in Slovenia (16.7%). The company's most successful cars to date are the Renault Clio and the Renault Laguna, and its core market is Europe. The company is known for numerous revolutionary designs, security technologies, and motor racing. Since its creation in 1899, the firm always adapted itself to its environment. Renault has always been a vector for innovation, with the invention of the MPV (multi-purpose vehicle).60 years ago it was producing munitions and plane’s engines, today environment became a very important issue. As a result, Renault now wants to be a pioneer on mass marketed electric cars and continue to offer low CO2 affordable cars. Renault reduces the environmental impact of its vehicles at each phase in their existence through an innovative policy: life cycle management. Renault’s environmental policy is based on action in five complementary areas. * Maintaining the value of our heritage: Renault’s industrial activities may harm the environment. The Group's answer: environmental management and risk management at each production site. * Eliminating or reducing environmental impact: At each stage in the life cycle, Renault tries to limit environmental impact while favoring safety, comfort and quality. * Developing products and services compatible with environmental protection: With the Renault eco² range, Renault brings customers a complete range of economic and ecological vehicles. * Implementing environmental management through the company and throughout the vehicle life cycle. This priority is shared by all Group employees. * Fostering environmental communication: customers, suppliers and investors have to be informed about Renault’s progress policy. The aim is to reconcile each person's efforts to boost the effectiveness of the Group's environmental policy.  2) Vision and Mission statement Concerning the Mission statement of Renault we can say that Renault is a French car manufacturer, one of the major actors in European car industry. It is a global corporation, with an international presence (Nissan partnership in Asia). Renault continues to provide more efficient and respectful equipment and car toward the environment for a unique driving moment and transport facility. Concerning the Vision statement of Renault we can say that the company wants to: * First become in the top 3 car manufacturer which produce less CO2 emission per car (in the next 10 years) * Build new factory respectful towards environment externalities and readapt the old factory in order to pollute less. * Provide more kind of motors using Eco carburant (in the next 2-3 years) and using materials more respectful toward environment * Reach for each new car the challenge of less oil consumption * Develop eco-friendly technology segment (in the next 2-5 years) called Renault ECO * Increase sales of Electric car * Create new model of Hybrid car * Renault expect also to increase its sales around 20% in the next 5 years in oriented ecofriendly technology cars 3) Strategic goals and Workforce philosophy First Renault will set up its corporate strategy, indeed the company wants to develop its sales and presences overseas, specifically in Emerged countries such as India, Brazil and Russia. We can notice that these countries would become a great market for Renault, so the company must define well its strategy to reach these news markets. Concerning its business unit strategy as we said above the company wants to spread eco-friendly technology segment named Renault Eco (in the 2 -5 years next year) Regarding the Functional strategy, Renault will provide cars more and more respectful regarding the sustainable development (environment). Renault will also create a new factory and create new innovative car regarding sustainable development. Provide more and more eco-friendly performance features (ecological technological product) Market share forecast: In France: 1 year: +5% of the market share 2 year: +10% of market share 3 year: +15% of market share In Emerged country: 1 year: Export market share in India (5% of total turnover) 3 year: Export market share in Brazil (10% of total turnover) 5e year: Export market share in Russia (10% of total turnover) The emerged countries must represent in the 5 next year about 20% of the total turnover of the company. Concerning the workforce philosophy of Renault we could define it as : Applying energy, pride, intelligence, sharing competences, expertise and entrepreneurial spirit to active teamwork, creativity, innovative thinking, synergies, eco-friendly feeling and open minded in order to serve the team spirit. Renault must create value to provide the resources for independent development and meet shareholder expectations. Renault is committed to build last relationships with its shareholders and, by the same token, to transparency of information, regular communication, high standards of corporate governance and payment of attractive dividends. Developing Renault's core values means respecting employees worldwide and helping them to progress, ensuring the full transparency of information and being honest and fair in accordance with the Renault Code of Good Conduct. These core values are representing by different initiatives such as: * A far-reaching commitment to training and recruitment efforts to attract and retain the best talent;  * Empowered management dedicated to clearly identified, shared goals;  * Organization structured for short lines of command, networking, cross-functional initiatives and responsiveness;  * Attractive compensation reflecting individual and collective performance, as well as levels of responsibility;  * Frank and open dialogue with employees and employee representatives in negotiations favouring decentralization and preparing for changes to come.   It also means that today's results must be achieved in a way that lays the foundations for future success, while preserving environmental quality and the cohesion of the society in which Renault operates. In this way, Renault will be making its contribution to sustainable development around the world. 4) Organization chart Regarding the organizational chart of Renault we already know that the company employs about 124000 persons all around the world. This huge number of employees enables the company to achieve different goals. Renault as a strategic move to reduce costs across the enterprise, Renault sought to establish a shared services center to manage HR requests. However, Renault also wanted to have the appropriate tools and technology in place to efficiently manage the HR processes in the newly created shared services center. Additionally, they needed a software solution that would be rapidly adopted by managers and employees, and scalable enough within the HR SSC to manage the demands of 25,000 employees. Organizational chart (annexe1) In order to achieve the strategic goals, the Human resources department of Renault must define an organizational chart which includes the new initiatives. Export manager (marketing, prospection, partners, suppliers, customer satisfaction) Indian salesmen Russian salesmen Brazilian salesman Research and development (develop new technologies, engineering, design prototype, using eco carburant….) Renault eco (set up a new department the purpose is to inform customers of the environmental progress it has made across the vehicle life cycle in the last 10 years. Renault eco2 vehicles fulfill three ecological criteria in Production, CO2 emissions and Recycling.) Product chief officer (engineer tasks, conception, packaging, raw materials selection…) Scientifics specialists in eco technologies Technical Engineers Designers & graphics II/Strategy & HR Planning in the company 1) Workforce Engagement, Capability & Capacity in the company Concerning the different recruitment, the company must recruit: Salesmen (experienced salesmen, motivated by the company, and the challenge of develop and launch new product in emerging market, good level of commissions and interests, motivated by international development with possibility of career assessment (national subsidiaries) Research & development (specialist graduated in Eco technologies, knowledge in new technologies tools development, motivated by apply new technologies, career management possibility toward a higher position in responsibilities and status) Technical engineers (experienced professional who want a new challenge in the car industry , People interest in developing new car and equipment, know exactly the sector, technologies, products and trends, Degree or Diploma in Technologies engineering preferably a member of a Professional Institute 10 to 12 years experience in the Car industry, of which the last 6 to 8 years should be in a similar capacity in a large car company, preparing estimates for similar projects Knowledge and experience using CCS Estimating software will be an advantage Technically competent in the estimating process) Designers & graphics (Experienced people in design and graphics specialties, p, use technical tools and software) Strategic goal | Workforce capability | Workforce capacity | Penetrate new markets (India , Brazil Russia) | Salesmen: knowledge and technical skills related to international marketing, capabilities about launching a new product issue from new technologies, results methods, knowledge about our product visionTechnical engineer: adaptability to our innovative idea about new car, new evolution, Bring ideas about added value for equipment, material and car ecofriendly Designer & graphics: design cars ecofriendly and adapt to different countries), creativity, innovative transport | First year 5e year20 salesmen 40 salesmen(Ind) (Braz, Rus)10 engineers 20 engineers10 designers 15 designers | Strategic goal | Workforce capability | Workforce capacity | Provide eco-friendly performance features, car , factory | Salesmen: passionate and good values relating to environment, know new technology and concerned about environmental issuesTechnical engineer: develop technologies more and more efficient and technological awareness, less oil consumption, less co2 emissions, eco carburant , raw material ecological, factory respectful with environmentDesigner & graphics: promote removable equipment, use eco-friendly raw materials… | First year 5e year20 salesmen 40 salesmen10 engineers 20 engineers10 designers 15 designers | In order to achieve this objectives the company Renault must define a huge Budget, indeed an Investment around 10% of the turnover per year must help to setup the goals of the company. Moreover if Renault really wants to innovate in this specific sector, the group must search foreign private investors in order to increase the R&D budget. In order to organize this strategy it will be interesting to build a operational planning: Below we can see the different step for the next five years. Planning: Year 1: Provide motors using Eco Carburant Year 2: Build factories respectful towards environment externalities Year 3: launch a new Hybrid car Year 4: Launch an Electric car Year 5: Become in the TOP 5 car manufacturer in the World 2) H&R goals and H&R Action Plans In order to achieve the global strategy of Renault, the Human resources department must define goals and decline initiatives. The Goals of the Human Resources is to provide quality recruitment, both for sales department, research and development and for the new department Renault Eco. Moreover another goal is to offer training and formation plan to Renault employees. These initiatives will enable them to advance in their career within the group and give them missions that best match their skills. Another purpose of HR department of Renault is raising awareness among all staff of Innovative strategy but also establish a code of ethic which content actions more respectful for the environment and sustainable development. Concerning the Recruiting aspect in the 5 next years : Renault must recruit 40 Salesmen: as we said previously experienced people, speaks Russian, Portuguese and English Renault also must recruit 20 Engineers: specialised in the new technologies and Eco technologies 15 Designers: specialised in the conception of cars (hybrid, electric..) Regarding the Hiring aspect the company could set up different actions, indeed first to integrate the new employees it could be interesting to build a specialised Integration seminar, indeed this seminar will be specialised in functions of the position, for instance the integration seminar for the salesmen could contains specific presentation of Renault commercial product, brand and so on… Of course these entire seminars will contain a global presentation of the company, values, spirit and main activities. Each manager will be in charge of the new collaborator during one month minimum, for instance the manager of Engineering department must attribute a referent for all new engineer. Thus this solution will permit to exchange knowledge and share competencies in each step of the integration. Moreover that also allows integrating new member as part of Renault Company (in regards with its core values) Regarding the Training & development aspect different actions could be considered: Each year: set up seminar which show new strategy, explain innovative new product… Each month: a department meeting including reporting of global activity Training of engineers salesmen specialized in new technologies (Hybrid and Electric) Build a R&D center specialized in new technologies These initiatives will develop the team spirit, provide new idea and speak about workforce issue, define objectives coming. The Conventional 'training' is required to cover essential work-related skills, techniques and knowledge, and much of this section deals with taking a positive progressive approach to this sort of traditional 'training'. The company could also apply Participative workshops, and corporate training. The Retention & knowledge transfer is really an important point so Renault First week: transfer maximum of ideas and knowledge to employee (by department) thanks to eLearning software. Future employees will be trained by the oldest The managers will transfer the tacit and explicit value of employee knowledge and are disseminating this expertise to establish cost effective solutions and retain collective intelligence. This is creating a number of opportunities to collect and retain an organizational knowledge. Thanks to these different Human resources actions the strategic goal of Renault could be reach. III/ Succession planning & The European Culture & International HR Management Concerning the succession planning this is how Renault identifying and developing internal people with the potential to fill key leadership positions in the company. This Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. We can notice different point in this succession planning first, Renault want to keep the motivation of its salesmen with increasing the level of commission regarding the results, moreover thanks to different analysis, meeting, data, survey, the company could measure the potential of its employees (for instance concerning the new engineers, an assessment of their skills at the entrance and one year after their entrance in the company could be realised). This succession planning also reinforces the transfer of competences in the company and the career evolvement of each employee that could also improve employee commitment and retention. Meet the career development expectations of existing employees. Thanks to this process Renault could iidentify those with the potential to assume greater responsibility in the organization, and also provide critical development experiences to those that can move into key roles. The succession planning will also engage the leadership in supporting the development of high-potential leaders and build a data base that can be used to make better staffing decisions for key jobs. One of the main characteristics of the European model of management is represented by the cultural diversity specific to the European space, as we know Renault is operating in more than 118 countries worldwide, this presence includes different kind of cultures throughout the employees, in order to manage well all this different staff, the Human resources department must include the particularity of each countries. Indeed the HR department could not impose its French way of doing to all the employees. That is why Renault is particularly retaining and developing a superior global workforce know what the jobs entail and seek to hire those candidates who can be more successful/effective with the lowest amount of support. Well written job descriptions, and competency models that clearly delineate success behaviors make for effective selection and hiring. Understanding cultural differences in the recruitment process, the selection of candidates and what motivates employees in various cultures is crucial to the success of global organizations. In this competitive environment for attracting good global talent, companies need to pay particular attention to the perception of the company on the part of candidates and new hires Helping Renault employees recognize that they work in a multi-cultural environment or a global environment is an official reminder that there is an expectation that they will attend to cultural differences. That is why the management of Human resources of the company is an important factor to become more competitive and more successful. CONCLUSION In this assignment we analyze the Human resources of Renault throughout the environmental strategy; we notice that the Human resources department set up different goals and actions to reach the global objective of the company. In this case Renault would penetrate new markets, and launch new ecological cars, throughout these objectives we see that the human resources management adapts its actions to these goals. The department includes many tasks such as: the Recruitment of new staff and their integration into the company but also the skills- Management of each employee. We also notice that this specific department ensure appropriate and confortable working environment for all employees. In this case we see how the human resources department of Renault conducts the hiring, training and retention & knowledge transfer for its employees. Moreover thanks to the succession planning we observe that Renault is identifying and developing internal people with the potential to fill key leadership positions in the company. This Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. The human resources department of Renault enhances the skills, motivation, information and organization of all the company in order to maintain its competitively and the viability of the company. References http://www.renault.com Renault annual report 2009- - ANNEXE 1: Organizational chart