Graduation Research... Faris Amir

8/14/2019 Graduation Research... Faris Amir

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AMERICAN UNIVERSITY IN LONDON

Canadian Sudanese College

School Of Business

Human resource development in industrial sector

A thesis submitted in partial fulfillment of the Bachelor degree of

Business Administration (BBA)

By;Faris amir gabir el-bakri

Supervisor;Sahar said

2009


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CONTENTS

PREFACE3ACKNOLEDGEMENTS4

CHAPTER ONE5Introduction

The statement of the problem

The study hypothesis

MethodologySources of data

Limitation to study:

CHAPTER TWO.9Introduction

Managing change

Managing Change Is Managing People

Types of change

Managing change through HRDeveloping human capital

Competitive advantage through people

Human capital and HR

Employee empowerment

CHAPTER THREE19Back ground of the factory

Objectives for the project

Production capacity

Product

QualityRaw Material

CHAPTER FOUR24Analysis study (QUESTIONEER)

CHAPTER FIVE30Recommendations

Conclusion

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Appendix33

Preface

This research consists of five chapters. These chapters cover various aspects

of human resource development in manufacturing sector, such as

management change affection in human development, types of change,

developing human capital, and employee empowerment.

Chapter one of this research papers shows the problem surround this topic

and how we can treat these problems in a suitable manner. In chapter two

more details in managing change role and in developing human capital

issues. The case study for this research talk about one of the importantexample in industrial sector which in steel manufacturing (Jacob factory for

steel manufacturing) this is whats shown in chapter three. Chapter four give

an analysis of the research, the data obtained through a questionnaire which

was answered by 3 labors. Finally, we have chapter five which include the

suggested recommendations and give the final conclusion of this research

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ACKNOLEDGEMENTS

After thanking GOD

I am heartily thankful to my supervisor, Mrs. Sahar Said, whose

encouragement, guidance and support from the initial to the final level

enabled me to develop an understanding of the subject.

This research project would not have been possible without the support of

many people. Dr. Mohammed Ahmed Ramadan who was abundantly helpful

and offered invaluable assistance, support and guidance. Deepest gratitude is

also due to the members of the supervisory committee, Mrs. Sahar Said and

Mr. Wleed Qubanni without whose knowledge and assistance this study

would not have been successful.

Special thanks also to all graduate friends, for sharing the literature and

invaluable assistance. Not forgetting to best friends who always been there.

I wishes to express my love and gratitude to my beloved families; for their

understanding & endless love, through the duration of my studies.

Lastly, I offer my regards and blessings to all of those who supported me in

any respect during the completion of the project.

Faris Amir Al-Bakri

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Chapter one

Introduction

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1.1 Introduction

Manufacturing sector is one of the most important sectors that play a major

role in improving economy of nations. Some countries depend on this sector

as No.1 sector and others countries give it the second level of importance in

the country budget.

Human is the primitive and the complex resource in general and especially

in manufacturing industries. In the past, observers feared that machine might

one day eliminate the need for people at work. In reality, just the opposite

has been occurring people are more important in todays organizations than

ever before. (In many fast-growing economies, it may be easier to access

money and technology than good people competitive advantages belongs to

companies that know how to attract, select, deploy, and develop talent) (3)

Almost a huge number of labors which are the most important element in

this sector are low-educated persons so we need to double the doze ofdeveloping them in order to get the highest effort of them in cycling the

sector.

1.2 The statement of the problem

In order to increase the development of human resources in manufacturing

sectors, we need to practice the suitable techniques of human resource

management principals in a way or another.

The major techniques or systems we need to act on are, leading for

managers, training or coaching for employees and labors and engineers if

necessary, motivation for all levels, updating or follow up with whats new

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in the industry nowadays in term of machines or knowledge for all levels,

take care for all questions and comments that initiated specially from labors.

For doing so, there are three main issues that have to be fulfilled to insure

this increasing in this sector which are,

- Standardization of the system in human resource management.

- Continuity of the system

- Satisfaction of the system.

To insure the issues in the right manner we have to combine leading,

training, motivation, updating and feed back of in a right way to gain the

results we are seeking for.

1.3 The study hypothesis

- Developing human capital results in holding and tidying the performance

of workers with in the organization.

- Managing change has great results i.e. feed back from labors.

1.4 Methodology:

We will use an extensive method to acquire data, these data will be acquired

through direct interviews with the persons in question, and we will also

prepare a questionnaire to get data about the existing system which is used

by the company.

1.5 Sources of data:

1.5.1 Primary Data:

The data will be obtained from :( books, newspapers, magazines, previous

researches, knowledge, and internet).

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1.5.2 Secondary Data:

The data will be obtained from: (direct interviews, relevance, and

questionnaire).

1.6 Limitation of the study1. Time span. The duration of the study and the time available for

making the research is not that enough, during the final semester of

the academic year.

2. Difficulty to get information and testing of statistical analysis with 30

populations do not reflect the exact/real situation with high level of

accuracy because I have to make the interviews during the work hoursof the factory when labors are working. This is prohibited by the

administration of the factory.

3. Tallying the primary data collected with the secondary and thus

reaching a major consensus needs in depth analysis.

4. Comparative analysis of such research is a difficult task.

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Chapter two

Literature review

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- 2.1 Introduction

By seeking the input of chief executives and HR managers, theseorganizations keep a finger on the pulse of major trends. For the past decade

or so, there has been a constant theme around the following issues:

Managing change

Developing human capital

- 2.2 Managing change

Organizations can rarely stand still for long. In highly competitive

environments, where competition is around the country and innovation is

continuous, change has become a core competency of organization.

Managing Change Is Managing People

Changing the way an organization operates is tough. You can spend a lot of

money on new software, redesign your business processes, and offer

training, but, will this guarantee change? No.

Technologies may change, but organizations usually stay the same. If you

want to change the way your organization works, you have to make it

happen. The right way to manage change begins with a simple model but

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involves a process that can be complex and delicate. It entails careful

planning, detailed design, and thorough implementation.(1)

The Plan

Defining change. Your first step is defining the change you want to

implement. Most important is defining the operational model: What do you

want your organization's structure to look like? What roles need to be

performed? How future business should processes look? What technology is

needed?

The first requirement for success is keeping your goals realistic. Whatever

the nature of the changes you're seeking, you need to know your

organization's limits. You also need to understand how change can be

affected within your organization -- can the change be enacted at a business

unit level and pushed down? Or should the change start with smaller groups

(like project teams) and work its way up the organization?

Assessing readiness. The next stop is to assess how ready your organization

is for change by analyzing two key factors:

Stakeholders. Who stands to gain or lose the most through the changes

you're planning, and who among the "losers" will present an obstacle? Who

are the key change agents -- that is, who are the people that everyone else

follows?

Business processes. How radically will you change the way you conduct

business? And what will it take to make that change? (2)

Design, Implement andSell

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The design and implementation of organizational change are separate stages,

but they are best seen as one continuous process, broken out into three

streams: The communication side, the training side, and the incentives side.

Communication. Effective communication is a lot more than just giving

people regular updates. People are naturally resistant to change, and you've

got to sell them on the benefits of it. To communicate (i.e., sell) the change,

do what any good marketing manager would do. Define segments and then

develop key messages for each segment.

The key to communicating with stakeholders is to understand their pain-points. Addressing these pain-points should be a common thread throughout

your communications.

Develop a strategy around the best medium for reaching everyone --

newsletters, e-mail, workshops, brownbag lunches, etc. -- and how often

people will need to be reached. To reach larger audiences consider setting up

monthly presentations with a forum for questions and answers.

Training. It is critical to give people the skills they will require through

effective training. Training requirements should be planned around the

specific skills employees will need and how quickly they can learn them.

Take care in determining the best medium of instruction -- is it in a

traditional face to face classroom setting? Or learning from a manual or

computer tutorial? Or through a virtual seminar?

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Maybe your needs are less complicated? If all you require is a low-level

program for a simple change in a process, you might be able to deliver the

training through a single group presentation or even send it out by e-mail.

Incentives. Change can be greatly aided with the use of incentives, but

designing the most appropriate incentives can be tricky. Incentives can be of

the "carrot" or "stick" variety. Sticks can be very effective and certainly do

not need to be that painful. For example, if taking a training class is part of

the required change, present a list of people who have and have not attended

training during a company meeting. The public dis-recognition might be just

enough to get people to act.

Carrots, though, are better, positive incentives. It's important your incentive

strategy be consistent with your organization's culture. What do your

employees value, and how can that guide you in designing incentives?

Maybe try tying the incentive to a bigger objective. For instance, if you are

rolling out a new project management application, look into having the

training classes apply toward PMI certification. This not only provides

additional incentive, but also clearly ties the change to career development

goals.

Success

While successfully implementing change is difficult and requires careful

planning and rigorous activity, and most of all, an understanding of people

and how to change the way they do things, it can be done. Doing it right

means you only have to do it once. Doing it wrong? Well, ... we all know the

answer to that one. (2)

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Types of change

Programs focused on total quality, continuous improvement, downsizing,

reengineering, and the like are all examples of the means organizations are

using to modify the way they operate in order to more successful. Some of

these changes are reactive, resulting when external forces have already

affected an organizations performance. Other changes are more proactive,

being initiated by managers to take advantage of targeted opportunities,

particularly manufacturing industries.

The main thrust of the change-management program was to involve

employees in instituting continuous innovation and excellent customer

service. These types of change initiatives are not designed to fix problems

that have arisen in the organization so much as they are designed to help

renew everyones focus on key success factor. (1)

Managing change through HR

Most employees---regardless of occupation--- understand that the way

things were done five or ten years ago is very different from how they are

done today (or will be done five or ten years from now). Responsibilities

change, job assignment change, work processes change. And this change

is continuous--- a part of the job--- rather than temporary. Nevertheless,

people often resist change because it requires them to modify or abandon

ways of working that have been successful or at least familiar to them.

To manage change, executive and managers have to envision the future,

communicate this vision to employees, set clear expectations for

performance, and develop the capability to excite by recognizing people

and reallocating assets. Of course, this is easier said than done. There for

all managers, including those in HR, have an important role in facilitating

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change process, particularly in helping communicate business needs to

employees and in listening to employees concerns. (1)

- 2.3 Developing human capital

The idea that organizations compete through people highlight the fact

that success increasingly depend on an organizations ability to manage

human capital. The term human capital describes the economic value of

knowledge, skills, and capabilities. Although the value of these assets

may not show up directly on a companys balance sheet, it nevertheless

has tremendous impact on an organizations performance.

Competitive advantage through peopleWhile people have always been central to organizations, today they have

taken on an even more central role in building a firms/industries

competitive advantage. In fact, a growing number of experts now argue that

the key to success is based on establishing a set ofcore competencies---

integrated knowledge sets within an organization that distinguish it from its

competitors and deliver value to customers. Core competencies tend to be

limited in number, but they provide a long-term basis for technology

innovation, product development, and service delivery. (4)

Organizations can achieve sustained competitive advantage through people

if they are able to meet the following criteria:

1. The resources must be of value. People are a source of competitive

advantage when they improve the efficiency or effectiveness of the

company. Value is increased when employees find ways to decrease

costs, provide something unique to customers, or some combination

of the two. Empowerment programs, total-quality initiatives, and

continuous improvement efforts at companies such as internationally

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designing to increase the value that employees represent on the

bottom line.

2. The resources must be rare. People are a source of competitive

advantage when their skills, knowledge, and abilities are not equally

available to competitors. Large companies invest a great deal to hire

and train the best and the brightest employees in order to gain

advantage over their competitors.

3. The resources must be difficult to imitate. People are a source of

competitive advantage when employee capabilities and contributions

cannot be copied by others. Big companies are known for creating

unique cultures that get the most from employees (through teamwork)

and are difficult to imitate.

4. The resources must be organized. People are a source of competitive

advantage when their talents can be combined and deployed to work

on new assignments at a moments notice. Teamwork and cooperation

are two other pervasive methods for ensuring an organized workforce.

These four criteria highlight the importance of people and show the

closeness of HRM to strategic management. In recent years it appears

that HR expenditures are now viewed as a strategic investment rather

than simply a cost to be minimized. Because employee skills, knowledge,

and abilities are among the most distinctive and renewable resources

upon which a company can draw, their strategic management is more

important than ever.

Human capital and HR

Human capital is intangible and elusive and cannot be managed the way

organizations manage job, products, and technologies. One of the reasons for

this is that the employees, not the organization, own their human capital. If

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valued employees leave a company, they take their human capital with them,

and any investment the company has made in training and development

those people is lost.

To build human capital in organizations, managers must continue to

develop superior knowledge, skills, and experience within there workforce.

Staffing programs focus on identifying, recruiting, and hiring the best and

the brightest talent available. Training programs complement these staffing

practices to provide skill enhancement, particularly in areas that cannot be

transferred to another company if an employee should leave. In addition,

employees need opportunities for development on the job. The most highly

valid intelligence tends to be associated with competencies and capabilities

that are learned from experience and are not easily taught. Consequently,

managers have to do good job duties and requirements are flexible enough to

allow for growth and learning. (5)

Beyond the need to invest in employee development, organizations have to

find ways of using the knowledge that currently exists. Too often,

employees have skills that go unused. If the grater data base in the company

is housed in the individual minds of the associates of the organization, then

that is where the power of the organization resides. These individual

knowledge bases are continually changing and adopting to the real world in

front of them. We have to connect these individual knowledge bases

together so that they do whatever they do best in the shortest possible time.

Employee empowerment

Job enrichment and the job characteristics are specific programs by which

managers or supervisors can formally change the jobs of employees. A less

structured method is to allow employees to initiate their own job change

through the concept of empowerment. Employee empowerment is a

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technique of involving employees in their work through the process of

inclusion. Empowerment encourages employees to become innovators and

managers of their own work, and it involve them in there jobs in ways that

give them more control and autonomous decision-making capabilities.

While defining empowerment can become the first step to achieving it, in

order for empowerment to grow and thrive, organizations must encourage

these condition:

Participating. Employees must be encouraged to take

control of their work tasks. Employees, in turn, must care

about improving their work process and interpersonalwork relationship.

Innovation. The environment must be receptive to people

with innovative ideas and encourage people to explore

new paths and to take reasonable risks at reasonable

costs. An empowered environment is created when

curiosity is as highly regarded as is technical expertise.

Access to information. Employees must have access to a

wide range of information. Involved individuals decide

what kind of information they need for per formation

their jobs.

Accountability. Empowerment does not involve being

able to do whatever you want. Empowered employees

should be held accountable for their behavior toward

others, producing agreed-upon results, achieving

credibility, and operating with a positive approach.

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Chapter threeCase study Jacob steel manufacturing factory

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3.1 Back ground:

Proportion to our experience during the thirty years in the steel trade (1978-

2008) and the largest iron markets in Sudan (The guard) and the impetus to

accelerate progress of industrial and urban development underlying the

country was necessary for us to be one of the leading contributors in this

process in order to achieve sufficiency self-reinforcing iron and good work

on to be one of the countries exporting to these important items that become

difficult to do without them in light of the progress of urban revolution in the

region, particularly in third world countries and developing countries that

seek to progress and keep pace with developed countries.Project name: Jacob Factory for Iron and Steel

Owner: Jacob International Investment Co. Ltd.

(James Muhammad Ali - Chairman of the Board and Director-General

- Sudanese nationality)

3.2 Objectives for which the project is

1 / Production of rebar local world-class high-quality competition

importer and excel on it.

2 / To provide competitive price in order to serve all segments of society.

3 / To ensure that all standard sizes required and as recommended by the

Standards Authority of Sudan.

4 / work in order to reach self-sufficiency and we hope to export the

surplus.

Production capacity: --

The factory system is a rosy one start and achieves productivity ranging

between 100 - 150 tons per day.

seek to work 3 shifts system to achieve higher productivity.

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Product: --

Quality-- :

The quality of the product is the most important elements of marketing

of the product and then establish our presence in the market was that we gave

this side of specifications and standards and quality of the necessary attention

by creating a special lab to examine the quality of the product prior to

submission to clients and periodic examination of a specialized laboratory in

this area [represented in the College of Engineering Laboratory - University

of Khartoum] as a neutral trusted by the client and the issuing of certificates

of quality enhance our credibility in dealing with our customers.

RAW:

Are imported iron ore from the State of Ukraine - leading iron and steel

industry in the world - with high quality and are testing and sampling

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laboratory, University of Khartoum, Department of Chemistry for the

General Authority for Standardization and Metrology of Sudan and to issue

a certificate of quality.

Address:

Sudan / Khartoum - Jabra box 35 South local market

Tel: 739653 120 00249 - Plant

P: 118351 155 00249 - Plant

Distribution centers:

Tel: 461132 183 00249 Al-Sajanna

P: 460351 183 00249 Al-Sajanna

Tel: 474024 183 00249 Al-Sajanna

Email: [email protected] www.jacob-steel.net

After the experience that lasted almost thirty years in the steel trade (1978

- 2008), in the biggest markets in the steel trade in the Sudan (The guard)

and we just love excellence, and nothing is being distinguished, we managed

to outdo ourselves settled Steel Rebars and add a new number in the field of

industry and achieving logo-making in the Sudan for a commodity I daresay

it is one of the important commodities involved in the formation of

infrastructure projects in the giant building and construction of dams and

bridges, residential towers, service and so forth.

Hello to you in:

Jacob's International Investment Limited

Founded Jacob International Investment Limited in 2006 under the

Companies Act of 1925, a private limited liability company to operate in the

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field of iron and steel industry in all its forms and scope of global trade,

import and export. Is the owner of the Name of the factory Jacob Iron and

steel works in the production of rebar in various sizes and high quality

specification, according to the specifications and standards of Sudan.

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Chapter four

Data analysis and discussion

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This chapter is devoted to the analysis of the research; the data was

obtained through a questionnaire which was answered by 30 labors

working in Jacob factory for ion and steel. The questionnaire includes

10closed-ended questions, in order to investigate the application of thedevelopment concepts.

Q.1You work for the organization for more than 3 years

LaborsNo.

Percentage

Yes 26 88%

No 4 12%

Total 30 100%

3 years working

Yes

No

Total

This is a good indicator for the standardization and the low turn over ratepercentage for labors in the work.

Q.2Hiring in the factory is through testing and selection

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

Hiring in the factoryis through testing

and selection

Yes

No

Total

Selection according to the educational certificates, previous experience in the field,and other related factors. And testing is through applying these experiences andtest them in the field.

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Q.3You take training and practices before start working

Labors

No.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

training and practices before start

working

Yes

No

Total

This is because machines differs in its origin and how it works so, it is important tolearn the labors how to deal with the machine they are dealing with.

Q.4Training and development is in a continual basis to update the industrialdevelopment

LaborsNo.

Percentage

Yes 25 75%

No 5 25%

Total 30 100%

Training and development is in a

continual basis

Yes

No

Total

This may be because the majority of work areas within the factory need high skilledlabors with continual up-dating acting. Also the industry always has new machinesintroduced and the factory have to up-date the work to insure accuracy and highquality presentation.

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Q.5The wok process match your ability and vision

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

abilityand vision matching

Yes

No

Total

The work environment has its affection in the work. Here we can feel the

satisfaction of labors which reflect in the production process.

Q.6Technological development in the factory increase your productivity

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

Technological development with

productivity

Yes

No

Total

Machines differ in its control and usage. To keep this percentage in a high level, thecontinual up-dating of knowledge of using new machines is required.

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Q.7The policies of motivation, vacations etc. is good in your opinion

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

policies of motivation, vacations

etc. is good

Yes

No

Total

That is because it encourages and reinforces labors to increase the productivity and

to keep using of equipments in the right manner without mll which help indevelopment in a large scale.

Q.8In case, there is any comment or request is the response from management comequickly

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

quick response

Yes

No

Total

This indicate that the management concern with anything that may cause delaying

for the work and tries to resolve it as quick as possible ( avoid problems may occurdelaying the process of working which may be costly for the administration) ,another indicator is that the successful leading for the responsible manager of laborsby putting labors in his first priorities.

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Q.9You feel satisfied with your job

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

satisfied with your j ob

Yes

No

Total

The application of the development in the factory is matching the laborsexpectations and the level of satisfaction.

Q.10Your advice is continue with the same rotten for the coming years

LaborsNo.

Percentage

Yes 30 100%

No 0 0%

Total 30 100%

advice is continue

Yes

No

Total

Continuous revision of the feed back for labors shows you what is going on (if theyare satisfied or not)

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Chapter five

Recommendation and conclusion

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5.1 Recommendation based on the findings:From the data obtained through the questionnaire conducted in the case

study factory (Jacob) after the analysis of these data I arrived at the

following recommendations.

First, I recommend that the company should make written policies and

procedures in HR department handle and signed by labors to insure

standardization of work. Also make refreshment and/or revision for these

policies in annual basis.

Second, training and learning have to be continuously that is fact and

applied well. My suggestion is to make international exchange labors

opportunities i.e. by international agreements between factories that will

improve and insure there are more and more skills received. This point also

helps the country development of labors.

Third, I recommend that the factory have to choose the suitable and the right

time of changing or updating machines to increase the production level and

increase the competitive advantage in the market share.

Fourth, I in monthly basis let labors have meeting with the supervision of

management talking about the problems that face the work, giving

rewards,...etc. by doing so the HR department can know the feed back of

there suited policies.

Fifth, I recommend that the HR manager should always keep eyes on what is

new in the personnel management world and apply whats matching the

work to insure constancy in development of people.

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5.3 Conclusion:

The study is about the human resource development in manufacturing sector

and how the factory management deal especially with labors by applying the

three main issues that have to be fulfilled to insure this increasing in this

sector which are,

- Standardization of the system in human resource management.

- Continuity of the system

- Satisfaction of the system.

To determine if the factory management (HR department for labors) ismeeting the best managerial activities in dealing with labors, case study

approach is used to identify human resource management used by (Jacob).

During a factory visit, a direct interview with the factory human resource

manager (the biggest labor) questions is conducted to investigate the

application of the best management practices. Generally it was found that

(Jacob) factory has to make written polices of the dealing with labors and

handle to them, make international agreements with global factories in

exchanging labors to improve skills continuously, choose the right time in

up-dating machines to increase productivity, meeting with labors to discuss

what is going on with them in the field and solve problems if founded,

always keeping eyes on what is new in the HR management world

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Appendix

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Questionnaire

Canadian Sudanese College

Faculty of Business Administration

This information will not be disclosed for any other company or any other

academic institution. It will solely be used for the purpose of this research.

And it will remain confidential.

1. time duration of work is more than 5 years

Yes

No

2. hiring in the company is through testing and selecting

Yes

No

3. you take training for what will perform

Yes

No

4. there are regular training sessions to adapt new technology

Yes

No

5. the work process match your ability and vision

Yes

No

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6. Technology development within the organization has an impact in

increasing your productivity

Yes

No

7. the policy of motivations, vacations, . . .etc are satisfied

Yes

No

8. in case, there is any comment or request is the response from

management come quickly

Yes

No

9. You feel satisfied with your job?

Yes

No

10. I advice the company to continue with this effort for the coming years

Yes

No

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List of references

1- Managing Human Resource 13th edition by BOHLANDER

SNELL 2005

2- Human recourse management 10th edition by GRAY

DESSELER 2001

3- The Talent Solution by ED GUBMAN 1999

4- Various internet web sides (notes by Ron DeWitt and others)

5- Sources from lectures:

Lectures given by: Miss Saher Said, Canadian Sudanese College

Documents

Graduation Research... Faris Amir