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MBAHuman Resource Management
Assignment 2013Denver Manickum
28 September 2013
Address: P.O Box 947, New Germany, 3620
Office: 0317010474
Home: 031 7010474
Cell: 0834828525
I hereby confirm that the assignment submitted is my own original work.
Question 1
Mod CSF, a business established in the 1950s has endured many changes
and challenges over the past years. Counter measures had to be put in place
especially in the HR sector. These changes need to be sustainable in the long
run to ensure longevity of the company.
Possible sustainability challenges faced by Mod CSF
New market entrants – The import of Goods from Kenya and Botswana
created lower priced competitors
Move to Hammersdale could have lost key skilled staff members due to
travelling challenges
The Importation of completed garments from China poses a threat o
sales in Larger chain stores
The South African economic decline. The falling rand leads to a higher
raw material purchase price hence lower profit margins
Online retail stores offering lower prices in lieu of overhead savings by
taking manufactured product direct to the consumer.
Affirmative action employment introduces unskilled employees to the
market. These employees need to be skilled at a further cost
South African Stringent labour laws with regards to minimum wage
poses an affordability challenge, compared to Kenya’s and Botswana’s
more relaxed labour laws
Current clothing trends change at an alarming rate and keeping up
would be a possible challenge due the diverse mix of cultures
Low staff moral due to being over worked i.e. Working a full week and
training over the weekend
Lower production due to low staff moral.
Loss of production as a result of increased absenteeism
The Effect of Mod CSF sustainability challenges on HRM Practices
Increased staff training –new employees not only need to be up skilled
but also orientated into the company
Specialized training for managers who need to be skilled in terms of
production processes.
Employee engagement – helping employees understand the benefit of
training and explaining the long terms effects of the extra time required
for training
Increased staff employment for new plant and training of same
Design of training programs specific to the companies prerequisites
Further recommendations in HRM
Staff Incentives to increase moral. Assuming the general majority of
staff id within the LSM 4-6 Range.
Paid Leave in lieu of training - allowing time off per training time. This
should be scheduled on a rotational basis to minimize loss of
production.
Increased productivity could be rewarded with cash or vouchers.
Team Building exercises introduced to allow better cohesion of staff
members.
Given the above statements and recommendations Mod CSF should be able
to define a appropriate HR practice that is sustainable and conducive to long-
term goals
Question 2
According to,
http://highered.mcgrawhill.com/sites/dl/free/0070984549/567212/
samplech01.pdf, High-leverage training is linked to strategic business goals
and objectives, uses an instructional design process to ensure that training is
effective, and compares or benchmarks the company’s training programs
against training programs in other companies
To develop training strategy aligned to Mod CSF Strategic Business Goals the
following elements must be included:
Training must be aligned to business goals and strategy – Mod CSF is
an employee centric company with its main assets being the skilled
staff. Training should be aimed at empowering staff and focus on
individual strengths
Any form of training should have a compelling business reason.
Training should therefore be relevant. Each individual should be
evaluated first before sent for training. Advanced designing courses
would not be suitable to a cutter but an cutting course may be given to
a designer so that he/she may understand the limitations of the job
therefore design more effectively
Training should be an enabler to enhance performance of employees
resulting in improved company result and performance. By focusing on
an employees needs one can determine the level to which that
employee want to improve. It also needs to be assumed that that an
individual’s mental capacity is limited. Training out of reach of the
individual’s capacity would be impractical and may leave the person
feeling inadequate.
Training programs should be benchmarked against other training
programs to determine the effectiveness, level and standard of training
interventions. Research and evaluations need to be made on past
attempts. Past failures and challenges will be a platform for
improvement on future developments
The company should embark on a process of continuous learning “that
requires employees to understand the entire work process and expects
them to acquire new skills, apply them on the job. This will obviously
assist in production losses due absenteeism where every employee
has a backup to support production lines.
Management should identify training gaps and ensure that training is
applied on-the-job. Management needs time on the floor and at times
physically assisting in the production lines. This will allow them the
foresight to identify the flaws in effective production.
Training must be linked to specific outcomes. Mod CSF can easily lose
money on training because it is poorly designed. Training needs to be
linked directly to challenges and goals.
Importance should be place on creating learning opportunities at all
levels. The focus on employment equity is imperative and by Identifying
strengths in employees Mod CSF can allocate training to the correct
individuals and ensure excellence.
Establishment of a single point of access for learning. Should the
desired choice remain in-house training, this should be available to all
employees including upper level managers. This will also create an
atmosphere of cohesion as it will allow for team building as well as
enhance employee manager relations through mentoring.
Training should also enhance employee satisfaction. Being a company
that’s focused on employees being the prime asset, Mod CFS should
take human motivation into consideration. According to Maslow’s
hierarchy of needs, Self-esteem is essential to performance. The
increase in intellectual capacity via training will bring an individual
closer to mastery thereby enhancing ones self-esteem. Mastering ones
ability also increases job security, which will appeal to the safety needs
of the individual.
With the above elements taken into consideration the development of the
training strategy is still necessary. This will involve multiple processes
summarized in the diagram below.
Training Strategy Development Process.
Monitering and Evaluating the ProgramConduct Evaluation Identify Gaps and Flaws Implement Improvements
Select Training MethodTraditional - OnSite Traditional - OffSite E-Learning /
Correspondence
Develop Evaluation PlanIdentify Learning Outcomes Choose Evaluation Design Plan Cost - Benefit analysis
Ensuring Transfer of TrainingSelf Management Peer to Peer support Manager to Peer Support
Creating a Learning EnviromentLearning Objectives and
Material Employee Feedback / Input Programme Modelling and Administration
Ensuring Employee ReadinessBasic Skills assesment Motivation for training Highlighting Benefits
Conducting Needs AssessmentOrganisational Analysis Person Analysis Task Analysis
Question 3
According to Herman Schwind, Hari Das and Terry Wagar, Human Resource
Management: A Strategic Approach, Strategic HR management is defined as:
Integrating human resource management strategies and systems to achieve
the overall mission, strategies, and success of the firm while meeting the
needs of employees and other stakeholders.
Strategic HR planning is an important component of strategic HR
management. It links HR management directly to the strategic plan of your
organization. All organizations should develop a strategic HR plan as it
creates a guide to make decisions about the future. It is the process of
systematically reviewing human resource requirements to ensure that the
number of the employees matches the required skills. Strategic Planning Is
the determination of the overall organizational purpose and goals and how
they are to be achieved.
The strategic HR planning process has four steps:
Assessing the current HR capacity
Forecasting HR requirements
Gap analysis
Developing HR strategies to support organizational strategies
3.1 The Importance of Strategic HR Planning is:
Supports the budgeting process
Using process previously used by competitors HR managers can
create plans for recruitment and training whilst working with existing
budgets or motivating for extra funding
Supports the business planning process
Strategic HR planning is an embedded part of the annual and multi-
year business planning process and long-term goals. A Strategic HR
plan allows the organization to envision placing the right people in the
right positions at the appropriate time
Identifies lack of qualified talent to fill important positions
Strategic HR planning helps highlight talent shortages, speeding up the
process of identifying sources of new talent that could make significant
impact in the production process.
Serves as a mechanism for retaining critical talent
Strategic HR Planning improves communication between human
resources and production. This subsequently assists to identify and
retain the most important talent.
Identifies skills gaps in the workforce
Strategic HR Planning improves communication between human
resources and production. This subsequently assists to identify the lack
of talent in areas of production requiring improvement.
Becomes a mechanism for identifying critical roles
Strategic HR Planning allows for evaluation of individuals in important
roles within the organization, using their strengths more effectively.
Career management determining
Planning and monitoring the career aspirations of each individual in the
organisation and developing them for improved productivity
Management Development
Assessing and determining the developmental needs of managers for
future succession requirements.
Common problems that occur in Strategic HR Planning
Lack Of Support From Executive Leadership
Results-oriented human resources planning require the support of
executive leadership. Older school upper management may be
resistant to advice or orders from a newcomer.
Inexperienced Human Resources Specialists
A suitably qualified specialist may not have the necessary experience
within the industry in question. For example a HR specialist in the
tobacco industry may not have the common knowledge that is required
in the clothing industry
Budget Allocation
The human resources department itself is not a revenue-generating
source. Human resources budget is often overlooked.
Health Care Act
Implementing health care reform has been an ongoing challenge to HR
departments, Acceptance from employees in seeing the benefits as
well as acceptance from upper management in smaller concerns due
to budget constraints
Generational Shifts
As baby-boomers begin to retire, more Generation X and Y workers will
ascend into management positions. Statistically, members of these
generations tend to be less concerned about company loyalty than
their parents and more concerned about what the company can do for
them. There also are fewer of them. These factors mean a gap in
leadership will occur in some companies. The company may
experience the challenges posed by having so many different sets of
values, expectations and work styles in the workplace.
Recruiting
Many human resources departments are struggling to recruit the right
workers, especially for technical jobs e.g. Designing, Maintenance
engineers.
Retention during transitions
An improving economy results in employees examining their options,
especially if they've felt under-appreciated during the downturn. For
example, a long-standing worker from Mobeni who lives some distance
away from the new premises may want a transportation subsidy. .
Technological Advances And Workplace
The workplace setting is changing because of technology.
Telecommuting and online reporting relationships are becoming the
norm. Working from home requires motivation and discipline. Some
employees lack these traits and would not be productive workers if
allowed to work from the comfort of home.
Resistance to Change
As with any change in the workplace, changes in technology may result
in anxiety and even resistance among employees. Employees who
envision that a machine will replace their roles within the company or
computer that can do the job cheaper or faster can see technical
changes specifically as threats.
Workforce Shortages
A shortage of skilled workers exists in many industries. With Mod CSF
human resource mangers may find it difficult to find workers who are
adept at using new technology. Hence they must train their current
employees to keep up with technical changes and they must motivate
and encourage employees who they bring on board to be the best they
can be at using new technology.
Training and Retention
Employees are trained at a cost and the loss of that employee to a
competitor is a challenge.
Managing Information
Human resource managers have a vital role to play in managing
information and securing the privacy of information.
Question 4
The importance of synchronising Mod CSF HR Strategy with The Business
Strategy
Mod CSF Business Strategy
To increase revenue and share price
Increase Client base
To be more competitive against imports
To create an employee-centric environment
To increase production and plant
To up skill existing staff
To create a more efficient production environment
To create the structure to support the business strategy
Recommendations for aligning HR Strategy with Business Strategy.
Invest in financially savvy expertise. Consult with economist’s that are
knowledgeable on a global scale. Due to globalization trends Mod CFS
needs to have international business intelligence.
Train cutters and designers to work cost efficiently together. This may
include basic cutting training for designers to allow maximum use of
materials
Create a consumer savvy Sales team. This needs to be a driven group
knowledgeable in the production and fashion environment to market
the company within its means.
Invest in a strong buying team. This could be from up skilling existing
staff who have knowledge of existing suppliers and materials required
bust also new members who don’t have a relationship and will easily
negotiate with mills and manufacturers without prejudice
Arrange Teambuilding initiatives with middle managers and Production
staff. This will increase moral and will motivate production staff to work
more effectively
Invest in researching equipment that’s saves time and money. New
technologies are mushrooming constantly. Keeping up with trends is
imperative, as competitors will have an edge on cost saving in terms of
speed and efficiency.
Provide training for staff so that they may climb within the ranks, as it is
more economical to train existing staff with basic skills than to start
fresh with a new employee.
Educate staff and management on the importance of change and the
long term benefits of aligning Business and HR strategies
Aligning the HR strategy with the business strategy is of utmost importance as
the key elements for success in business is placing the right people in the
correct positions at the appropriate times.
If this process is timed perfectly Mod CFS will enable itself to maximize on
each decision.
Structure and strategy go hand in hand. Since it is appropriate for Strategy to
follow Structure it is crucial for strategy to support structure.
With the appropriate business goals set in place at Mod CFS, The HR
Manager can then set the HR Strategy in Action to support the Long-term
goals of the operation.
The outcomes of a synchronized Business and HR Strategy Plan if
implemented correctly could lead to:
Lower production costs – The correct Training and placement allows
for efficient work
Increased productivity – Efficient workers lead to Increased productivity
Lower payroll – Increased productivity alleviated the need to increased
labour
Decreased Training - Up skilling existing workers leads to minimal
training required hence increased production
Decreased training costs – The Decreased Training is a cost saving to
the company thereby increasing net profit
Staff retention – Allowing staff to be empowered creates a sense of
loyalty
Business intelligence to compete globally – Knowledge of where your
competitor’s are and want there weakness are allows the organisation
to concentrate on internal strength’s.
