DECLARATION
I hereby declare that the work entitled “Organizational & Functional Strategy of Newly Established Manufacturing Company” in ………” submitted to “Prof ................................” is a record of an original work done by us under the guidance of “Prof. ...............................” Prof of Strategic Human Resources Management PGDM batch….. Term… in COLLAGE NAME college and this project work is submitted in the partial fulfillment of the requirement for award of post graduate diploma in management and communication. The results embodied in this project have not been submitted to any other institute for the award of any diploma.
Date – ...................
Acknowledgement
I owe a great many thanks to a great many people who helped and supported me during the writing of this book.
My deepest thanks to Lecturer Prof ...............................,The Guide of the project, for guiding and correcting various documents of us with attention and care. He has taken pain to go through the project and make necessary correction as and when needed.
I would also thank my Institution and my faculty members without whom this project would have been a distant reality.
CERTIFICATE
This is to certify that the project entitled “Organizational & Functional Strategy of Newly Established Manufacturing Company” has been carried out by ................... under my guidance in partial fulfillment of the Post graduate Diploma of management from CH Institute of Business Studies.
Date – Signature & Seal
Place – ............... ………………………
Prof. ...............................
Prof. of Strategic Human Resource Management
Objective
As an HR Head of a company, you have to develop and execute various organizational and
Functional HR strategies, considering the following facts about your company:
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(i) The company is a newly established company.
(ii) No substantial work has been done in the past on HR strategies in your company.
(iii)The company is a manufacturing company and operates in a highly dynamic industry.
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Introduction
Introduction
Like all of the other major business functions, human resources must accomplish a wide range of activities well from basic transaction processing to strategic planning in order to be successful.
The importance ascribed to each of those functional activities in large part represent human resource strategy. Delivering a strategic impact requires development of a strategy that supports the corporate business objectives, aligning and prioritizing each of the various activities to support and help accomplish those objectives. While an infinite number of HR strategies can be formulated, most in use today fall under a relatively small number of models. While I don't recommend using a strategy just because of major firm uses it, it is helpful to know what the range of strategies available to VP's of HR are.
What Are The Most Widely Used HR Strategies?
If we study successful organizations around the world, you'll find that there are a finite number of HR strategies in use. Although each of the strategies is a distinct category, many firms use them in combination in order to arrive at an approach that best fits their situation. For example, stable business units that provide the core revenue base for an organization may operate under one strategy while a business unit that focuses on future development may operate under another.
Role of Human Resource Manager in a Manufacturing Company -
Strengthening the employer-employee relationship is the strategic role of a human resources manager. However, there's more than meets the eye to doing this. Human resources managers formulate workforce strategy and determine the functional processes necessary to meet organizational goals. Their job requires expertise as an HR generalist, which means they must be familiar with every human resources discipline.
Overview
During the 1980s, personnel departments were responsible for handing out applications, providing employees with insurance enrollment forms and processing payroll. The role of the personnel department was mainly administrative. Over the next two decades, the role of personnel administration became more involved with overall business goals. Companies began to recruit human resources leaders who were capable of managing the department from a more strategic position. Personnel administration, therefore, evolved into a business now referred to as human resources management. Human resources managers are responsible for developing strategic solutions to employment-related matters that affect the organization's ability to meet its productivity and performance goals.
Workplace Safety
Creating a work environment free from unnecessary hazards is a strategic role of every human resources manager. Strategic development for workplace safety entails risk management and mitigating potential losses from on-the-job injuries and fatalities. Workers' compensation insurance is an area in which a strategic plan helps lower company expense for insurance coverage. Reducing accidents through training employees on the proper use of complex machinery and equipment is one of the functional tasks associated with creating a safe work environment.
Compensation and Benefits
An employer's compensation and benefits structure partly determines the company's business reputation and image. In addition, the decisions that human resources managers make regarding pay scales and employee benefits can impact employee satisfaction, as well as the organization's ability to recruit talented workers. Job evaluation, labor market conditions, workforce shortages and budget constraints are factors that HR managers consider in a strategic plan for pay and benefits. In addition, a strategy includes weighing an employer's choices between satisfying its workforce and pleasing the company's stakeholders. Pursuant to the health care reform law passed in 2010, human resources managers for companies with more than 50 employees must decide between offering group health coverage and paying fines, beginning in 2014.
Employee Training
Human resources managers' strategic role with respect to employee training and development prepares the workforce for future positions within the company. Succession planning, promotion-from-within policies and performance evaluation factor into the human resources manager's role. Training and development motivate employees, and in some cases, improve employee retention.
Recruitment and Selection
Employee recruitment and selection is as much a part of employee relations as it is a separate discipline unto itself. Therefore, a human resources manager's strategic role is to combine elements of employee relations into the employer's recruitment and selection strategy. Integrating employee recognition programs into promotion-from-within policies is an effective form of employee motivation that combines the employee relations and recruitment and selection areas of human resources.
Employee Relations
Some human resources managers believe that strengthening the employer-employee relationship rests solely in the employee relations areas of the HR department. This isn't true. Nevertheless, employee relations is such a large part of every discipline -- including salaries, benefits, safety, training and employee development -- that sustaining an employee relations program is an important element of human resources strategy. Implementing a workplace investigation process and enforcing fair employment practices are two components of an employee relations program. The strategic role of a human resources manager is to determine how to identify and resolve workplace issues, as well as how best to attract a diverse pool of applicants through effective recruitment and selection processes.
Organizational & Functional Strategy of Newly Established Manufacturing Company
Functional Strategies –
Functional strategies (or operational strategies) are the short-term goal-directed decisions and actions of the organization’s various functional areas
- Different from:
- Business strategy
- How do we win?
- Corporate Strategy
- What do we do?
HR Strategy-
o High Performance Work Team
o Self-directed
o Job rotation
o Problem solving
o Contingent pay
o Work flow
o Staffing
o Employee separation (retrenchment)
o Performance appraisal
o Training and development
o Compensation
o Employee and labor relations
o Current strategies
o People first
o High Tech resource
CORPORATE LEVEL STRATEGIES
·
Product’s growth through innovation and renovation (while maintaining a balance in geographic activities and product lines).
· Long-term potential
· Build business based on sound human values and principles.
· Long-term commitment to the health and well being of people in every country in the scope of their operations.
· Business should be conducted by adhering to the values and management principles of the organization.
BUSINESS LEVEL STRATEGIES
· Low cost - less price transparency is followed.
· Differentiation - to reduce the risk of complexity of supply chain and lower attractiveness for discounters.
FOUR GROWTH PLATFORMS
· Nutrition
· Emerging consumers
· Premium goods and
· “Out-of-home” goods.
ALIGNMENT OF BUSINESS STRATEGIES AND HR PRACTICES
HR strategies or practices are developed by keeping in mind the Business objectives of the company and the strategies devised to run the business. The HR strategies are always in alignment with the business goals. New FMCG Compnyis unique in the sense that it has been able to successfully inculcate its business objective as well as its core values, consistently in its employees day-to-day activities starting from recruitment till continuous performance appraisals.
Product’s Growth through innovation and renovation
To increase the product growth i.e. productivity human resource strategies are adopted such as flexible, dynamic employees are attracted, selected and then trained and motivated to be more productive than the competition. One case in point is the Kit Kat manufacturing plant in York England, under the managership of Ian Jobson and, ultimately, New FMCG Company CEO Peter Brabeck. In 1998, Time magazine reports, it took 38 man-hours to produce a ton of chocolate. This year, using a combination of robotics, automated packaging, and production-line improvements, the forecast production time is 23 hours. This decrease in production time was feasible because of process innovation.
·
Respect for other cultures and traditions
Nestlé embraces cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Furthermore, Nestlé believes that its activities can only be of long-term benefit to the Company if they are at the same time beneficial to the local community. In short, global thinking and strategies can best be expressed through local action and commitment.
· Diversity
From creating hundreds of the world’s leading brands to offering an amazing variety of career options to our employees, it’s clear that Nestlé’s businesses are exceptionally diverse. So it should come as no surprise that New FMCG Compnyvalues diversity in the people working them just as much as they have diversity in their products.
It’s Nestlé’s policy to provide an environment where respect is shown to all individual employees and where employees are valued, recognised and rewarded on the basis of their talent and their contribution rather than any consideration of age, gender, race, sexuality, religion or disability. As an organisation, Nestlé is opposed to any form of unfair discrimination and believe that an inclusive approach will be of maximum benefit to all our employees as well as our wider business goals and the society in which we live.
TRAINING
From the factory floor to the top management, training at Nestlé is continuous. And because it is mainly given by Nestlé people, it is always relevant to the professional life. Throughout the world, each country runs its own training programmes (e-Learning, classroom courses, and external courses).
New FMCG Compnyprovides the following-
o Literacy training-to upgrades essential literacy skills, especially for workers who operate new equipment.
o New FMCG Compny Apprenticeship Programmes.
o Local Training Programmes-on issues ranging from technical, leadership, and communication and business economics.
Bibliography-
Thank You
