The Use Of Technology Throughout The Organisation

Published Date: 02 Nov 2017

Naidoo

First Name/s

Serveshan

Student Number

122958

Subject

Human Resources Management

Assignment Number

1

Tutor’s Name

Examination Venue

Durban

Date Submitted

01 April 2013

Submission (√)

First Submission

√

.resubmission

Postal Address

54 Regina Road

Northdale

Pietermaritzburg

3201

E-Mail

[email protected]

Contact Numbers

0333981651 (Work)

0333912884 (Home)

0727299389 (Cell)

Course/Intake

MBA Year One Jan 2013

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: S. Naidoo

Date: 01/04/2013

Name: Serveshan Naidoo

Course: Human Resources Management

Title: Assignment 1

Programme: MBA – stage 1

Institution: Mancosa

Date: 01 April 2013

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Contents

Question 1 4

"Innovation forms the very core of the Basil Read offering."

Discuss how the HR practices at Basil Read are aligned to support the use of technology throughout the organisation.

Question 2 8

Analyse and discuss how Basil Read through their various training initiatives can be considered as having a high-leverage training strategy.

Question 3.1 12

Great emphasis at Basil Read is placed on their career path and career management of individuals. Discuss the benefits of this for both the employer and the individual.

Question 3.2 14

Great emphasis at Basil Read is placed on career path and career management of individuals. Identify the career stage that you are currently in, in your organisation, and identify the career planning interventions that your organisation implements.

Question 4 16

"A performance management system is in the process of being rolled out which focuses on outputs as well as competencies, and personal development."

Describe the importance of a performance management system at Basil Read and discuss whether the performance management system in place at your organisation (or an organisation that you are familiar with – if your organisation does not have a structured performance management system) can be applied to Basil Read.

References 19

Question 1

"Innovation forms the very core of the Basil Read offering."

Discuss how the HR practices at Basil Read are aligned to support the use of technology throughout the organisation.

Technology is advancing at a lightning fast pace, the happenings are so rapid that one wonders how any organization could adequately plan a reaction fast enough to leverage such changes for a competitive advantage?

During the Oracle Open World conference in San Francisco, Oracle Insurance’s senior vice president and general manager, Rick Conners, stated: ‘in the new economy, speed and acceleration have changed the name of the game’(Trembly, 2013). This remark can be interpreted as the aptitude of an organization to ascent to, or remain at the top rests on how quickly it can act and respond to the market. Technology can and will be the driving force that enables such a response.

‘Innovation forms the very core of the Basil Read Offering’. A key word in that statement is ‘innovation’, but what exactly is meant by innovation? To many people, innovation may simply mean the introduction of new technologies and inventions, but there is a much deeper meaning.

In November 1998, Steve Jobs, co-founder of Apple told Fortune magazine: ‘Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it’ (Nale, 2012). Innovation can be interpreted as a collaborative process, where PEOPLE in many fields contribute to the implementation of new ideas. This could be why, Lester Penteni, chairman of Basil Read, describes his people as the organization’s biggest asset.

Michael Porter describes innovation as; ‘the central issue in economic prosperity’ (Porter, 1991). Basil Read has achieved tremendous success from 2007 to 2011 (Basil Read Integrated Annual Reports, 2007-2012). An attribute of this success are the advanced human resources practices, which include a vast range of policies and practices that have either measured up to or surpassed the International Standards of Best Practice, which is also why Basil Read was awarded the Best Employer certification by the CRF Institute (Basil Read Integrated Annual Report, 2011).

A current global challenge is to find a link between technology and human resources management. However, once a union is established between these two factors, a company can gain a competitive edge in the market, just as Basil Read has proven.

Developments in technology have provided a platform for human resources information systems. The impact of technology on human resources can be seen on human resources functions, such as:

Payroll and attendance

Performance management

Training and development

Recruitment

Health and safety

Payroll and time attendance technologies enable managers, payroll administrators and employees to accomplish more on a daily basis. These technologies not only offer improvement to the payroll process, but also cost reduction, and increases the organization’s flexibility and agility.

Basil Read has incorporated E-Serve into their human resources management structure. E-Serve is a multifunction self-service system, which enables employees to have access to their payslips, leave applications, updating personal details, and an online performance management system. E-Serve also functions as an information database, where management may search for particular skills or experiences, team calendars, salary, performance and talent information across all of Basil Read subsidiaries. The company understands that not all of its employees have access to a computer, hence salary information can also be received via SMS and queries can also be raised through E-Serve via SMS.

In order for innovation to be successful, an organization needs to plan for and nurture a culture of innovation. Basil Read values their employees and regards them as their biggest asset, which is probably why so much emphasis is placed on talent management and development, as well as training. Having knowledgeable employees can prove invaluable in setting you apart from your competitors.

Basil Read invests approximately R20 million annually towards training and development. However, they are reaping the rewards of their investment by exploiting knowledge for financial gain, by acquiring a larger market share, developing new products, and venturing into new industrial sectors.

Basil Read offers a Foreman Development Programme, Foreman programme, Artisan training, as well as other initiatives specific to site needs. Training will also be made available virtually and through e-learning.

Virtual learning and e-learning harnesses the use of technology such as the internet, intranet, email, computers, DVD’s, cd’s, mobile devices, and other forms of technology to provide a platform for educating people (Noe, 2008).

Some of the major advantages of e-learning are (Alexander, 2001):

Lower costs - Dow Chemical who reduced average spending of $95 per learner / per course on classroom training, to only $11 per learner / per course with electronic delivery, giving rise to an annual saving of $34 million (Shepherd, 2002).

Faster delivery - Ernst & Young who cut training costs 35 percent while improving consistency and scalability. They condensed about 2900 hours of classroom training into 700 hours of web-based learning, 200 hours of distance learning and 500 hours of classroom instruction, a cut of 52 percent. (Hall, 2000). Learners can go at their own pace, not at the pace of the slowest member of a group.

More effective learning - A nine-year survey of the research literature in training published by Fletcher and Tobias in ‘Training and Retraining’, concluded that:

‘Learners learn more using computer-based instruction than they do with conventional ways of teaching, as measured by higher post-treatment test scores.’

Lower environmental impact - A study by the Open University, ‘Towards Sustainable Higher Education: Environmental Impacts of Campus-Based and Distance Higher Education Systems,’ found that on average, the production and provision of distance learning courses consumed nearly 90 percent less energy and produced 85 percent fewer carbon dioxide emissions per student than conventional campus-based university learning. Savings were due to a reduction in the amount of student travel, economies of scale in the use of the campus site, and the elimination of much of the energy consumption of students’ housing. In other words, studying from home and using a home computer was far more energy efficient.

Basil Read encourages all executives to participate in executive training. The organization also encourages employees to further their technical education or project management qualifications. In addition, all technically qualified staff are encouraged and supported to attain their professional status. One would wonder why an organization would place so much emphasis on its employees gaining knowledge. The answer is quite simply, knowledge forms the backbone of any organization, irrespective of the industry or size of the organization. Having a knowledgeable, well trained staff puts the organization at the forefront of competition. The advantages for the organization having more knowledgeable and technologically inclined staff are:

The use of technology can dramatically reduce costs.

Cost savings and new ideas generated by staff can provide potential to expand and grow.

Increased company value and profitability.

Improved products and services.

Staffs are able to respond to changes faster.

Basil read also harnesses the use of e-recruitment. Basil read offers bursaries to 60 students a year. Applications for these bursaries are made available on the Basil Read website. Basil also utilises external recruitment via career websites, such as www.bestjobs.co.za, www.pnet.co.za, and www.joblife.co.za. Advantages of e-recruitment are:

Reduced time to hire - E-recruitment allows for immediate real time interaction and 24x7 hiring/job search activity.

Wider reach for employers -  Unlike traditional methods which are usually restricted by career level, geography, industry or other parameters online recruitment portals typically have current and active talent databases that cover all career levels, industries and regions.

Allows for database build up - Employers can save high profile or particularly attractive CVs from an existing online search to build a priority database of pre-screened star talent for future use.

Question 2

Analyse and discuss how Basil Read through their various training initiatives can be considered as having a high-leverage training strategy.

The Coated and Speciality Division of Bowater Incorporated, in North Carolina, implemented a training programme focusing on continuous improvement techniques, with the aim of improving product quality. In 1996 the first year of the training was completed and the results of the training were astonishing: poor quality product was decreased by 55%, productivity was increased by up to 6%, and the training teams saved the company 10 million dollars.

Bowater Incorporated illustrates the key role that training can play in the effectiveness and competitiveness of a business; such can be regarded as a high level training strategy.

Noe (1998:4) states:

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 programmes against training programmes in other companies.

Noe (1998:4) further states: ‘High leverage training practices also helps create working conditions that encourage continuous learning’. Continuous leaning can be summarised as the ability to apply strategies which support learning and the ability to adapt to change.

Basil Read has adopted a culture of Continuous Learning throughout its organization in order to develop the organization’s intellectual capital, or otherwise known as human capital, which is made evident by Basil Read chairman, Lester Penteni, describing his employees as the company’s biggest asset.

According to Noe (2008:50), an organisation’s development of human capital can be referred to the creation and sharing of knowledge. According to Quin, Anderson, and Finkelstein (1999:7-39), human capital includes cognitive knowledge (know what), advanced skills (know why), system understanding and creativity (know why), and self-motivated creativity (care why).

In an effort to grow the organization’s intellectual capital, a string of initiatives have been set in place. Some of the initiatives include:

Basil Read is in the process of constructing a multifunction training centre. The training centre will offer real time learning through virtual learning and e-learning in an effort to drive training down to site level.

All executives are reported to undergo executive training. Executive training offers executives a new way of seeing, thinking, being, and leading. All of which can offer new possibilities for organisational success.

The company supports those who seek to further their technical education or project management qualifications.

The foreman development programme provides the ground work and the necessary training for an individual to advance into a foreman position.

Foreman programme. These training programmes increase a foreman’s leadership skills and industrial knowledge.

Artisan Training. According to Helen Brown of merSETA, Artisan qualifications within the manufacturing & engineering industrial sectors are viewed as a key enabler to manufacturing competitiveness in the South African economy.

In order to ascertain the effectiveness that training has on the organization, Basil Read conducts yearly internal audits, which falls part of the organization’s continuous improvement process. In addition, independent follow up reviews have been commissioned to close the gaps found in the training audits.

Strategic management has become quite popular between academics and practioners over the past 20 years. Many contributions to the strategy literature place a lot of emphasis on external determinants, for example the five forces model developed by Porter (2008:79-83). A different perspective to strategic management is the resource based view of the firm (Barney, 1991; Conner, 1991; Wernerfeld, 1984). The competitive advantage of the resource based view of the firm differs from the environmentally focused strategic management paradigm in that its emphasis is on the links of the internal resources of the firm, its strategy and its performance.

According to Wernerfeld (1984:174) a resource is ‘anything that can be thought of as a strength or weakness of a firm’. Barney (1991:101) expands this definition to include ‘all assets, capabilities, organisational processes, firm attributes, information, knowledge, etc. controlled by the firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness.

An advantage of the resource-based view is its clear analytical framework, where human capital is understood as having four important characteristics: it is valuable, scarce, not easily imitated, and lacks substitutability. Valuable indicates that companies must be willing to pay, sometimes a premium, for continued access to the resource. Scarce does not necessarily denote a death of a resource, as if often conceived when considering talent, but rather that there is not enough of the resource to satisfy every organization’s demand. Not easily imitated creates high barriers to entry for competitors. Lacks substitutability means that if a resource increases in price or suddenly becomes unavailable, a substitute of nearly equal price will not be available. For example, many valuable employees are impossible to replace, and lost knowledge and capabilities cannot be acquired from the labour market. 

A competitive advantage is achieved ‘when a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors’, as described by Barney (1991:102).

Basil Read has a strategy similar to that of the resource based view of the firm, as they focus on the internal resources of the firm, their biggest assets, which are their employees. This is why so much emphasis is placed on training practices at Basil Read. Also the organisation does not want to lose their assets, their people, which is why they create career paths which allow employees to move up in the organisation. Basil Read provides competitive remuneration packages in addition to generous bonuses to high performers in order to keep their employees happy and retain them.

The mere fact that Basil Read has been awarded employee of the year by the CRF Institute, as well as the extensive growth that the organisation has achieved over the years proves that the high level training strategies incorporated by Basil Read puts the company at a competitive advantage over its competitors.

In 2003 the Broad Based Black Economic Empowerment Act, No. 53 of 2003 was published to redress the inequalities of the former apartheid system. The Act was also a means to broaden South Africa’s economic growth, create jobs and eradicate poverty. In 2005 Basil Read adopted new management and a new corporate strategy, which included a goal of real, sustainable, economic empowerment. Basil Read had become the first truly black owned construction company in South Africa.

Basil Read, having obtained a level 2 BBBEE status, has truly embraced the components that comprise BBBEE, such as skills development, employment equity and management control, enterprise development, and socio-economic development. These actions have not only boosted the image Basil Read portrays to South Africa, but also gives them a competitive advantage in the market. As a result Basil Read has been awarded with numerous projects in the Public sector, such as the Natalspruit Hospital in Gauteng, the Skilpadhek Border Post in Limpopo, the N1 Fonteintjie in the Free State, etc. It is these public sector projects that have impacted the greatest on the Revenue generated by Basil Read.

The high level training strategy and outstanding corporate management certainly do give Basil Read a competitive advantage over their competitors.

Question 3.1

Great emphasis at Basil Read is placed on their career path and career management of individuals. Discuss the benefits of this for both the employer and the individual.

Greenhaus, Callanan, and Godshalk (2010:12) briefly describe career management as a process in which an individual:

Gathers information about himself or herself and the world of work.

Develops and accurate picture of his or her talents, interests, values, and preferred lifestyle as well as alternative occupations, jobs, and organisations.

Develops realistic career goals based on this information

Develops and implements a strategy designed to achieve the goals.

Obtains feedback on the effectiveness of the strategy and the relevance of the goals.

Whilst the above description makes career management the responsibility of the individual, it can also be said that the organisation too has a role to play towards an individual’s career.

Brown (2007:19) states that ‘it is essential that the process of employee career management is aligned with organisational goals and strategy to ensure that organisations meet their objectives’.

We can therefore see that the both the individual and the organisation share the responsibility for the management of the individuals career, in order to achieve their respective goals.

Benefits of career management for the organisation and the individual include:

Satisfying employee needs. Modern generation of employees are unlike those employees of the past due to the higher level of education achieved. Higher levels of education have raised career expectations (Grobler et al, 2006:246). The younger generation of employees wish to have more control over their careers, with the aim of having greater job satisfaction and career options. If they are given the opportunity to advance, it increases the quality of their work life (Noe et al, 2008:480).

Increased Productivity. If an employee is given the opportunity to advance, through career planning, into a work area that fits his or her ambitions and personal talents, he or she will be more productive (Sison, 1981:121; Noe et al, 2008:481).

Career motivation. Noe (2008:408) refers to career motivation as ‘employees’ energy to invest in their careers, their awareness in the direction they want their careers to take, and their ability to maintain energy and direction despite barriers they may encounter’. Grobler et al (2006:246) further states that ‘progression along the career path is directly related to job performance; an employee is likely to be motivated to perform at peak levels so that career goals may be accomplished’.

Technology advancement and consumer demand. At the rate at which technology is advancing and the changes in consumer demands, it possible that skills can become outdated. It is therefore necessary for organisations to avoid obsolescence by encouraging their employees to learn new skills and keep up with changes in technology, through career development programmes (Noe et al, 2008:480).

Staffing problems. Career management can reduce staff turnover within an organisation due to employees experiencing less frustration and greater job satisfaction because they know they can advance in their career. (Noe et al, 2008:480). Effective career management will also help ensure a supply of professional, technical, and managerial talent, with the aim of achieving organisational goals (Grobler et al, 2006:246).

Competitive advantage. Career management can provide the organisation with a competitive advantage to cope with global competition, by retaining talent and intellectual capital.

Question 3.2

Great emphasis at Basil Read is placed on career path and career management of individuals. Identify the career stage that you are currently in, in your organisation, and identify the career planning interventions that your organisation implements.

According to Noe (2008:415) career development is the "process by which employees’ progress through a series of stages, each characterised by a different set of developmental tasks, activities, and relationships".

The figure below incorporates the significant contribution the life cycle model, the organization based model and the direction based model make to career development. (Noe, 2008:215)

Figure 1: Model of career development (Society for Human Resources Management, 2004)

Traditionally career stages were linked to corresponding phases of the adult life cycle. However, Meyer et al (2007:399) makes a very important revelation as he states that "career events are no longer necessarily age related and can be seen as distinct interfaces between the individual and any organisation that is joined and left in the course of one’s working life".

I believe that I am currently at the beginning of the establishment stage of my career, at my current organisation. I have developed an honourable reputation throughout the organisation and have earned the respect of all employees, from those below or above me. I do work independently, however circumstances do arise when teamwork is required. I have made a considerable contribution to the company’s success by contributing towards product and process development. I have also been given a lot of responsibility at my organisation, in terms of junior management. I manage a staff of 36 employees, and our main drive is health and safety, and production.

My current organisation does not implement any career management interventions. The organisation believes that the onus is on the individual if he or she wants to develop in his or her career or not. The stance that the company takes is that if you want to be successful, you need to make the effort and take the initiative, you need to be self-motivated, which is one of the reasons why I am currently pursuing a MBA.

I believe that I am responsible for my career and at 24 years old I have not reached my full potential as yet. I don’t foresee myself staying at my current organisation for many years as career opportunities are limited and I would like to move out of the oil and gas sector, as there are too many health implications, and into a business sector.

Since the organisation I work for does not endorse career planning interventions, I have created my own career plan. I am currently pursuing the first step of my plan, which is obtaining an MBA. The next step would be landing a middle management to executive management level job at a reputable company, whilst pursuing a PhD.

Question 4

"A performance management system is in the process of being rolled out which focuses on outputs as well as competencies, and personal development."

Describe the importance of a performance management system at Basil Read and discuss whether the performance management system in place at your organisation (or an organisation that you are familiar with – if your organisation does not have a structured performance management system) can be applied to Basil Read.

‘A performance management system is in the process of being rolled out which focuses on outputs as well as competencies, and personal development.’

Describe the importance of a performance management system at Basil Read and discuss whether the performance management system in place at your organisation (or an organisation that you are familiar with – if your organisation does not have a structured performance management system) can be applied to Basil Read.

Armstrong (2010:102) describes performance management as ‘the process of taking systematic action to improve organizational, team and individual performance’. Armstrong (2010:102) further states that performance management ‘enables performance expectations to be defined and creates the basis for developing organisational and individual capability’.

Armstrong and Baron (2005:2) describe the overall purpose of performance management ‘is to contribute to the achievement of high performance by the organisation and its people’. In addition Armstrong and Baron (2005:2) define high performance as ‘reaching and exceeding stretching targets for the delivery of productivity, quality, customer service, growth, profits and shareholder value’. From the above definitions, performance management can be understood as:

making the good better,

creating an understanding of what is to be accomplished,

developing human capital to achieve it,

provide the support and guidance employees need to deliver ‘high performance’ and achieve their full potential to the benefit of themselves and the organisation.

Lester Penteni, chairman of Basil Read, regards employees as the organisation’s biggest asset (2011 Basil Read Annual Report, 2012:27). Armstrong and Baron (2005:8) state that ‘people are now recognised as the most important source of competitive advantage’. Ultimately, the goal of developing performance management systems is to achieve human capital advantage. The ‘people factor’ is hard to replicate, which makes it extremely valuable, as it is people that possess skills, knowledge and ability.

Tata Iron and Steel Company (TISCO) in India have created a global reputation for the manufacture of cost effective steel. However the company can also be applauded for their initiatives in implementing an effective performance management framework and innovative HR practices. TISCO has managed to transform the company into a high performing and growing organization by simply implementing a management restructuring programme. The new management focused on creating exciting career opportunities and building a team of high performing professionals. A performance management system was introduced which aligned business activities with business strategies and identifying high performers in the organisation by defining clear career paths and liability. Employees were also rewarded and recognised for their excellence in performance. The overall effect of the new performance management system from an employee perspective was increased motivation and job satisfaction, as well increased performance. The new performance management system also had great benefits for the organisation, as TISCO is now regarded as an employer of choice, not forgetting that TISCO has become one of the global leaders in the steel industry. TISCO exemplifies the importance of a performance management system in an organisation.

Basil Read has followed a similar suit to TISCO with regards to performance management, and just like TISCO, they too are reaping the rewards.

The Basil Read centres of excellence are responsible for performance management, amongst other facets of the organisation. According to the 2011 Basil Read annual report (2012:80), ‘an online performance recognition system was designed in 2011 and is being rolled out across the business, the first year of assessment being 2012. This system focuses on group, divisional and individual performance and is aimed at driving business success, and complementing and supporting the talent audit process’.

Basil Read places significant emphasis on training and development, as well as the attainment of technical and professional qualifications. Employees are also allowed the opportunity to transfer to different subsidiaries within the organisation (2011 Basil Read Annual Report, 2012:87). This is very encouraging to an employee, as Basil Read is not merely offering him or her a job, but rather a career in which he or she can develop to his or her full potential.

‘Basil Read’s ability to attract and retain talent is, in large part, due to the fact that it offers employees a multi-faceted career in the group, competitive remuneration packages and generous bonuses for high performers’ (2011 Basil Read Annual Report, 2012:87). Employee performance does not go unrecognised; employees are rewarded for their efforts. This provides employees with a sense of job satisfaction and motivation to perform even better, which falls in line with the continuous improvement strategy. As a result Basil Read has a very low staff turnover, ‘at year-end, this was around 6%’ (2011 Basil Read Annual Report, 2012:87).

Basil Read has also reaped the rewards of implementing a performance management system, just as in the case of TISCO. This has enabled Basil Read to become a high performing organisation, with continuous growth. Basil Read has developed a high performance culture that recognises and rewards skills, capabilities, experience and performance.

FFS Refiners (Pty) Ltd is in the process of initiating a 360 degree multi-rater approach to performance management. According to Lowman (2002:380) this method is "used to obtain information about how aspiring leaders’ behaviours are viewed by those above them, below them, their peers and colleagues". This method creates an atmosphere of growth and development within the organisation. According to Longest (2004:81) the major benefit of this approach is that "it encourages teamwork; it is especially appropriate when groups or teams of participants work toward achieving specific common outputs, outcomes, and impact, and when any one participants performance is independent with that of other participants in the group".

This approach to performance management will be of great benefit to Basil Read as it will allow performance assessment from different levels of ranking, especially since peers and direct reports have more regular contact time. Self-ratings are best accepted by employees. Greater reliability in the feedback exists because of the increased number of ratings. It opens up communication within the organisation.