COMPREHENSIVE HR PLAN GROUP 4.docx - RUNNING HEAD MOTORS AND MORE INC HR PLAN MOTORSANDMOREINC:HUMANRESOURCESPLAN ;

COMPREHENSIVE HR PLAN GROUP 4.docx - RUNNING HEAD MOTORS...

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Unformatted text preview: RUNNING HEAD: MOTORS AND MORE INC. HR PLAN MOTORS AND MORE INC: HUMAN RESOURCES PLAN SAINT LEO UNIVERSITY MBA 533; HUMAN RESOURCES MANAGEMENT Christine Roark, Steven Rogers, Sujeily Santiago, Paige Smith, Jeffrey Sutphin This project is based on the human resources management (HRM) aspects of small town company Motors and More, Inc. This company works within the industry of manufacturing engines and accessories. This project focuses on the reconstruction of a practically non­ existent human resources department, and builds an organization that can thrive within the confines of a lacking labor pool and an increasing demand for their products. With increase in labor combined with the changes made within the HRM, Motors and More, Inc. is expected to thrive. RUNNING HEAD: MOTORS AND MORE INC. HR PLAN Table of Contents I. Executive Summary...............................................................................................................................................1 II. Business Strategy Report ......................................................................................................................................2 III. HR Organization Design .......................................................................................................................................8 V. Compensation Plan..............................................................................................................................................21 VI. Training and Development Plan..........................................................................................................................21 VII. HR Forecast Plan.................................................................................................................................................33 VIII. Conclusions..........................................................................................................................................................38 IX. Appendix..............................................................................................................................................................38 X. References............................................................................................................................................................40 XI. Document Work Log...........................................................................................................................................41 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN I. Executive Summary Motors and More, Inc.’s operational strategy is to position themselves as prospectors. As a prospector, there “Organizational emphasis is on growth, innovation and new product development” (McCain, p.1, 2007). To that end, they must significantly increase their production capacity to meet the current demand, as well as the anticipated future demand. In order to facilitate the increased production capacity, it will require significant increases in their labor force. The recruitment, training, and integration of the new workers will be an arduous undertaking, which will require dedicated HR specialists. The new HR staff at Motors and More, Inc. will consist of the HR Director, Organizational Development Specialist, Staffing Manager, Employee Relations Manager, Training Manager, Health and Safety Manager, Benefits Administration Manager, and the Inclusion and Diversity Specialist. This team will be responsible for recruiting qualified individuals from the local community, developing and implementing a training program, ensuring that the integration of the new workers is a streamlined process, as well as addressing any issues regarding workplace conflicts. This will be a difficult operation because Motors and More will be transitioning from a homogenous workplace – predominantly made up of Caucasian males – to a more diverse workplace. To assist in this transition, the Diversity and Inclusion Specialist will play a vital role throughout the process. To meet the required production capacity, the HR staff will be responsible for recruiting and hiring an additional 110 employees. They must be aggressive in their recruitment strategy because the “demand for workers exceeds the labor supply” (McCain, p.1, 2007). Moreover, they must utilize a wide­range of recruitment channels to reach the maximum Page 1 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN number of qualified candidates. Once they compile an adequate pool of candidates, they will begin the interview process, which will include several interview methods: group interviews, phone interviews, and in­person interviews. In order to attract and retain the most qualified candidates, Motors and more must alter their existing compensation structure; instead of seniority­based promotions and pay raises, they will offer merit­based opportunities. This will encourage increased production, and it will help retain the new employees. The qualified candidates that make it through the process and are subsequently hired will receive extensive training to prepare them for the work they will be assigned. This will include an initial orientation, classroom work, online web­based training, as well as on­the­job training with the respective production­line managers. The goal at Motors and More, Inc. is to fulfill the necessary production requirements, and increase employee satisfaction. However, this will be difficult because there will be significant changes made to the organization. This will include a doubling of the workforce, and a transition from a homogenous workforce to one that is more diverse. Additionally, there will be significant changes made to the existing compensation structure. It is reasonable to assume that there will be potential problems that arise between the existing workforce, and the incoming workforce. If not addressed properly, this could cause problems with the integration, as well as problems with production. Therefore, it will be critical that the Diversity and Inclusion Specialist assist with addressing any issues that may arise throughout the process. Page 2 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN II. Business Strategy Report Porter’s Five Factors Analysis of competitive position Supplier Power Motors and More, Inc. operates in a highly competitive market; that is, they operate in market with a significant number of rival firms. The high competition means that there is significant demand for production materials (raw materials, parts, etc.). The high level of competition, and the subsequent high level of demand for production materials, equates to a shift in the demand curve; which provides the suppliers with the ability to freely control their prices. Therefore, there is a significant amount of supplier power within this industry. The implications of this variable suggest that Motors and More, Inc. has little control over their input costs. This can be problematic because their strategy as a prospector means that they also have costs associated with being a first­mover, particularly, those relating to research and development. To compound this issue, their first mover strategy likely means that they are not receiving volume discounts, which will also affect their costs. However, Motors and More, Inc. is a supplier themselves. They too have seen significant rises in demand for products. In fact, they have seen the demand for their products rise to the point that they must increase capacity by “96 percent” in order to keep up with said demand (McCain, p.1 2007). This means that they are also able to leverage the demand for their products to control their pricing. Therefore, they will be able to mitigate some the issues associated with high input costs by raising their prices. Page 3 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN Market Distribution: Because of the expanding market, an increased number of suppliers are available. Supplier Image: Suppliers have created their own image and branding. Most suppliers are well established. Product Image: The product is similar in nature due to the many other suppliers, market availability with competition and a rapidly changing market. Ability to Change: Suppliers can change and adapt to market demand. Ability to Substitute: Suppliers can substitute products. Buyer Power Motors and More’s prospector strategy means that they are a first­mover. That is, they aggressively develop new and innovative products, and they quickly bring them to market; thus, differentiating their products, and eliminating early competition. Although they operate in a highly competitive market, their first­mover status means that Motors and More’s buyers have little opportunity to switch suppliers if the prices are too high. This is because there are no substitutes for the new product lines. This will allow them to maintain healthy profit margins in the early stages of their product life cycles. However, the benefits of the first­mover strategy can quickly disappear with the introduction of product substitutes from competitors who have duplicated their products, and are not burdened by the initial development costs. Therefore, their early differentiation, and competitive advantage will likely disappear. Competitive Rivalry Motors and More, Inc. operates in a highly competitive market. This means that they have a significant amount of rival competitor firms. Traditionally, this means that they have little Page 4 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN market power; specifically, they have little control over their pricing. However, Motors and More, Inc. is operating with a prospector or first­mover strategy. This means that they have differentiated products, and therefore, a competitive advantage within their highly competitive market. This competitive advantage provides them with some market power, and subsequently, early pricing control. Although, the competitors will soon copy their product innovations and disrupt any competitive advantage they possess. Any market power that they gain will likely be short­lived. Threat of Substitutes Currently, Motors and More have little threat of substitutes, despite the highly competitive market. This is obviously due to their prospector/first­mover strategy. Their first­to­ market strategy means that they have new and innovative products, which have early exemption from substitution threats. However, this will only be temporary because the high number of competitors will inevitably mean the introduction of substitutes in the future. Additionally, the inevitable introduction of substitutes will wreak havoc on Motors and More’s margins because the competitors will not have any of the initial development costs. Therefore, the competitors can bring the same product to market with much lower pricing. Market: Market growth has promoted product substitution. Overseas: There is a possibility of an overseas threat of substitution. Options: With many available products in the market, variances of product development are available. Threat of New Market Entrants Page 5 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN The high level of competition within the market suggests that there is little threat of new market entrants. That is, the significant number of competitors subsequently creates high barriers of entry; thus, making it difficult for new firms to enter the market. Specifically, the high levels of competition will result in a scarcity of supplies, and little pricing control. Any new market entrant will have a tough time securing supply contracts, and more importantly, they will be forced to pay high prices for said supplies. To compound this issue, they cannot raise prices because they will have no market power to control their pricing. Human Resource Strategies Prospector strategy is a plan for interacting with the competitive environment to achieve organizational goals. The objective is to find and exploit new products and market opportunities. Organizations that use a prospector strategy are aggressive in the marketplace, highly competitive and quick to produce new product and services to be the first to market. They operate in an environment of uncertainty and instability. Organizational practices inherent in a prospector strategy include: Emphasis on faster innovation, flexibility and creativity Broad job classes with relaxed work planning External recruitment with a supervisor making the decision Customized appraisals with multiple input used for development purposes Page 6 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN Generic training Team­based and cross­functional training Decentralized pay that rewards risk taking Variable pay individualized and based on performance Motors and more is not experiencing involuntary turnover. The organization is expanding its workforce, and the community is experiencing a labor shortage. The turnover is then voluntary. What will be needed is the human resource strategy to support the company’s strategy. The Human Resources strategy that Motor and More wants to implement is excellent based on the future forecasting. Starting this improvement with the president of the company including the maintenance and cleaning personnel. The development of a three­year HR forecast can help to determine if the strategy that they would like to use to meet their goal is working. This can give them a change margin in adaptation to what the company needs. Human Resources will need to support the company strategy by working together with the finance and accounting department with a budget by each department. This can be a monthly budget for the first year and have a budget quarterly for the following years. This will help the human resource department to understand what the reality of the company at any moment is. With this budget you will have to manage all the department trainings that the company would like to offer to the employees. This budget will be used only for the departments’ improvement. Page 7 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN Another vision and strategy that Human Resources can use is a sales forecasting report, having the actual and the goal sales numbers. This numbers can be compare with the A/R open balance that the company have by month with the amount of what they should receive in the future. There are a number of ways to assess effectiveness of recruiting efforts. One way is to calculate costs per hire. To calculate cost per hire, add total recruiting cost and divide by the number of candidates hired (one of the methods that the company can use to determine the cost). The effectiveness of recruiting effort is that labor supply and demand will become more rigorous meaning demand for workers will increase, but the labor pool will remain the same or shrink. Resulting in an increase in labor cost. Motor and More has a college within 50 miles and this can be used as a good strategy to look for better candidates. This recruiting source provides higher­quality applicants. This type of strategy assists with the cost and time­consuming search for good candidates. With this in mind the university already provides the candidates the first and valuable tool that an excellent education to start a job. In this case the training that you can provide to those candidates can be different based of intellectual capacity that they had. Utilizing the grades and a performance education. III. HR Organization Design All HR Directors, regardless of their functional areas of expertise, must be able to hire, train, coach, recognize and reward performance plan, organize, set goals, develop and implement Page 8 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN strategies, lead employees, create and administer budgets, etc. These are responsibilities common to all managers (Don McClain, 2007). HR Director­ Is responsible to the President of Motors and More for leading and managing the department, for developing relationships with senior management to align HR goals and strategies with those of Motors and More, monitoring the environment for any changes that could affect the company, and participating in organizational planning and review sessions. Organization Development Specialist­ Is responsible to the HR Director for developing relationship with internal clients and formulating internal contracts, conducting organization research, analysis and diagnosis to identify organizational issues with the goal of performance improvement, developing interventions to address issues or problems that can be solved by collecting survey data, coaching, training, assisting in creating a culture of learning, development and achievement, facilitating and maintaining organizational change, and supporting performance management. Page 9 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN Staffing Manager – Is responsible to the HR director for developing candidate pools, advertising job openings, ensuring accuracy of job descriptions and specifications and ensures they are consistent with performance management requirements, screening candidates using instruments as applications, résumés and references, conducting or contracts background checks, developing or contracting with a consultant to develop instruments such as tests or pre­employment processes, procedures or protocols, conducts interviews and assesses candidates, extending offers or recommends candidates for hire, ensures legal compliance, secures use of temporary workforce, bringing candidate on board and ensures that paperwork is complete, and supporting diversity and affirmative action initiatives. Employee Relations Manager – Is Responsible to the HR Director for scanning the internal environment for potential employee relations issues, designing, implementing and analyzing employee survey results, developing and implementing plans to address identified issues, ensuring compliance with labor laws, writing and implementing discipline procedures, providing counseling and support for employees with personal issues (EAP role), writing ethical policies and maintains ethical guidelines; maintains “ethics” hotline, producing and distributing HR publications, in conjunction with staffing, supports relocation and outplacement services, working with staffing to ensure accommodations for disabled employees, supporting diversity efforts, and ensuring employee rights are not violated. Training Manager – Responsible to the HR Director for developing full content and instructional strategies, developing leaders’ and participants’ guides and materials; developing media; may conduct train­the­trainer sessions, evaluating in conjunction with Page 10 RUNNING HEAD: MOTORS AND MORE INC. HR PLAN designer and client, developing and implementing evaluation plans; conducting all levels of evaluation; reporting evaluation findings to appropriate persons; may assess facilitator skills, training coordinator or administrator: Supporting the delivery of learning experiences; coordinating participant materials and media; enrolling participants and sends pre­course materials; securing facilities; coordinating facilities, including hotels, training rooms and breakout rooms; tracking attendance and maintains records; promoting the course or learning experiences; shipping materials; tracking expenses, training or performance consultant and internal client (the recipient of the services) liaison: Conducting organizational analyses for internal client organization; contracting for performance improvement; consulting with internal clients on performance issues; prioritizing needs; securing support (including funding; access to subject matter experts; collecting audience profiles; supporting learners’ participation; supporting transfer of new knowledge and skills to the job; has access to data necessary to carry out these responsibilities with client input, selecting facilitators; providing feedback to internal clients; managing the interface with the HRD staff. Health and Safety Manager – Res...
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