Rolls-Royce Strategic Resource Management
Rolls-Royce Strategic Resource Management
Introduction
The success of any organization depends on how well it strategically manages its human, capital and natural resources at its disposal. In this paper, we will discuss at length how Rolls-Royce limited has managed its human resource for its success. The company has been a leading car manufacturer in UK and its success can be attributed to proper management of human capital. It is for this reason that Rolls-Royce must strive to have the best resource management architect. In most cases, human resource has proved to be one if the critical aspects that determines the overall success of an organization. This is a process through which an organization manages its employees to ensure desired results are realized. An effective human resource management will ensure that mutual benefit of employment for both the employee and the employer is maximized. Strategic human resource management will involve proper understanding of the basic human resource components such as recruitment, retention, training , discipline, and rewarding just too mention but a few.
Recruitment
This remains one of the most important functions performed by the human resource department in Rolls-Royce. It is the process through which attraction, selection and appointing of staff in an organization is carried out. It is the obligation of the HR department to ensure that the best personnel is recruited to match the ambitions of the organization. In order to have a successful recruitment exercise, Rolls-Royce must be very critical to ensure that the organization gets the right people for the right jobs (Price, 2011).
To start with, the human resource department in this company starts with identifying a vacancy in the organization and evaluates the need. This is a very important step in the recruitment exercise as it provides guidelines on the kind of personnel that the organization would like to hire. It is at this juncture that the human resource department is expected to match the skills of the staff to the job requirements thus ensuring that the objectives of the organization are realized. Proper understanding of the organizational needs will also be essential as it will enable the organization to hire the right person for individual role or for team purposes.
In some instances, organization can create new vacancies due to change in organizational goals and objectives and this will prompt the firm to seek for persons to fill such vacancies. Under such circumstances, the HR department must be conversant with the objectives and goals of the organization. It will also be of great importance for the human resource department to carry out a job analysis. This will be a great step since it will enable the recruitment to identify any gaps that must be filled by the employees. It will also help the team understand the core skills that the organization requires now and what may be required in future. This will be a vital step since it will help the organization to only hire the personnel whose competencies match the objectives of the organization.
A successful recruitment exercise also requires the HR in Rolls-Royce to develop a recruitment plan. After identifying the different vacant positions within the organization, a documented recruitment plan approved by organizational unit is essential as it provides guidelines to implement the recruitment exercise. The recruitment plan will give a road map to attracting and hiring the most competent staff who will help Rolls-Royce achieve its goals. The recruitment plan also outlines the advertisement channels which will be used to achieve the organizational goals.
Retention
After a successful recruitment exercise, the next hurdle that the human resource department in Rolls-Royce must deal with amicably. This refers to the efforts that an organization must put in place to create a working environment that supports the current staff to remain in the organization for longer periods. Failure to facilitate employee retention can be very expensive to the organization and will also be a hindrance to achieving organizational goals and objectives. As a result, human resource department in Rolls-Royce must ensure that they put in place policies that will address employees concerns enhancing job satisfaction and at the same time reduce substantial costs likely to incur in fresh hiring and training of new staff. In essence, it is important for the organization not only to hire the right employees but must also concentrate on ensuring that they keep hold of the ones already working in the organization (Chelladurai, 2006).
In order to have an effective retention program in Rolls-Royce, the human resource department must first understand and know their employees. Rolls-Royce has a unique strategy that will help understand its employees better. Employees in this organization are accorded a platform where their views and feedback are appreciated. Constant feedback programs will enable the organization to improve on what its areas of weakness and maintain on its strong point. This can be realized by holding special open forums through which the organization can gather crucial information on what motivates the employees to remain in the organizations and what makes the exiting staff to leave the organization. Interviews and employee survey can also be critical tools of gathering essential information that will enable retention in an organization. Human resource department may also carry out sporadic walks in the organization to have a better understanding of the employees.
Another important strategy that Rolls-Royce adopts to enhance employee retention is by creating an employee centered environment. This involves sending a clear message of the importance of the employees to the success of the organization. This can be achieved through creating a flexible and open working environment that will enable the employees to achieve a work-life balance. It is always important to offer the employees with time off thus giving them opportunity to enjoy life. In addition, human resource must also be innovative to ensure that employee wellness and health is not compromised. In essence, the management of the organization must learn what matters most to the employees to ensure that good employees are retained for better services to the organization (Mathis & Jackson, 2009).
Another retention strategy Rolls-Royce at involves rewarding and recognizing staff through performances. The obligation of human resource department is to retain the top performing employees in an organization. Although all employees are entitled to fair and competitive compensation and other benefits, it is important to have special recognition to top performers in an organization. This recognition is a sign of appreciation and it serves in ensuring that top performers are retained in an organization. Rolls-Royce have taken a step further by sending congratulatory message to top performers or recognizing them at a staff meeting.
Retention of staff in an organization can also be achieved through provision of effective leadership and supervision. In most cases, most people like to be associated with winners and it is for this reason that organization leadership must show its commitment and vision to the employees. Motivational leadership is very essential in staff retention in different organizations. Poor supervision can lead to increased staff turnover and it is for this reasons that Rolls-Royce management always ensures it has the best supervisory team. The supervision team must ensure that the objectives of the organization are well communicated to the staff to ensure that they are in the same rhythm. Motivate a team work among the staff members and ensure that they fell part of the organizational success (Armstrong, 2006).
Employees can also remain in an organization for a longer period if the human resource department offers an opportunity for development to its employees. The employees will relish an opportunity where they will improve on their skills and abilities. This can be achieved through continuous workshops and team building sessions to staff members. At Rolls-Royce, HR must also ensure that the employees have the opportunity to take advantage of the development opportunities offered by the organization.
Training and development
Training and development is another important function of human resource management and has been a critical practice at Rolls-Royce. It is a process aimed at bettering service delivery and performances of individuals within the organization. It involves providing training, workshops, mentoring, coaching and provision of other learning opportunities to the employees in an organization. Training and development practice is aimed at inspiring, challenging and motivating employees to perform their duties to the best of their abilities thus increasing the overall success of the organization. It is important to understand that training is important in achieving the long term objectives of the organization.
Proper training and development practices are very critical in realization of organizational goals and objectives. It plays a significant role in value addition to the quality and quantity of goods and services offered at Rolls-Royce. The programs have positive impacts to both the employer and employees and should be carried out with utmost good faith. For instance, effective training and development practice can lead to increased growth and development both to the organization and the employees. Continuous upgrading of skills and attitudes of the human resource professional is very essential as it enables them to be at par with the organizational goals and in tune with the recommend trends within the industry. The process results in refining the professionals as summarized by the diagram below:
Strategies for positive employee relations
Rolls-Royce has always strived to ensure there is a positive relationship with its staff. This will ensure that the objectives of the organization will be achieved harmoniously. Healthy employee relations at work place will ensure that the management extracts the best out of each profession in an organization. Ensuring that all employees are comfortable with one another, share good rapport and are closely in coordination towards common goal will lead to effective and efficient productivity within the organization. Working together as a team leads to increased motivation and makes the work place quite enjoyable. Nevertheless, the management of the organization must put in place strategic plans that will ensure positive relations in a work place are realized.
One of the strategies adopted by Rolls-Royce towards achieving a positive relation involves building a team work environment. This is achieved by making all the employees in the organization to feel part and parcel of the organization. All employees must be made to feel important and indispensable towards realization of the organizational goals. Under this strategy, the management in Rolls-Royce assigns duties and responsibilities according to interests and capabilities of the different staff members within the organization. Allowing employees to do what they enjoy doing will lead to increased productivity and low levels of disputes (Sims, 2007).
Improved communication also serves as another important strategy towards ensuring positive employee relations. Downward, upward and horizontal communication in an organization is very important to enhance harmony in delivery of work. Employees remain the most important resource within Rolls-Royce and must always be updated on any development within the organization. This can be realized through continuous meetings and open forums where issues affecting the organization are deliberated. Other strategies involve challenging the employees, offering career development and offer parties such as birthdays and Christmas parties for the employees can be effective in ensuring positive relation of the employees.
Performance management and rewards
Performance management is a very important aspect in human resource. It is a process that involves bringing together many of the elements concerned in making up a successful practice of managing people in an organization. It is a complex that also involves training, learning and development and can only be achieved through putting in place a systematic approach. The process is aimed at enhancing effective management of individuals and teams within the organization with a sole objective of achieving high levels of organizational performance. In essence, performance management should be strategic and integrated to ensure desired results are realized (Baker & Doran, 2007).
Performance management should also incorporate other important aspects. For instance, at Rolls-Royce the performance management process must ensure that the level of performance improves. Improvements must be noted at all levels whether at personal, team or the overall performance within the organization. It is also the obligation of the performance management team to ensure that there is continuous development of individuals and teams. Lack of development translates to decreased performance. Improved performance must also be accomplished by certain behaviors that promote effective performance within an organization.
In order to maintain high performance levels, it is important for the management of the organization to ensure that there are good reward systems in place. Such a system should be concerned with ensuring that they formulate a mechanism that will reward employees fairly, equitably and consistently in accordance with ones value and contribution towards the overall success of the company. Under the reward system, the Rolls-Royce management is expected to analyze and control employee remuneration, compensation and other benefits enjoyed by the employees. There are different types of reward which include extrinsic (basic needs, survival, security, pay, conditions, treatment) and intrinsic rewards (satisfy higher needs, esteem, development). These rewards acts as incentives and are either in monetary or material.
Most reward systems are derived from motivational theory. It a common understanding to management that a good reward system will be a great motivational factor which will lead to increased output within the organization. In order to determine the kind of reward system to be adopted in an organization, it is important to first understand the common motivating factors to the people. As a result, it is important to understand several motivational theories. For instance, content theories strive to discuss factors which motivate people to better and effective performance while on the other hand process theory is concerned with the different types of personal traits impacts human behavior. Content theory is associated with the extrinsic rewards while the process theories is concerned with intrinsic rewards such as esteem that plays a significant role in enhancing individual performance. Rolls-Royce has adopted both intrinsic and extrinsic rewards in an attempt to enhance productivity.
In order to have a better reward system, it is important to understand the Maslow’s Hierarchy of Needs since it will help understand peoples need for better results. If an organization is able to fulfill all the desires of the employees, then there are high chances that most of them will feel motivated. Every management should strive to ensure that all the needs of its employees are fulfilled.
Another motivation theory is outlined by Frederick Herzberg’s motivator-hygiene theory. In his work, Frederick Herzberg asserts that job satisfaction or dissatisfaction is influenced by two distinct sets of factors. He also argued that job satisfaction and dissatisfaction should be measured separately. The two distinct sets involved motivator factors and he hygiene factors. According to this theory, real motivation is derived from the work itself and reward only acts to prevent dissatisfaction arising. In essence the theory suggests that completing the tasks offers great motivation than reward itself.
A fair compensation and reward system is essential for success of any organization. This is because it positively affects on efficiency and effectiveness within the organization. This is because it helps the organization to derive more from a normal employee. It also plays a great role in helping set up a job evaluation.
HR performance monitoring techniques used
Human resource department at Rolls-Royce must continually monitor the performance levels within the organization. This remains a critical aspect in the management as it gives vital information to the management which is critical in making major decisions regarding the running of the affairs of the organization. Several performance monitoring techniques can be used for performance appraisal and other purposes. However, human resource department must be very careful in accomplishing this noble course since some of the commonly used tools might be misleading thus resulting to poor decision making.
One of the most reliable tools of monitoring performance in an organization is reviewing work in progress on regular basis. This calls for close scrutiny of the employees’ work in process along the way. For instance, the human resource may realize that an employee is not likely to achieve the end product in the set time frame, and then necessary actions should be taken. Though it is difficult to track everything every employee does, but random samples on regular basis it creates a form of monitoring that will help keep employees on their toes.
Another tool that HR department at Rolls-Royce adopt to monitor performance within the organization is to ask employees to use self monitoring tools to help keep in track their actions. Employees are obligated to monitor themselves on whether they are meeting goals and deadlines laid out in a project plan. After filling such checklists, the employees are expected to give their feedback to the mangers and other top officials within the organization.
The mot simple performance monitoring tool is to watch the employees work. By looking with one’s eyes, the human resource department has the ability to watch what is happening in the workplace. Watching an employee perform a task gives more information about the employees’ performance than any other information from other data. After such analysis the HR will make informed decisions on what can be improved or what to remain intact in performance of employees.
Recommendations
After proper analysis of effective strategic resource management, it crystal clear that labor remains one of the most important factors of production. This important factor is only achieved from human capital and it is for this reason that every organization must have a proper strategy on how to get the maximum from its employees. This will involve recruiting the right staff, putting in place measures to retain the productive staff, proper reward system, performance appraisal program and monitoring techniques among others.
In order to achieve this, it is recommended that Rolls-Royce must have a competent human resource department that will have effective coordination of the organizational staff. Frequent workshops and training sessions should also be encouraged. This will play a vital role in ensuring that the staff and the human resource are conversant with any new development within the organization.
References
Price, A., 2011. Human resource management (4th ed.). Andover: Cengage Learning EMEA.
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