Final Project

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Final Project Southern New Hampshire University OL-211-J1964 Human Resources Management 22EW1 Dr. Carmen Jones October 16, 2022
“As James Walker, a noted HRP expert puts it, Today, virtually   all   business issues have people implications;   all   human resource issues have business implications.” (Snell & Morris et al., 2019) A business’s organizational strategy must also be aligned with human resources. The human resource plan must help promote and execute the business’s overall strategic plan while incorporating its core values, mission, and vision. The human resource needs to align by ensuring that the people currently or in the future who work for the organization share or have similar values. They build the values, mission, and vision into job descriptions and recognize and reward employees based on them. Human resource management must verbally communicate these core values, mission, and vision in emails, newsletters, and reports. Globalization and shifts in the composition of the labor force that are occurring also require that HR managers become more involved in planning because these changes affect the full range of a company’s HR practices (such as employee recruitment, selection, training, compensation, and motivation). Snell & Morris et al., 2019 Maersk’s industries went from a family-owned Danish shipping company into a global, publicly traded conglomerate. As of 2012, Maersk was the largest company in Demark, with over 110,000 employees in over 130 countries and 1,000 different companies. “Maersk transitioned from a family-owned Danish company to a publicly traded global conglomerate. Its workforce changed, as did its talent needs and practices.” Groyberg & Abbott et al. 2013 Dealing with many different cultures, economic situations, and geographical locations. It’s hard to believe that an organization of its size could only have an HR management staff of only 24.
“The global leader must be concerned with global integration, that is, a strategy that emphasizes a consistency of approach, standardization of processes and a common corporate culture across global operations despite differences among cultures and laws.” (SHRM 2022). An applicant tracking system (ATS) could benefit an organization like Maersk. ATS posts, screens, and uploads profiles and resumes. It will rank and even contact candidates for interviews. Using a system such as this for a large organization could be vital. It can reduce the time and expense it would take individuals to do. A system like this has the potential to find those who are more aligned with their organization’s goals and vision. Organizations have two options when searching for candidates they can either look internally or externally. Internal recruitment is looking at employees already employed by an organization. External recruiting is looking for employees outside of the organization. Internal recruiting can be quicker, easier, and less expensive. External hires can bring new ideas and may have more knowledge, depending on the type of organization; they could bring clients. Internal candidates are usually readily available, can transition quicker, and generally have less performance uncertainty. Managers hire external candidates more often because they are not as familiar with their flaws as with internal candidates. The success of an organization depends on its employees' skills, abilities, and knowledge. Training is essential. In the 2000s, as Maersk expanded, it became apparent that it needed to look at its talent management practices and the organization's culture. For Maersk, the needs assessment started with the realization that it had been experiencing a significant change in its corporate culture and had a sharp increase in employee turnover rate. Previously employees had stayed with the organization for 40 to 50 years, and beginning new employees with an extensive two-year training program worked well for them. With the employee attrition rate along with
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competitors seeking out current Maersk employees due to the extensive training they provided, the time had come for them to rethink their strategy and determine where to emphasize future training. A job posting at Maersk for a Customer Service – CARE Business Partner listed a majority of soft skills required for this position like “Demonstrated relationship attributes, Practiced listening techniques, Negotiation skills, Conflict resolution skills.” Employees hired with these KSAOs Maersk can then focus on the hard skills training required to succeed. Research shows that an organization’s revenues and overall profitability are positively correlated to the amount of training it gives its employees.” Then, performance measurements could assess who the most vital employees are. Maersk has identified what it needs and requires from its workforce. It would have to develop learning activities for those filling the Customer Service - CARE Business Partner. It will need to focus on how its employees learn. It will need to ensure that its training program is available, within its budget, appropriate to trainees’ needs and abilities, and liked by the trainees so learning can occur and is transferable to the workplace. (SHRM 2009). If Maersk does not develop learning activities incorporating adult learning principles in its training program, it risks losing time and resources, which would affect its success. Companies are realizing that workers need not only operational knowhow but also superior job expertise; knowledge about the competitive, industry, and technological trends; and the ability to learn and utilize new information continually. These characteristics help an organization adapt and innovate to compete far more effectively in today’s fast-paced global business world. Because training plays a central role in nurturing, strengthening, and expanding the capabilities of a firm in
this way, it has become part of the backbone of strategic management. (Snell, Morris, & Bohlander, 2016) Maersk would be wise to gear their training primarily around adult learners since they seek individuals with prior experience. They can take the knowledge of their new employees and share it with other employees by creating activities that engage the adult learner. Group activities are one way that would draw out the knowledge and theories employees have and share them with others. The employees would most likely require a variety of learning opportunities to meet their needs as adult learners. It would need to be concise, convenient, and applicable. Having (SMART) Specific, Measurable, Achievable, Realistic, and Time-oriented objectives built into any training program benefits the employee and employer. Using the SMART objectives will give an organization and employees clarity on the strengths and weaknesses during training to achieve their goals. Performance management is “ the process of creating a work environment in which people can perform to the best of their abilities.” ( Snell, Morris, & Bohlander, 2016). Human resource managers generally determine, coordinate, and oversee the performance system they use. They must ensure that managers within the departments actively formulate the objectives, guaranteeing they align with the organization's strategic goals and apply them to the employees' efforts. Using SMART goals in performance management can ensure that employees are held to the organization’s strategic objectives. When performance standards are obtained from the job description and job analysis and effectively communicated to the employee, it can be a way to help employees improve their performance. When it comes to measuring or evaluating an employee, there are three different methods on which the appraisal systems can be based. Organizations that use The Trait approach take
characteristics of employees, such as being proactive, reliable, demonstrating leadership abilities, and resourceful, to base their analysis on. An example could be a waiter/waitress who is evaluated positively because he/she is always willing to trade shits or cover for absent co- workers, or perhaps they are always ready to help their co-workers with their customers. The Behavioral method takes specific actions that are displayed as either acceptable or not. For example, is the waiter/waitress pleasant to the customers? Did they ask how your meal was? The third method is result-based which measures an employee’s accomplishments, and employees are responsible for their success and how they accomplish them within certain limitations. Sticking with the waiter/waitress, they receive better ratings on an evaluation because they can convince more customers to order that evening’s “special menu item” than other co-workers. If I were in charge of the appraisal system used at Maersk for their Customer Service – CARE Business Partner, I would choose the Behavioral Method. The Behavioral Method focuses more on soft skill sets needed to succeed in this position, such as emotional intelligence and control, excellent communication, empathy, and the ability to self-manage. Although this appraisal process may be time-consuming and costly, if done correctly using specific performance dimensions, the benefits are that this method is acceptable by both employees and managers, provides feedback, and is fair for reward and promotion opportunities. Regardless of what type of evaluation method is used, they all have scales in which to measure the different levels of achievement. A graphical scale rates employees according to a scale of characteristics commonly used in the Trait Method of evaluation. Rating scales can use numbers such as 0-4, with four representing the highest (outstanding) level and zero being the worst (unacceptable), or the use of letters with A representing (outstanding) and E (unacceptable). These types of scales are used often and give quantitative assessments. Another
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rating scale used in the Trait Method is the Mixed-Standard Scale. This scale provides a “…rater is given three specific randomly sequenced descriptions of each trait: superior, average, and inferior.” (Snell, Morris, & Bohlander, 2016). If an HRM has chosen the Behavioral Method oriented performance review using the Behaviorally Anchored Rating Scale. T his appraisal tool generally contains a set of specific behaviors that represent gradations of performance and are used as common reference points called "anchors" for rating employees on various behavioral dimensions.   For example, teamwork may be a dimension on a BARS tool, with anchors such as "participates in team meetings from time to time," "frequently participates   and contributes new ideas in team meetings," and so forth. (SHRM, n.d.) This scale is not often used since it is time consuming and requires very precise and concise. If developed correctly, the results can have a high degree of legitimacy. The Result- Based method commonly uses The Balanced Scorecard. This scale can appraise not only individual employees but also teams, business units, and a corporation itself. Maersk’s Care Business Partner job posting states, We offer a competitive salary and benefits package, such as health insurance, dental and vision insurance, a 401K savings plan with an employer match, and paid time off.” Maersk’s philosophy is that they must offer a wage that other organizations provide with similar job descriptions to stay competitive. Since they are saying they are offering a competitive salary, they must have done a wage and salary survey of other organizations with similar job descriptions. The wage and salary survey allows an organization to sustain external equity and pay its employees wages equivalent to the salaries that employees earn in other businesses. (Snell, Morris, Bohlander. 2016. Chapter 9)
If organizations do not do wage and salary surveys, they risk losing current employees if they are under the market value. If they attempt to hire new employees and do not do a salary and wage survey, they are faced with the possibility of either offering too little and, in turn, may not get many applicants or those not qualified. Without the survey, they also risk offering a high salary that is not within range. They can become bombarded with applicants that are both qualified and not. Sorting through applications, interviewing, background screenings, or whatever else they have as part of their hiring process takes time and money. Overpaying employees way beyond the market value would not be very fiscally responsible, and most likely, they would not remain in business for very long. Discretionary benefits are becoming the extra bait on the hook to get the best-qualified individuals into their organizations and retain the ones they currently have. With the current state of rising inflation at almost record-breaking rates increasing salaries may not be an option for many businesses, especially smaller ones that may not have the capital to do so. As many employees are starting to return to a physical work location, many are finding out that after working from home for over a year, they realized that they enjoyed working remotely and did not want to return to the office. There has been pushback from employees to stay remote, so much so that companies have started to perform surveys within their organization to see what benefits are most valuable to them. They want more workplace flexibility and health benefits that cover mental health, " Regardless of company size, the real key in attracting and retaining employees in this new environment is the ability on the part of the employer to demonstrate flexibility and stability," Bond-Hillman said. "The degree of flexibility can mean a lot of different things,   including flexible hours, work from home arrangements, flexibility
with benefits, PTO and sick policies." "employees will be considering their total package and experience when seeking employment because they will need to choose the best fit for their new normal." In Maersk’s job ad, it would be very beneficial to list some additional discretionary benefits that other area companies may not. Benefits such as flexible schedules offer telecommuting or hybrid work; organizations must realize that salary is not the only thing employees are looking for . The way in which organizations provide compensation to their employees is through salary, bonuses, incentives, and commission. This is referred to as direct compensation. Organizations can also provide indirect compensation that can come from health benefits, retirement savings plans, tuition reimbursement, and paid time off (vacation, sick, and holidays). There is also a third piece to the compensation philosophy called nonfinancial compensation, which could include recognition programs, organizational support, and flexible work schedules. The labor market can influence what organizations provide to their employees. It can be either government regulations that set a minimum salary requirement, the supply and demand of a particular field, or the economy itself. Often organizations will perform salary surveys to see if they are in line with other organizations so they can compete for labor. If an organization’s salaries drop too far below the market average for a position, it can lose its current employees to competitors, making filling vacant positions even harder. Indirect or nonfinancial benefits can help retain or even gain valuable employees through discretionary benefits like having flexible work schedules and onsite child care, just to name a few. These discretionary benefits could provide an opportunity to attract and retain employees from going to similar-paying organizations.
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References Groysbert, Boris and Abbot, Sarah, L. Sarah (2013, May 05). Maersk Group: Evaluating Strategic Talent Management. Retrieved from: https://learn.snhu.edu/2d1/ie/content/467177/viewcontent/9368449/view Grensing-Pophal, Lin. (2020/06/09). Smaller Employers Add a Personal Touch to Well-Being Benefits. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/smaller-employers-add- personal-touch-to-well-being-benefits.aspx Miller, Stephen. ( 2021/01/06). Upheavals Alter the 2021 Benefits Landscape. Society for Human Resource Management. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/upheavals-alter-the- 2021-benefits-landscape.aspx Snell, S., Morris, S., & Bohlander, G.W. (2016). Managing human resources (7 th ed.). Boston, MA, USA: Cengage Learning. Retrieved from https://ng.cengage.com/static/nb/ui/evo/index.html? deploymentId=5834452353507901617178967267&eISBN=9781337389587&id=153795 9941&nbId=3028557&snapshotId=3028557& SHRM (2009). Unit 6: Training Methods Experiential Learning and Technology . SHRM. (n.d.). Which performance rating scale is best, and what should an employer consider in adopting a performance rating scale? https://www.shrm.org/resourcesandtools/tools-and- samples/hr-qa/pages/whattodowhendevelopingperfratescales.aspx Southern New Hampshire University. (2022). Customer Service – CARE Business Partner Job Posting.
SHRM (2022) Introduction to the Global Human Resources Discipline https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/ introglobalhr.aspx