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S118 HRM201 HUMAN RESOURCE MANAGEMENT S118 HRM201 HUMAN RESOURCE MANAGEMENT https://online.cdu.edu.au/webapps/rubric/do/course/manageRubrics?disp... 1 of 2 14/06/2018, 1:38 pm S118 HRM201 HUMAN RESOURCE MANAGEMENT https://online.cdu.edu.au/webapps/rubric/do/course/manageRubrics?disp... 2 of 2 14/06/2018, 1:38 pm Case Study 5.2 TK Ceramics: an Indonesian Opportunity Tim Bortolli, Kate Johnson and Renee Nguyen were approaching exhaustion at their second straight 12-hour day of meetings. Tim and Kate were joint owners of TK Ceramics, a small business they started together after leaving university. TK Ceramics had grown to become Victoria’s largest importer of European ceramic tiles, now operating from a 4500-sqm warehouse in Port Melbourne, with 70 staff. Renee holds the newly created title of General Manager of HR; the title reflecting the impending growth of the company. The long days of meetings were due to the immense amount of planning required to put in place the next phase of the company’s growth. TK Ceramics had enjoyed a lot of success in importing tiles from Italy; the European styles, designs and colours translating well to the culturally diverse Melbourne market. Rather than sell to the public, TK Ceramics sold wholesale to bathroom stores all over Victoria, and collaborated with a few exclusive architects who worked with high- end renovations. Twenty-two field sales representatives continuously worked their large retail customer base, and a further 28 staff worked in the warehouse – unpacking, checking and shelving incoming stock, as well as preparing shipments for the company’s delivery fleet four times a day. Another 20 staff worked in the office, in roles such as customer service, finance, accounts and administration. However, a year ago, Kate had been on a sabbatical in Jakarta Raya, Indonesia, taking a disengage from work, asked to meet the owner. TK Ceramics: an Indonesian opportunity motorcycle tour with her partner. While taking a ‘back-roads’ tour one day, she had come across a small tile factory that produced plain ‘standard’ tiles, and, not being able to fully disengage from work, asked to meet the owner. Kate spoke with the owner, Alatas, all afternoon, toured his facilities and made a promise to be in touch as soon as she returned home. She was very excited about the opportunity to develop a new supplier. While sales of European tiles were still strong, they were expensive, and they had to carry a lot of stock to cater to the wide variety of tastes in Melbourne. Alatas’ factory represented a chance to supply tiles to the mass market – new home building companies, commercial installers, hospitals, shopping centres and so on, where design was less important than price and functionality. Tim and Kate decided to go for it, and met with their bank and business advisers to plan the expansion, and hired Renee to develop and execute the HRM strategies. They decided to launch the new business stream through a new, wholly owned retail network, a radical departure from their existing business model. In addition, they were going to create a new brand for their shops. They had decided to maintain their current business and its relationships under the identity of TK Ceramics. They had, however, adopted the strategy of their existing one. Renee was now immersed in the HRP to execute this strategy. She needed to design a structure which clearly separated both supplier and customer-facing staff into the separate streams, but could also make use of the existing warehouse infrastructure for both. Further, she had a mission-critical task to complete before anything else. All ceramic tiles sold in Australia must meet strict Australian Standards – ISO 13006: 1998 10545 Test Methods. Preliminary investigations of the product produced by Alatas’ factory showed that while the tiles were generally good, there was too much variation in size, surface finish and strength to consistently meet the standards. Testing each batch in Australia and rejecting non-compliant tiles was too expensive and wasteful. The quality control had to take place in Jakarta Raya. Alatas was very happy to do this, as the new deal with Tim and Kate would result in a near- doubling of his output. However, Tim, Kate and Renee had concerns that the expert human capital required to design, implement and monitor the quality procedures in Alatas’ factory weren’t available in Indonesia. They had just decided to recruit and send an Australian expert to Indonesia to embed into the factory for a year, to ensure that there were no problems with standards compliance and wastage at the Australian end. Tim hadn’t needed to do this before. Most of the Italian tiles they imported were already tested and compliant with the strict EU standards, and Tim’s Italian heritage and language skills made communicating their needs to suppliers in Italy with phone calls and an occasional visit very effective. Renee’s list of jobs was growing rapidly. Not only did she have to prepare to staff the seven presence’ strategy. She also needed to find just the right person to send to Jakarta Raya. Source: Prepared by Stephen Turner, Murdoch University, Perth. Questions 1) What is the best process to redesign the internally facing and customer-facing jobs? 2) What are the advantages and disadvantages for drawing at least some of the shop workers from existing staff? 3) How would you create job descriptions and person descriptions for jobs in the shops that do not yet exist? 4) Do the field sales representatives have similar key skills and abilities requirements to those that may be needed for the shop staff? Discuss. someTitle Introduction In Chapters 1, 2 and 3 we discussed the theory of SHRM and some of its contextual influences. We also explored the fundamental relationships between broad organisational strategies and associated HR strategies, and their subsequent impacts on all human resource management (HRM) functions. The bridge between HR strategies and HR functions is the formulation of human resource plans that incorporate the desired outcomes of HR strategies, are responsive to continual changes in dynamic national and global industry environments, and can be implemented through efficient and effective HR functions (e.g. job design, recruitment and selection, human resource development, performance management, rewards and industrial relations systems). The purpose of human resource planning (HRP) is to try to ensure that organisational objectives are met through the effective utilisation of the human resources of the organisation, taking into account changing circumstances within and outside particular organisations (see Figure 4.1). Therefore, HRP is essentially an ongoing process, focused on the long-term, but cognisant of contemporary changes in both the internal and external environments in which these organisations operate. In reality, HRP must be a series of processes, with long-, medium- and short-term contingency options, in order to comprehensively reflect HR strategies and to modify associated HR processes. Figure 4.1 Strategic alignment Human resource strategy Human resource plan Vision Strategic business plan Key stakeholders Dynamic environment Dynamic environment Environmental scanning (a) External • Global • National • Industry (b) Internal Labour demand forecasting Labour supply analysis Balancing demand and supply Chapter 4: Human resource planning in a changing environment 133 -D: 5: C N L :D 1ME: M 4: : E L 9L :L : = : L . : 3 : -M L :D : M L 0 C . L :D ALLH C L :D H IM L E D =M = L: D : L ,= 2/ . :L = ? E =M . H AL P . : 3 : - M L: D: - DD AL N = Such plans are based inevitably upon efficient, effective and user-friendly human resource information management systems (HRIMS), which collect, collate and analyse internal and external HR data. These are discussed later in this chapter. Human resource planning Human resource planning (HRP) – sometimes called ‘workforce planning’ – has been explained in a variety of ways. • [HRP] is taking the steps today to ensure that (organisations) have the right people in the right place, with the right skills, at the right time and at the right price.1 • Estimating the future supply of and demand for human capital and then figuring out how to close gaps. Such planning allows companies to think through their workforce alternatives to the high fixed costs of full-time employees.2 • [HRP] consists of translating organisational plans at various levels into HR plans that guide the long-term acquisition, use and development of intellectual capital and knowledge assets.3 All the above explanations contain similar features – a strategic, long-term approach; a comprehensive staffing plan, covering all HR activities from recruitment through to learning and development, career management, and to the eventual separation of employees by retirement and retrenchment; and a close relationship with organisational strategies and objectives. The second quotation from the Boston Consulting Group (BCG) and the World Federation of People Management Associations hints at a key component of contemporary HRP, namely the need to factor into such planning the volatile local and global labour markets which demand more flexible and innovative employment conditions, including part- time and casual forms. Its overall purpose is to ensure the effective management of human resources by providing the required quantity and quality of employees where and when necessary. Therefore, HRP needs to encompass a systematic process of analysing organisational strategies and goals; conducting both external and internal environmental analyses (environmental scanning); and, subsequently, making a strategic choice about the nature of HRM processes appropriate to identified organisational outcomes. As one research report suggests, HR professionals need to ‘add real strategic value to the bottom-line, closely manage the employee–employer relationship and deal with a diminishing workforce’.4 In support of the latter, a recent Australian Institute of Management (AIM) report, among others, suggests that ‘the pool of local labour appears to be drying up’, due both to the ageing of the population and the need for more specialist skills within new industry sectors.5 The changing characteristics of the Australian and regional labour markets and their dynamic industrial relations systems, discussed in Chapters 2 and 3, will necessitate more focused HR plans and more sophisticated HR modelling competencies. 134 PART 1: HRM in context -D: : C N L :D 1ME: M 4: : E L 9L :L : = : L