Establishing Human Resources Department - Case Study Example

Strategic Marketing Name Course Instructor Institution Date Executive Summary Human Resources Strategic plan is an important tool which aids in directing and controlling organization’s human capital in the pursuit of attaining the desired objectives. In an attempt to become leaders in the turbulent business environment, organizations are obliged to establish Human Resources Department to facilitate in provision of essential support services for acquisition of relevant knowledge and skills among the workforce. Human Resources Department is solely responsible for the development and implementing appropriate strategies that can promote attainment of the organization’s goals and objectives. Introduction SportUNE, a non-profit organization, established in 1938, offers unique health and fitness products and services to both the students and the regional community. Its unique products and membership packages and strategic positioning especially due to its association with the University of New England that controls it, offer it a unique market niche. Its growth and development over the years has been aided by the growing market demand. However, this study has established that despite its unique position in the industry and the ever growing demand, it faces stiff competition from established brands such as Snap Fitness and Plus Fitness 24/7 with huge financial power and global brand image (Close, 2013). The study has that there is a need for an organization to carry out quantitative and qualitative market research that will see it utilize the growing population of students within its campuses and broaden its operations. Established in 1938, SportUNE is a not-for-profit entity offering a broad range of programs with the view of helping students and the local communities alike to find the right balance in their educational, social and cultural lives (Close, 2013). Controlled by the University of New England (UNE), SportUNE has numerous flexible, reliable and high-quality programs and facilities dedicated to offering sporting, exercise, fitness and health services to their targeted market. From its humbling beginnings, SportUNE has grown in steps and bounds to elevate itself as one of the most revered sports, wellbeing and health facilities in Australian. Even though its primary target market has, since its inception, been the University students, the organization has increasingly reached the regional communities who have substantially gained from its facilities and educational and training programs. The organization’s mission of helping students and the regional community alike to find the right between all spheres of their lives resonates well with the challenges they face. More often than students, like the rest of the society, are preoccupied with the need for personal success. They tend to ignore their wellbeing leading to various health problems like obesity and overweight which is one of the major contributors of death in the country and the world over. The region is ranked as the fifth most obese nation in the world by the United Nations with up to 24.6% percent of the population classified as obese. With an employee base of over 50 drawn mainly from University’s student community and the regional community, the organization’s services and programs are relatively affordable (Close, 2013). They also offer group training, exercise sessions and sports activities. The affordability and group sessions positively motivate the students and 21st century working class from the local community to find their balance in life. SportUNE’s Corporation Strategic Plan Proper strategies have formed an integral part in the success of SportUNE’s Corporation in the competitive business environment. Statistically, the corporation is the world and second largest employer in United States. It has more than 500,000 employees serving in about 100,000 branches in various parts of the world (Porter, 2000). SportUNE’s has great leaders with vast knowledge and skills in HRM. The management has been able to align its HRM programs with the corporation’s strategic plan. Analysis of Strategic Plan Since its inception, SportUNE’s has been focusing on mere selling of cheapest and convenient sports equipments. This strategy has succeeded in marketing the corporation’s image in the global market. Evidently, the corporation has been branded as customer’s favorite place to buy facilities. The current strategic plan of the organization has shifted focus to winning large number of customers in the global market by offering quality and customer services (Close, 2013). The plan ought to be implemented, and its optimal outcome is expected to be realized in the next five years. SportUNE’s strategic plan outlines how to reinforce its priorities in the quest of branding itself as the best in the regional and international market. The plan describes the steps that the organization will take in order to become more relevant to customers and the communities within which they operate. Strategically, the corporation plans to shift its resources in efforts of perfecting the workforce through appropriate recruitment and training programs. This would see the organization inculcate good leadership skills among its staff. The 2010/2016 strategic plan emphasizes on the importance of proper allocation of financial resources to guarantee reliable cash flows and minimum spending on operating costs (Close, 2013). This would enable the entity achieved financial objective of 40% capital growth by 2016. On the cultural and social aspects, the strategic plan reveals organization’s intent of achieving worldwide recognition by maintaining positive relationships with its savvy employees, safeguarding the natural environment and fulfilling other social responsibilities. SWOT Analysis In order to measure the operability of the strategic plan, it is imperative to carry out in-depth analysis of internal and external mechanisms that are likely to influence its implementation. Internal Strength and Resource Capabilities According to Thompson and Strickland (2003), internal resources of an entity are assessed in reference to its competitors in the industry. SportUNE’s Corporation strategic plan upholds on the philosophy that the basis of any business firm is ethical and dependable. The corporation also values the notion that it takes a great deal of time for an organization to build a reputation. Market leadership: - The Corporation has strong international presences in the sporting industry. Financial strength: - The Corporation owns almost all real estate’s for franchises, and this provides huge income and strong financial base. Brand image: - in 2010, SportUNE’s Corporation was rated top 100 among the world’s most valuable brand. Innovative skills:- Due to innovation in the sporting industry, SportUNE’s has managed to improve its training schedules and equipments several times to meet the changing demands of the customers. The brand of SportUNE has for the time to time been the most recognized brand globally because of their cleanliness, quick services, convenience and value. The company also has respect among the people in the society because it has been noticed to be one of the companies that adhere to the policies of the community. The company is one of the companies that has a wide geographical market. Moreover, it has a diverse target that has been seen to be one of the major reasons for having growth in its revenue. The company is also organized and the equipments that are purchased by the company is always known to be from the suppliers that are approved. This has always been done by the help of the quality department that is responsible for reviewing and later giving the approval of the product. Weaknesses Customer services:- In the recent years, the corporation has been ranked lower than some of its competitors in regard to quality, service and cleanliness Employees turnover:- SportUNE’s employees turnover is very high, and this has been a major setback of the company Opportunities Revenue generation: The corporation has great opportunities of generating a lot of revenues because of its strong international presence Diversification:- The corporation can utilize new avenues such as launching of novelty products and forming joint ventures with non-rival companies in order to promote its products Threats Most new entrants are copying the corporation’s theme thus making it difficult for it to increase the market share both domestically and worldwide. Human resource issues affecting Corporation’s strategic plan From the SWOT Analysis, it is explicit that certain human resource aspects would affect the implementation of the corporation’s strategic plan. Recruitment and selection process: Quality staff forms a cornerstone for success of SportUNE’s corporation. In order to sail through the intensive competition in the global market, the corporation is obliged to attract and maintain quality workforce. The recruitment and selection strategy ought to be thorough and effective to ensure that the organization acquires individuals with highly specialized skills who can foster organic growth. SportUNE’s recruitment processes consider the knowledge, skills and other personal qualification which deem necessary for a particular position. SportUNE’s values individual’s experience, intelligence and elegance (Close, 2013). In an attempt to attain the desired goals of the strategic plan, the organization’s recruitment and selection process considers vast range of issues. The process is perfectly executed in order to ensure that it meets human resource needs and demands of the organization. In order to attract and maintain individuals with specialized skills, SportUNE has been offering appealing salary packages. Commonly, job seekers have commented positively about the salary and wages offered by the corporation and most of them wish to work there. SportUNE’s adheres to the rules governing minimum wages and working hours of employees. Employees are paid for extra time they work within the premises of the corporation. Career Pathing: In order to provide a sufficient pool of qualified employees, SportUNE’s has determined the logical progression of roles, jobs and development programs. This is valuable because it enables the human resource department to identify and capture the desirable knowledge and skills. Learning and development of employees is another paramount aspect affecting the implementation of the strategic plan. This process is very important because it enables the incumbents to acquire relevant skills which are useful when undertaking various business operations. SportUNE’s has established training and educational programs which are directed towards imparting vital skills to the employees (Chakravarthy & Henderson, 2007). These programs have embraced both theoretical resources and practical knowledge as a way of promoting effective learning and development process. Career planning is another HR aspect affecting execution of the strategic plan. SportUNE’s Corporation has been striving to help its employees to learn their strengths and weakness. In addition, the corporation has been assisting them to match their strengths, aptitudes and preferences to the future work. As such, this would have direct implication on the future operations thus affecting the execution of the strategic plan. Most organizations have failed to execute strategic plans because of poor identification of key roles and positions and respective people who can fill them in the future. However, SportUNE’s has been constantly reviewing these roles and positions to ascertain their needs and demands in the future thus facilitating prior planning (Porter, 2000). It is the role of the human resource department to gather data, conduct reports and recommend the senior on how to deal with projected retirements. It should advise other organizational units on the best options for dealing with succession plan issues. The expected retirees should be supported to aid in the transfer of knowledge to the new employees. This enables the organization retains valuable knowledge and skills. Human Resource Policy Statement SportUNE’s Corporation is committed to achieving its goals and objectives through its people. Note mentioning, the corporation accepts ethical and social obligations. Therefore, it is obliged to carry out its business operations in full knowledge of, and compliance with employment legislation practice (Close, 2013). As part of its policies, the corporation adopts best practices on industrial relations and learning and development of employees. Learning and Development policy statement SportUNE’s Corporation has well-established training and development policy and programs based on the view that the knowledge and skills of employees aids in attaining of the goals and objectives. The Corporation developed this policy in an attempt of inculcating relevant knowledge and skills amongst its existing employees. The policy was adopted after the senior management proposed it as a way of supporting corporation’s core values and norms to aid in gaining competitive advantage in a turbulent business environment. These programs have been developed purposely to enable the existing employees acquire a broad range of skills which helps them cope with the constant changes in the business environment. Consequently, training and development programs form an integral component of the corporation’s Human Resources Management policy. SportUNE’s Corporation has shelf its image in the public eye by responding to development needs of employees and the entire staff. Through transparent processes, the corporation has provided training and development opportunities equitably (Close, 2013). The policy is executed while adhering to fair Training principle as stipulated in the Global Business Standard Codex. Learning and development policy has been also directed at ensuring that employees are capable of responding to challenges and that they develop to be future leaders within and outside the corporation. The training and development programs were designed in order to create a meeting places where employees and managers from different business units, religious and cultural backgrounds can exchange or share experience and networks. In turn, this would offer numerous opportunities for benchmarking to the outside environment. Industrial Relations Policy Statement In the modern days, workers have joint unions and movements so as to address their plights effectively. SportUNE’s corporation has been in the forefront in allowing its employees to join workers union (Close, 2013). According to the management, the corporation is committed and dedicated to embracing legislative requirements affecting the working environment. This has been made practical by the fact that the organization has well-established proactive management who can pursue industrial relation matters. The corporation is committed to Employment Relations Act. Evidently, SportUNE’s has been constantly initiating various meetings purposely to discuss with workers’ unions the future relations such as the formation of new collective agreement that would oversee the welfare of employees in the near future. As part of the strategic plan, SportUNE’s directs its efforts and energies towards provision of fair and sound industrial platform for the employees and the entire company staff. This is paramount because it helps reduce disputes between employees and other stakeholders of the organization (Close, 2013). The corporation believes that positive relationships between employees and their respective unions is a great boost to business operations. This can be achieved by maintaining appropriate communications between the employees and either internal or external stakeholders. In reiterating its commitment to pursuing the strategic plan, SportUNE’s Corporation industrial relation policy supports the departmental managers in handling matters that affects Human Resource Management practices. In order to pursue the objectives of the strategic plan through the industrial relation policy, SportUNE’s response to employees’ needs and demands promptly. Arguably, the organization offers practical solutions to various issues that would rather hamper the process of implementing the strategic plan. Employee’s working environment is favorable to promote innovativeness and elite productivity. Developing a Strategic Human Resource Plan Learning and Development As stated earlier, SportUNE’s Corporation has been rated among the world leading Sports facility. The unprecedented growth is attributed to quality workforce and the entire staff. Employees are constantly subjected to learning and development programs thus enabling them acquire relevant knowledge and skills (Porter, 2000). The current business strategy focuses so much on improving quality services to customers, and this can be achieved through perfecting the skills and qualities of the entire workforce. Learning and development policy has been implemented by the organization for numerous purposes. The programs are executed so as to enable the organization acquires specialized employees who can pursue corporation’s objectives with minimal problems. In the learning and development policy, the procedures and processes to be adopted ought to be communicated effectively across all business units of the corporations (Close, 2013). Learning and development programs are also intended at growing the employees in alignment with various positions in the organization. The victims are expected to acquire advance knowledge and skills that would enable them clinch into the senior positions in the near future. Timing and resources 200 employees will be trained and supervised by one instructor Milestones All permanent employees are enrolled to the programs freely. However, employees who have been in the company for at least 12 months are allowed to join the programs. The corporation targets to train approximately 3,000 employees on an annual basis. Contingency Plan for Learning and Development Program As shown above, the number of employees assigned to one trainee is very high thus impairing the process. In addition, these trainees who are mostly managers do not possess sufficient skills to engage in learning and development of employees. To avert negative effects of this shortcoming, SportUNE’s Corporation has designed an external training program for managers/instructors (Chakravarthy & Henderson, 2007). In effect, these programs would enable the managers, and another senior staff acquires appropriate training skills thus engaging themselves in the strategic plan. SportUNE’s Corporation appoints external agency which can facilitates learning and development programs. Ethical considerations affecting Learning and Development Program Basing on the fair treatment principle, SportUNE’s employees are treated fairly and equally. They are exposed to learning and development programs without any discrimination. As part of ethical policies, the corporation adheres to the statutory and legislative requirements as stipulated by Employment Acts. The programs comprise privileges available to employees hence these are awarded without considering the social, economic and cultural backgrounds of an individual (Close, 2013). The senior managers have obligations of ascertaining the employees who deem fit to be enrolled in the programs. Employees are classified according to their academic qualifications so as to avoid exposing employees to difficult programs which are likely to discourage them. SportUNE’s values its employees. Therefore, it has strived to respond to their needs and demands promptly. Evidently, the corporation has allowed them to engage in union so that they can freely air their problems without much fear. Industrial relations has enabled the corporation to develop warm and exciting environment for employees and enhances cohesion between them and the other stakeholders. The mission statement of SportUNE’s is a by-product of a history of fifty-two years. About half a century ago, SportUNE’s corporation originated from a spark of curiosity. One of the key drivers of performance in any organisation and especially government and non-profit organisation is the ability of the management to set specific, measurable, achievable, relevant and time-bound (SMART) objectives (Shahin & Mahbod, 2004). By using first-rate facilities and services offered at affordable prices, SportUNE has managed to cut a market niche for itself in a competitive industry. It has managed to introduce new products over time including sports activities and facilities and even training programs. It has also streamlined its operations and introduced the professionalism in the management of its facilities. These are meaningful yet sustainable, result-based strategies which are time-oriented. Such strategic adjustments have enabled the organisation to meet the demands of time marked by an increasing demand for cost-effective fitness and sports services and programs. Club-based affordable membership registration packages with flexible payment regimes encourages students and the local communities to sign up thereby making learning process more rewarding. Customer Oriented Strategy Organizations always rely on their clientele for them to progress in attaining their goals. This is also applicable in the Sporting organizations where the services offered be based on the needs of the customers. This means that the customer needs are achieved. However, there are certain elements, which are normally considered before this takes. The first is based on identifying the customers then segmenting them into groups. This means that the organization focuses on their clients through different ways, which are based on their groupings. This is because different customers have their needs, which are not the same. The other issue that should be considered by the organization knowing the preferences and the needs of the customers. Therefore, medical practitioners and should have a personalized relationship with their patients in order to know and understand them better. This is an element that numerous organizations use to ensure their clients attain the services they deserve, as they would have a good rapport with them (Close, 2013). This is applicable in small hospitals, which know their clients personally. Organizations are also expected to build a good relationship with their patients. This makes it easy for clients to be open with their doctors making it easy to built trust. This also enables clients to come back to the hospital whenever they experience health complications. Marketing Issues in SportUNE The SportUNE has been known to be involved in numerous issues, which are associated with perfecting the services offered in Sporting organizations. However, there are certain issues that the organizations should stress their effectiveness in order to attain their goals in marketing. The first issue involves keeping the Sporting affordable. Numerous governments have been seen to spend a lot of money on health care, which makes it a priority in economies of these countries. The policy makers in the Sporting departments work on strategies of perfecting the health care while at the same time making it cheap for the people. Training is expected to be cheap so that everybody can be capable of accessing the services as expensive Training would make it impossible for the poor people to have the services. This can be done effectively by hospitals through ensuring that the cost of Training is retained at a lower scale. This means that the marketing strategies should involve implementation and acquire standardized information technology, quick management of chronic diseases and improving quality of Training in hospitals. The other issue in the SportUNE that should be initiated involves improvement of the rural Sporting. This is essential in the economy of New England as it is involved in serving more than 54 million people. In marketing the rural Sporting, the hospital will rely on accessing the facilities through demanding expensive information system while dealing with the poor. However, the government sometimes excludes payment into this type of project due to the financial reserves, modest assets and small size, which is associated with it. Applying Production Planning & Quality Management in SportUNE Companies are usually expected to have an effective strategic plan in order of ensuring that the goals of the company are met. After companies have ensured that, everything in production and management has been placed into place, the staff is then organized on a daily routine, which will help in the production of the goods (Porter, 2000). This can be done through five essential components which will be used in attaining quality products. They include scheduling of inputs, planning for the production, management of the staffs, maintenance and health and safety. In the planning for the production, the company will have a modified way in the conduction of their activities, which are normally carried out daily, or weekly. Estimation of demand for the products will be carried out where the plan will be used in having the best plan for the amount of production expected to be taken (Chakravarthy & Henderson, 2007). The estimates of the demands will be done through acquiring information from the market through knowledge of the current sales, which will ensure that the company is up to date on issues happening in the market. All the information will be found in the sales book with all the information on the trend taking place in the market. The company is also expected to schedule their inputs. This is done after the company has already decided on the level of production that it intends to carry out. This is will be done for the sake of the anticipation of the next sales on a weekly or a monthly basis. The scheduling of the inputs ensures that the company has the required amount of products into the market. In this case, it will be done in two parts (Chakravarthy & Henderson, 2007). The first part deals with components of production such as ingredients, raw materials, distribution tools, labeling and packaging. The second bit involves staffing which look at their hiring schedule such as on a daily basis or monthly. The planning also involves maintenance of equipments, which might breakdown and spare parts. There are occasions when the spare part might be missing in shops or workshops, which may lead to delay of production, in case of breakdowns (Porter, 2000). Therefore, having maintenance tools and spare parts on standby ensures that the risk of breakdown can be tackled easily. Majority of companies usually cite that small scale companies should not tackle the issue of maintenance however it might be dangerous in their part since their production my delay which might even result into loss. The other importance is that some equipment in the company might be imported and getting the spare parts might not be easy. Therefore, it is mandatory to have them on standby. Staff management is also essential in having a good planning strategy for the company. This will be done through outlining the principles, which will guide the management in providing reasonable and fair working conditions for the workers. The employees are expected to understand the nature of the business, which they will use in working actively in ensuring that they meet the goals of the company. This work will be delegated to the quality assurance department which assess the performances of all employees to ascertain whether they are working towards the producing quality work. If the workers meet the set standards and goals, the company will ensure that their demands are met. These demands include reasonable wages, a sense of belonging in the company, job security, appreciation and respect for their knowledge and skills, good working environment and development of the capabilities. Finally, the company will deal with health and safety of the workers inside the stations of work. This usually boosts the morale of the workers, as they will know that they are safe when they are at work. This will not be done because of the legal requirements but due to the acknowledgement that the workers need a safe place to work. The company will also be exposed to the Total Quality Management otherwise known as TQM, which will be necessary for maintaining the focus needed for continuous improvement in the production of goods. The Six sigma will ensure that the company dedicates it work into improving and increasing their production of goods into the market. It will be used in solving some of the problems encountered in the market through the use of statistical methods which are essential in improving the processes (Porter, 2000). The TQM of the company will be focused in emphasizing the involvement by the employees in ensuring the goals are attained. At the same time, the employees will have the opportunity to be trained to be experts in their field. The trained workers will train the others, and this will solve the problem of having people who are not qualified in their field of work. This strategy will also ensure that the company has a standardized procedure in doing their work. This helps in ensuring that nobody comes to the company with a strategy, which has not been proven to work. References Close, L. (2013). “Australia's fitness sector sees growth in the billions.” Australia Business Review 22 November 2013. 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