Hello, welcome to MBA Wonderland. MBA Blogs are about Global Marketing, HRM, Innovation and business aspects. At the end of each blog you will appreciate the core of each components that together create the business world
A sober man is scared of a weak enemy too (Baines, 2008, cited Sirius, c, 100 BC). There are two types of external environments 1) those factors and forces that don’t have immediate impact on the performance of an organization, however they do in long-term 2) Those factors and forces that have impacts on the performances and influence the organisations currently or in the near future. This detects and suggests the levels of risks are high and can’t be controlled. PESTEL is the framework to identify and analyse these elements (Baines, Fill and Kelly, 2008).
Political Factors:
During coronavirus lockdown, F&F placed a huge promotion of 50% off on all clothing, and according Tesco’s employee who asked on F&F Tweeter, is it the right time to operate and attract footfall? (Drewett, 2020, cited Donovan, 2020). UK government announced stay home and save lives, but the F&Fs’ marketing team made their biggest mistake by ignoring the government message and the new law due to Covide-19 pandemic.
Economical and Competitors Factors:
(Yotova, 2019) reported, ASDA’s George clothing is the strongest competitor in supermarket clothing. 85.11% of the consumers buy their clothes from ASDA’s George clothing which makes it one of the top supermarket clothing brands (see figure 4). Tesco’s F&F clothing is on the second place by 81.62% in 2019. Figure 7 illustrates the main keys that motive the costumers to choose and buy George clothing.
Figure 6
Figure 7
However, the only key that is competing with F&F clothing is the convenient shopping which the marketing team is avoiding and ignoring. Convenient shopping is one of the most valuable promotional tool to attract and persuade both users and new users.
Social-Cultural Factors:
These factors are lifestyles, values, culture, prejudice and beliefs of people and differs in different regions. Probably, Tesco Christmas advert in 2017 which faced social media backlash has negatively affected some of the customers. F&F clothing need to consider the culture, lifestyles, values, beliefs and prejudice of people in those countries that F&F cloths are available. Communicating with customers in their local spoken language among respecting their beliefs and prejudices are the must that F&F marketing management need to consider effectively.
Technological Factors:
Technology is one of the sources of threats and opportunities and its very dynamic. Tesco Plc is using EPOS system for its all products and services however the question is, why Tesco is not using its’ data system as promotional tool such as, direct marketing for F&F clothing? Also, not providing online shopping (beside NeXTs’ online shopping website) for F&F clothing shows Tesco is not making the most use of technology advances. In addition, F&F marketing team easily can identify and target Tesco’s male consumers by direct marketing via its’ data systems. So, what is stopping them?
Environmental Factors:
Pricing for F&F clothing is low to average which makes it affordable for low to middle income target group. Also, Covid-19 has caused inflation globally and led some countries to have government subsidies in place like in UK but government subsidiaries aren’t available in other countries that F&F Clothing is available like Slovakia, Czech Republic, Hungary, Poland and Slovakia which has great impacts on the citizens financially. However, due to F&Fs’ prices are low to average; customers still can afford them.
In the previous marketing blog I explained what is marketing core and as I promised here is the blog about Customers behaviour measurement and the internal factors and forces within the organisations, here F&F is given as an example so you will experience the measurement and analysis in action to observe the marketing better.
Customers:
(Fourali. C, 2020, cited; Solomon et al., 2006) six honest friends, there are who, when and where, why, how and what. These elements enable marketers to understand the customer’s’ needs (Fourali. C, 2020). Based on these six elements, the F&F clothing’s’ demographic is based on age, gender, ethnic, religion. Age target is from one month to 45 years old, for males and females and are designed mostly for European ethnics and non-religious customers, but the home wear clothing range is suitable for all kind of religions and ethnics.
Females are mainly the consumers of F&F products aged between 18 and 45 years old. As per the primary research, the F&F marketer said that the F&F’s are available at NeXTs’ stores and large Tesco supermarkets, but they aren’t available for online shopping “only some limited clothing are sold online via NeXTs’ online shopping facility”, see table 1 (Hooper, 2020). And, according to the primary research one of the questions is, would the customers buy F&F clothing if the prices are low to average and average in quality? 10% answered very likely and 42.50% answered likely (see figure 1).
Next question indicates that customers by 10.26% very likely and by 33.33% likely are influenced and encouraged to buy F&F clothing if F&F’s online shopping were available (see figure 2).
How do they get affected to buy them? Most of the users are affected by word of mouth as per primary research, 12.82% heard about F&F clothing on media, and 30.77% by word of mouth (see figure 3).
The marketing environment of Tesco’s F&F
Internal Forces and Factors, Internal Environment by Five M’s:
(Fourali, 2020) described the five M’s of marketing is one of the models that can be used in many different ways. These five elements are considered as the assets in which the organization has relied to its marketing strategy. The five elements can be used as an auditing tool, internal resources and resources for planning. In this essay, the five M’s are used as internal resources.
Manpower:
(Glassdoor, 2019) Reviews shows 50% of 32 F&Fs’ staffs recommend working for F&F to a friend and 73% approve Dave Lewis (Tesco’s’ CEO). Based on 26 salary reviews, the average salary is between £19K to £60k yearly depending on the job role. For example, a merchandiser administrative assistant annual salary is from £20K to £21K or an assistant merchandise planner annual salary is between £25K and £37K, assistant merchandiser annual salary is £26,670 another example, a marketing manager annual salary is between £52K and £56K. This shows the salaries are based on job roles. Also, the average benefits rate based on six reviews, is two stars out of five which shows lack of good HRM within F&F Human Resources’ policies, practices and strategies. More importantly do the employees work effectively and efficiently?
Materials:
F&Fs’ raw material is based on its marketing strategiy which is using cotton ‘F&Fs’ mission’. It aims to source from farmers who are trained by Better Cotton Initiative (BCI) to use less water and chemicals. F&F in 2017 sourcing 70% (Little, 2017). And %88 of its cotton from BCI farmers in 2018. Their reason is to benefit social and environment wherever there is cotton production globally. However, only half of the clothing is cotton or cotton blend and the rest of raw materials are recycled polyester (Tesco Plc 2020).
Recycled polyester is toxic to the earth and people who wear it. It is produced by recycling plastic bottles into fabrics to keep them away from piling landfills. If plastic bottles don’t belong in the landfills they defiantly don’t belong on the body. There are many articles and researches talking about how dangerous polyester is to human body (The House of Pillows, no date).
As mentioned earlier, recycled Polyester is used for F&F clothing and it’s acceptable by law globally, However, law is not always right. Recycled Polyester is dangerous to human body and washing them splash the toxics so it’s not suitable for clothing. Recycled Polyester can be used to produce products that don’t need to be washed such as bags and shoes and the amount used need to be reduced.
Machinery:
Tesco uses Sandblasting for denim and other fabrics. It uses firing sand, powder (Tesco doesn’t explain what other small particles are used) to create dusty look on the fabrics (Tesco Plc, 2020). Sandblasting is not used in production and sites where garments are produced.
Regarding information system of all Tesco’s’ products uses Oracle Marketing platform system (it enables analysing customer behaviour). For example, Oracle enables to create individualized motivation and offers plans and designs to persuade consumers by Tesco’s’ Clubcard’s or pricing analysis i.e. (UK Essays, 2017).
The vouchers can be used on F&F clothing which leads to encouraging the Tesco’s’ consumers to purchase F&F clothing, but the question’s are, if the Tesco Clubcard holders are aware of existence of F&F clothing and do the consumers know the vouchers can be used on F&F Clothing? Tesco has different types of data systems such as Managing Information System (MIS), Transactional Processing System (TPS) and Decision Support System (DSS) by SAP Business Objects Polestar (UK Essays, 2017).
Electronic Point of Sale (EPOS) is the centre of information system for the whole Tesco’s’ products however, Tesco is avoiding electronic commerce for F&F clothing. Why is Tesco avoiding F&F online shopping? Online shopping can save time for both customers and retailer by reducing hours of operation. There are many reasons why customers prefer online shopping nowadays. Diagram one illustrates (Kalam, no date) the input, process and output of Tesco (see diagram 1 on next page).
Minutes:
Due to not providing F&F online shopping, delivery and click and collect facilities, customers and consumers don’t have quick access to the F&F clothing for purchasing. whereas, online shopping is one of the golden keys to increasing F&Fs’ sales “Everyone lives by selling something” for any type and kind of available products and services in the 21st centaury market (Fourali, 2020, cited Stevenson, 1980-1894). And since time is perhaps the most valuable asset for any organization so Tesco’s’ F&F marketing planning process is not concerned and wasting the most valuable asset (time) as well as not meeting the customers needs (lack of value).
Money:
Tesco increased its marketing budget by 68.2% in 2017. Tesco said the big budget is paying off in 2020 by less than 1% growth in revenue. However, this budget was not used on Tesco’s clothing marketing. Therefore, F&F current marketing strategy is not focused on Tesco’s clothing and isn’t taking in account F&F marketing for evaluating their strategy ROMI (Return on marketing Investment).
In the following blog, I will talk about internal and external environment factors and forces of Tesco’s F&F and at the end of the next blog you will appreciate the PESTEL model more in action.
Marketing is shaped by various of models and analytical methods to identify the business issues/risks and opportunities that have negative/positive impacts on business/project objectives. Plus, marketing enables marketers to create a new marketing strategy and implement them efficiently by using the correct promotion tools to achieve the objectives.
Before anything els do you know whats the different between customer and consumer? Perhaps you know, but for those who don’t know, customer is someone who has not purchased and used any of business products or service/s. But, a consumer is who has purchased and used the product/service and still is a buyer.
Users and buyers are consumers and the future purchasers are the customers. Furthermore, stakeholders play very important roles within the organizations. Stakeholders such as, consumers, customers, shareholders, and those who have interest in the business which will have internal and external impacts on the business objectives.
Here in the UK, marketing concept and processes are based on British, French and American marketing themes. From British perspectives ‘the Charted Institute of Marketing’ (Baines, Fill and Page, 2008, cited; CIM, 2001) and American’s ‘the American Marketing Association’ (Baines, Fill and Page, 2008, cited AMA, 2007) marketing definition is described as a management process and activities. CIM and AMA focus on significance of investigating the customers’ needs. CIM is focused on customers’ needs and AMA is focused on handing over value and focusing more on price, product, place, and promotion ‘the 4Ps’ which also address the customers’ needs. The French definition focuses on the requirements to build up an offer of much better customers’ needs. The French concept talks about marketing in a wider community ‘Stakeholders’ instead of just consumers therefore, segmentations and positioning are more the points (Baines, Fill and Page, 2008, cited Levy and Lindon, 2006, p. 5).
Customers:
(Fourali, 2020, cited; Solomon et al., 2006) six honest friends, there are who, when and where, why, how and what. These elements enable marketers to understand the customer’s’ needs (Fourali, 2020). Based on these six elements, for example, F&F Clothing’s demographic is based on age, gender, ethnic, religion. Age target is from one month to 45 years old, for males and females and are designed mostly for European ethnics and non-religious customers, but the home wear clothing range is suitable for all kind of religions and ethnics.
In my next blog you will appreciate how the customers needs and values are measured by exampling Tesco’s F&F Clothing marketing strategy. So it will aid you to smoothly understand the marketing core.
References:
Baines, P., Fill, C. and Page, K. (2008) Marketing. United States: Oxford University press.
Fourali, C. (2020) ‘Selling’, MN7182: Marketing, marketing communications and operations. Classroom slides.
HR Analytics (here after HRA) which is fundamentally necessity for the HR professionals to help them to detect and combat friction, hiring the right people, problem solving, predict the risks and issues that may occur in early future to make the right decision. When a HR department strategically develops its strategies for training, recruitment, and compensation based on the objective of the organization, it is sustaining an excellent chance to improve and achieve the business objectives (Importance of Strategic HRM). The processes of decision making and problem solving which involve HR practitioners, largely depend on analysis, logical reasoning and critical thinking. These processes are the first steps for evidence-based management.
Definition of HR Analytics
No definition or granted definition is given by many to HRA. HRA also known as PA and Workforce Analytics is to use people information in analytical processes to sort out business issues (CIPD, 2018, cited Marler and Boudreau, 2017). HRA is several processes which is accessed by technology to apply anatomical, objective and statistical techniques to translate people information. These anatomical procedures are linked to human resource, human resource systems processes and performance which assist to evaluate external data by comparison with HR standards (CIPD, 2018).
Concept of HR Analytics
HR Analytics are those processes that enable HR professionals make more effective decisions based on the data which is a source of true and honest information and accessed by technology. Information technology with descriptive, visual, and statistical analyses features enable HR practice to connect with HR processes, organizational performance, external economic benchmark, and human capital to enable decision-making driven by data (CIPD, 2017, cited Marler and Boudreau, 2017).
Study of HR Analytics
Human capital is one area that HRA is defined to and HRA is about human analysis and using HR analytical process within the organization to improve employee performance and employee maintenance. Baker (1975) and Schultz (1961) realized knowledge,
skills and abilities are vital to national economic growth. The theory shows, HR competed the concept of physical source as the superior driving force for economical success instead disputing that a human value is related to organizational financial performance (CIPD, 2017, cited Becker, 1975 and Schultz 1961). Table 1 illustrates the definition of human capital and perspectives (CIPD, 2017).
Table 1
According to CIPD (2017), the scope of using HR Analytics by HR professionals shows differences according to the size of the organizations. According to CIPD HR results survey, the use of HR Analytics operation varies depending on the number of employees. Smaller businesses have less ability compared to larger organizations. The survey showed only five per cent of respondents were applying and practising HR analytics also it showed it was more common in organizations with large HR departments, 13 per cent of those with more than 100 employees see figure 1 (CIPD, 2017).
Figure 1
As per Marler and Boudreau (2017) no definition or granted definition is given by many to HR Analytics (CIPD, 2018, cited Marler and Boudreau, 2017) see table 2 (CIPD, 2018). And the observation of those where included in the study and provided a statement as follows (CIPD, 2018):
• Company-level analysis prevail the definitions, as a tool to understand the aspects of performance, mainly at group level. Only few considered the individual level of analytics at the matter of definition.
• HRA as references in order to demonstrate evidence are thin: only one definition is given that includes reference to supplying evidence.
• Definitions in terms of measurement of the workforce, technology Features, and the tools that are involved in HR analytics are included; HR analytics is driven by technology parts.
• Some stated HR analytics as a series of practices and processes which perceived as analytics; Hence HR Analytics is combined of a chain of activities and need attention, management and investment.
Once you enter the world of HR and HRM you start to be amazed how interesting and extraordinary it is and to me it is like a magic stick that you only need to find and learn the magic words and whisper them in your ears to get to what you aim for. As I have been reading and learning HRM and writing blogs about it, I have noticed the reward management is one of the most important keys for organisations to succeed also I have realised most large and successful firms are applying a total reward in terms of HR strategies, policies and practices. I also, think recruitment and how to attract and choose the right people is important too but what guarantees the employees engagement, commitment, motivation, and their contribution (to succeed and achieve the organisation’s business goals and objectives) is the rewarding system.
For example; Colt believes that talented and motivated people make a difference, Colt is willing to offer rewards and compensation and benefits package that rewards people for their contribution to the success of the company. This is why it got my attention willing to learn more about it. The reward management is shaped of three levels 1) Financial rewarding 2) Non-financial rewarding and 3) Total rewards which contains financial and non-financial rewarding. So, I realised total rewards is the main key of reward management otherwise why large organizations like IBM would choose and apply it. Having said that, there are many argues and debates saying total management is easy in content but not in practice. I, therefore, would want to study it more in deep details and I am sharing the study with you.
Digging into the Total Rewards Framework to see how it works:
Firstly, what is the concept of total reward?
Total rewards containing diverse perspectives of reward such as; base pay, contingent pay, employee benefits, and non-financial rewards and includes intrinsic rewards from the work itself which are chained and linked together as an integrated and sticky collected.
According to Wright (2019) total rewards refers to the tools and benefits that a company may use or engage to attract, motivate and retain employees. A typical total rewards program includes five components: salary and overall compensation; benefits; training, development and advancement opportunities; work-life balance and flexible schedules; and rewards and recognition. These programs play a crucial role in engaging potential and current employees, maintaining high employee morale and retaining employees.
The concept of total rewards demonstrates an approximate to reward management that focuses on all perspectives of value to employees not only few of them like pay and employee benefits. A total reward emphasizes on getting the financial rewards right. However, it appreciates the fundamentality of providing people with rewarding experiences that arise from work environment.
On the contrary, employers have sticking to the verbiage of total reward strategies, pretending for the past 20 years to replace inflexible, paternalistic leadership, fixed-cost-focus rewards with marvellous business and employee driven flexible packages. In reality but, many are just following market practices and in the United Kingdom, looking for tax and NI contribution savings. Brown (2019) argued that the boardroom and recruitment website has never met the total reward on shop floor reality. the practical and actions never met the policy intent. In reality, just the concept is used like trade union often alleged, decent pay levels and increases alternatively cut pensions and benefit costs and shift risks from employers to employees.
Criticisms on Total Rewards:
Work (2000) said, total rewards is simple in concept but is complex in practice. The extent to which is being applied by organizations in practice can be questioned. According to Brown (2017), the concept and terminology of total reward is becoming meaningless in our post-recessionary economy of rigor and inequality. It is generic and unwisely thinking application in uniform packages risks are separating the rewards into an administrative marsh. Wright (2019)says, total rewards may leg the market because of budgetary constraints.
Conclusion:
By having a better understanding of total rewards concept and the criticisms on the tool, in my opinion total management is suitable for large organizations that can afford the rewards costs as budgetary constraints extremely fundamental and essential. Therefore, total rewards is not suitable for small business that financially cannot afford the rewards costs. Secondly, according to Work (2000) and Brown (2017), in terms of total reward practice must be implemented and performed accurately otherwise it will be just a waste of time and money for the organizations. I believe, what is very essential and necessary for the large businesses is to employ the talented and well-educated HR managers who have great personality and self-steams as well as motive with big aims for their future. Because these types of people are reliable and trustworthy who will reinforce the performances to leaded to the organization’s business objectives.
In this blog I have written a brief information regarding DHL mission, vison and goals also, about its employment strategy and employees benefits furthermore I have focused on the best fit approach by analysing the Vertical fit and Horizontal Fit by SWOT model Armstrong cited (Barney 1995: 49), to understand its environment. Also, by SOWT model I have suggested the opportunities that DHL can take in account to improve and reinforce its business performance and objectives. And at last I have concluded my point of view as well as comparison between the two companies DHL and FedEx based on HRM.
DHL Missions, Visions and Goals
Working with DHL
DHL Parcel Gives First Aid Training to Couriers:
Almost 100 couriers took part in first aid courses as part of a project entitled “Safely with Courier.” The trainings are organised by DHL Parcel.
This is built on the two ‘Rs’ – Respect and Results. DHL values its employees, provides them with opportunities to achieve, and together this produces results. Working alongside people who take pride in getting things right 1st Time every time, a Can-do spirit and a positive outlook on life. DHL shares a hands-on attitude, love a challenge and do everything with a smile on the faces.
yearly Employee Opinion Survey recognises the voice – and the voice of all its employees – allowing DHL to influence the way it moves forward.
As a global company it values the diversity of its employees as a genuine strength. DHL organisation brings together people from a wide range of cultural backgrounds – all with different skills, experiences and viewpoints.
Career prospects and opportunities in the Group are the same for both men and women. Although only somewhat over one-third of our employees are women, the percentage of female managers and executives within the Group continues to grow steadily. The overall percentage is 22.1%, and we are working to further increase this number.
In line with the German Act on Equal Participation of Women and Men in Leadership Positions in the Private and Public Sectors, it continues to work towards its goal of increasing the share of women in its principal company, Deutsche Post AG, in Germany to 20% in the first management level and to 30% in the second management level below the Board of Management by the end of 2019. Both management levels are differentiated according to reporting lines.
DHL offers employees and managers special training on the topic of diversity and inclusion. The aim is to sensitize managers to the fact that they play a key role in putting diversity management into practice.
In 2017, DHL developed and introduced a tool which, among other things, enables self-assessment in relation to diversity issues at the team level. Another focal point of its diversity management work involved the development of digital media, including an e-magazine and an app which enable DHL HR professionals to reach employees more effectively.
DHL were also involved in the development of the UN Commission on Human Rights’ recommendations for globally operating enterprises on combatting discrimination against homosexual, bisexual and transgender people, and will help in raising international awareness of these recommendations through its internal communications channels.
SWOT Analysis
Strengths
Highly skilled workforce through successful training and learning programs. DHL is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Top Employer globally Certifications emphasize the Group’s commitment to employee engagement and good working conditions in 2020
Has a strong HR system
Taking in account of external and internal environments in which, the organization acts the system combines:
HR strategies
HR policies
HR practices
AI- based systems for recruitment.
Weaknesses
Non regarding people, organization and principles
Opportunities
DHL almost taking the HR philosophies in account but by focusing more on reward management as well as its marketing strategy would really nail it because any company has its own financial needs therefore it needs to balance both HRM and its marketing strategy to reinforce the company and may be increase wages more than $15 per hour in the future.
The HRM system:
Threats
Non regarding HRM however by rising pay level movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of DHL and if the company ends up by reducing the numbers of employees it is a serios threat toward employees in the future.
Conclusion
From my point of view DHL organization is balancing the business strategic with SHRM very well however DHL marketers has to take in account the threats and risks to mitigate and reduce the future negative impacts on its HRM because if the organization fails in annual profit the most threat is toward employers as the company might decide to reduce the number of workers.
The study shows DHL’s HRM is so far performing much better compared to FedEx.
In the previous blog 7, I have suggested HRM theories and models that FedEx needs to focus on and the SWOT analysis of two organizations illustrates the high level of HRM performance of DHL and low level of performance of FedEx.
Added note:
Also, one thing to remember is that HR professionals can not only rely on SWOT analysis because due to other business aspects it can change but as I don’t have direct access to the information of the organizations the SWOT analysis enabled me to access a little to their HRM environments and performance.
In this blog I am writing about FedEx and the next blog is about DHL to compare the two companies regarding their SHRMs.
First, I have written a brief information regarding FedEx mission, vison and goals also, then about its employment strategy and employees benefits furthermore I have focused on the best fit approach by analysing the Vertical fit and Horizontal Fit by SWOT model Armstrong cited (Barney 1995: 49), to understand its environment. Also, by SOWT model I have suggested the opportunities that FedEx can take in account to improve and reinforce its business objectives. And at last I have concluded my point of view.
FedEx Missions, Visions and Goals
Working with FedEx
FedEx aims to employ the right people:
FedEx has 239,000 employees in 2019 and its recruitment strategy viewpoint is permanently to chose talented and flexible people who share their honesty, honour, creativity and respect for teammates and customers. And believes that employees are the assets who can achieve their business goals
Promotion from Within Policy is designed to support employee career development within the company by giving employees priority in application, consideration and selection for any open positions. This policy aligns with the company’s P-S-P principle.
Open Door Process provides employees with direct access to management to share input, comments and feedback for further consideration.
Guaranteed Fair Treatment Procedure ensures any employee grievances are dealt with fairly and objectively.
Survey-Feedback-Action gives employees an opportunity to offer feedback on the effectiveness of management.
APAC e-Learning enables employees to learn in their own time from any location for job enhancement or personal development.
Tuition Assistance Program financially subsidizes eligible employees in their pursuit of additional higher formal education to enhance career advancement opportunities in FedEx.
AiM (Advance into Management) Program provides employees with opportunities for development and growth into management positions through a structured process focusing on leadership/ management concepts and skills.
1,500 FedEx employees left the company, why?
Roughly 1,500 FedEx employees in the U.S. have left or will soon leave the company after accepting voluntary buyouts, the Memphis logistics giant reported. FedEx said in its annual
report that about 85 percent of the employees who took the cash buyouts left the company on 31 May 2019.
FedEx said in its annual report that about 85 percent of the employees who took the cash buyouts left the company on May 31, the end of its fiscal year. The remainder will be leaving the company during 2020.
How often do FedEx employees get raises?
When employee starts working for FedEx, after his/her first month she gets a small raise. Employee then gets another one after 3 months and after that employee gets a raise every 6 mounts. And all FedEx facilities get a raise in October. 1 month,3 months,6 months,9 months,1 year, 2 years.
FedEx SWOT Analysis:
Strengths
Highly skilled workforce through successful training and learning programs. FedEx Corporation is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
Weakness
85 percent of the employees who took the cash buyouts left the company on 31st May 2019, the end of its fiscal year.
Opportunities
Balancing its HRM by combining the best practice approach and the best fit approach as well as implementing people management in practice
Putting in action the Harvard framework model so the line managers will accept more responsibilities and HR has the mission of setting correct policies and how HR activities are developed and implemented to reinforce the business objectives, Beer et al (1984).
The hard and soft models both must be used to balance so HRM won’t be focused only on the organizations business model.
Applying Social exchange theory, Motivation theory (Freeman, 1984) and the RBV theory (Barney, 1991).
Threats
The remaining employees will be leaving the company during 2020.
FedEx has to recruit new employees which needs time and is costly.
Conclusion:
As I have studied FedEx environment regarding HRM and its SHRM I have learned that only by rewarding, training and employing talented, skilled and flexible people the organizations, or small businesses cannot reduce and mitigate the risks of employees leaving their jobs/roles and using and implementing the right theories and models which fits the organization business type is very important.
As I stand here in the wonders of HRM, I sort of realise there are many fundamental aspects of the impact of HRM. I am learning HRM is very administrative and involved with many data and information and this is where e-HRM becomes essential and useful for organisations as it saves time and is cost effective. This blog is about e-HRM applications and AI which is one of the components. Firstly, I have gathered information about e-HRM then briefly explained its features how each one is used for HR analytic. If there are no accesses to measurements and algorithms how the HR professionals can make the correct decisions? Furthermore, I focused on the components of AI and the specific uses of AI in HRM. Through the blog I have emphasised on e-HRM use in IBM and included types of components of AI that IBM is taking in account. And at the end I have included my view of point.
e-HRM
e-HRM involving computer software and hardware and it is the use of digital technology in form of applications to help deliver HRM services for managers and employees. e-HRM activities are the basic human resources information system (HRIS) “it allows managers and employees access to information and is the facility to interact with system to input information” combined with:
Cloud computing:
can facilitate group collaboration by providing information and ideas to be shared easily.
Chatbots (bots):
Are text-based applications and can be accessed via virtual assistants or massaging apps, they can provide personalised learning, tailoring it to needs of individuals learners by answering questions and providing feedback.
Big data:
Contained of large data that may be analysed to show patterns, trends and associations.
Social media:
They enable managers and employees communicate by dialogues and used widely in recruitment including giving a “voice” to employees.
Smart phones:
Facilitate two-way communication, can deliver learning materials, via special apps can deliver (learning on the move), also can be used for recruitment.
Gamification:
Can be used as a recruitment tool.
Blockchain:
Noted by Iansiti and Lakhami, ‘it can be involved with dealing with employee problems, employee voice’ for example: Whitehouse (2018) blockchain is powered with anti-harassment for the workplace offered by Vault.
New digital and mobile tools:
Are being offered by suppliers to support key HR activities and requirement such as:
Productivity and collaboration like Microsoft skype for teams, Basecamp, Trello and etc.
Engagement and feedback apps.
Performance management apps.
Employee service platforms. offer an integrated service of chatbots and natural language.
Artificial Intelligent
Artificial Intelligence is a component of e-HRM, and it works without programming instead AI learn. It can generate data to empower decision making on people management issues. According to Tata (2018), AI can provide; challenge as much as inform, offer a different perspectives and act as a kind of devil’s defendant to manage stakeholder’s participation and process their views. Noted by, Megan Butler quoted by Jane Sims (2019), AI is really good at thing that human beings are bad at, and human beings are good at things that AI is bad at. Get them together and it’s a great combination.
The components of AI are:
Machine learning
Natural language processing
Deep learning
Neural networks
e-HRM in IBM
According to IBM, at the heart of the platform is an ecosystem of producers and partners that can form tightly integrated networks powered by technologies such as cloud computing, mobile apps and artificial intelligence (AI). E-learning development has been similarly slow, and typical development can range from 80 to 200 hours, depending on the complexity of content, media and navigation in the design. These lengthy lifecycles are not acceptable in today’s competitive environment. In the learning function, a digital platform model can enable organisations to accelerate time to skill in many ways:
the learning and development (L&D) function shifts focus to ensure coherent, relevant content is woven together.
Employees can easily search for and find the right content at the right time, based on a blend of internal and external content providers in the ecosystem.
New content is shared and updated continuously across the platform, so learners always have access to the most current knowledge.
A capability, such as machine learning and natural language processing, enable the platform to remember preferences and provide stronger recommendations with every learner interaction.
Social capabilities can drive curation and quality control better and more effectively.
Personalised learning in IBM
Bite-sized learning, or micro learning, is well suited to meet the needs of today’s professional learners. Talent development leaders will recall the rise of this approach a decade ago in the early days of e-Learning. Today’s micro learning focuses on specific improvements to address these issues and better align to human cognition. The coherent arrangement of bite-sized learning with accompanying activities greatly enhances learning engagement and learning efficacy.
Bite-sized content:
• Created in single concept “bites”
• Developed at speed and scale within the learning ecosystem
• Prioritises the how-to in direct language and rich media
• Arranged for the learner incoherent sequences
• Draws connections to related content to deepen knowledge
• Delivers content that is always up-to-date and easily refreshed
• Enables personalisation through individual curation of content
• Activates “memory retrieval” factors to help retention
IBM OpenPro ERP Payroll and Human Resources HRMS HR HRIS 9
OpenPro ERP is a web based complete ERP software package that is using open architecture that is now enabled on IBM PureSystems. It includes Financials, Supply Chain Distribution, Customer Relationship Management, E-commerce, Workflow, Knowledge base, Document Imaging and Mfg. HRMS, HR.
Blair shares that IBM HR introduced four new key roles in its talent acquisition function: Talent Influencer, Talent Scientist, Data Poet, and Scrum Master.
Talent Influencers serve as business champions and power networkers
Talent Scientists focus on AI-augmented decision support leveraging industrial-organisational psychology
Data Poets utilize analytics to function as storytellers and design thinkers
Scrum Masters lead groups of recruiters through AgileTA sprints.
Conclusion
Data-driven decisions are better decisions it’s as simple as that. Using big data provides managers to decide on the basis of evidence rather than insight. For that reason, it has the potential to revolutionise management, McAfee and Brynjolfsson (2012). I could not say it any better and I absolutely agree with MacAfee and Brynjolfsson however ethical considerations must come into account and paying attention to the AI risks is very vital. By taking into account and focussing on both issues to predict and prevent the adverse impacts on HRM, e-HRM will be unquestionable.
ExpertInsights@IBV (2018) The rise of the digital learning ecosystem: How the platform model is reinventing talent development. Available at: https://www.ibm.com/downloads/cas/O9ZJ2ZXB (Accessed: 19 April 2020).
In this blog I am briefly focusing on what is Reward management and its principles then I will focus on IBM’s Rewarding policies, practices and strategies. Each of the reward management themes need to be studied broadly but my aim of this blog is to study IBM’s rewarding system as it is one of the oldest and successful firms in the world and this is why I would like to learn what IBM is focusing on and taking into account regarding rewarding people. And at the end I have concluded my point of view.
What is Reward Management:
It is very interesting to realize that Rewarding people has different types of principles and if there is not a Rewarding system or a correct Rewarding system organization can end up being less successful. People usually contribute and corporate more if they feel that they are valued and this happens when you recognise and reward them accordingly to what they achieved, Armstrong (2008). As we know Rewarding Management deals with strategies, policies and practices and usually managed by the HR function and it is the front-line managers who apply and influence on how people are valued but also how line managers use the reward system depends on the organization’s reward system. Having said all above, Reward Management has two vital questions: 1) How do we value people? 2) How are we going to reward them according to that value? Also, we need to consider the aims of Reward Management “but, Ghoshal and Bartlett (1995) emphasized on that reward management is essentially about adding value to people and it is not about attaching value to them” and Reward Drivers. which is argued that it has three important determinants: 1) Internal relativities 2) External relativities and 3) Performance.
Furthermore, taking in account the level of rewards and reward strategies is very important, Kogan Page (2009). There are three types of rewarding: 1) Financial reward 2) non-financial reward 3) total reward, but total reward is not an easy option and it is outdated according to Warldat (2000) and Brown (2014).
IBM Types of Reward
Total reward is a promising approach to rewards management that has been adopted by such technology-intensive firms like IBM, Microsoft, AstraZeneca, and Johnson & Johnson. Total reward takes a holistic approach to rewards, going beyond the strong focus on pay and benefits which has been the hallmark of traditional compensation practice. Total reward considers all the rewards available in the workplace, including opportunities for learning and development, and quality work environment. Because these rewards are a high priority for technical workers, total reward offers an opportunity to tap the unrealized potential of the organization. Effectively managed rewards will ease the critical attraction, retention and
motivation challenges faced by high-technology firms. IBM reaps rewards of employees who think on the job. Rewarding staff for bright ideas is a way to boost the company’s profitability and motivate the employees at the same time, IBM (2006).
IBM Strategy; Reward System Design
IBM before taking any step first is questioning itself:
Ready or not? Ask yourself these questions
How does your current employee experience affect the attraction and retention of critical job roles within your organization?
How could improving your employee experience increase productivity within your organization?
To what extent does your employee experience influence your customer experience?
Who has primary responsibility for designing employee experience within your organization? How does a person or team bring others together to address employee experience issues?
What types of analytics are you using to evaluate the effectiveness of your employee experience?
IBM Benefits Summary IBM offers a competitive benefits program, designed to support you and your family across all dimensions of health: physical, mental, social, financial, and purpose.
Key features:
Health Benefits Portfolio that provides strong support for your well-being and preventive care, comprehensive coverage to meet a range of medical situations, and solid protection against the cost of serious injury or illness.
Retirement Program that helps build future financial security through a leading-edge 401(k) plan and other capital accumulation programs.
Income Protection in case of serious illness, injury or death, including life insurance and disability benefits.
Opportunity to follow leisure pursuits through vacation, personal leave and holiday plans.
Eligibility: You are eligible for all applicable benefit programs, except the IBM Employees Stock Purchase Plan, beginning with your first day of employment. Health care coverage (medical, dental and vision) is available for you, your spouse or eligible domestic partner, eligible children and other eligible dependents.
About Employees Health, Life and Disability Benefits
IBM provides a range of options to allow you to design a program that meets your personal or family circumstances. You can enrol in benefits when you first join IBM, and you’ll have the opportunity to review and change your benefits each year during the enrolment period, usually held in the fall. You pay for your share of benefit coverage through payroll deductions.
On the next page you can see the table of IBM Rewards: Financial, Non-financial rewards, Contingent pay, employee benefits.
IBM pay bonuses
IBM Global Services pays an average of $4,274 in annual employee bonuses. Bonus pay at IBM Global Services ranges from $1,500 to $9,759 annually among employees who report receiving a bonus. Employees with the title Associate Partner, Consulting Services earn the highest bonuses with an average annual bonus of $9,759.
IBM’s Employees reviews
Here are the reviews regarding IBM Rewards also you could click on Glassdoor to read more.
“Salary hike is not that attractive” (574 reviews)
“Nothing but career growth will be minimal” (555 reviews)
“long hours, hard work all the time” (548 reviews)
Conclusion:
According to IBM’s reward system and the reviews, I have understood that financial reward is not the main key of rewarding people to increase engagement and productivity and employee satisfaction. The other key rewards such as non-financial reward and benefits encourage people to contribute more to improving the business performance. Also, it is said that the total management is easy in concept but not in action and there is a critical evaluation of the total reward for example by: Giancola (2009), Worldat (2000), and Brown (20019) however according to the reviews IBM is doing good and can improve much better by being critical on total reward via implementing and focusing more on employees voice.
