The Great Coffee Shop
The Great Coffee Shop was opened with the aim to be the coffee house for the locals. The goal was to provide them with quality products and services more than that of the competitors. Moreover, The Great Coffee Shop wanted to meet the high demand for coffee that has been existed over a long period of time. The product of the business shall be coffee with the main objectives of the business being to be the best coffee shop in the market. Moreover, the company hopes to realize a 15% net profit margin within the first years and 40% by the end of the fifth year; to participate in community-related activities actively; provide adequate re-investment opportunity after the fourth year of operation ;and also contribute to the welfare of the locals by supporting charitable and civic activities in the community. The vision of the business also called the long-term strategy is to realize an 80% net profit margin in the next ten years to also open at least two branches of the business. This vision serves as the ten-year strategy of the business and shall serve as the paramount objective if the business.
A number of measures has been employed to ensure effective management practices.
The business has excellent opportunity to enhance its market share, create new market segments and build customer relations due to the diverse nature of the skills and ideas presented by the management. The keys to success factors of the business include proper store designs that are visually attractive to the customers for fast and efficient operations, adequate employee training to ensure the best practices and marketing strategies for building a solid customer base. With the help of market research, the team realized that there were few coffee shops in the market, most of which were associated with low-cost leadership strategy. Thus, Great Coffee Shop has a great opportunity by using differentiation strategy to build a strong customer base.
Human Resource Functions and Key Roles
Human Resource Roles
The Human Resource Management shall determine the quality of the workers, hire and fire employees, maintain interoffice relationships, train and develop the stuff, and interpret the various employment laws (Datta, Guthrie and Wright, 2005). It shall also set and evaluate the compensation structures and benefits of employees, labor regulation compliance to prevent complaints due to unfair employment practices, training and development (Louise, 2015).
Provision of Talents and Skills to Meet Business Objectives
The Human Resource Management shall organize staff training and development. The training sessions shall be designed to present an excellent opportunity for business expansion and create a knowledge base of all the employees to address various weaknesses, improve workers’ performance, ensure consistency and satisfy their needs. In turn, the latter assists to retain the right people and grow organizational profits thereby unlocking the business's potential. Training sessions to ensure that job safety as per the Occupational Safety and Health Act and to ensure a proper employer-employee relationship are maintained shall be provided (Mwaniki and Gathenya, 2015).
Influence of Legal Frameworks on HR Functions
Human Resource department shall comply with various employment, health and safety laws and regulations applying to the authority under which the business operates which include federal, local and state laws in the exercise of its practices such as recruitment, employment selection, and termination and employee relations. The Human Resource department shall also keep up-to-date information on regulations to ensure that the business remains compliant and prevents costly penalties. In the prescription of standard wages and hours, health and safety of the staffs, retirement packages, health benefits, and compensation of the employees the Human resource shall be bound by the applicable laws.
Human Resource shall in its practice comply with both domestic state laws and international laws for the business to meet the globalization impact without any national or international penalties(Mwaniki and Gathenya, 2015).
Responsibilities within the HR Functions
The Human Resource during the recruitment process shall captivate, screen, and select potential and qualified employees based on the objectives of the business. The Human Resource shall also execute proper staffing plans, grade employees, engage competent, motivated and skilled employees. The Human Resource shall conduct an orientation to help new workers understand their assigned duties, job description, role and the relationship between the work position and other ones within the business. The Human Resource shall also provide a safe and healthy workplace, financial and non-financial benefits, employee welfare, balanced work-life practices and promote job satisfaction practices. The Human Resource shall organize activities that help understand workers at personal and professional levels, improve the healthy and balanced link between the employer and the employees
HR Functions to Include in the Business
For the sake of the Great Coffee Shop, recruitment practices such as attracting talents and hiring resources and training shall be considered. Through recruitment, the Human Resource personnel will plan and devise strategic campaigns and guidelines for identifying suitable candidate needed for job description. The recruitment function shall be comprised of different objectives: attracting talented and skills workforce and hiring resources which shall start with planning organizational needs, gauging HR requirements, and establishing a plan of action for the workers followed by employee training and development on the coffee business so as to meet the success of the business (Bagga and Srivastava, 2014).
The Great Coffee Shop shall include all these functions listed herein this section to realize a strong employees team that is productive ad works towards the realization of the objectives, mission and vision of the business.
Recruitment and Selection
Strengths and Weaknesses of Recruitment and Selection Approaches
Once the Human Resource creates the job description, it shall decide on the most suitable method of advertising and attracting the best candidates. The common recruitment and selection approaches for such businesses include internet recruitment, using public and private recruitment agencies, apprenticeships, referrals, press advertising, unsolicited applications and social networks. The strengths of online boards include cost-effectiveness, fast recruitment cycle, efficient coordination of vacancies, global reach of potential workers, and consistently handle high-volumes of applications. However, the weaknesses are discriminatory to the computer illiterate, poorly designed websites and technical to navigate potential turn-off applicants, damage the institutional brand and a large number of applications since there is no cost involved.
Recruitment agencies are also vital in selecting qualified workers from the market. However, these entities provide temporary and permanent placements. The strengths include available specialists with knowledge of the needed employees, highly responsive to the needs of the organization, provide high-quality workers as it focuses on only pre-screened and pre-referenced candidates, and reduced administrative roles for the business since the agency performs on behalf of the client. The associated weaknesses are less reputable firms may consider adopting a scattergun approach, which involves sending many candidates of which some may lack adequate skills and talent requirements (Randstad, 2018). Moreover, most candidates prefer dealing directly with the potential employer. Search consultant is another approach that businesses use when a vacancy is expected to remain out of the public domain.
Press advertising approaches such as recruitment methods shall also be considered by the Human Resource. Potential candidates with specialist skills often seek the employment opportunities in relevant professional journals, which are increasingly having an online presence. The strengths include positive communication of recruitment messages and brand, reinforcing the corporate message and building brand awareness and trade publications targeting candidates with specific skills and experience. According to Randstad (2018), the weaknesses of press advertising include limited to those reading newspapers and journals, high upfront cost with no guaranteed success, the high cost of administration, low responsiveness, limited tracking and reporting on organizational success. Professional referral schemes are also approaches used in recruiting and selecting employees. The method presents strengths such as high-quality candidates, better employee retention rates, and fewer costs involved in the administrative roles. However, professional referral schemes present specific weaknesses such as a limited pool of candidates, the poor creation of a diversified workforce, the distraction of employees from other functions and referral rejection.
Appropriate Recruitment and Selection Approaches for the Great Coffee Shop
With the change of businesses operate induced by technological developments (Parameswari and Yugandhar, 2015). The Human Resource shall consider the following different forms of recruitment available on the Internet. The use of online recruitment portals where candidates will fill in their profiles and send emails to the HR department is very important. The method is simple, cost-effective and enables high organizational responsiveness. The online platform will involve the usage of social network sites such as LinkedIn. The technique presents significant strengths including an efficient way to reach the connected generation, easy approach to build a relationship with potential candidates and measurable method through digital analytics tool.
Finding and keeping great talent is the priority of each business. Thus, the employee selection process is vital in ensuring organizational success. For the company, the appropriate selection methods will be based on personality and skills tests. Since a Coffee shop requires specific skills, Testing ensures that the candidates have at least a minimum set of necessary skills. Thus, the management will determine what is appropriate for the business and job offered then setting the minimum skill levels. The tests will be administered online, at the convenience of the candidate. Personality tests will be conducted to determine if the candidate has the personality required to succeed in the job. The coffee shop requires candidates who are comfortable to speak with strangers. There are several test methods. However, the business will use the Myers-Briggs Type Indicator Personality Test.
Starbucks Corporation (First Example Company)
HR Practices in the Company
Starbucks Corporations uses its human resource management practices and policies to gain a competitive advantage and drive its overall success and globalization efforts (Bartleby, 2018). The company has enhanced a workforce mindset and culture through helping employees grow. As one of the global companies, Starbucks Corporations receive many international applications thus to ensure adequate growth and development of its employees, it has embraced internal advertisement practices. Starbucks' employees are considered to be partners, and while doing surveys regarding overall job satisfaction and commitment to the company, employees are paid since studies are conducted during the working time (Bartleby, 2018). As a result, the business aligns its workers with their fundamental values to create a workplace where employees treat each other with respect and dignity.
During the selection process, the company uses the interview to gather the necessary information from the candidates. Applications often provide a basic outline of the contender's knowledge, experience, and knowledge. Thus, through interviewing potential applicants, Starbucks gathers detailed information including personality traits, characteristics, expectations, confidence level, knowledge of the company, and work ethics. Other effective HR practices include employee training and development, compensation, and welfare of the workers, work-life balance, and promotion based on performance (Bartleby, 2018).
Benefits of HR Practices
Employees are valuable organizational assets and to yield the needed success factors, Starbucks has integrated various universal personality traits into its objectives (Parameswari and Yugandhar, 2015). The company has also recognized the changing market patterns. Consequently, the business has trained its employees to meet the ever-changing needs of the customers which have exposed them to new market practices and compliance with the standards required. With proper training, employees are more efficient and productive. In Starbucks, an orientation is done for the new workers to gain organizational knowledge such as goals, vision, and mission. Such practices allow workers to think in a similar direction and decide on the interest of the organization.
Starbucks always considers its employees to be the partners (Bartleby, 2018). Therefore, their compensation and welfare are based on performance to motivate and retain them within the organization. For many years the company has used both monetary and non-monetary benefit programs to motivate its workers. Some of the plans include flexible practices, health insurance, and work-life balance. Such practices have brought employees closer to the top management helping make organizational decisions, enhance employee and organizational productivity. HR practices have also assisted the business to retain competent, high performing, and satisfied workers. Engaged employees in the management practices feel part of the organization and can work an extra mile to ensure that organizational success is achieved.
HR Practices and Organizational Profitability and Productivity
During the recent years the roles of the Human Resource departments have expanded to include ensuring increased organizational productivity. Human Resource managers are now mandated to provide a positive employer brand, creating incentives that enhance employee engagement and productivity (Leghari, Suleman, Leghari " Aslam, 2014). Starbucks' productivity has improved over the years through conducting an employee survey to discover impeding factors, if the workers are comfortable at work, understand organizational career ladder, and promotions. Employee productivity has also improved through flexible work options available within the company. The Human Resource programs increase productivity by reducing environmental stress, elimination of impromptu meetings, and enabling better concentration at work. Productivity also depends on creativity and innovation support. While it is important for HR to set guidelines and employees' expectations, there is a need to provide room for flexibility, innovation, and creativity.
To boost corporate profitability, the Human Resource has two important avenues to build profit: cutting the cost and assisting in the generation of organizational revenues. Cost cutting is the easiest way to boost profits. At Starbucks Corporation, the HR cuts cost through using technology to provide some employee self-service, which enables employees and top management to pursue e-learning, get answers to various questions associated with stock and compensation, and manage performance without seeking assistance from the HR professionals. High labor costs reduce the organizational profit base (Datta, Guthrie, and Wright, 2005).
Google (Second example)
HR Practices in the Company
Human resource management at Google starts with the recruitment and staffing of employees. The overriding principle of Google is to get the right person for the correct position. The Human Resource team advises on a specific job vacancy which in most cases attracts about two million applications with the applicants tendering the applications to Google electronically. Once the application period lapses the applications are closed, and no more applications are accepted. The Google recruitment team conducts the recruitment. Google does not have an internal recruitment team. What happens is that the Human Resource team comes up with a team of recruiters. The recruiters are mainly a team of professionals knowledgeable in the field which requires a new employee. The reason why Google uses external recruiters to enroll employees is that external employers will have a minimal bias as to who to consider in awarding the job vacancy. This is owed to the fact that they will not work with them or won't interact with the newly hired employees after the recruitment period.
Benefits of HR Practices
Google believes in nothing but the best; as a result, the firm believes more in skills than experience. Thus, Google engages in the hiring of smart people at the expense of experienced people. Google also believes in motivating employees by paying massive salaries. It is a belief that the motivation factor of a person to get a job is his financial breakthrough; as a result, an employee should be paid a salary that guarantees him/her economic prowess. Second Google believes in capacity building. Several orientations and training sessions are conducted to both new and already of ensuring that y existing employees with the main agenda of ensuring that the employees acquire experience.
HR Practices and Organizational Profitability and Productivity
The recruitment process of Google is considered to be lengthy, complicated, and not straightforward at all. As a result of the latter factor, many applicants who meet the selection criteria are barred from the application. Secondly, such practice is costly for Google in terms of time and funds. The productivity of this Human Resource strategy is that it builds a strong employees team with a proper understanding of the objectives of the business. Productivity is the principal purpose of The Great Coffee Shop, and to achieve the two-year plan, four-year plan, and the mighty ten years plan the Human Resource Management shall mainly focus on Human Resource practices that guarantee high productivity.
Internal and External Factors Affecting HRM Decision-Making
Case Scenario of a Poor Employer-Employee Relationship
Apple is one of the best performing multinational corporations. The company has a massive investment in human resources, research and development (R&D), and production of products that meets the changing tastes and preferences of the customers. Some of the methods used to establish an effective employer-employee relationship include offering effective work-life balance and treating employees working in various departments equally. Despite being among the best-performing businesses, Chinese workers are complaining of mistreatment by Apple Inc.'s management. They are considered to be of less importance than their counterparts in the U.S. Such injustices include working illegally for long hours with less payment. Employees are the primary determinant of organizational success (Hays, 2013).
Impacts of Poor Employee-Employer Relationship on Business Performance
Practices such as those of Apple described above reduce organizational profitability, sales revenue, innovation, and product development since they demotivate employees. Moreover, the poor employer-employee relationship often introduce experienced, talented, and skilled employees to consider employment in other competitors who value them. Employees are highly innovative when valued and engaged in critical institutional decisions. With the rising number of customers concerned with corporate social responsibility (CSR), Apple has been in the global domain for failure to comply with vital human rights. As a result, its customer base declined to lead to reduced profitability and sales revenue in the major global markets.
Employee Relations in HRM Decision-Making and Legislations for Consideration
HRM decision-making and employee relations are crucial components of industrial democracy. It has since time immemorial been recommended by several writers and successful Human Resource Managers who have worked in huge corporations that have demonstrated good Human Resource Management practice. The rationale behind the increased number of workers participating in managerial decisions is that the rights of the workers on participation have been surpassed by organizational globalization and amplification of competition. To remain relevant in the market the bottom-up approach should be considered. The method involves integrating the views of the employees before making the final business decision. These practices enhance the level of engagement and employee commitment towards achieving business objectives. Besides, involvement in the decision-making process reduces the communication barriers existing between the top management and employees; which in turn assists to improve employer-employee relations. There are various elements of legislation that Human Resource Management should consider while making decisions: The Employment Relations Act, Employment Right Act, the Disability Discrimination Act, the Sex Discrimination Act, the Working Time Directive, the Equal Relation Act, and the National Minimum Wage Act.
Creating Relationship, Engagement, and Work Practice
Developing and maintaining a good relationship with the workers is essential in tracking various work progress and understanding some of the challenges experienced by the employees (O'Brien, 2014). To create a good working relationship with the employees, the Great Coffee Shop will focus much on employee engagement in making vital decisions, motivate workers using monetary and non-monetary measures, and building a flexible workplace that allows employees to balance their work and personal life. In the modern work environments, people are more diverse and so are the skills that they present to the business. Therefore, it has become easy to maintain flexibility. The company will provide a flexible workplace by offering flexible designs of the work environment, assignments, the composition of teams, job location, a method of accountability and communication. There shall be a high involvement of employees in the management and
References
Bagga, T., " Srivastava, S., 2014. SHRM: alignment of HR function with business strategy.
[Online] Available at: doi:10.1108/shr-03-2014-0023 [Accessed 2/11/2018].
Datta, D. K., Guthrie, J. P., " Wright, P. M., 2005. Human resource management and labor productivity: does industry matter? Academy of Management Journal, 48(1), pp. 135-145.
Hays, J., 2013. Apple and foxconn: work conditions, problems and changes, facts and details. [Online] Available at: http://factsanddetails.com/china/cat9/sub61/item2282.html [Accessed 2/11/2018].
Leghari, J. M., Suleman, U., Leghari, I. B., " Aslam, S., 2014. Role of HRM practices in performance of organization and employee retention. European Journal of Business and Management, 6(31), pp. 219-223.
Looise, J. K., 2015. The role of government and regulation in HRM. A historical perspective. [Online] Available at: https://www.researchgate.net/publication/301232287_The_role_of_government_and_regulation_in_HRM_A_historical_perspective [Accessed 2/11/2018].
Mwaniki, R., " Gathenya, J., 2015. Role of human resource management functions on organizational performance with reference to Kenya power " Lighting Company. International Journal of Academic Research in Business and Social Sciences, 5(4), pp. 432-448.
O'Brien, P., 2014. Why strong employee/employer relationship is important and how to achieve this? [Online] Available at: https://www.business2community.com/strategy/strong-employeeemployer-relationship-important-achieve-0876781 [Accessed 2/11/2018].
Parameswari, B. N., " Yugandhar, V., 2015. The role of human resource management in organizations. International Journal of Engineering Technology, Management, and Applied Sciences, 3(7), pp. 58-63.
Pratap, A., 2017. Google's human resource management strategy. [Online] Available at: https://www.cheshnotes.com/2017/03/googles-human-resource-management-strategy/ [Accessed 2/11/2018].
Randstad, 2018. Different recruitment methods: advantages " disadvantages. [Online] Available at: https://www.randstad.co.uk/workpocket/finding-candidates/different-recruitment-methods-advantages-disadvantages/ [Accessed 2/11/2018].
