Measuring HR effectiveness

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Sony is a Japanese company headquartered in Tokyo. The company operates in a diversified industry, including electronics manufacturing, entertainment, gaming as well as financial services and is one of the market and customer leaders of such products. The aim of the business is to encourage and satisfy the interest of the customer. The view is unlimitedly passionate about technology, services and content. The business wants to explore creativity that lets it offer innovative new entertainments and excites such as the development of cultures and experiences in very specific ways. Everything done is purposely to move the clients emotionally (Rothaermel).

The core values of any business are the glue that joins the best companies together. Sony ranks its values as the best and gives them high priority as well as pace them as the business center point to guide through daily operations. They include: being honest, fair and transparent to how they deal with customers, employees, stakeholders and vendors; being passionate about anything that the company does. Also, looking forward in our thinking and welcoming beneficial changes; respecting the employee dignity and encouraging professional diversity. Sony plans to contend with the challenger phone manufacturers such as Samsung and apple on mobile payments to enter into new markets such as Asia. It wants to use this technology in the transportation sector through implementing it in trains across the continent. The primary plan is to ensure generation of profit and growth through investments.

State the HR function you have selected and your chosen policy.

I chose the policy on occupational health and safety (OH&S). The HR department should design programs that make workers feel valued which in turn make them motivated. They should also ensure the provision of highly challenging, stimulating and supportive work environment with profound reputation. Recording individual worker incidences especially the adverse one would be beneficial in future. Such recordings can be used to promote, demote or prevent employees from being developed; meaning means that the HR comments have a capacity of deciding your fate within the company. The health and safety of every employee are crucial to their confidence at the workplace.

The company also has an established diversity committee reporting to the CEO to make sure inclusion in every department. Moreover, it implements policies regarding recruitments, employee training as well as securing promotions of diverse people in critical positions, helping in uniting all divisions of human resource issues to work together as one. Those processes are guided by the AHSAS18001 occupational safety standards and health as well as its Global Policy on OH&S. The company went further to develop and establish a proprietary OH&S system for its every site globally. Furthermore, it adopts schemes and initiatives that help workers discuss their concerned matters including human right issues and risks, child care, work-life balances, LBGT rights as well as the nursing care. Sony has a global survey for employees to access and analyze their views and help address them quickest possible. I would choose performance as the HR function for this paper because workers deliver depending on how the HR perform.

Explain what you consider are the key points of your chosen policy. If there are any procedures or processes within the policy, provide a brief overview of them also.

The company understands the necessity of OH&S in all groups worldwide. The policy observes all laws, agreements and regulations related to it and establish independent standards of improving management abilities of OH&S to help in practicing them beyond what the law stipulates. The second one is developing and maintaining an appropriate organizational structure that specifies responsibilities for promoting OH&S operations in all the group companies and organizations. The third aspect of the policy is performing OH&S risk assessments in evaluating potential threats and hazards by use of scientific analysis in all operations; respect the employee voices because their health and safety are ensured through communication with top management. The policy also demands conduction of an adequate training to all workers and exchange of information with other firms that perform services on Sony location to secure OH&S; conduct information activities and internal promotion to improve safety awareness. Also, it demands to undertake of OH&S audits to enhance its management systems; participation of public OH&S operations of both local communities and governments; develop and come up with new methods and technology to protect the OH&S of workers and finally investing the relevant capital to enforce the policy.

What legislation, regulations and/or standards are related to the policy and why

In every branch of Sony in Japan, OH&S committee consisting of management and the labor force meets once every month to develop OH&S policies in concern to every business site. It also establishes targets, implement initiatives and develop action plans to protect healthy and safe workplace. Managers gather at OH&S conference held not more than twice annually and from here, they report targets, OH&S policies as well as strategies and then communicate to every sector of the company (Nadvi et al. 243). Also, they discuss audit results, accidents at workplaces, risk lessening at the business site as well as initiatives that can be used to improve and maintain health. Some of the legislation involved with this policy include the “health and safety act” and the “management of health and safety at work regulation 1999”. Local authority and the government enforce the two laws. They would help in providing advice concerning the health and safety of all employees.

The company is committed to achieving its vision zero goals through initiative persuasion under a set of priority measures to ensure risk assessment and improve the worker’s wellness. As an opportunity to give room to the `legal and regulatory trends in this policy, an in-house staff developed a regularly updated to provide information and is used to determine whether the changes on law and regulation applies to Sony. Also, the corporation created a framework to ensure site supports especially those affected by such changes of the statute by disseminating updated information and enforcing strict compliance standards. Information on legal matters concerning OH&S is included and published for the Japan companies aiming to enhance employee level of compliance.

Identify the key stakeholders related to both this policy and the HR function you have selected for review

The technical committee of OHSWG Japanese professionals of health and safety, disaster prevention as well as environmental protection prepared the policy while guided by OH&S committee. The draft then, reviewed by ten other professionals of Sony companies abroad. It intends to offer direction on the appropriate protective activities of OH&S to all the Sony group companies globally. Here, human resource managers serve the employees at different levels such as benefits, train and employee relations. They also coordinate, plan and direct the organization’s performance functions. It shows that HR stakeholders in this role and policy are the workers including supervisors, OH&S committee, community, contractors, OH&S representatives as well as the HR managers themselves.

Using the policy selected in Question 1, list a minimum of three strengths and three weaknesses of this policy. Explain why you consider these to be strengths/weaknesses.

Advantages of OH&S policy

Personally, I would consider having Occupational Health and Safety services within the company, or otherwise, I would be endangering the business. Some of the things that managers should give consideration include legal; the primary reason as to why businesses engage in this service is to ensure employee protection, and there is a given constitutional law that demands employee to be protected such as the control of noise and substance harmful to health. But I would recommend firms apply it at high risk works such as asbestos, compressed air and lead which can seriously injure the workers. Here the law demands statutory medical covers. Also, peoples with disabilities can benefit since it is a long-term health issue making individuals fall under the Equality Act and employer have to make specific concessions. Another situation is where the substances or machine used produces effects that require surveillance such as noise or chemicals.

The second advantage involves safety; if workers operate with earth movers or have to climb high on scaffolding in a construction work, they require a high medical fitness than those working in offices. Some jobs such drivers or guards cannot start without medical clearance. It is recommendable because it ensures employee safety and hence increasing their motivation.

The third advantage is product related; this service can offer immediate access to medical professionals and do not have to wait for specialists. One place that this is essential is where the product under your guard is affected by the employee’s health. In situations where the employee has a disease such hepatitis B or even HIV, vaccination program to employees is essential.

OH&S also helps the company to trim the absence rates. It becomes costly when people take time off due to sickness. Medical professionals can challenge such people by producing the health status of an individual and decide the validity of the illness. Professionals should then report the findings to the managers as recommendations, and from here, the management can choose between taking disciplinary actions or providing for the illness. Best practices; if Sony Company has a plan of improving its PR and attracts more workers; OH&S is a better deal and can also help to reduce local HHS services.

The disadvantages of having this policy

Cost

Doctors and nurses need payment for their services. An in-house medical staff requires specialist insurance, training and continued professional advancement. OH&S is a qualification for both nurses and doctors, but they are few with high demand that results in increased cost. When an employee falls sick, he must be offered time off to go and attend medication while still on the payroll at that time. Training; to ensure an effective and efficient OH&S, you have to train managers, trade unions, HR and employee on the responsibilities and everything is under the company’s cost. Mostly, OH&S becomes dysfunctional in the case where there was no training. The company also is required to write policies and procedures covering the referral’s main points, management actions, and health surveillance.

Confidential

When workers talk to the occupational health, the shared information comes from the custodian of the medical sector. Then if managers have concerns about the employee’s absence they can have the information from the occupational health service and get the real picture of what could be happening. Sometimes, managers find the OH&S as an impediment to managing workers.

Conflict of interests

The third disadvantage of this policy is the perception that there exist conflicts of interest between the responsibility of the enforcement officer and the consultation and training staffs. Employers should consider being transparent with the employees on matters regarding health and safety.

Make recommendations on how this policy could be improved.

Employers should ensure they employ trained staffs and also continue to educate the existing one since technology keeps on changing. If not taught, they shall hold obsolete skills that can harm the daily operation as well as their health. Mechanisms of talking regularly to them should also be laid to ensure discussion on health and safety. When incidences occur, the employer should investigate it and derive a conclusion and also keep records concerning the issue. In protecting all workers, then the workplace should often be inspected to eliminate any avoidable risk. Finally should plan and create a means of controlling hazards within the workplace. The employees should know about the developed plan such as first aid kits and fire extinguishers systems.

Part B

Outline a HR initiative that you believe would add value to the way your organisation (or the organisation described in the case study) will deliver its business goals in the next three years. Include in your answer some background information as to why you have chosen this HR initiative in the context of the organisation’s goals.

HR managers should use the best practice to act as a guide and not as a rulebook. Executives should have their participation in conferences of both the general industry and those that focus on the company expertise. If both managers and executive learn the most exceptional and latest innovation and then practice them, they would become a guide in making internal decisions that would, in turn, result in quick development. HR should understand the business and the CEOs should know the employee population changes (Epstein). Business people strive to share information and best practices, but it becomes challenging to treat them low within the culture. Such methods can be used as launching pad for the innovation around the lifestyle and needs of the organization; it should work as a compass instead of a roadmap. With this initiative, Sony Corporation would have a stable platform for evolution to the changing technology. Growth would also become an integral part of the company since it is the renewal of capabilities and increase of the activity scope. Some reasons for growth are; becoming more competitive and efficiently utilizing the company resources.

Identify who the stakeholders are for this HR initiative (minimum of three), describing their relationship to / interest in the initiative.

The stakeholders of the initiative using the best practice to act as a guide and not as a rulebook would include the HR managers themselves, The CEOs and all the other top executives, the employee including supervisors and trainers and also contractors coming with new technologies infrastructures.

For each of the stakeholders, list at least three business related benefits to them if the HR initiative is implemented.

If the company implements the above initiative, every stakeholder shall have some benefits to take home. For the HR managers; one of the reasons would be profitability after enhancing the skills of employees to cater to the demands of the business. The second benefit would be funding since they can justify it to provide for various activities such as training, the development of employees as well as for competitive salaries. The third reason would be perception because for long, people have viewed them as a department for hiring and firing but after the implementation of this initiative, they can create a significant influence to the employee satisfaction and continue to become the firm’s integral part (Dash & Bidya, 85).

To the CEOs and all the other top executives; the company gains the ability to invent unique products or selling strategies that would give it a competitive edge; it becomes well positioned. The second advantage would be that they can now get higher financial returns that would also load their pockets. And the third merit is the image, the success of the implementation of such an initiative brings new ideas, the CEOs and executives carry most of the victory advantages and become an example within the industry.

Employees; most of them shall receive training that will make them more competitive at the company’s cost. Another benefit is that, after being educated, there is a possibility of salary increment and hence can enjoy better fruits from it. Beside salary increment, they are also likely to experience more benefits such as vocational and leave payments among others.

Contractors; to implement the initiative, some infrastructure changes may be required such as computers and other technological products. Contractors become the first people asked for their provision and hence make more money. The second advantage would be the likelihood of referrals, which would lengthen and extend the relationship with other companies and in turn acquire more money, reputation and grounds of improving their business. Contractors also get the opportunity to mix with other employees and gain more information.

The quantitative and qualitative measures (minimum of two of each type of measure) that you propose to use to support your case.

The quantitative measures that I would use for this initiative include cost per hire; it is one of the most common and used to determine the training, recruiting and maintaining expense of permanent personnel. Factors considered include time spent interviewing or sourcing employees, time for pre-employment assessment, orientation to the new hire as well as processing the packets. The second quantitative metric would be the employee engagement; it is the worker’s enthusiasm level on the job. Self-reporting is the sole means that can be used to measure this area, and the best way is through asking same sets of question over the year. An example of such items is “on a scale of 1 to ten, where do you rank yourself for the job.”

Qualitative measures

This method focuses on collecting non-numeric information exceptionally soft skills such as effective communication, how the new hire adapts and how they collaborate with other team members. Some examples applicable to this initiative are the teamwork value to success and why employees stay or leave the company. Some of the tools usable here include surveys, interviews, ethnography and focus groups

What workforce data you will gather and analyse to assess the impact of the HR initiative.

I will collect the data concerning the employee engagement because it is the one that helps to realize positive outcomes within an organization (Ali). It correlates with the level of quality, innovation, attendance, productivity team member turnovers, reduced claims of compensation by workers and also an increase in earnings before taxes, interests and depreciation. The method I would term as best is checking in regularly through the use of pulse survey. All employees are asked to answer either monthly or even on a weekly basis. This process is quick, accurate and dynamic. Depending on the answers I get, an analysis should be conducted to gain an insight of what level of engagement held by the employees. If roughly more than 60% of them feel impressed and comfortable with the company, then HR should be happy. But in the case where the results are too high such as above 95%, then that should be the benchmark to help the managers seek more understanding of the information.

Because HR should never rely only on the employees to get informed, I would also collect the data directly from clients where in most cases they are willing to give information concerning the workforce. The information here would be measuring the customer satisfaction, and then the data collected here help in deciding bonuses for the senior managers and the promotion of various employees.

Calculate the anticipated Return on Investment (ROI) for the HR initiative and show your findings.

The savings from the first year shall be the cost of not pursuing the initiative less the cost of pursuing and the cost of the program. ($1,166,040-$908,280)=$257,760. The initiative produced a saving of $257,760 with a cost $100,000. From here, we can calculate benefit to cost ratio. B:C=$257,760/$100,000=2.58. It is an indication that in every $1 invested $2.58 is saved. From this situation, the net profit is $257,760-$100,000=$157,760. Then the ROI is calculated as net benefit divided by the investment and given as a percentage. ROI=($157,760/$100,000)×100=158%. The meaning here is that, in every $1 invested and then the profit is $1.58. The benefits are expressed as annual representing the gained amount over the year after the implementation of the initiative.

Year1

$1,201,021-$935,528-$50,000= $215,493

ROI=(net profit/cost)×100

($215,493/$50,000)×100=431%

Year 2

$1,237,052-$963,594-$51,500=$221,958

ROI=(net profit/cost)×100

($221,958/$51,500)×100=431%

Year 3

$1,274,163-$992,502-$53,045=$228,616

ROI=(net profit/cost)×100

($228,616/$53,045)×100=431%

The last three years had a consistent benefit of 431% meaning in every $1 used as a program cost, $4.31 is saved as profit

As a result of your research, analysis and calculations (i.e. responses to Questions 5, 6 and 7), write some recommendations to support your business case for the HR initiative. Explain your reasons for making these recommendations and also identify potential barriers to implementing the HR initiative.

The HR has delivered from the best practice initiative with a benefit of 63 percent, and hence he can be termed as a high performer. However, the goal of every company is to continue increasing the revenue generation, and if this initiative can be utilized more to produce a better result, then it would be the best for adoption. The HR can decide to implement technology and reduce the number of the employee. Also, he can trim the training cost by providing the most required facilities within the company. Eventually, the cost of production shall be reduced significantly and help the company acquire a competitive edge. Businesses should provide a better workplace for the employees to have pride in their work. The results of such provision would be workers commitment towards delivering. Some of the challenges expected in the implementation of this initiative are funding; The HR has to convince the executive concerning it for them to agree to release the money. Another challenge would be the employee responses, some shall face retrenchment after being replaced by the technology, and that is not expected to receive a warm welcome; it can even become a legal case.

Work cited

Ali, Smitha Syed. “REVIEW OF LITERATURE ON ENHANCING HR EFFECTIVENESS THROUGH WORK ENGAGEMENT.” (2016).

Dash, Bidya. “Employee engagement and HR initiatives:-A conceptual study.” International Journal on Global Business Management & Research 1.2 (2013): 85.

Epstein, Marc J., and Adriana Rejc Buhovac. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers, 2014.

Nadvi, Khalid, and Gale Raj‐Reichert. “Governing health and safety at lower tiers of the computer industry global value chain.” Regulation & Governance 9.3 (2015): 243-258.

Rothaermel, Frank T. Strategic management. McGraw-Hill Education, 2015.

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