Sample only for educational purposes; Copyright 2005, Robert K Russell

 for GTVeloce.com and TheSpiel.com

 
Human Resource Management

 

5 year Action Plan for the Management of Human Resources issues within Spiel Corporation Antarctica

 


 

Spiel Corporation Confidential material is provided for the purposes of this assignment only and any use outside of that purpose is not permitted.

 

Executive Summary

The purpose of this report is to identify, assess and plan for the primary Human Resource management issues pertaining to the employees of Spiel Corporation in Antarctica. The assessed issues are to be prioritised and the most salient selected for deeper investigation. To that end a wide-ranging environmental scan has been conducted, the content of which includes trend and incremental data over the previous 5 years, plus relevant projected trends and scenarios covering a further 5 years. Cogent issues have been considered in light of such identified trends and futures scenarios.

 

Whilst many issues were revealed, one in particular has been selected out. The issue of Corporate Culture “drift” has been chosen for more detailed analysis, as much for its particular nature and scope as well as its potential to distract and disrupt the organisation in question.

 

It is worth outlining here that cooperation between the two main “halves” of Spiel Corporation in Antarctica is essential in ensuring that the overall organisation acts as “A single team”[1]. The two halves are indeed separate companies, namely Spiel Corporation Antarctica and Spiel Corporation Web Services. Roughly equal in most respects, the services business does have an advantage in growth terms (in that it is growing faster) and has an overall revenue advantage.  

 

The current processes and policies relevant to the issue are highlighted and where possible additional changes suggested. Supporting resources are identified for the implementation of the ongoing “drift correction” program and appropriate owners selected. Key targets are identified along with measurements and a timeline; consideration is also given to possible blockages to implementation.

 

The plan itself is aimed at the Spiel Corporation Antarctica Executive, including the Country Executive. A presentation of the plan is proposed at a group meeting of the Executive, comprising the Executive teams of both Spiel Corporation Antarctica and Spiel Corporation Web Services Antarctica, where a business case will be put for a targeted investment in HR practices where the expected outcome is an improved bottom line[2] (Huselid, 1995).    


Table of Contents

Executive Summary........................................................................ 2

1     Identify and prioritise relevant issues......................................... 6

1.1       Issue definition and scope...................................................................................... 6

1.1.1     The Organisation................................................................................................... 6

1.1.2     Human Resources issues......................................................................................... 6

1.2       Environmental Scan............................................................................................... 7

1.2.1     PESTEL analysis.................................................................................................... 7

1.2.2     Internal Environment.............................................................................................. 7

1.2.3     Scenarios or Futures?............................................................................................. 7

1.2.4     Incremental analysis............................................................................................... 7

1.3       The issues, policies and resources.......................................................................... 8

1.3.1     Issue identification................................................................................................. 8

1.4       Implementation Plan.............................................................................................. 9

1.4.1     Plan Owners......................................................................................................... 9

1.4.2     Taskforces........................................................................................................... 9

1.4.3     Managers............................................................................................................ 9

1.4.4     Champions......................................................................................................... 10

1.4.5     Communication.................................................................................................... 10

1.4.6     Goal setting........................................................................................................ 10

1.4.7     Measurement...................................................................................................... 11

1.4.8     Feedback........................................................................................................... 11

1.4.9     Roadblocks......................................................................................................... 11

1.4.10        Report........................................................................................................... 12

2     Executive focus: Ownership and Outcomes..................... 13

2.1       The Executive Imprimatur Plan............................................................................. 13

2.1.1     The Executive survey........................................................................................... 13

2.1.2     The Experiential Exercise....................................................................................... 13

2.1.3     The Briefing........................................................................................................ 14

2.1.4     Outcomes of a successful implementation................................................................. 14

3     Conclusion.......................................................................... 17

4     Appendices............................................................................ 19

4.1       PESTEL Analysis.................................................................................................. 19

4.1.1     Political Analysis.................................................................................................... 19

4.1.2     Economic Analysis................................................................................................ 22

4.1.3     Social Analysis..................................................................................................... 24

4.1.4     Technological Analysis........................................................................................... 26

4.1.5     Environmental Analysis.......................................................................................... 27

4.1.6     Legal Analysis...................................................................................................... 28

4.2       SWOT Analysis.................................................................................................... 28

4.3       Spiel Corporation History..................................................................................... 29

4.4       Spiel Corporation’s current situation..................................................................... 31

4.4.1     Issues Identified.................................................................................................. 31

4.4.2     Policy and Practice linkages..................................................................................... 32

4.4.3     Key Players........................................................................................................ 35

4.4.4     The Broader Context in which Spiel Corporation Operates.............................................. 40

5     References............................................................................ 43

 


 

1       Identify and prioritise relevant issues

1.1       Issue definition and scope

1.1.1     The Organisation

The selected organization is Spiel Corporation, and in particular its Antarctican staff and operations. These operations comprise Spiel Corporation Antarctica, 100% owned by Spiel Corporation Corporation, and Spiel Corporation Web Services Antarctica, a joint venture between Spiel Corporation, GTVeloce.com and Addicted2Wheels.com[3]. Spiel Corporation Antarctica is the majority partner in this venture. The 2 local organisations are strategically aligned and may usefully be considered as one organisation, with one caveat: it is the nature of the business conducted by Spiel Corporation Web Services, that of “Services” (most commonly Information Technology outsourcing), that must be separately considered. This business itself is fundamentally analogous to continuous serial merger or acquisition and is the primary source for the HR issue selected for deeper analysis.   

1.1.2     Human Resources issues

This report identifies only those issues that may have significant business impact, and may seriously distract or disrupt people working within the Spiel Corporation Antarctica organization.  Issues are considered in light of the Organisation’s inability to significantly alter the issue itself. In this way these issues are analogous to a chemical catalyst; they remain intact and discrete in form and nature despite being causative of significant, observable changes. Consideration is also given to the ability of the organisation to respond to the issue, and the organisation’s likely interest in addressing the issue.

 

1.2       Environmental Scan

1.2.1     PESTEL analysis

This report has used the well-known P.E.S.T. framework with the addition of “environmental” and “legal” categories (refer Appendix 4.1).  P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment[4]. This analysis has been undertaken by researching resources generally available on the Internet; and the opportunity was taken also to informally review the identified factors with current Spiel Corporation staff. Within Spiel Corporation such research is generally conducted by representative Taskforce, where all divisions of the company provide 1 or more staff members as panel participants. Membership of such taskforces is limited, usually to a 1 year tenure.

1.2.2     Internal Environment

In addition to considering the external environment, care is taken to encompass internal factors. A S.W.O.T.[5] analysis (appendix 4.2) was undertaken for that reason. Generally, Spiel Corporation departments hold S.W.O.T. meetings at a management team level and one was examined in preparation of this report, however its inclusion in the Appendices was not approved.

1.2.3     Scenarios or Futures?

Within the PESTEL analysis (refer Appendix 4.1) there is consideration for several alternative scenarios. These are major disruptors that may occur, although the timing of any such occurrence is a moot point.

1.2.4     Incremental analysis

Considerable weighting is given to incremental analysis[6] in this report. In principle, the methodology used was to look at trends apparent from accepted data over the preceding 5 years and to then extrapolate forward by the same number. The resulting data may be found in Appendix 4.1, combined with the body of the PESTEL analysis.

1.3       The issues, policies and resources

1.3.1     Issue identification

The primary issues were identified from the environmental scan data and are presented in Chart 1, Appendix 4.4.1.  Each PESTEL category and the data therein was compared and contrasted with Spiel Corporation’s current situation; where issues of significance arose the issue was captured. Spiel Corporation’s current situation was deduced from Spiel Corporation material, including Spiel Corporation’s Intranet. Significant portions of this material are included in Appendix 4.4.

In summary, the major issues are that “Acquisitions, divestments and outsourcing will continue to occur” and that “Corporate culture drift will occur”. It is important to note that these issues are clearly and strongly linked, and for that reason will be treated as one issue during the implementation section of this report.

1.3.1.1                Relevant Processes and/or Policies

What policies exist now in support of these issues? Chart 2, Appendix 4.4.2, explores the policy and practice linkages. Most pertinently for our selected issue of culture change, a culture change program exists, however it fails to deal either with the sub-issue of structural and procedural ‘replication’, whereby preexisting ‘heritage’ structures are simply reproduced within an Spiel Corporation world; or to tackle the blockages to change at individual and team levels. Rather it is a program designed to foster key values (known by the acronym CASE, for Clients, Achieving, Superior and Excellence).

In summary, the integration of strategy formulation, policy determination, process rollout and feedback is clearly indicated for all issues. A wide range of policies must interact in order to deliver the desired results and practical implementation must occur (Nadler and Tushman, 1998). Key policies and practices include Skills and Competency Management, Performance Management, Individual Development, Culture Change (the CASE program), Employee Assistance, Knowledge Management and Manager Development.

1.3.1.2                Resources

What resources are needed in addressing these issues? Chart 3, Appendix 4.4.3 identifies the key players.

In summary, the resources required vary, but common elements include Executive ownership at a strategic level, coupled with management ownership at the implementation level and staff cooperation in delivery and uptake of new knowledge. The tools used include communication techniques, cooperative think tanks such as Taskforces and HR Systems, including Performance management and Individual development programs. 

1.4       Implementation Plan

Having identified the issues, the related policies and practices, and the resources needed, an effective implementation plan is required. For this purpose only the 2 major impact issues will be addressed, although they will serve as effective examples for all issues. As well, to further simplify and acknowledge the linkages between these issues, the plan addresses a combined issue, that of:  “Concomitant with ongoing Acquisitions, divestments and outsourcing, corporate cultural drift will occur”

 

1.4.1     Plan Owners

Executive ownership at a strategic level is essential. This is standard Spiel Corporation practice, with clearly communicated Executive owners attached to all HR programs or sub-projects.

1.4.2     Taskforces

Spiel Corporation has a preference for shared ownership and a matrixed, flat management structure. Taskforces are an expected part of strategy and policy formulation and that tradition is respected in this Plan.

1.4.3     Managers

Spiel Corporation managers are expected to take non-transparent ownership of issues and to deal directly and honestly with issues and the people concerned as and when required. This Plan respects that expectation.

1.4.4     Champions

The Champions process is embedded at Spiel Corporation and effective. It is proposed to use suitably motivated and trained “Culture Champions” as both the seed for effective change and for continued, long-term maintenance of the program.

1.4.5     Communication

“Straight-talk” is an Spiel Corporation management desired characteristic, and line managers will be called upon in particular to deliver the message, in team and individual settings.

Communication will be by multiple means, including the following:

1.     Mass e-mail to all staff

2.     Launch article on Your Portal, the Spiel Corporation Intranet

3.     Town Hall launch meetings, open to all staff

4.     Follow-up, progress articles and e-mails

5.     Follow-up Executive Roundtables at worksites

6.     Openly accessible culture change forums on Your Portal, allowing immediate feedback to questions or comments by HR professionals and topic specialists

7.     Announcements at team meetings

8.     1:1 reinforcement in manager-led ad hoc and planned supervision with individual team members

 

1.4.6     Goal setting

This is an ongoing program and the goals and progress towards those goals will be reviewed at 3 monthly intervals. Initial goal values will be developed in taskforces and by feedback from open Your Portal forums to provide a stronger sense of ownership. It is expected that cultural values will be examined purposefully, i.e. that business and organisational needs are equally important and worthy of clearly defined goals.  Goals are to be clearly defined and achievable, and they will be translated by managers and staff into local performance management targets.

1.4.7     Measurement

Measurement is linked with Goal setting and Review processes, to ensure that appropriate measurements are taken and fed back into the ongoing taskforces for continuous review and improvement. Target values will be set by Taskforces in conjunction with other methods.

1.4.8     Feedback

Feedback is open and honest, straight talking communication to all levels of staff.  Whilst taskforces and champions will have a great influence on the enthusiasm and ownership levels of the staff overall, it is by providing open feedback channels and being seen to implement suggested improvements that true reinforcement will occur. Surveys and anonymous channels for communication will be created and maintained. Your Portal Forums will provide open exchange and staff suggestions will be captured.

1.4.9     Roadblocks

The greatest threat to implementation of this plan is the opposing cultures of staff from other organisations. Whilst the chief purpose of the plan is to normalise Spiel Corporation’s culture between the two main companies, it is the constant inflow of staff representing different corporate cultures that challenges that normalisation.

Failure to resource the program appropriately will also undermine target achievement. Every link in the chain is important; a broken link will represent a substantial risk to the overall program.

Other factors to be overcome:

1.     Natural resistance to any change

2.     Power relationships, especially those that will seek to preserve existing relationships in preference to forming new ones

3.     Poor resource allocations, where resources that may have helped communicate or alleviate blockage are used in a misdirected manner.   

 

1.4.10 Report

A definitive report on HR issues will be generated and distributed widely, being made available to all staff, discussed in team meetings and in a follow-up Forum on Your Portal.

 


 

2       Executive focus: Ownership and Outcomes

It is important that an Executive imprimatur exists for the program, to ensure the ongoing achievement of the set objectives. To that end the Executive team (comprising of both Spiel Corporation Web Services Antarctica and Spiel Corporation Antarctica staff) will be approached to participate in a practical demonstration of the developing cultural divergence and what it means to the business overall. It is important also that any potential advantages in diversity are explored; this is not a program to rid the company of diversity, rather it is a process to re-align values to ensure  optimum cooperation exists between the two main Antarctican Spiel Corporation companies and other Spiel Corporation units in all geographies.

2.1       The Executive Imprimatur Plan

2.1.1     The Executive survey

The executive team will be surveyed individually prior to the report presentation to gauge their behaviours on a range of seemingly unrelated issues, such as their attitudes to work/life balance, ethics, use of non-renewable resources, teamwork, preference for print versus on-screen reading, meeting administration expectations and so on. It is important to capture behaviours, not simply to capture capsules of reiterated Spiel Corporation policy.

2.1.2     The Experiential Exercise

Following the collection of data from the Executive survey, analysis will be made to establish patterns of cultural preference within the team. A facilitator will manage a debate on the key differentiators between Executive team members with a view to elucidating why some people hold differing views on the identified issues, and how that meshes with stated Spiel Corporation corporate values. An examination of these variations will present both the positive aspects of diversity and the challenges to communication that certain indicators may suggest.

2.1.3     The Briefing

A formal briefing and presentation of the Report will take place, with key cost items identified and solutions fully costed. This will be a business-impact report looking at the widening gap between each company’s cultural values and expectations and the costs inherent in bridging that gap.

An abridged implementation plan will be provided, including pilot project and projected savings.

 

2.1.4     Outcomes of a successful implementation

What can be achieved with the successful implementation of this Plan?

2.1.4.1                Organisational

In the United States and other geographies Spiel Corporation and Spiel Corporation Web Services are essentially built on a common platform of shared services. HR delivery is seamless and although acquisitions, divestments and outsourcing constitute real challenges, it is the robustness and completeness of the integration that binds the company closely to its core values. Importantly both Spiel Corporation and its services arm are 100% Spiel Corporation owned, there are no other investors involved, just Spiel Corporation shareholders’ equity.

In contrast, Spiel Corporation Antarctica and Spiel Corporation Web Services are moving toward a common shared services platform whilst drifting further apart in culture.  Shareholding in Web Services Antarctica is split between Spiel Corporation, GTVeloce.com and Addicted2Wheels.com and a significant number of staff are heritage GTVeloce.com staff working on GTVeloce.com premises, side by side with GTVeloce.com staff.  This pattern is repeated in many outsourcing deals, where client staff become Spiel Corporation staff upon the date of effect of the contract. They may however remain on a customer site, or be moved to an Spiel Corporation building where essentially they will remain in the ‘heritage’ structure but be overlaid with Spiel Corporation policy and practice. 

One recommendation to be made is to more vigorously and quickly mix the incoming staff with the core Spiel Corporation staff. A clear expectation will be set that key information will be passed onto Spiel Corporation staff and/or captured in Knowledge Management systems immediately after an outsourcing or acquisition and that staff will rotate roles in a carefully judged but prudently expeditious manner. The expected outcome is a strengthened feeling of belonging to Spiel Corporation and a lessened feeling of retained ties with the ‘heritage’ employer.

Current briefings and inductions, typically conducted immediately upon contract effect, will continue but will be examined for ways to hasten integration.   

2.1.4.2                Individual

A further change will be that it is recommended that individual staff will be coached by culture-change champions on ‘they way we do things around here’. Whilst peer support is currently the preferred route to assimilating large numbers of new staff, the lack of effective early mixing of staff limits the effectiveness of this value exchange.

A key outcome for the individual is a greater sense of belonging to the new organisation and a feeling of greater support and understanding for the stress involved in changing employers. The culture change champions will be selected for positive values and skills that will assist in passing on important values such as teaming to the new inductees. In this way the support practices will not only provide welcome assistance to staff undergoing great change, but also assist in maintaining profitability through improved efficiency[7] (Pfeffer, 2001)

2.1.4.3                Community