Assessment - Manage human resources strategic planning
You are required to thoroughly read the case study VTI group as given in Appendix A. You are required to critically analyse the information given and develop, implement and maintain a strategic approach to manage human resources in an organisation to ensure that the organisation has the structure and staff to meet current and foreseeable business and performance objectives.
To achieve this, you are required critically analyse the information given to determine the followings and prepare a report for any suggested changes for recommendation to Directors:
o Human resource strategic direction, objectives and targets
o Human resources information system
o Staff induction
o Employee and industrial relations
o Job analysis and design
o Designing position descriptions
o Employee roles and responsibilities
o Work health and safety
o Performance management
o On-job training
o Professional development
o Recruitment and selection
o Staff retention and succession planning
You are now required to perform the following:
o Identify targets and goals of human resource plan
o How will above policies and procedures can have an impact on staff?
o Identify and perform research on economic trends, labour market trends, new product or services to be introduced.
o Analyse any impact on employees due to any technological, political or legislative changes.
o Identify your staffing needs due to the above said changes.
o Discuss the impact of new technology on job being performed and related employee.
Once you complete Assessment Task 1, you are now required to consult your managers or senior management for their approval (you can assume your trainer/assessor as senior management).The plan must cover the following tasks:
- Memo and Meeting Minutes
- Define HR objectives and targets
- How you will make managers agree on human resource philosophies, values and policies? NOTE: Students must cover strategic objectives and targets like equal employment opportunities, diversity, human resource information system, staff induction, WHS, professional development, recruitment and selection, remuneration and staff retention.
- Develop a cost benefit analysis on new technology and resources required to support human resource plan
- Determine different options of hiring (from internal and external resources)
- Develop risk management plan for HR and plan to manage contingencies.
Moving ahead after completing Assessment Tasks 1 and 2, you are now required to:
- Develop a communication plan defining the roles and responsibilities of those involved in the HRSP implementation process.
- Develop and conduct a survey and collect a data regarding success of the plan. Survey can be done with fellow students.
- Develop a review and provide a suggestion for continuous improvement, if any.
- List the steps/plan that should be implemented, should any circumstances changes.
- Evaluate and review the performance of the plan against objectives defined in Assessment 2.
Assessment - Develop and implement strategic plans
You have recently been appointed as the General Manager of 'Brighton Coffee' which is a market leader in coffee export business; headquartered at 190 Queen Street, Melbourne 3000. You have been asked by the Board of Directors to assist in the development of a strategic plan. You are also required to conduct a review on organisation's existing vision, mission and values. You should ensure that company can establish the strategic directions and sustain competitive advantages and enhanced competitiveness. Following points were noted from the last year Annual General Meeting Report.
- Brighton Coffee will become a national brand, and will be accepted as an integral part of the hospitality industry, perceived as a key component in the success of hospitality establishments, both large and small.
- Brighton Coffee is in business to provide espresso coffee machines that meet the efficiency, reliability and sustainability needs of clients who, in turn, reward us with profits that will allow our stakeholders and the communities in which we operate to prosper.
You have delivered a very clear statement to the board. After reviewing your report, the board informed you that "Brighton Coffee has carried its values since the organisation has come into existence. We have always been profitable, thereby increasing the confidence of our stakeholders. We have never failed to carryhigh values of professional and moral standards. For our clients, we have always maintained a high level of safety. We are also committed to environmental practices as per within legislative and regulatory standards."
You were also told that in the past few years, since the last strategic plan was formulated, there has been a significant development in some of the departments which were not even considered while developing the plan. These developments form an important part of our day to day operations. These developments should also be reflected while developing new mission, vision and value statements.
With these new developments, you found that the company is not only constantly innovating and raising their standards of products and services, but also frequently trying new ideas and concepts, but within all relevant legislation and regulations, some of them are listed below.
- Anti-discrimination law
- Occupational health and safety
- Employer rights and responsibilities related to WHS
- Privacy laws
- Equal opportunity
- Ethical principles
- Codes of practices related to the industry specified
You are required to perform the following tasks:
1 Describe existing mission and vision statements.
2. From the information provided in the case study, develop revised vision and mission statements that reflect the current organisational requirements.
3. Identify and review the organisational values which support revised mission and vision statement.
4. Seek support from all relevant stakeholders.
You have a report from an independent industry consultant regarding comprehensive review of the industry and general operating environment.
Industry consultant's report
You have noted the following points from the report:
- There are new Espresso machines available which consume 35% less energy, with more efficient heat exchanger.
- Citing Government's free trade policy, all tariffs on imported goods, including espresso coffee machines, will be removed.
- The market for consumer Espresso machines is experiencing high double digit growth.
- There is ongoing trend for having breakfast, coffee and lunch outside the office premises and is becoming more affluent.
- The Australian population is expected to rise from 23 million in 2016 to 36 million in 2050.
- There is a prediction of a volatile Australian dollar against major trading currencies over the next few years.
- There is also a prediction of economic boom which my further lead to higher growth in employment sector.
The following points were also recorded in regards to Brighton Coffee's operational strategy.
- Inbound logistics is a problem, due to the lack of experienced personnel in importation and customs operations.
- Inadequate HR planning has resulted in delayed deliveries because of proper procedure not being followed.
- Brighton Coffee has a strong Management Information System (MIS). There has been very good strategic planning with strong controls over accounting and finance.
- One important area which needs to be focused on is outbound logistics. Currently, company has only one contract with a courier firm for delivering its goods to customers. Sometimes there is a delay in getting the appropriate vehicle to deliver the espresso coffee machines, which is causing unnecessary losses to customers.
- Though marketing communications and promotions are in strong hold and have worked very well for the company, technological developments have also helped in reducing costs, like online marketing.
- Company also enjoys a strong hold for good post-sales services. Customers are very happy and satisfied with our installation, after-sales service, complaints handling and training team.
- Where Brighton Coffee cannot reach out to its customers, company's procurement policy has also helped in setting high industry standards in this regard. The high satisfaction level in customer service and getting all calls serviced within 24 hours in one of the very strong reason for increased sales.
When a research was carried out about the potential for opportunities, threats and competitors, following points were noted:
- The company can also launch their product into the Sydney market, where the bulk of espresso machines are sold each year.
- You have also noted that a major competitor has withdrawn from Sydney market.
- You have an option to form a strategic alliance with coffee bean suppliers for deeper market penetration and reducing cost of advertising.
- Unstable economy was also a concern to you as unemployment may have an adverse effect on café shops, thereby reducing your sales of Espresso machines.
- There was a concern that a global giant Cafe Coffee is also launching itself into machine business. The resources they would have at their disposal in marketing, finance and human resources could be a serious threat to Brighton Coffee's plans. However, they would still struggle to gain a foothold in a market that already has strong supplier/buyer allegiances, with most stretching over many years.
- Another competitor of note was Metropol Coffee, a large coffee bean supplier that had recently started importing espresso machines for their customers. There was talk of them selling the espresso machines as wholesalers. They certainly had easy access to markets with their coffee bean trade, but they had no established service arm to help wholesale clients maintain the machines that they purchased.
You have recently drafted the overview of the strategic plan report and have noted the following five objectives:
- To sell and service Brighton Coffee espresso coffee machines in every city of Australia where population is over 250,000.
- Company should form a strategic alliance with Café Oz for fast and rapid growth, and should be managed at the highest level.
- With the warehouses now established in Melbourne and Sydney, it was important to look for other warehouse opportunities in high volume states. The other states could be managed with an agent's network and by outsourcing the maintenance.
- To increase profit margins by 10 - 15% every year for the next five years, with 2016 as the benchmark year. This should occur naturally, with increased sales allowing for better price negotiations with suppliers, and getting all departments to make optimum use of their staff.
- To establish the Brighton Coffee brand recognition in key markets in the next five years, mostly via new technologies but also co-branding with our new and existing strategic partners.
- To reduce our waste and energy use by at least 10% every year from our 2016for next 5 years.
You are now required to perform the following tasks:
- The drafted outline for the strategic plan.
- Objectives and strategies required for future and correspondingly responsible departments.
- Circulate and communicate the strategic plan (Student can perform relevant communication with their trainer/assessor) and give a brief about it.
- Formulate the performance indicators (KPI's) to meet above objectives
- If needed, refine your strategic plan, evaluate achievements of plan and review its effectiveness.
Task 4-Written Test
Question 1: Select benefits of strategic planning. Circle all the correct answers.
(a) Provides clearer focus of organization; Producing more efficiency and effectiveness; Bridges staff and board of directors; Builds strong teams in the board and the staff
(b) Provides the glue that keeps the board together; Produces great satisfaction among planners around a common vision; Increases productivity from increased efficiency and effectiveness; Solves major problems
c) May help with producing efficiency and may increase the level of productivity which assists in solving major problems.
d) Seals with a wide range of everyday legal disputes such as discrimination, building debt, guardianship, health, privacy, legal practice, mental health, owners corporations, tenants and landlords, and the purchase and supply of goods and services.
Question 2: What code of practice relates to your chosen industry
(a) Seals with a wide range of everyday legal disputes such as discrimination, building debt, guardianship, health, privacy, legal practice, mental health, owners corporations, tenants and landlords, and the purchase and supply of goods and services.
(b) Provides practical guidance for people who have work health and safety duties about how to achieve the standards required under the Act, and about effective ways to identify and manage risks
c) Individuals are responsible for the conduct of their own matters and are represented by legal practitioners;
d) Rules of evidence and procedure are set down and both parties have equal footing.
Question 3: Select the best option for Mission Statement and a Vision Statement respectively?
A. Mission statement
B. Vision Statement
a) A term used by strategic planners and project managers to define the general outcome or final aim a business seeks to accomplish over a specific time period
b) It tells you the fundamental purpose of the organization.
c) It outlines what the organization wants to be, or how it wants the world in which it operates to be.
d) Protocol to guide decisions and achieve rational outcomes
Choose the answer from the following
a and b
b and c
iii. a and c
iv. b and d
Question 4: Select features of an effective vision statement'?
a) Clarity and lack of ambiguity
b) Vivid and clear picture
c) Description of a bright future
d) Memorable and engaging wording
e) Realistic aspirations
f) Alignment with organizational values and culture
Choose the correct answer
i. a, c, d, f
ii. b, d, e, f
iii. a, b, d, e
iv. c, d, e, f
3 a, b, c, d, e ,f
What specialist services could you utilise when developing a strategic plan?
a) Accountants and Business brokers
b) Business advisors and consultants
c) Contractors and Government agencies
d) Security personnel and cleaners
e) Mentors and Online gateways
f) Transport and Logistic Personnel
Choose the correct answer
i. a, c, d, f
ii b, d, e, f
a, b, c, e
IV. c, d, e, f
v. a, b, e, f
Question 6: What is PEST Analysis?
a) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture
b) It is the study of the collection, organization, analysis, interpretation and presentation of data
c) It is a framework that is used to scan the external macro-environment in which the firm operates
d) A method used in the analysis of financial statements to identify new trends when data or ratios for a specific item from multiple time frames are presented alongside of each other for a straight across comparison.
What does PEST stand for?
a) Processes; Ergonomic; Strategies; Transparency
Political; Economic; Socio-cultural; Technological
c Product; Economics; Strategy; Technical
d) Pricing; Ergonomic; Summit; Technology
Choose the answer that matches closely with the contents of your marketing plan?
a) Income distribution; Demographics I population growth rates I age distribution; Labour / social mobility; Lifestyle changes
b) Economic growth; Interest rates I monetary policies; Government spending; Unemployment policy
c) Environmental regulations and protection; Tax policies; International trade regulations and restrictions; Consumer protection
d) New inventions and development; Government research spending; Energy use and costs; Life cycle and speed of technological obsolescence
Question 9 Select the option of real benefits of strategic planning?
a) Reduces 'firefighting'
b) Justifies your plans and actions
c) Reducing the total amount of risk in an investment portfolio
d) Indicates your ability and commitment