Honda Cars Philippines, Inc. – Blue Skies for Our Children : An Advocacy Plan

In Partial Fulfillment Of the Course Requirements In Strategic Human Resource Management (HRM603M)

Blue Skies for Our Children

Background

Honda Cars Philippines, Inc. (HCPI) is registered under Securities and Exchange Commission (SEC) as an automotive manufacturer that assembles and imports cars since October 1990. HCPI’s assembly plant & Spare Parts Warehouse is located in Laguna Technopark, Sta.Rosa, Laguna. In addition, the main office of operations is also located in the vicinity of Sta Rosa, Laguna residing with the assembly plant. (Our Company: INVESTOR INFORMATION, 2012).

Currently, HCPI employees are called “Associates”, and around 700 Associates (Our Company: INVESTOR INFORMATION, 2012) are employed as regular employees all throughout the company. The branding of employees to Associates ensures that HCPI employees adhere to the Company principle of producing and giving quality products and services for good quality customer satisfaction.

Corporate Vision & Mission

The vision and mission of HCPI are encompassed thru the Fundamental Beliefs and the Company Principle, in which are called the Honda Philosophy. (Honda Philosophy, 2012) as shown in Figure 1: Honda Philosophy. The Fundamental Beliefs focuses on; (1) Respect for the Individual, and; (2) The Three Joys: Joy of Buying, Joy of Selling, and Joy of Creating. In addition to the Fundamental Beliefs, HCPI also follows the Company Principle; “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction”, as shown in Figure 2: Details of Honda Philosophy.

Environmental Vision

On the 20th year of operation in the Philippines in October 2012, HCPI strengthens its commitment to it environmental vision of realizing “the joy of freedom and mobility” and “a sustainable society where people can enjoy life”. The mission is to minimize the use of fossil fuels and environmental impacts like greenhouse gases through the products made by Honda (Honda Environment, 2012).

HCPI advocates that through its international research and development (R&D), HCPI offers automobiles with engines that are inspired by the environmental vision which consumes less fuel and produces minimal greenhouse emissions. These engines are called i-VTEC engines which are also classified as Euro 4 level. Whereas currently, the Philippines are only regulating a minimum of Euro 2 level engines to be sold in the local market (Honda Environment, 2012).

In the Philippines, HCPI launches its advocacy campaign that is in line with the Environmental Vision. The campaign is called, “Blue Skies for Our Children” (Honda Environment, 2012). Through this campaign, HCPI is promoting that by buying a Honda, each car owner is already contributing to the benefit of our future generations to have clean air to breathe.

This campaign, HCPI as a corporation, is being ethical in taking care of the wellness not only of its employees and customers but also of its stakeholders, as mentioned in Business Code of Ethics (Aquino, October 23, 1979). In addition, HCPI is aligned with the Catholic Social Teachings (Abela, 2001), that the purpose of the firm is not only for its shareholders but also for its stakeholders that are directly and indirectly being affected by HCPI as a corporation, which is clearly shown in Figure 3: Honda’s Direction.

The “Blue Skies for Our Children” is the main campaign of HCPI in the Philippines as its local corporation. Simultaneously, HCPI created a supporting campaign along with tie-ups and incorporation with other corporation and local offices, the “1′M Blue”. The “1′M Blue” campaign have an initial goal of committing one million eco-safe drivers in achieving the mission of Blue Skies for Our Children (Honda Environment, 2012).

The 1′M Blue campaign promotes that purchasing is Honda is only the first step in making sure that the future generations have clean air to breathe. HCPI proposes that the car owners themselves must further contribute by consciously using and driving the cars properly through the recommended driving and maintenance habits.

However, as Figure 4: Facebook page of 1′M Blue, there are only up to date 943 likes for the local campaign which was only launched last October 2012. This number signifies that the campaign is not fully being shared to Honda owners and other drivers despite the continuous updates in the said social network webpage.

Mission & Goals

Given that the campaign is not effectively being communicated well enough to the people or let alone to the Honda owners that owns and drives a Honda car, HCPI will have to plan and implement a more aggressive approach in informing and convincing people to join HCPI ‘s advocacy. In addition, The social network page is not enough as a medium in informing people. HCPI must use other sources of marketing medium in order to reach the people.

Implementation Plan
Supporting Advocacy Campaign

In support to the Blue Skies campaign of HCPI, a new parallel campaign will be implemented along with 1′M Blue campaign. HCPI will implement a charity tie-up campaign, the same concept used by Innocent drink company in Europe that promotes for every Innocent drink bottle with a knitted cap sold, the company will allot an amount to be donated to the charity that made the small knotted caps (Brown & Grayson, 2008).

The campaign that HCPI to implement will be that for every individual Honda Car sold, HCPI will dedicate an amount to buy a seedling tree to be donated and planted in La Mesa watershed. In addition, the tree will be named after the owner and the owner will have a certificate along with the car warranty booklet when the car is received by the new Honda owner. This campaign will be the first to the automotive market and being the first car maker in the Philippines to directly set aside a part of profits for the environment.

The seedling trees will be planted by HCPI associates every quarter of the year at La Mesa Watershed. A picture of the tree being planted will be sent to the owners as a reminder and thank you card for supporting HCPI’s advocacy campaigns. The customers will have a sense of achievements for choosing and buying a Honda car. This campaign will be a direct approach to Honda customers. In addition, the thank you card and the picture can be a tangible tool for an effective word of mouth promotion.

Supporting Promotional Activities

Supporting promotional activities will be executed in order to ensure sustainability of the campaign.

An annual campaign ad will be executed as a thank you to Honda owners within the year, to show the appreciation in supporting HCPI’s campaign and for purchasing the Honda products. These advertisement material will be distributed along above the line media; TV, Newspaper, Radio, Magazines, Billboards and others. This promotion activity will reach other Honda car owners and other brand car owners in informing them of the proactive campaign of HCPI.

For existing Honda car owners, a supporting campaign will be introduced. For every two succeeding preventive maintenance check-up or change-oil within the same year, HCPI and the servicing Dealer will allocate an amount for a seedling tree to be donated and planted in La Mesa watershed. Since, a Honda owner is recommended to service their car for maintenance check-up every six months or 10,000km traveled, whichever comes first.

Bibliography

Abela, A. V. (2001). Profit and More: Catholic Social Teaching and the Purpose of the Firm. Journal of Business Ethics , 31: 107-116.

Aquino. (October 23, 1979). A Code of Ethis for Business. In B.-B. C. Development.

Honda Environment. (2012). Retrieved December 5, 2012, from Honda Cars Philippines: http://www.hondaphil.com/ver2/blueskies.php?id=0

Honda Philosophy. (2012). Retrieved July 17, 2012, from Honda Worldwide: http://world.honda.com/profile/philosophy/

Our Company: INVESTOR INFORMATION. (2012). Retrieved July 17, 2012, from Honda Cars Philippines: http://www.hondaphil.com/ver2/ourcompany.php

The Definitive Guide to Recruiting in Good Times and Bad : An Article Critique and Review

In Partial Fulfillment Of the Course Requirements In Strategic Human Resource Management (HRM603M)

Summary, Critique and Opinion

The article (Fernandez-Araoz, Groysberg, & Nohria, May 2009) realizes the importance of an effective and structured hiring process of a company which can be advantageous to times of great opportunity like a recession. As observed that upon the turn of recession, there is a huge amount of potential and talented workforce that are looking for jobs. It is to the advantage of a company to filter and get the right employee that will be effective and can contribute to the realization of the goals of the company. In addition, the Article realizes the potential of recession in providing a large pool of manpower. As per Business Code of Ethics (Aquino, October 23, 1979), a company must provide an equal opportunity to applicants.

It is consistent that the recommendations of the Article highly focuses only on hiring top-executive or high ranking positions in a company because of the results of their research. The research focuses solely on 50 global companies by interviewing their CEOs and their respective HR managers. In addition, the research has surveyed executive-search consultants. From this, a majority of these CEOs does not follow a form of standard in terms of hiring a top executive position. But rather, these CEOs rely solely on their personal feel and preferences. These results can signify that HR is not effective in creating a hiring process and guidelines for the company, which could lead to a waste of time, resources and opportunity of the company. However, these can also signify that the CEO is also at fault for not realizing the needed improvement in the hiring process and for the deficiency of leading HR properly in creating a standard hiring process.

The Article, in turn has recommended a structured seven steps in hiring and keeping a top-executive position for the company.

The first step is by anticipating the need of manpower which should also be forecasted along with the projection and goal setting of the company. This step, gives HR management a huge responsibility in supporting and accomplishing the goal of the company, as in the concept of Value Chain (Robbins & Judge, 2009). In addition, HR can create strategies and properly schedule the career and skill development of the current and soon to be employees in the future. Given that the company will have an insight of the needed resources in hiring and keeping employees, HR must ensure that the future employees will perform effectively and efficiently. Hence, the first step is justifying the need for a proper hiring process of a company.

The second step is by specifying the job not only to specific job descriptions and specific skills, the job specification must also consider the management style needed in handling the current teams. In addition, the second step is considering the effect of the company culture to the job specification. By considering other factors in specifying the job, HR will hire an adaptive and job fit employees in the future. This step helps HR management in saving the company and not waste additional resources and time in training just in order for the new employees to be fit in the job and company.

The third step is by developing a pool of recommended candidates hence the company must have a diverse sources of manpower for recommendation. This step helps HR to save time in terms of looking for a set of candidates. The diverse source may come from recommendations of peers and/or employees that are a highly reliable source of nominations. Since the behavior and skill of a candidate can be confirmed easily by peers. In addition, HR can have a faster hiring process since HR can skip the background check of a candidate, saving time and resources of the company. This practice is currently being done by HR of Honda Cars Philippines, Inc.

The fourth step is by assessing the candidates properly in terms of a standard probing and questioning practices. It is highly recommended in the Article that in an interview, the best result can be gathered by asking behavioral event scenarios which will give the true personality of the candidates. Another method is by keeping a special set of interviewers that will ensure and recommend a quality set of candidates. Lastly, the involvement of stakeholders in the assessment process can eliminate the bias in every interview session. This fourth step also contributes to the company by savings in terms of additional meeting time for deliberations and recommendations. However, the company must invest in resources and especially in time in order to have the necessary capable interviewers. Hence, the full implementation of the entire Article recommendations and steps will only be ready for deployment or implementation once there are available and trained interviewers. In addition, this entire article will not be readily effective and implementable unless this fourth step is already being practiced by a Company.

The fifth step is by closing the deal to candidates while the hiring manager is present in the actual transaction and negotiation. The presence of the hiring manager gives an opportunity to further know the candidate while the step also helps the HR in terms of saving time for transition and adapting period of the new employee with the immediate superior. In addition, describing not only the opportunities of the job position but also the challenges that awaits in the company will give the candidate a set of expectations, directions and an insight of the culture of the Company. This step also makes a final screening process for the job fit of the candidate to the Company. Lastly, the Article is practicing the recommended Catholic Social Teachings (Zigarelli, 1993) by recommending the compensations being offered to the candidate be fair to other employees or the same set of compensations to the same position employees.

The sixth step is by integrating the newcomer in terms of assigning a mentor to the newcomer in order to ensure the tenure and effectively contribute to the company’s goals. The mentor will help speed up the transition process of the newcomer to the job position but also to the culture of the Company.

However, an observation to the Article is that the recommended hiring process is only applicable or biased toward large corporations and are not applicable to small or growing successful company. These bias can be clearly seen on Step4, 5 and 6 which describes that a set of top ranking officials be involved in the hiring process and transition process. These requirements can only be achieved by having a large pool of tenure employees which is likely the case in small and growing successful company. It is a fact that tenure officers have experience and knowledge of the processes in the Company. However, these tenure officers can back fire the hiring process by being threatened of their position and acquired power (Robbins & Judge, 2009). Hence, these challenges must be recognized by the HR management and make the necessary programs in order to prevent these possible scenarios.

Lastly, the seventh step is by auditing and reviewing the performance of the new hired employees. These performances can be measured and monitored by HR management by creating a control system and strategy against the job descriptions and targeted goals of the newcomer. It is recommended that a bad performing newcomer must be relieved within the first year and the recruiting process be reviewed and updated regularly in order to save the company from wasting time, resources and opportunities in the future.

The Article, however, fails to realize and mention the importance of Leadership as one of the traits needed in hiring a top-executive. As mentioned in an Organizational Behavior (Robbins & Judge, 2009), a leadership skill can be natural to an individual or can be learned through experiences. If a Company fails to measure the leadership skill of a candidate, the whole recommended hiring process can be compromised due to the required additional skills that need to be taught to the newcomer.

Aside to the equal opportunity that the Company must provide to applicants (Aquino, October 23, 1979), the Article recommends that it is better to hire top-executives than hire potential applicants which can be trained to be leaders and top-executives (Robbins & Judge, 2009). The Company can hire more employees rather than one top-executive compared to the opportunity of hiring two or more applicants of the same salary amount combined which in turn could deliver or contribute twice or more. This way, the Company can be an ethical Company that gives more individuals the opportunity to perform their right to work as mentioned in Catholic Social Teachings (Abela, 2001).

The recommended seven steps in hiring, guides the HR management of the Company to realize the importance of having a structured and standard hiring process in order to achieve the goals of the Company and support the company in terms of saving time, resources and opportunities in the future. These factors could and should have been realized by CEOs in order to help HR in structuring a standard hiring process.

Bibliography

Abela, A. V. (2001). Profit and More: Catholic Social Teaching and the Purpose of the Firm. Journal of Business Ethics , 31: 107-116.

Aquino. (October 23, 1979). A Code of Ethis for Business. In B.-B. C. Development.

Fernandez-Araoz, C., Groysberg, B., & Nohria, N. (May 2009). The Definitive Guide to
Recruiting in Good Times and bad. Harvard Business Review , 74-84.

Render, B., Stair, R. J., & Hanna, M. E. (2009). Quantitative Analysis for Management (Tenth ed.). New Jersey: Pearson Education Inc.

Robbins, & Judge. (2009). Essentials of Organizational Behaviour (13th ed.). Prentice-Hall.

Zigarelli, M. A. (1993). Catholic Social Teaching and the Employment Relationship: A Model for Managing Human Resources in Accordance with Vatican Doctrine. Journal of Business Ethics , 12: 75-82.

Hiring K-12 Graduates in 2018 in the Philippines

An original written work of Engr. Marvin T. Martinez
A DLSU – MBA student
In Partial Fulfillment Of the Course Requirements In Strategic Human Resource Management (HRM603M)

Back then in 2005 after I graduated from College and soon after I passed the board exam of PRC (Professional Regulation Commission), I was already 24 years old. I was no longer a student and I was then part of the new batch of working class, eager to practice what I have learned for the past rigorous six years of college. However, reality retaliates hard enough to shake every new graduate off their feet and give each and everyone a culture shock, as if it was an initiation in entering real life. That reality is the scarce availability of work that is available to everyone and every job interview is a battle field in which one must always have the best foot forward. Using everything relevant and irrelevant such as seminars attended, research projects, thesis reports, extracurricular activities, affiliated organizations and down to the college or university alma mater.

By the start of school year this June 2012, K-12 was implemented in the entire Philippines as the new education system. The K-12 program is different to the past education system by the additional of two more years before graduating. The main purpose of the K-12 program is to prepare the graduates for “tertiary education, middle-level skills development, employment, and entrepreneurship”; as mentioned in the webpage of the Official Gazette. In addition, the first batch of K-12 graduates are expected to join the working class by the year 2018. Simultaneously, the graduates and professionals of vocational schools, colleges and universities that will be part of the working class. All of these graduates will be ambitious in looking for work and jobs that will fit their knowledge and capabilities.

In 2018, whatever the state of economy of the country, companies and corporations will be needing fresh manpower for replacement or expansion of their operations. These companies and corporations will interview a set of applicants that are new graduates but of different age group, a wide gap of four years; 18 years old and around 22 years old for K-12 graduates and college graduates, respectively. As stated in the book, A Code of Ethics for Business by Aquino in 1979, a company must give an equal opportunity to all applicants of a specific work or job classification. By this guideline, the challenge that HR of companies and corporations of today must face in the coming of 2018 is how to create a hiring system for new applicants that will include the new batch of K-12 graduates.

Currently, companies handles new entries to the working class as applicants that all have undergone a tertiary training or education from a different school, college or universities. This need for a tertiary education is due to the current education system that have a gap of two years before reaching the working age of 18 years old. However, with the new K-12 program, 18 years old graduates are already allowed by the Philippine constitution to have a job and requires the companies to accept and give jobs to these new graduates that does not have any tertiary training or education. In addition, as stated in the Journal Article: Profit and More by Andrew Abela in 2001, the Catholic Social Teachings requires that the company must provide jobs in order for an individual to fulfill its right to work, for work is a right and a requirement in life fulfillment and achievement. Hence, it is the responsibility of a company to hire the K-12 graduates even not as required by the law but as a tool in achieving the right of an individual to work.

This new dilemma of hiring graduates with or without tertiary program must be recognized now by the HR management of companies and corporations. They have ample time to prepare and plan a new hiring system and guidelines for the new batch of K-12 graduates. The HR management must then make projections of the necessary or required manpower for the upcoming 2018 along with the necessary specialized trainings needed for hiring of K-12 graduates. The teams or group the new hires will be joining must also be considered and projected in order to assume the probable organization behavior and countermeasures in the company, as mentioned in the book by Judge Robbins about the Essentials of Organizational Behavior in 2009.

Upon reviewing the probable case scenarios of K-12 graduates and given the new dilemma and challenges that companies may face, a good HR management is needed in order to prevent any problems that may arise in the hiring process and organizational behavior of the company in 2018.

The link below is the published material in Business World Nespaper last December 27, 2012.
Business World – Dec 27, 2012

It’s More FUN in the Philippines : Philippines’ Tourism Campaign

an interesting tourism campaign of the Philippines

Case Analysis: RALEIGH & ROSSE: Measures to Motivate Exceptional Service

A Case analysis on Raleigh & Roose case with a good friend Jewel Kristian Taino of De La Salle University taking MBA.

Background and facts:

Raleigh and Rosse (R&R) is a luxury goods brand that started in New York since 1903. R&R have a total of 38 retailers internationally as of 2007. R&R is also known for its good customer service and customer relations; this is mainly due to its corporate “ownership culture” which started in R&R in 1992-1994. In relation, R&R employees are well of compared to the industry standards.
However, economic downturn has hit R&R hard compared to other brands by 2008. One major cause is the lawsuits lost by R&R to past employees and also the investigations and settlement done by state labor department due to its practices.

Also in 2007, Linda Watkins was hired as CEO and as one of the first officer in R&R that is not family related. R&R currently have a lawsuit due to its performance management system, the Sales per Hour (SPH).

Case Problem:
What can Watkins do to the current performance management system as part of the corporate culture, in order to prevent another lawsuit and recover from the current economic downturn?

Facts & Considerations:
• R&R Ownership Culture
The Ownership Culture is the core culture and success of R&R to its famed customer service where the employees especially the sales person are given accountability to its customers.

• The Sales per Hour (SPH) Program
The SPH is the main driving force of the Ownership Culture where incentive programs are part of its reward system.

Alternative Courses of Actions:

Alternative 1: Status Quo or Continue with the Current HRM Process
Watkins will continue with its current process, culture and performance management system.
Pros:
 R&R will maintain its harmonious operations and will recover once the recession is over.

Cons:
 The current system may once again produce lawsuits towards the company
 Elicited behavior might impact the company negatively amongst its employees

Alternative 2: Improve the SPH program as per state laws
Watkins will improve the current SPH program as per minimum requirement of the state law.
Pros:
 Watkins will prevent future lawsuits related to the SPH program
 The overall behavior will shift to a healthy competition rather than “sharking”

Cons:
 The company will still be affected by the current economic downturn and loose more profit.

Alternative 3: Change the current performance management system
Watkins will change the SPH and create a new performance management system like the balanced scorecard and other evaluation programs.
Pros:
 Watkins will prevent future lawsuits related to the SPH program.
 Watkins will help the company from further losses and cope with the current economic downturn.

Cons:
 Watkins will encounter huge resistance within the company since the SPH is a time tested program.

Recommendations:
Based on the presented data, Alternative 2: Improve the SPH program as per state laws is being recommended. The way it creates impact to the company’s revenue and corporate image is significant and has the potential to be improved. HR and management should focus on how to execute or implement it in such a way it will not create averse or wrong behavior. Like for instance, the SPH is a metrics-driven program which drives the employees to focus on the job by providing a good customer service which leads to sales. However, this just needs to be designed in such a way that certain behaviors are anchored such as passion, accountability and discipline. The program can include “peer evaluation” which apart from hitting the numbers, there will be a peer evaluation or recommendation (which of course must be supported by documentation) that will be included.

Learning:
The group realizes the importance of an effective performance management system in maintaining a corporate culture. The SPH is a form of controlling concept in term s of Management Principles. The controlling concept ensures that the company is in line with the company’s goals and target. In addition, controlling concepts acts as sensor is the company s deviating from its original goals.

Case analysis: Two Tough Calls (A)

This is a case analysis with my good friend Kristian Jewel Taiño of De La Salle University taking up MBA.

Background and Facts of the Case

The speaker in the case is a woman and currently a program manager of an on-line merchant company selling different products. This company was said to have started by ex-Microsoft people from which explains the company policies and culture. The company has a performance rating system in which when an employee receives a 2.5, as four being the highest, that employee is subjected to performance improvement plan (PIP) which is really a venue for firing off an employee. The company also implements a bell curve system in evaluating employees, where a 30-40-30 sharing is enforced. The manager has a dilemma about the two weakest links in her group, namely Terry and Phil.

Terry is a poor performer and a poor contributor in her group. In addition, Terry does not have any analytic skills as needed in her group. However, Terry was easily hired due to his connections with the company’s top management individuals for being their scuba instructor. The hiring process requires five approvals of different department heads. However, Terry received not a single recommendation to be hired but was still hired. The speaker manager plans to give Terry a 2.5 mark but got a lot of comments from top management for the given score. In addition, she was being questioned for her management skills as a result for Terry’s poor score. The speaker is concerned on the reasons why the top management is questioning her which will result to poor records for hiring a failure employee. Another concern was that the speaker knew that Terry keeps a gun in his car as a sport.

Phil was also a poor performer due to his background as a call center manager from the previous company that was brought in. The speaker’s group is technical in specialization and Phil struggles to perform in the group. However, the speaker feels that Phil was not completely hopeless which she originally plans to give Phil a 2.5 on the next review. In addition, the speaker’s boss has a personal vendetta against Phil, due to a number of times Phil inappropriately challenged the speaker’s boss. In an unforeseen scenario before the review period, Phil was diagnosed with liver cancer. Phil has a family to support with a little girl. Phil was confined to a hospital and was supported by the speaker’s group by visiting and helping Phil in his gardening. By the time Phil recovered and went back to work, his performance just got worse. Then there was this policy in the company that if an employee don’t gets promoted for three years then that employee is fired, but Phil was already six years in the company and does not have any promotions. Phil expects form the speaker that he will be promoted in the next review.

Again, the dilemma is for the speaker of the case to fire Terry and Phil from the company due to their poor performance.

Identification of Symptoms

• Both Terry and Phil are poor performers in the speaker’s group only and not entirely in the whole company.
• Both Terry and Phil are poor performers due to non alignment of skills and job requirements in the speaker’s group even with the supervisions and counseling of the speaker.
• The speaker feels that the only and easy way to address the problem is to fire both Terry and Phil.
• One of the reasons for the non alignment of skills to the job requirement of Terry and Phil was due to flawed hiring policy of HR.
o Terry has gone through to the regular hiring process by interview but was hired due to personal connections with high ranking officers in the company
o Phil was absorbed by the company due to an acquisition
• The speaker is having a hard time in firing Terry and Phil due to the knowledge of their personal life and the possible scenarios for the firing them.
o Terry have connections with top management and the fact that Terry owns a gun which he stores in his car. The speaker fears that Terry might be hysterical for being fired.
o Phil is recommended to be fired by the biased reason of her boss. The speaker also considers that Phil’s unemployment will greatly affect his support to his family and little girl.

Problem Statement

What should the speaker of the case do to Terry and Phil’s current poor performance in her group and what could be done in improving the current flaws in the HR practices of the company?

Ethical Problems

• The company is not fair in the hiring process of employees and is influenced by associations and connections as in the case of Terry.
• The company is not fair in designating employees to their proper job specialization due to company acquisitions; as in the case of Phil.
• The boss of the speaker is not fair in recommending a poor performance only due to personal reasons; as in the case of Phil.
• The speaker is commendable in knowing the personal information and issues of her employees such as Terry and Phil, but must not be completely affected indecision making.

Problem Analysis

The solution of the problem must address the reasons for the poor performances of both Terry and Phil. The solution of the problem must also address the current flawed company policy.

Alternative Courses of Action

ACA # 1: The speaker must review the competence and skills of both Terry and Phil in order to recommend to other departments that matches their competency by job mapping.

Pros:
 The speaker will get rid of the poor performers in her group and be a more efficient group in the company.
 Both Terry and Phil will be assigned in their proper job specialization.

Cons:
 The Company may not have the available position for both Terry and Phil’s competency.
 The company may not have the available opening in the departments and may produce job redundancy.
 Both may be resistant to change.
CASE ON: TWO TOUGH CALLS (A) CASE OCTOBER 18, 2012
BY: Marvin Martinez and Kristian Jewel Taiño

ACA #2: The speaker must give both Terry and Phil the necessary formal trainings in order to develop the necessary skills needed in the speaker’s group.

Pros:

 Both Terry and Phil will gain the required skills and knowledge needed in the group.
 The speaker will not have the cause of delays in her group when the two are in trainings.
 Both Terry and Phil will be able to keep their jobs.

Cons:

 The training will take time and additional resources (budget) for both Terry and Phil.
 The two will require additional time in transition period in order to fully implement their trainings.
 The company may not have the necessary HR policy for training.
 Both may be resistant to change
 May not guarantee effectiveness in the job

ACA # 3: The speaker should fire both Terry and Phil due to the hard facts of poor performances and as hindrances in the group.

Pros:

 The speaker will get rid of the poor performers in her group and be more efficient group in the company.
 The company will get rid of employees that were not hired properly.

Cons:

 The speaker may get in trouble by the officers that hired Terry.
 The company may have legal problems for being biased in firing Phil due to personal reasons of the speaker’s boss.
CASE ON: TWO TOUGH CALLS (A) CASE OCTOBER 18, 2012
BY: Marvin Martinez and Kristian Jewel Taiño

ACA # 4: The speaker should implement and assign a buddy system for both Terry and Phil in order to supervise and counsel the two in their job and performance in the group.

Pros:

 The company will not need additional resources and time in trainings and formal job assessments.
 The speaker will have an effective and efficient group in the future.

Cons:

 The group will compensate and may reduce the efficiency due to the manpower assigned as buddy to both Terry and Phil.
 The transition and learning period for both will take time for the group.

Recommendations

Based on the group’s analysis, it has been agreed that ACA #2 : “The speaker must give both Terry and Phil the necessary formal trainings in order to develop the necessary skills needed in the speaker’s group”, is the appropriate solution for the case problem.

The formal training will be the better performance measure to the flawed systems in hiring both Terry and Phil. The result of the formal training will be documented and can be used as an unbiased reference for the future of the two employees. In addition, the formal training will be considered as a second chance for the two. The formal training will be the compensating and correcting program for the flawed hiring system of the company.

However, a certain amount of time and resources will be needed for the formal training of the two.

Action Plans

• The speaker of the case will present and submit a proposal of formal training for the two employees. This must capture the technical and behavioral KPI’s of the job that must be supported by the training.
• The speaker shall identify the pros and cons of the proposed formal training.
• The speaker will use the results of the formal training to the group and actual performance form for six months to a year as a reference in keeping or terminating the two employees. This will serve as a tracker in order to monitor both of the employees’ performance and improvement. Also, there must be an agreement that if this does not merit their performance, this can be a subject to proper dismissal in accordance to the company’s policy.
• If the said program is successful, the speaker can present to HR the beneficial applications of the formal training of employees to the company.

References

Aquino. (October 23, 1979). A Code of Ethis for Business. In B.-B. C. Development.
Robbins, & Judge. (2009). Essentials of Organizational Behaviour (13th ed.). Prentice-Hall.
Zigarelli, M. A. (1993). Catholic Social Teaching and the Employment Relationship: A Model for Managing Human Resources in Accordance with Vatican Doctrine. Journal of Business Ethics , 12: 75-82
Abela, A. V. (2001). Profit and More: Catholic Social Teaching and the Purpose of the Firm. Journal of Business Ethics , 31: 107-116.

Case analysis: ARISE a destination-for-a-day SPA

This is a case analysis with the help of my good friend Jewel Kristian Taino of DLSU-MBA taking Strategic HR.

Background and Facts of the Case

ARISE is a Destination-for-a-day spa that provides service with an emphasis on the health benefits of a spa treatment, fitness and well-being. The spa opened in May 11, 2009 which was founded by Kristen Chambers, a devotee of spa treatments herself. The business originated from a company named ABROAD, an international travel company in 1999 which was then sold and eventually had its shift to the spa business. Being inspired by the health benefits of spa treatments, Chambers envisioned the business having its full-time PWC (personal wellness coaches) that will help build strong customer relationships and can distinguish it amongst other spas. The spa also offers other services such as facials, massages, nail and hair care, yoga, Zumba, sauna and hydro baths, pool and relaxation areas such as garden atrium and rooms that aims to provide a total holistic and relaxation treatment to the clients.

The business is being managed by The VP of Business Operations (Sam Solti) and VP of Spa Operations (Twyla Thompson). The Director of Spa Services (Danielle Dunn) reports to the VP. During strategy sessions, the three leaders concur that ARISE’s marketing should emphasize the health benefits of regularly re-energizing the body and spirit to turn periphery customers into midlevel clients. Various strategies were thought of (i.e. spa ambiance improvement, lowering of cost of services, All-Star Team Strategy and even providing fixed salaries to their employees) in order to improve not just the quality of services, but the retention of their employees as well. Prior operation, a soft opening was launched in order to work out operational issues before the grand opening. With this, it has been identified that the critical part was selecting the PWCs. Having a strong pool of PWCs reinforces client-PWC relationship and helps keep low turnover of employees.
However, there are other concerns encountered such as problems with job duties, working schedules of PWCs, client reactions, employee turnover and employee morale. These, in overall, affect the financial performance and standing of the business.

Identification of Symptoms

• For Thompson, the primary concern was the growing revenue; while Solti is controlling costs.
• Turnover of employees are influenced by uncontrollable variable such as personal decisions of employees (non-work related).
• PWC provide key services in the spa but would have slack time in their schedules; having low productivity rate at that point. This is in contrary to the proposal of increasing their salaries to strengthen the pool and retain.
• There have been no clear job descriptions on other areas of responsibilities in ARISE.
• The All-Star Team plan has its own pros and cons, which makes it hard to management to determine if it’s deemed successful or not.
• The PWC relies heavily on the tips from their services and treat the tips as part of their monthly package income.

Problem Statement

What can management do in order to increase morale and decrease the turnover rate of ARISE is experiencing, while at the same time recover the loss incurred in the ARISE?

Ethical Problems

• Employee morale has been effected within the management team due to work habits which can cause de-motivation
• The company is not fair in providing ample break time for the PWCs as they do multi-tasking of activities, which was supposedly the task of facilities maintenance group
• Sensitivity and respect to one’s time is not being observed as this resulted in late picking up of clients and overlapping of treatment hours.
• Tipping affects income but been discouraged from destination spas such as ARISE.

Problem Analysis

The solution of the problem must address the reasons for high employee turnover of the spa, improvement of customer satisfaction and increase in financial performance. The solution of the problem must also address the employee morale improvement of the company.

Alternative Courses of Action

ACA # 1: Retain Full-time Employees (PWCs) and improve the current benefits package

Pros:
 This will give a feeling of guarantee and at-ease for the employees that they have a steady and regular job.
 The increase in benefit package will compensate for the poor tips that are expected by the PWCs.
 Will boost employee morale and motivation
 Will serve as employee retention that unlike with other spa business, is more of providing assurance to the employee
 Customer loyalty will likely to increase as clients will keep coming back to their loyal attendants in the spa
 Increased customer loyalty and relationship is likely to manifest

Cons:
 Increase in manpower expense and will require other sources of capital due to loss in income.
 The increase in benefit package may not guarantee retention and will not be suffice to compensate for the expected tips of PWCs.
 The increase in benefit package may not directly influence the customer satisfaction rating of ARISE.
 Turnout or impact to income is not yet foreseen

ACA #2: Keep the All-Star Team Plan and maintain the additional fee in the fitness center

Pros:

 Will increase employee morale and engagement as this promotes healthy competition amongst employees
 Management will be able to identify who are the key players and potential leaders
 Provides a different flavor of working together as a team which will help achieve and deliver customer needs
 Sharing of ideas and thoughts will come into play in most cases (i.e. process improvement, suggestions, etc)
 Group effort will be seen and peer pressure will increase (pressure in proving one’s worth and abilities)
 The increase in fees will give a prestige and quality image of the services and products that ARISE offers.
 The increase in fees will cover for the income loss of ARISE, financially.

Cons:

 Other employees might not feel comfortable working in teams and might result to de-motivation and decline in performance
 Individual effort might not be seen by management and there will be high instances of unequal work or labor.
 Scheduling problems will start due to limited number of employees and overlapping of schedules and availability.
 Queuing problems will start for customers who have different references.
 Some customers may not be comfortable in group and would prefer the individual treatment.
 The additional fee may discourage customers going to ARISE.

ACA # 3: Revisit and reiterate the duties and responsibilities of a PWC and the other positions in the spa

Pros:

 There will be clarity in the roles and what are expected out of the employees’ performance
 KPIs are measured and from these detailed duties and responsibilities that rewards are based
 Employees will know their areas for improvement for they will know their gaps in terms of competencies and skills
 Employees can manage their own time and promote harmony in ARISE

Cons:

 Might not help eliminate “slack time” and employees may view inequality in ARISE
 There will be resistance to change for employees due to additional work and responsibilities.
 The additional work and responsibilities may require additional benefits or compensations for employees of ARISE

Recommendations

The team recommends ACA 1 : Retain Full-time Employees (PWCs) and improve the current benefits package and ACA 2 Keep the All-Star Team Plan and maintain the additional fee in the fitness center.

By keeping the full-time employees will keep the morale of the employees and will save the company additional time and resources for the trainings of new employees. In addition, the good feedback of the All-Star Team signifies that the plan was successful and only needs improvement to fully utilize the plan.

While the plan for the additional fee in the fitness center will create a good image and high quality for ARISE. In addition, the additional income will be able to compensate for the increase in benefit packages of the employees without the need of additional capital. The additional fee and increase in package will increase morale for the employees and will give an image that ARISE is improving internally and externally.

Action Plans

• ARISE will start the additional of fee in the fitness center by the start of the month. While at the same time, ARISE will announce by memorandum to employees that an increase in benefit package will start by that month and employees may see the increase on the month end salary.
• The memo will ensure increase in morale of employees and will ensure that the employees will work hard while looking forward for the increase by the month end and in turn will increase the customer satisfaction ARISE gives to customers.
• The additional fee will cover for the additional cost of the increase in employee benefit package.
• ARISE can also promote a performance reward system for performing employees by the end of the month.

References

Beer, M. & St. Clair, Lynda (August 20, 2012). ARISE: A Destination-for-a-Day Spa. Harvard Business School (Brief Cases). 9-913-521.

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