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What is the core HR
problem of the company?

 

Société
de transport de Montréal (STM) or the Montreal Transit Corporation, is a public
transport agency that operates transit bus and rapid transit services in
Montreal, Canada. STM has approximately 9274 employees in 2011 with an average
weekday ridership of 1.45 million trips. (Measuring the Results of the
HR Function: The Case of the Socie?te? de transport de Montre?al’s Staffing
and Workforce Planning Division, 2013) After going through
the entire structure of the company, I recognized many core problems related to
business perspectives which are stated as follows –

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Is
it possible to predict employees’ turnover?

When
will the employees leave for retirement?

What
is the actual business value of the human resource department and are they
making the appropriate and profitable business decisions?

How
many employees will be required to meet the company goals mentioned in
Strategic Plan 2020?

How
many employees would like to stay after retirement and how many will leave?

What
are the core competencies of our talent and in which segments are they
distributed?

What
are the future behavioural aspects of the company’s talent and are they going
to stay in the company in successive years and will they be willing to work
after retirement?

How
many employees would be required after the expansion stated in Strategic Plan
2020?

How
many employees would be required as a replacement due to retirement?

 

 

 

 

Drawing on appropriate theoretical models, undertake an analysis of the
kind of HRM system in operation at Société de transport de Montréal

There
is a binding relationship between the HR strategy and the business strategy.
Sharing of data with the senior management and hiring managers helps them to
ensure that they have all the insights they need to proactively take actions to
meet their future goals. It helps the management team to anticipate the number
of resources that need to be hired and trained and most importantly to become
strategic partners within the company. After analysing the case study, in my
point of view, Michigan model best suits the company structure and relation to
HR strategy.

 

 

 

 

 

 

                                                           

 

 

 

 

 

 

 

 

 

Figure – Michigan model of HRM (Fombrun, et al., 1884)

                                               

Business strategy
takes the center stage in this model hence human resources are taken like any
other resource which must be fully utilised together with the other resources
to achieve organizational objectives. The STM’s Staffing and Workforce Planning
Division comprises a team of nearly fifty unionized professionals (secretaries,
agents, technicians) and non-unionized professionals (advisors, section heads,
division heads) whose mission is to develop a strategic recruitment plan, to
attract best resources and to foster a collaborative, stimulating, safe and
motivating work environment. (Measuring the Results of the HR Function: The
Case of the Socie?te? de transport de Montre?al’s Staffing and Workforce
Planning Division, 2013)

Due to correlation
relationship between employee and company’s key business challenges, the
Michigan model perfectly suits STM’s Human resource management. The data
provided by HRM is used by the senior management team to design their strategy
and workforce planning.

Due to company’s
focus towards promoting sustainable development and taking part in the
government’s efforts to electrify public transit, STM is looking forward to
enhancing customer experience, improve service reliability and punctuality. Due
to high investment in Strategic Plan 2020 projects, the HRM is directly related
to hiring the most talented people to meet the business requirement. Due to one
of the main drivers of economic development in the city, the HRM needs to keep
in mind that the workforce must reflect Montreal’s multicultural makeup. The HR
strategy must be highly calculative in terms of the quantity of the human
resources required to achieve the objectives enshrined in the business
strategy. In fact, the business strategy must be achieved through minimum
labour costs enhanced by structural re-organization, Performance Related Pay,
and staff reduction.

 

 

 

 

 

Choose one
of the topics discussed in the module (as outlined below) and evaluate how
Société de transport de Montréal Staffing and Workforce Planning Division could
have adopted to manage its staff better:

·     
Individualization
of HRM (e.g., job crafting, i-deals)

·     
Flexible
work practices (telecommute, flexitime, part-time)

·     
Training
and employee career development (e.g., talent management)

·     
Supportive
HR culture (investment in human capital, training and development oriented
mind-set)

 

Société de transport de Montréal
Staffing and Workforce Planning Division were working at their optimum speed
but as time advances, the HR strategy needs to be changed. There’s a war out
there—a war for talent—and it’s the Millennial generation that makes up
increasing talent pools in the corporate world. Focusing on training and
employee career development might boost the confidence of current employees and
help the company to fulfil their future goals. The Millennial generation is
keen on learning and investing in their training will give them a chance to
learn and improve their skills and expertise. Regular training, employee
development initiatives, and various certifications are things that attract
Millennials to an organisation and motivate them to increase their
productivity. They prefer flexible work schedule and as the organisation’s
states, nearly half of the employees are drivers, so by analysing the data of
peak and non-peak hours, drivers can be given flexible timings which attracts
the millennials. (Bruce, 2017)

 

Individual addressing the talent
management requirements of employees in the organization and developing
strategies to effectively cater to those requirements and needs can help
business needs. No two people are same. They have different backgrounds,
different circumstances, different styles of working, and different goals.
Using one standard for all policy usually turns out to be a failure. For
example, you have a set of monetary rewards to motivate your employees, but
would money motivate everyone? Not necessarily. Learning about every individual
employee and knowing their career aspirations, their opinions for a better
workplace environment can be beneficial for the organisation. A recognition and
reward system should be introduced in talent management program to appreciate
every employee in the organisation. The drill is simple, understand an
employee- recognise their needs-reward them accordingly. Implement this and
they will be automatically motivating their employees for increased
productivity. (Bruce, 2017)

 

After attending the guest lecture
by Eda Caliskan, HR Executive and Organisational Design Director at General
Electrics, Dubai organised by Professor Yasin Rofcanin at University of Bath, I
gained a key interest in the organisations HR department and I did some
research on the talent management in GE and I found some useful information
which benefits the business strategy of GE. They focus on six areas of talent
management namely, career and succession planning, training, high potentials,
networks, talent retention and cultural change. With the help of analytics, the
tool for career and succession planning can help users identify potential new
opportunities throughout the organisation and not just in their own business or
geography. The same thing can be implemented by STM for the critical roles like
maintenance that are hard-to-fill- positions with the help of Appendix R. GE
also implemented a system to help employees identify others within the company
they can go to for help on a particular problem (peer-to-peer). GE is trying to
figure out employee behaviour in the organisation, for example, it would
measure whether an employee serving on large teams feel differently about the
organisation then do employee on smaller teams. STM has already stated that
they have around 500 different jobs, so analysing past data can help them
understand the productivity of an employee in a particular role/team. (Mcilvaine, 2017)

 

Tata Consultancy Services Limited
is an Indian multinational information technology service, consulting and
business solutions company who implemented a scheme called ‘Bring your Buddy’.
It was a reference scheme used by current employees of the organisation and it
helped the organisation to fill vacant places much faster and with an improved
skill set and in return the current employee was awarded a bonus for every
individual he refers and who is hired by the HR department. There was a decrease
in cost of hiring an employee and most importantly the vacant post time
decreased enormously. STM faces same issues and applying this scheme might help
them fill the vacant posts quickly and they can avoid the complications of
Appendix R system which might lead to cost saving. (Tata, 2009)

 

Due to Montreal’s multicultural
makeup, company’s workforce comprises of people from different backgrounds and
languages. A Learning & Development system can be adopted similar to as shown
in the case study of ‘ArcelorMittal’, where an online platform was created and
English was accepted as the business language throughout the company and it was
mandatory for every employee to undergo the training. It helped internal
employees to move at a senior level and understand the cultural differences
within the organisation. The priorities of STM is a better, safer,
user-friendly and an accessible public transport system. In addition, they are
planning to move towards electrify public transport and promoting sustainable
development and to achieve these goals, STM needs highly skilled and long-term
employees and a better talent management system can help STM with their
business strategy and economic stability. (Measuring the Results of the
HR Function: The Case of the Socie?te? de transport de Montre?al’s Staffing
and Workforce Planning Division, 2013)

 

If the HR function is to become a strategic
partner within an organisation, it must be able to measure the results of its
activities and programs. But how? Please identify and develop indicators that
you will use to give suggestions for the head of the Staffing and Workforce
Planning Division of the Société de transport de Montréal (STM).

Analysing and interpreting company employee’s
data can help the HR function to become a strategic partner within an
organisation and in addition, it would be able to measure the results of its
activities and programs. HR analytics is the most appropriate solution to
overcome the core HR problems of the company and support in deciding business
strategy. The analytics data must be segmented by occupational category, by
experience, by profile, and by skill set. It will help the company to find a
correlation between employee data and business challenges. It can help deliver
better service to customers, keeping the rate of productivity high. It will
help senior management in strategic planning and it will be valuable in
workforce planning. It can help during the recruitment process and can provide the
approximate number of employees to be hired required for service expansion. The
overall data can be calculated based on the overall investment in the
workforce, the number of drivers, resources and customers, traffic patterns and
much more. One of the core problems that the company faces is lack of employees’
due to sudden retirement by many employees. The analytics data will give the
exact details of the number of employees who are eligible to retire and who are
willing to continue to work after retirement. As stated above that there is no
model that fits all employees, so analysis will be divided into categories like
occupations from managers to maintenance staff, bus and subway drivers and auto
mechanics. By applying this model, the company can mitigate the risk of
shortage/excess of employees. (Isson & Harriott, 2016)

The HR team can conduct the analysis based on
past years data available through salary slips, hiring and leaving of employees
and many other factors. It will be cost-effective for the company and
beneficial to achieve and implement the business strategy of the organisation.
This data will help in the development of talent management because the data
can be separated into employee segments and the individual employee. Future
employee retirement can be achieved based on skills, occupation, and category.
These factors can help the company to deliver quality service to passengers
without any impact in operations. The top business priority was retirement
planning and workforce planning and the predictive analysis can solve both the
mentioned problems. (Couto, et al., 2010)

During analytics, a lot of unwanted data is
achieved, so when presenting the data to the senior management team, the data
must be kept simple, easy to understand and relevant to the context. They need
to start small and focus on the core problems faced during the analysis of
business strategy. This will align the HR strategies with business goals and it
will help HR function to become a strategic partner. There should be no
communication gap between senior management and HR function because it can
hinder the implementation of planning across the organisation. (Collins, 2013)

The disadvantage of
data analytics is that sometimes due to a huge amount of data, the team gets
lost, so focus should be on critical roles and priorities. Workforce Planning
analytics will help organisations to identify the target segment of employees
to achieve their business goals. Implementation of analytics can help the
organisation reduce expenses from talent management department. Workforce
analytics can enable organisations to maintain the balance by hiring the needed
skill sets while reducing vacant positions and excess capabilities.

 
 
 
 
 
 
 
 
 
 
Bibliography
 

Fombrun, C., Devanna, M. A. & Tichy, N., 1884. Strategic
Human Resource Management. s.l.:Wiley.
Bruce, P., 2017. Human
Resources Today. Online
Available at: http://www.humanresourcestoday.com/examples/talent-management/?open-article-id=6154481&article-title=millennials-are-reshaping-workplaces-and-talent-management&blog-domain=blr.com&blog-title=hr-daily-advisor
Mcilvaine, A., 2017. GE
IS REINVENTING TALENT MANAGEMENT, s.l.: Human Resource Executive.
Tata, R. N., 2009. The
Economic Times ET Markets. Online
Available at: https://economictimes.indiatimes.com/directorsreport.cms?companyid=8345&year=2009
Accessed 8 December 2017.
Isson, J. P. &
Harriott, J. S., 2016. People analytics in the era of big data : changing
the way you attract, acquire, develop, and retain talent. s.l.:John Wiley
& Sons.
Collins, M., 2013. Change
Your Company with Better HR Analytics. Online
Available at: https://hbr.org/2013/12/change-your-company-with-better-hr-analytics
Accessed 9 December 2017.
Measuring the
Results of the HR Function: The Case of the Socie?te? de transport de
Montre?al’s Staffing and Workforce Planning Division (2013).
Couto, V., Ribeiro,
F. & Tipping, A., 2010. STRATEGY+BUSINESS. Online
Available at: https://www.strategy-business.com/article/10213?gko=9e329
Accessed 9 December 2017.

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