HR Practices in the DHL Express Company - Case Study Example

Table of Contents Table of Contents Introduction 2 HR Practices of DHL 2 Human Resources Management Models 3 The use of the Harvard HRM Model at DHL 4 The Guest HRM Model 5 The use of the Guest HRM Model at DHL 6 Conclusion 7 References 8 Motivation and Performance Management at DHL: HR Practices in the DHL Express Company Introduction DHL Express is a leading company in the transportation industry that handles tasks concerning international mail services, contracts logistics, and road, ocean, and rail freight. The firm is known all over the world for its agility when carrying out its responsibilities. DHL produces customer value through the provision of services through different corporate divisions such as GHL Global Forwarding, DHL Express, and DHL Exel Supply Chain. Essentially, DHL operates as a one stop shop for different kinds of logistics solutions. HR Practices of DHL DHL, though, still has to contend with business rivals such as Fed Ex in the aggressive logistics and transportation industry. DHL’s top executives are well aware of the fact that their human relations strategies play a large role in facilitating the organisation’s profitability. The company’s top management has created administrations as well as personnel functions that facilitate HR functions so that the firm is constantly performing at maximum capacity. It is a recognised fact that HR departments are usually entrusted with matters to do with employee retention, while still being expected to function as change agents, administrative experts, and strategic partners. At DHL, human resource personnel handle aspects such as staffing and recruitment of new employees, training management, and the administration of benefits and reward schemes (Okeudo 2014). There has been a subtle change in the way the HR department is viewed by top executives in the recent past. The HR department is no longer viewed as only being important for insubstantial issues that have to do with minor workers’ concerns, but is considered to be a division of the company that could play a huge role in propelling it into increased growth and productivity. At DHL, the HR department is viewed as a manager of the corporation’s most important resource- human capital. The HR department offers vital services at very competitive costs; thereby improving the firm’s productivity at a time when most companies are invested in creating practical budgets. The constant evaluation procedures that are carried out on all of the corporation’s divisions on a regular basis have seen the development of different areas of specialisation in DHL’s HR division. Today, the DHL HR department is skilled in functions such as recruitment, workforce planning, skills management, induction, training and development, orientation, compensation, personnel administration, payroll administration, workers’ benefits administration, time management, personnel cost planning, labour relations, and performance appraisal. Human Resources Management Models There are different types of human resources management models that are used by the DHL HR division. The Harvard model of HR holds that assorted labour relations and diverse personnel concerns can be included in four basic HR categories that include human resource flow, employee influence, work systems, and reward systems. According to Murphy, Jr. and Knemeyer (2014), these are basic factors that managers in any organisation have to deal with. The Harvard HR model further contends that managers have to take into account issues such as competence, commitment, cost-effectiveness, and congruence (compatibility) - known as the 4Cs- when making corporate policy divisions. This basically means that before making decisions, organisational managers have to consider how the proposed decisions will increase workers’ commitment to their responsibilities, attract, develop, and retain employees in various competencies, maintain cost-effectiveness in regards to employee turnover and wages, sustain compatibility between workers and their managers, and prevent employee dissatisfaction. According to Lovelock and Wirtz (2011), the Harvard model represents ‘soft’ HRM practices as it is focused on realising outcomes that will benefit an organisation’s workers, rather than meeting the organisation’s objectives. The Harvard HR model is focused on ensuring that there is organisational commitment and the workers feel contented in their present positions. This model does not esteem shareholders’ interests over the needs of workers as represented by unions or the community. The model contends that organisational effectiveness is an important long-term result that should be esteemed alongside other corporate objectives such as societal and individual well-being. Any corporation that uses this model is dedicated to ensuring that its workers feel involved in the running of the company by affording them rights to participate in important functions such as HRM decision-making. According to Kandula (2013), the Harvard HR model contends that HRM policies have to be created to meet the different needs of workers for corporate influence. Moreover, they have to be aligned with the management philosophy and overall corporate objectives. The use of the Harvard HRM Model at DHL There are different functions of DHL’s HR department that seek to realise progress in the professional and personal lives of workers. One area in which DHL has specialised is in performance and motivational training. DHL even has educational institutions such as the DHL Logistics Management University and the DHL Asia Pacific Learning Centre which are dedicated to instructing potential workers about their responsibilities, while also providing courses for employees who wish to be promoted to more senior jobs. According to Jackson, Schuler, and Werner (2011), DHL also has programs that aim to generate talent pools of workers that will be groomed to function in senior capacities in coming years. For instance, the workers in the talent pools could be assigned to other nations as country managers after extended training. The best part of this arrangement is that every program is based on the specific needs of various posts in terms of competencies. This means that if a worker is to be entrusted with the role of deputy country manager, he will be trained in areas like human resources, operations, finance, and corporate social responsibility. The DHL Corporation has even introduced a program known as the 360 Degree Online Solutions program which allows for the integration of diverse operations. The main objectives of this program include the realisation and improvement of performance management operations, the senior leadership program, and talent review programs. This program allows for the use of a participatory management method to assist in comprehending the aspirations, needs, and opinions of its numerous workers across the globe. In addition, the DHL HR division has created a health management program that seeks to ensure the occupational safety of workers at all times, among other things. The company’s HR department has emphasised on the importance of ensuring employee safety as a prime aspect when seeking to improve corporate performance. Today, as a result of its HR division, DHL does not just restrict its concerns to the importance of preventing time loss due as a result of illness and injury, but also actively promotes the importance of maintaining good health practices on a continuous basis. The Guest HRM Model Another HR model that is utilised by the DHL Company is the Guest model. This ‘soft’ model which was created in 1987 by David Guest, is centered on designing corporate practices and policies. According to Coltman, Gattorna, and Whiting (2010), this theory aims to realise four objectives which include a high level of workers’ commitment to a company, achieving strategic integration through planning and implementation practices, recruiting a highly skilled workforce, and generating workforce adaptability and flexibility. To realise strategic integration, a company has to implement its business plans through well designed HR practices and policies. The HRM and corporate strategies are not viewed as being separate, but are united under one objective. The realisation of the four principals of this HR model could result in the realisation of desirable outcomes such as improved problem solving capabilities, high job performance, the facilitating of changes in all levels that is consistent with corporate goals, and the realisation of improved job performance (Murphy, Jr. and Knemeyer 2014). In addition, the use of this HR theory could also reduce the incidence of worker-related problems such as the registering of grievances, and cases of worker absenteeism. The use of the Guest HRM Model at DHL One program that aims to improve the skills of employees while also concurrently increasing workers’ commitment to the organisation and achieving strategic integration is DHL’s career development program (Armstrong 2009). DHL has an international business leadership program that allows the corporation’s executives to create strong networks on a cross-divisional basis while learning new strategies that will improve their management skills. Since this program was established in 2009, more than 100 DHL managers have benefited from it. DHL also supports workforce diversity initiatives by supporting the employment of workers from different parts of the world. DHL regularly sponsors its workers to study in assorted universities all over the world. DHL has arrangements with business schools all over the world that allow its employees or even potential workers to be schooled on different facets of business operations. Diversity management is actually an integral part of DHL’s recruitment policy and corporate culture. In many nations, there are few female employees who work for companies that specialise in logistics and transportation. This is usually either because of cultural interpretations of what are the best careers for women and men, or because of the lack of opportunities for female students to specialise in logistics. In 2009, DHL’s supply chain department created the ‘Diversity & Respect’ program which was meant to provide chances for young women from all over Europe who want to work in a logistics company. DHL has also launched diversity programs with the intent of attracting talented workers from emerging economies. Conclusion DHL’s human resources department has been modified to represent the needs that will be generated by rapid development in the global economy. The company’s executive management understands that there is a need to engage with its workers on a deeper level in order to retain their loyalty at a time when numerous logistics companies in developed as well as developing nations are offering unusual incentives to skilled workers. The company has modelled its HR department and initiatives on different HR models in order to benefit through increased competitiveness in the aggressive transport and logistics industry. References Armstrong, M. (2009) A handbook of human resources management practice, Kogan page, Glasgow. Coltman, T., Gattorna, J. & Whiting, S. (2010) ‘Realigning service operations strategy at DHL Express’, Interfaces, vol. 40, no. 3, pp. 175-183. Jackson, S., Schuler, R. & Werner, S. (2011) Managing human resources, Cengage Learning, New York. Kandula, S. (2013) Competency-based human resource management, PHI Learning Private Limited, New Delhi. Lovelock, C. & Wirtz, J. (2011) Services marketing – people, technology, strategy, Prentice Hall, Upper Saddle River, New Jersey. Murphy, Jr., P. & Knemeyer, A.M. (2014) Contemporary logistics, Prentice Hall, New York. Okeudo, G.N. (2014) ‘The impact of human resources management in logistic service providers and supply chain capabilities: a case study’, British Journal of Science, vol. 4, no. 1, pp. 57-71. Read More