Resourcing People - Essay Example

Running Head: RESOURCING PEOPLE Resourcing People: Report on MTN Client Inserts His/her Name Client Inserts Grade Course Client Inserts Tutor’s Name Table of Contents Table of Contents 2 Abstract 3 1.0 Introduction 4 1.1 An Overview of MTN Group 4 1.1.1 MTN Group’s Strategy 5 1.1.2 Stakeholder relation 5 1.1.3 Business Partners 6 1.1.4 Employees 6 1.1.5 Customers 6 1.1.6 Governments and Regulators 6 2.0 Theoretical Perspectives of Human Resourcing 7 2.1 Planning for human resource 8 2.2 Resourcing information 9 2.3 Job selection 9 2.4 Managing redundancy 10 2.5 Human Resource Strategy models 10 3.0 MTN’s Resourcing Strategy and Risk Management 11 3.1 Risk management 11 3.2 Prevention of fraud and corruption 12 3.3 Ethics Code 12 3.4 MTN Talent management Practises 12 3.4.1 Employee value proposition (EVP) 13 3.4.2 Compensation 13 3.4.3 Learning and development 14 3.4.4 Performance and recognition 14 3.5 Labour practice 15 3.6 Health and safety 15 4.0 Conclusion and Recommendations 16 5.0 References 18 Abstract This paper reviews elements of good practise in relation to people resourcing in company management. It considered a case study of MTN, a multinational Telecommunication Company based in South Africa. The paper examines the management practise by the said company in relation to talent management and resourcing strategies. The paper also discussed theoretical frameworks of human resourcing citing strategies and processes involved in contemporary human resource management. Lastly, it exposed practises by MTN in line with employee recruitment and management. The findings of this assessment revealed that human resourcing is a crucial facet of management that need careful strategies for planning and selection. The process must be proactive to bring forth any fruit. Equally, recruitment and management of the work force should be keen in considering individual worker efficiency, reliability and future prospects. Most policies applied by MTN were observed to be consistent with several theoretical findings and recommendations of good practises. The adoption of standard procedures by MTN explains its rapid growth and strength in the market and the ease with which the company is attaining its objectives. While the paper supports the good practises adopted by MTN, it recommends an improvement in employee management especially on their welfare among workers in the company’s Nigeria branch. 1.0 Introduction Human resourcing is a complex and engaging process that requires managers of the corporate sector to have adequate knowledge, skills and laid down strategies necessary in handling it. The process involves: selecting the right person for a specific job, stimulating optimum performance in the individual, and building and managing formidable corporate teams’ performance. Aspects of people resourcing include but not limited to: establishing resourcing strategies, human resource planning, and collection of resourcing information, establishing employee selection strategy, and management of redundancy. This paper discus the approaches of managing talents and performance with reference to managerial practises of MTN Group, a renowned giant telecommunication company with headquarters in South Africa. 1.1 An Overview of MTN Group According to MTN Group.com (2013), The Telecommunication Company came into existence in 1994, the same year when the Republic of South Africa attained African majority leadership. The company boasts as a giant telecommunication leader in the region covering more than fifteen countries in Africa and around five countries in outside the Africa. It offers voice and data communication products and services to individuals, businesses and organizations. It also provides internet services to at least 13 countries spanning three continents. The company invests heavily on employee development (MTN.com; b (2012). For instance, in 2010, a total of R246 million was invested on employee development. The company’s development is characterised by steady organic growth, steady expansion and able leadership. The MTN Group objectives include investing in new infrastructure and technologies and standardising business practices to keep in line with global best practice. MTN Group has its headquarters in Johannesburg, South Africa. The Group operates in three regions namely: MTN South and East Africa (SEA), MTN West and Central Africa (WECA), and the MTN Middle East and North Africa (MENA). 1.1.1 MTN Group’s Strategy According to mtn.co.sz (2012), a cornerstone to MTN achievements has been the setting of challenging objectives and achieving them. The company has operated on the following strategy since year 2007 (MTN.com; b (2012). i. Completing the final elements to integrate acquisitions that complement our expansion strategy ii. Optimising regional synergies and ensuring strategic regional focus through a hub and cluster structure iii. Continuing to pursue appropriate expansion opportunities to further diversify earnings and consolidate our position iv. Improving operational efficiency through our least-cost operator strategy and exploring outsourcing to improve the business model v. Taking advantage of money transfer and mobile money opportunities in MTN Group markets. 1.1.2 Stakeholder relation The company endeavours to bring together the interest of all its stakeholders for effective achievement of its vision. The identified stakeholders include: Company employees, business partners, the government, regulators, clients and shareholders into its business operations. 1.1.3 Business Partners These include suppliers who constitute 60% of the company’s supply chain. MTN Group has clearly defined procurement policies that promote the growth of its partners in business. It promotes innovation in partnerships as a way of enhancing performance and productivity. 1.1.4 Employees Employee development and the use of human talent is the focus of MTN Group. This endeavour has made the company maintain its position among the top 20 preferred by employees. The company spends about 6% of its revenue on staff. MTN Group, in addition, remains in the fore-front for international telecommunications enterprises on major human resources indicators including staff turnover and employee revenue. 1.1.5 Customers To focus on international best practise, the MTN Group is always focused on customer relation services and enhancing client-centred solutions to communications. MTN is recognised for leadership in innovation and quality of services 1.1.6 Governments and Regulators The company engages with the government and other regulators of the telecommunication company in all countries of its operation. The control of frequency spectrum by the government, being a natural and national resource, is recognised by the company. The company engages the government and regulators in dialogues over legislative and policy issues. It lobbies for fair treatment while endeavours to fulfil the terms of its operational licence. 2.0 Theoretical Perspectives of Human Resourcing Over the past few years, Human Resource practitioners and researchers have focused their attention on so important questions such as; what determines whether a company adopts a strategic approach to human resource management and how the Human Resource strategy is formulated? Strategic management is considered to be a continuous activity that requires a constant adjustment of three major interdependent poles: the values of senior management, the environment, and the resources available. MTN adopts what is commonly known as strategic human resource management. By a strategic approach to human resource management, it refers to a managerial process that requires human resource practices and policies to be closely linked with the organization’s strategic objectives. It is a common practise in most organization of engaging human resource specialists to oversee employee resourcing. However proactive approaches are more viable. Various strategies of human resourcing may be applied. According to Dyer & Reeves (1994), the first strategy is the reallocation of duties among employees or swapping of duties so that existing staff can handle more or different work. This procedure ensures flexibility of work; create multi-skilled employees and advance assessment and development programmes. Secondly, relocation of workforce within a company. This involves promoting or shifting employees from one department to another or filling new posts with existing employees. The third method is recruiting new staff from the external job market. Whichever method a company adopts, there is need to manage these employees so as to increase market strength of the company’s products. Several strategies have been put forward to manage human resourcing. According to Soberg (2011), human resourcing strategies target establishing and managing good performance and nurturing and management of talents in an organization. Different corporate establishments practise varied strategies for human resourcing some of which are beneficial to the organizational growth and are termed good practises while other strategies are limited in their effect in the sustainability of organizational growth. The practises include, but not limited to: human resource planning, information resourcing, selection strategies, and management of redundancy. 2.1 Planning for human resource This involves planning of skill and competence needs of a company based on perceived impact of human resources on the general business strategy. To be effective implemented, resourcing strategies must be modified into practical terms. The planning process must be logically organised to follow some decision sequence. Second to this, relevant information must be sought, consequences of hiring established, strategic factors considered and preferences assessed. Decisions related to human resource planning are basic to an organization. If implications are significant, then strategic decisions are taken on the basis of business. Human resource personnel will provide viable information and opinion on factors of the recruitment including: recruitment cost, effects on workforce morale, outplacement or redeployment opportunities, presence of skilled manpower within the organization, suitability of the local labour market, time factors, management costs, and training or employee developmental needs. The manpower planning perspective should address questions like: the number of staff needed, distribution based on specialization, age preference during hiring and turnover rate. Secondly, it should forecast on the future scenarios. Techniques such as extrapolation of past trends, projection of sales or production, and employee analysis may be used. Third is employee turnover. This should be addressed in relation to input-output ratios taking into consideration the consequences of promotion and transfer. Lastly on resourcing is soft planning. This means planning beyond the perceived or implied human capacity taking into account employee attitude, behaviour and commitment. 2.2 Resourcing information Effective internal resourcing requires detailed and curate information. Human Resource plans and strategies need be converted into actual jobs. People should then be found or developed to perform the jobs. The tasks must be specified, skills and competencies required for the jobs must also be spelt out while the job themselves must be existing within the organization for people to be recruited. While researching the job, analysis of the task itself and its sub – tasks should be ascertained. The analysis can be either rudimentary or sophisticated. From the analysis, the task should then be described, though in the contemporary world, flexibility on the job is a preferred. Upon job description, the personnel should specify required talents or skills to reflect task requirement into human abilities. 2.3 Job selection This involves matching people with jobs. Though it is near impossible to perfectly match individual with the right jobs, good practise demand that the employer should selects the most qualified person for the right job. The second method involves modifying job features to match the abilities of people employed. Thirdly, train people to perform a job more effectively. 2.4 Managing redundancy According to Martin & Fryer (2009), handling redundancy requires planning. Even though job security is paramount in human resource planning, it is equally important to plan for redundancies. One strategy is deselection where a systematic or thought out procedure is used to decide who will lose their job (Devongov.uk, 2012). Here focus is on target numbers and valuable skills in the employees. In most developed countries, redundancy is regulated by social legislations where multinational businesses must consider their respective severance rules (Streeter, 1991). 2.5 Human Resource Strategy models The HR strategies refers to the patterns of decisions regarding human resource practices and policies used by the management to design work and select, develop and train, control, appraise and motivate workers. Several models exist. The most common ones include: control base model which is grounded in the ways which the management attempts to monitor and control employee role performance. The second one is resource based model which is based on employer to employee exchange and usually more oriented towards employee behaviour, attitude, and the quality of manager –subordinate relationship. MTN however, creates an integrative model that combines control based and resource based typologies in order to garner maximum benefits. 3.0 MTN’s Resourcing Strategy and Risk Management The MTN Group acknowledges King Report and commits its compliance to all principles embedded in it. The commitment is reflected in the group’s policies relating to transparency in reporting its developmental progress and as well the structure and procedures of its management (MTN. com., 2004). Aspects of corporate governance activities of MTN Group include: management of risk, ethics code, and fraud and corruption prevention, 3.1 Risk management It is recognised by MTN group that effective management of risk is important in establishing sustainable shareholder value and promoting their interest in the activities of the company. It therefore undertakes to identify, control and monitor all aspects of risk exposure within its operation. In this endeavour, it aims to maximise long- term shareholder value, maintaining stakeholders, employees and company assets, reducing environmental significance of its operations, and improving the company’s reputation. MTN group has taken various steps to integrate a standard practise on risk management across all sectors of the company aiming at making the process more effective sustainable. This initiative will ensure that risk factors are identified earlier and addressed in real time and at appropriate levels and that mitigation procedures are properly followed (Wellins, et. al, 2008). Each of the company’s department is tasked to diagnose risk factors within its operation and identify those that can be managed effectively within the company. MTN Group projected to install strategic risk management systems throughout the company by July 2004 and that by mid-2005, the company to extend the risk management program to business levels. The program was expected to ensure a more organised and integrated internal monitoring and reporting operations that relates to health, environment and safety risk management. 3.2 Prevention of fraud and corruption The company adopted an unequivocal policy against all forms of corruption and fraud within its operations. Clear guidelines are defined on this issue and any breach warrants dismissal. MTN Group policies are also supplemented by internal auditing guidelines and structures that permit employees to disclose malpractices within its operations. 3.3 Ethics Code The company’s management approved Code of Ethics aimed at promoting the highest level of ethical conduct among directors, management authorities and employees. This code provides a clear definition of the conduct of MTN group representatives at various levels including customer relation practises, and the declaration of gifts. In addition, the code defines in clear terms what constitute unacceptable conduct. MTN Group endeavours to conduct its business with great honesty, integrity, diligence and professionalism and to attain recognition by all its stakeholders in upholding these qualities. The code of conduct is intended to guide its staff in all endeavours of decision-making. To this end, the policy document contains good practise guidelines for all daily business operations and applies universally to everyone who transacts business on behalf of the company. 3.4 MTN Talent management Practises The Digital_collect.lib. (2008) recognises that skilled and motivated employees are key to revolution of any business especially in pursuit of innovation and durable sustainability. In conformity with this view, MTN Group has invested in strategies that work to enhance skill of its workforce while at the same time motivates them to pursue the company’s objectives. These strategies include: the employee value added proposition, compensation plans, learning and development strategies, and recognition upon good performance. 3.4.1 Employee value proposition (EVP) This strategy is in response to skilled manpower shortage. Here the company engages employees in indicating what they value most in their work environments. The activities involve specifications and assessment of performance indicators that gauge employee attraction and retention factors. For instance, reports from past examination indicate that MTN employees value most future career opportunities, compensation, stability and respect. On this scale, the company’s management was able to recognize that leadership, staff investment, maintenance of a globally diverse culture; reward and recognition are pillars to the stability and development of the industry. A future plan to drive employees’ welfare and motivation was planned to be actualised in 2011. 3.4.2 Compensation This is a component of reward initiative by MTN Group. The company’s permanent employees are offered both monetary and non-financial benefits. This is done in a competitive way, relative to the local labour market, in order to attract and retain employees. Salary scales are streamlined across departments and there are no differentiations on demographic factors such as gender, age or race. Nonetheless, the salary rates are above the market average. Other provisions such as health insurance, retirement plans, medical aids, death and disability covers are available for permanent employees. In addition, staff turnover is tracked by operation as part of internal management process. 3.4.3 Learning and development MTN employee training and skill enhancement is under the management of MTN academy, an institute that has been in operation for 3 years. Initiatives generated at departmental; levels are extrapolated across the board through this academy to enhance specific competencies. Also in existence are channels that identify training needs for operation after which trainings are facilitated. To finance these trainings, about 1% of MTN operating cost is allocated for academy courses. The training programs cover areas such as sales, marketing, customer services, technology systems such as network and information systems, business skills, and leadership among others. The company, in addition, train its leaders and has in place a clear succession plan to facilitate smooth and successful leadership changes. Moreover, the company engages an extensive development strategy informed by its talent management policy, to procure a variety of job interventions including job rotation, international duty and the developing of key resources. Internship programmes are also in place in most branches to support the recruitment process. In line with its objective to reduce the company’s carbon footprint, the company conducts training on natural environment sustainability. 3.4.4 Performance and recognition As a complement to training, the company undertakes regular performance reviews. Various management tools such as Leadership Talent Management and 360° feedback are utilised. An integrated performance management framework is in place for staff appraisal. The procedures include formal measurement and monitoring of performance against specified objectives. The rewards for good performance include financial and non-financial tokens. The company also has Y’ello Star awards for outstanding performance. 3.5 Labour practice Colwel (2010) suggests that labour practises should not in any way show prejudice against a demographic factor. As a good practise and in agreement with Colwel’s views, MTN company has recruitment policies that focus on eliminating prejudices to race, gender, marital status age, colour, ethnic origin, physical status in recruitment. In instances of operational closures and redundancies, preference is given to affected employees when filling new positions. The company has prescribed disciplinary procedures that protect employees against arbitrary dismissal. The procedures are in harmony with the International labour Organization (ILO) standards (ILO, 2000). The company enforces codes of conduct in respect of human dignity and fundamental human rights enshrined in the Universal Declaration of Human Rights. It allows freedom of association and union recruitment. Each operation of the company manages labour- related risks that are in line with local cultural orientations and indigenous rights. Moreover, interaction between staff and management is encouraged through welfare platforms. 3.6 Health and safety Pettinger (2008) suggests that health and wellbeing of employees is a critical need to ensure sustainable development in an industry. Health and safety are priorities of the MTN Group Company. Employee representation at all levels in the health and safety committees is a regular practise. These committees monitor and advice management on occupational health and safety at all levels of operation. In the installation, operation and maintenance of equipment, health and safety procedures are followed. For instance, an identified occupational risk to MTN employees in the exposure to electromagnetic waves, and radio frequencies emitted by mobile phones and base station antennae. The company commits to strictly comply with modern international radio waves exposure guidelines to employees and the general public as well. Additionally, the company has developed an approach to certification training for all employees and contractors working near antennas on the network. In areas prevalent to HIV/AIDS, the company offers electronic learning modules to promote access to information. Wellness programmes are equally availed for employees and their immediate families through the medical scheme service. To avert potential socio-political instability present in its working environment, MTN Group improves its medical, security and crisis risk management initiatives. 4.0 Conclusion and Recommendations From the above review of employee resourcing practises and in light of the theoretical findings of good practise, it can be argued that the MTN Group’s rapid development and success is attributed in part to wide research and compliance with the international policies on human resource management. MTN Group appears to select the most qualified candidates for its job, maintain their morale and facilitate continued professional development through the company’s Academy. However, elements of employee mismanagement have also been reported. For instance, it is documented that the company’s employees based in Nigeria had agitated for better work environment, in what they termed as job insecurity. It is also observed that while there is fair play ground in employee remuneration and other benefits across all section for persons of same skill level, the company has varied benefits on the basis of country of operation. Workers in South Africa, the company’s base, for instance benefit most. This should not be the case since the company is multinational and should therefore maintain a universal system of rewarding. It is recommended that the company should look into the plight of employees in less developed states without fixing their consideration on revenue collected from such nations since good management of employees will inevitably transform their business to a whole new level. Nonetheless, MTN Group is on record for paying employees above the job market average. Furthermore, to ensure each employee exercise their full capacity, the MTN HR managers must organize the space, task, movement and time within which each employee operates. A bureaucratic control and technical control should be put in place. This should include written procedures, rules, machinery and systems such as surveillance cameras that set the pace of work or monitors the employees’ behaviour at the work place. Finally, furthermore, research is needed to investigate HR practices in developing countries. Most of the MTN branches are based in the developing countries which have different work policies and culture. There are some places in which the international Human resource management does not yield good results. 5.0 References A Comparison of Safety Self-Efficacy & Safety Stages of Change. Retrieved from: http://www.safetyperformance.com/ImprovingOccupationalSafety&HealthInterventio ns-AComparisonofSafetySelf-Efficacy&SafetyStagesofChange.pdf Colwel, A. (2010). Why Good Labour Practices Are Good for Business: Lessons From BSR's DR-CAFTA Responsible Competitiveness Project. Retrieved from: http://www.bsr.org/reports/BSR_Insight_DR-CAFTA_Demonstration_Projects_Part%20I_II.pdf Devongov. UK. (2012). All Change – Managing Restructuring and Redundancy. http://www.devon.gov.uk/hrsolutions-devon-all-change-managing-restructuring-redundancy.pdf Digital_collect.lib. (2008). Talent Management Practices in Selected Companies Listed On The Stock Exchange Of Thailand (Set). Educational Journal of Thailand Vol. 2, No. 1 January -December 2008. Retrieved from: http://digital_collect.lib.buu.ac.th/journal/EJT/v2n1/1-9.pdf Dyer, L. & Reeves T. (1994). Human Resource Strategies and Firm Performance: What Do We Know and Where Do We Need to Go? Retrieved from: http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1253&context ILO. (2000). ILO Human Resources Strategy. Retrieved from: http://www.ilo.org/public/english/standards/relm/gb/docs/gb279/pdf/pfa-12.pdf Martin, R. & Fryer, R. (2009). Management and Redundancy: An Analysis of Planned Organizational Change. British Journal of Industrial Relations Vol 8 Issue 1. DOI: 10.1111/j.1467-8543.1970.tb00572.x MTN Group. (2012). Group Vision & Strategy. Retrieved from: http://www.mtn.co.sz/vision.html MTN Group. (2013). Company Information. http://www.mtn.com/Pages/Home.aspx MTN. com. (2004). Sustainability Report – 2004. Retrieved from: http://www.mtn.com/Sustainability/SustainabilityReports/ar_2004_sustainability.pdf MTN.com. (2012). Company Profile. Retrieved from: http://www.mtn.com/MTNGroup/Pages/Overview.aspx - Pettinger, C. (2008). Improving Occupational Safety & Health Interventions – Soberg, A. (2011). The Link between Strategic Planning and Human Resource Planning. http://www.hrvoice.org/the-link-between-strategic-planning-and-human-resource-planning/ Streeter, C. (1991). Redundancy in Organizational Systems. www.utexas.edu/courses/streeter/.../readings/Redundancy.rtf Wellins, R., Smith, A., Erker, S. (2008). Nine Best Practices for Effective Talent Management. Retrieved from: http://www.ddiworld.com/DDIWorld/media/white-papers/ninebestpracticetalentmanagement_wp_ddi.pdf Read More