Hr Report - Little-Creek Constructions

The purpose of this report is to outline the major HR issues effecting Little Creek Constructions. I will provide a clear analysis of the problems, the possible consequences if these problems are not rectified, and propose solutions. It is my goal as International Human Resource Manager to build partnerships with managers in the pursuit of business goals and to pursue competitive advantage where people will be key strategic assets. One significant element that will help us achieve this goal is the development of an international performance appraisal system.

In gathering evidence for this report I interviewed employees ranging from area GMs to labourers. I found that there is one central problem causing a ripple effect of smaller issues throughout the company, namely performance appraisal. Common worries included staff competencies and skills, poor teamwork, and performance issues. These problems are generally overcome by linking pay to skill level and rewards to performance.

The fact that I have been employed to initiate a performance appraisal system is a very significant first step. From my analysis of the company, I have noted that efficiency-driven strategies have been past tickets to success, this situation will most likely not continue into the future since the culture of the company is too regimented and strict.We need to take advantage of our people resources by capturing, storing and then accessing knowledge both explicit and implicit, particularly at the construction worker level of the company. These employees which should be regarded as the foundation of our business are unfortunately being seriously neglected. By developing human capital – knowledge, skills and abilities; social capital – fostering relationships; and organisational capital – processes and routines, at all levels of the company, a productive and sustainable business with the potential for growth can be achieved. If not, our competitors will utilise these ideas and mechanisms and ultimately procure an unreachable advantage.

It has been postulated that teams act as a critical liaison device between learning at the individual and organisational level. Furthermore recent empirical evidence claims that teams, not individuals, are the fundamental learning units of modern organisation. Organisational knowledge is an invaluable resource. Therefore I propose that a virtual top management team is developed. This formal team will consist of area general managers and other senior management and will initially have the directive to modify the framework for structured teams for construction workers (CW). The area GMs will collaborate directly with their own construction managers and site managers to develop the details of the structured teams for construction workers, which will be uniform across the company. The CW teams are to have a mix of skilled/experienced workers and workers that are untrained. A tiered pay system will be developed for the construction workers based on experience and training, and bonuses will be distributed according to CW teams fulfilling their goals rather than individuals. Suggested goals for teams to be rewarded for are: meeting deadlines, superior quality of work and fostering the education of inexperienced workers. By helping the CW teams to focus on these core competencies they can create a team learning environment that is primarily efficiency-driven learning: doing things right; concentrated on results, outputs and experience curve.

The modification of CW teams resolves several key issues. Competencies of construction workers are at different levels and their pay should reflect that. There is presently too much on-the-job training, CW teams will help to distribute the training more evenly over a greater period of time. If a CW isn’t particularly good at training then the responsibility can be shared, however when competencies are entirely lacking a subcontractor can be employed to develop a team’s skills. The issuing of bonuses for completion of team goals provides a common objective, which is vital for achieving efficiency and effectiveness. It is essential that those responsible for issuing the bonuses (construction managers) have clearly defined guidelines for the issuing of bonuses to teams, which must be created by the area GMs TMT. Employees that believe they are fairly paid and feel valued are much more likely to stay with the business, hence reducing recruitment costs and retaining organisation knowledge.

The radical innovation of a structured virtual top management team has a variety of advantages. After the initial task of creating the framework for the CW teams, it will help the area GMs break from the logic and thought patterns of the past and foster an environment of dynamic-driven learning. This is vital is an increasingly global world. Knowledge that is developed by CW teams such