Reasons for Four Seasons success:
2.culture embracing diversity
3.Promotion from within and thorough training
4. Employee benefits tailored for employee development and satisfaction
HRM professionals prefer more attitude than experience.
-energy, enthusiasm, and aptitude highly valued
-->skills can be taught but poor attitudes can't be changed
-Mobility is seen as an advantage for candidates interested in Managerial positions
Ethical Credo/Rule-> Golden Rule
Treat the employees as you expect them to treat the customer.
Language and supervisory development programs offered for employees.
All the employees eat free of charge in the hotel cafeteria.
-Camaraderie (yhteisöllisyys) and being together developing strong bonds and loyalty.
Investments in the dining room, staff showers, and locker rooms increase operating costs but also create a comfortable and elegant environment for employees and guests alike.
-Additionally, employees offered free stays in Four Seasons, amount depends on how long workers have been in the company. Huge return on investment as employees return with a renewed passion for a level of high-quality service.
NB Can HR create a culture that supports diversity and a passion for service without the expensive benefits offered by Four Seasons Resorts? Which benefits seem most important to maintain their culture?
I find that most important thing for a worker is to be treated fairly and equally. It is important that employees are recognized on an individual level and so also their performances. Loyalty and passion I believe are more results of the correct corporate organization- and operating values and ethics.
Supportive diversity culture requires that all the employees feel appreciated on an individual level. If employee's don't feel well on an individual level, it is hard to have open and supportive culture against others ( different cultures can provoke).
Companies like Four Seasons have recognized the importance of seeing changes in the expectations of both employees and customers. Human Resource Management is a subset of the study of management that focuses how to attract, hire, train, motivate and maintain employees.
Strong employees become a source of competitive advantage in a global environment facing complex and rapid changes.
HRM must deal with the changes. Understanding globalization, global economies, technology changes, workforce diversity, labor shortages, changing skill requirements, continuous improvement initiatives, the contingent workforce, decentralized work sites, company mergers, offshore sourcing of goods and services and employee involvement.
--> How these changes are affecting HRM goals and practices in organizations functioning in a global environment?
Understanding Cultural environments
Understanding Cultural Environments
Rapidly changing environment leads to organizational members facing the globalization of business. There are no more national borders as a barrier for producing goods and services abroad.
BMW German Car manufacturer, Cars build in Sout Carolina
Walmart expanding retail operations in China
General Electrics expected to receive 60% of its revenue growth from developing countries in the next ten years
Toyota makes cars in Kentucky
Mercedes sports cars build in Alabama
American John Deere farm equipment made in the USA and shipped to Russia, China to the Middle East, Indian and German made to the USA. Tractors assembled in the USA with parts received from twelve countries and are shipped to over 110 countries.
--> HRM professionals and organizational members need to adapt to cultures, legal systems and business practices in many different countries.
In mid 60's did multinational corporations MNC's become commonplace. These corporations maintain significant operations in more than two countries simultaneously but are based in one home country (Neste).
USA Companies with a significant amount of revenues streaming from foreign operations.
Procter & Gamble
The rise of multi-and transnational corporations places new challenges for HRM. Employees with the approppriate mix of knowledge, skills and cultural adaptability are needed to handle global assignments.
Each country needs to be understood in its own context but HR professionals.
Ascribed status, France: Seniority and Education
Achieved status, USA: Personal accomplishments
Countries that value Individualism and acquiring things: United States, Great Britain, Australia, Canada, Netherlands, New Zealand
Countries that value Collectivism, Relationships and concern for others: Japan, China, Pakistan, Singapore, Venezuela, Philippines
Human resource managers need to understand social issues such as status that might affect operations in another country. USA law guards against an employer taking action against an employee solely on the basis of an employee's age. Important to recognize the cultural dimensions of a country's environment. Cultural values Individual vs Collective.
These variables indicate a country's means of dealing with its people and how the people see themselves.
In an individualistic country as USA people are primarily concerned about their own families.
in a collective society like Japan, people care for all of the individuals who are part of their group.
A strong US employee might not work well in the collectivistic surrounding in Pacific Rim country, Flexibility and adaptability are required from employee's working abroad. HRM has a thorough understanding of the culture of the areas around the globe to which they send employees. Also, mechanisms are needed which help multicultural individuals to work together. Important to reduce conflict: age difference, custom, language, background.
The Impact of Technology
Internet, GPS, smartphone etc. top innovations of the last twenty years.
Thomas Friedman, a Pulitzer prize winning New York Times author explains three eras of globalization:
1. Transportation. Columbus 1492 discovery of new world to 1800. During this time countries tried to establish their place in the world by conquering or collaborating with other countries and territories. Emphasis was the national identification and economic domination. The world shrank from a size large to a size medium
2. Communication. 1800 to 2000. Multinational companies emerged, seeking labor and markets for the goods of the industrial revolution. The expansion was fueled by lower costs and increased speed of transportation and communication, shrinking the world size from medium to a size small.
3. Technology. 2000-->. Countries, companies, and individuals were able to compete on an almost level playing field aided by cheap, instantaneous communication via fiber optics and the internet.Fast inexpensive transportation of people and goods aided this transportation of power that further shrank the world from a size small to a size tiny. Individuals are now empowered to compete globally regardless of a country of origin.
Friedman projects that world economies will be dominated by empowered individuals, creating a business environment that is more diverse and less dominated by organizations in Western countries.
3.0 Globalization has already been experienced. Supply and Demand have shifted to other countries. Globalization 3.0 has shifted demand for manufacturing and services such as customer service to low-cost providers in Mexico, India, and China. NB Finland to Estonia: Nordea, UPM, Atoy.
According to Friedman these changes are inevitable and will only grow in their impact. Global organizations need to recognize that this diverse world includes many different nationalities, languages, and cultures. HR professionals need to be prepared for the challenge in welcoming diversity and adapting training.
Technology has had bad and good impacts on workers. The demand for manufacturing has reduced but an increase in demand for service producing and technology positions. IT along internet publishing and wireless telecommunications expected to be the fastest growing job sectors in the next decade.
Peter Drucker: Key to the productivity of knowledge workers depends on the ability to use technology to locate and use information for decision making.
Knowledge workers as a group- individuals in jobs designed around the acquisition and application of information-currently make up about a third of the US workforce. Knowledge workers include nurses, accountants, lawyers, teachers, engineers. Also technologists such as computer programmers, software designers, and system analysts.
How Technology Affects HRM practices?
Technology has affected positively internal operations and the way HRM work. HRM professionals have become the primary source of information in many organizations. Communication quick through company websites and intranets, email, Facebook, and Twitter.
Human Resource Information Systems HRIS allow HRM professionals to better facilitate human resource plans, make decisions faster, clearly define jobs, evaluate performance and provide cost effective benefits that employees want.
Technology helps to strengthen communication with both the external community and employees:
Contacting a pool of qualified applicants is one of the most critical aspects of recruiting. Also, word of mouth, newspaper advertisements and college visits have been replaced by internet job postings. Company websites and specific job-search websites such as careerbuilder.com or Monster.com, help to reach a larger pool of applicants showing also basic technology skills required. Electronic resume.
Technology-based organizations hard to find good people, unique brand of technical and professional skills required. Qualified applicants can receive numerous offers. Final applicants have to be scanned well and see if they fit in the organizations' culture. Realities of today's organization: informal,team-spirited workplace, pressure and timing critical, 24/7 work mentality. Companies like Four Seasons and Southwest Airlines recruit employees who convey a positive attitude, which for them is a better indicator of job success and fit with company culture than experience.
3. Training and Development
The technology has changed the way HRM orient, train, and develop employees and help them manage their careers. Web-based training and development to employees on demand whenever the employee has time to concentrate on the material. Four Seasons has discovered the advantage of delivering language training and management development classes online. Teleconferencing allows group collaboration and training regardless of location. Organizations, which rely heavily on technology find an increased need for training. Online teleconferencing and training help HR departments to stretch the budget.
4. Ethics and Employee Rights
Privacy vs surveillance of employees. The desire to control employees. Sophisticated surveillance software brings the problem of how far organizat
ion should go in monitoring the behavior of their employees. Technology can allow an opportunity for misuse and nonproductive work behaviors. The American Management Association reports that 66% of employers monitor employee's internet use and 28% have fired employees for e-mail misuse.
5. Motivating knowledge workers
More vulnerable to distractions that can undermine their work effort and reduce their productivity. Employees are not hired to shop online. Recreational on-the-job web surfing costs over a billion dollars in wasted computer resources and billions more in lost work productivity annually. Significant cost to the business in terms of time and money,
6. Paying Employees market value
Harder for organizations to find and retain technical and professional employees. Many companies have invented a list of attractive incentives, signing bonuses, stock options, cars, etc. These have downsides as it can lead to a feeling of inequality among other co-workers. Stock options can reduce employee motivation if market conditions are not favorable.
Direct communication on individual level possible without going traditional routes (secretary?). The open communication systems break down historical organizational communication pattern flows. Technology also redefines how meetings, negotiations, supervision and water cooler talk are conducted. Facebook, LindedIn, Twitter and other social media allow employees to keep in close contact regardless of position or location. Makes also International gossip communication possible.
8. Decentralized Work Sites
Challenge for HRM's revolves around training managers to establish and ensure appropriate work quality and on-time completion. Decentralized work sites remove traditional face-time and there should be no need for the m+anagers to control the work all the time. Greater employee involvement allows workers to discretion to make decisions that affect them. Managers must recognize that due dates have to flexible for off-site workers, they can work three hours now and then. The emphasis is on the final product not on by the means how it is accomplished. Should in the future be basis salary or paid per worked hour?
9. Skill levels
What are the skill implications of this vast spread of technology? Employee's job skill requirements will increase. Workers need the ability to read and comprehend software and hardware manuals, technical journals and detailed reports. The Technology tends to level the competitive playing field.
Competetive playing field
The Economic and legal environment in which all competitors, irrespective of their size or financial strength, follow the same rules and get equal opportunity to compete.
Read more: http://www.businessdictionary.com/definition/level-playing-field.html
It provides organizations possibility regarding the size the ability to innovate and bring products to the market rapidly. Also, respond to customer requests.
Globalization 3.0 states that individuals compete worldwide in purchasing and providing services. Companies have found out that services in technology, programming, radiology, and financial analysis can be provided by skilled employees in India as easily as an employee in the United States.
10. A legal concern
Clear policy needed that thoroughly explains what is appropriate and inappropriate use of company Internet use, e-mail and social media. Employees need to understand that there is no privacy when they use e-mail, blogs, and social media. Personal comments and photos are often grounds for discipline if they can be interpreted as discriminatory, harassing or defamatory.
-Penalty for worker in circumstance leaving the contract due for example receiving another offer
-Search engine information can't be used publicly in the Hiring process--> But can affect opinion
-What kind of channels candidates use a company wants to attract
--> Example Christmas sales, postpone or in advance be ready to look for candidates, during Christmas time no more salespeople available
-What kind of channels different generations use, tools they use, games they play
Wo candidate to choose? Managerial vs Technical experience, age, degree