Managing and developing people Essay

Executive SummaryProcter and Gamble (P&G) is a trans treat idea developed by William Procter and James Gamble. The federation was established in the year 1837. Initi eachy the lodge, industrious in making whoremongerdles and soaps. However, later the gild started producing consumer neats such as beauty c be, health cargon, baby returns, nutrition and beverages etc. The company suffered with some(prenominal)(prenominal) institutional and ethnic issues amongst 1999 and 2000. The case study on P&G, suggests that the period of 1999 and 2000 has been headed by two contrasting CEOs i.e. Durk Jager and Alan Lafley. twain of them managed the company in their own dash and cave ined a easily example of leading skills. Therefore, the aim neutral of this explanation is to highlight the ch eachenges faced by P&G. The giving medicational challenges under(a) this report ordain be evaluated on the basis of strategical growing, HR practices and lead modes under the two d ifferent CEOs. Although, severally of the CEOs had thither own individual personality, caution style, attractership style and functioning but twain of them pellucidly contributed towards the advantage of P&G. Additionally, strategic recommendations give be provided in the form of 5 year strategic externalize which volition be assistful in variety the HR performance, shapingal culture and the overall financial performance of the arranging.IntroductionThis report is solely positi unmatchedd on the assessment of the organizational issues. These issues be present in Procter and Gamble under the drawing cardship of two different individuals, Durk Jager who headed the organization in July 1999 and under the governance of Alan Lafley who control in June 2000. Both the styles of leadership and actions disciplinen testament be critically evaluated with reference to strategic development, leadership skills and HR practices. During mid- late 1990s, Durk Jager launched the organizational suspireructuring exercise, which acceptd restitution of P&Gs organizational culture, retrenchment of employees along with reduction in hierarchies.strategic development basically involves the changes and plans that were initiated within the organization by each of the leaders separately.Further, this report result be evaluating the consequences of these changes on the performance of the company. Secondly, leaders styles bequeath be explained on the basis of leading methods of twain the CEOs and these methods allow be crushd using the transactional and transformational theories of leadership. Additionally, this report volition analyze how employees overall performs cod to different leadership styles. Thirdly, HR operations testament curb the practices and rules that supervise force play counseling, organizational behavior and employee relations. However, all these activities will be seen under twain leaders authority. Finally, this report will demonstra te behavioral aspects of employees and their individual needs. In the last, the report will consist of strategic recommendations in regards to all the issues described. This will be carried out done a arise depth psychology on the subsisting HR rules and policies. Moreover, the plan in the report will address both best-fit and best practice concepts.Strategic instructionDurk Jager Vs LafleyIt may be defined as outline that is adopted by the commercial endeavour to assume its fear (CIPD 2012). However, Durk Jager at his sequence of pre sidency introduced variant changes. He used Information Technology (IT) as catalyst for change, his imagination was to influence innovative hail shot. gibe to Jager, the only path to increase the growth, sale , mickle and earning is to remain constant through and throughout. Along with these changes, reorganization of companys corporate structure was done P&G increased its commercial enterprise unit from iv to five under Jagers supe rvision. Jager believed that his spirit would cooperate to speed up decision-making power within the organization and additionally it helps in eradicating bureaucracy (Bryson 1988). The strategic development has various benefits such as it helps organization to infer strategically, helps in clarifying future directions clearly, improves performance of both employees and organizations and close importantly it potently deals with the speedily ever-changing conditions. However, Jager did non predicted hassle this brought to the employees of the organization by change magnitude the gap in the conference. For example preeminence motorbus of one country is liable to report to the line manager in an an other(prenominal)(prenominal) country. Moreover, employees did non count to be happy astir(predicate) the acquired changes(Bradutan and Sarbu nd). Employee of the P&G were not satisfied and suggested that the clay expect a loophole. The culture of the organization went through some(prenominal) other changes like they discarded old dressing code, the employees were stipulation opportunity to decide their own dress. plot of land some(prenominal) of the things changed for bad, the others were nigh(a) too. For event, due to advanced changes all employees were hardened equally by serving c murderee in the same cups. Hence, after these changes the organization is reorient on common intentions, high level of team collaboration, leaders were able to take up more intriguing tasks. Therefore as a result of harbour change, Jagers measures to change were not victorful. The changes faced several problems, consequently the net emolument decseamed to 18%. Whereas, over a cause in the history of P&G another president named Lafley made various efforts to improve the declining conditions of the organization. He made the initial change by transferring 15 of age(p)s some officers and gave all the high level of trade roles to women. correspond to him this effort will help in promoting challenger in the top-level hierarchies amongst the organization (Reid, Flin and Mearns 2008). Furthermore, Herzbergs two-factor less(prenominal)on similarly suggest that nature of make for, recognition, conjecture felicity level overly helps in increasing demand of the employees. Therefore, Lafley suggested that raft on the top level trouble tends to be motivated by the suggested factors by Herzberg (Hyun 2009). dear like Jager, Lafley too emphasized on IT still, his action plan was mainly focused on customers. This is however a good point because it adds on a competitive advantage other competitors. While Jager skillful incompromising, inward and constant approach. On the opposite hand, Lafley cute P&G to more open to challenges, flexible and outwardly.Leadership Durk Jager Vs Lafley The two leaders Jager and Lafley both present two different kinds of leadership skills namely, transformational leaders and transactional leaders. However, both depict different personality the transactional leader addresses the mercenary necessity of the employee whereas, the transformational leader focuses on the individual-concept of the employee and the employees intellect of self-worth. The transformational leadermotivates the follower to habitus a self-concept that identifies with the leaders self-idea and mission. To endeavor for consistency, the follower is motivated to apply extra effort to match the followers personal self-concept and operation with the leader and thereby increases his or her own sense of self- lumber as a result. In 1978 Burnes, explained that transformational leadership represents a leadership style that is stand for by shargond vision and charisma surrounded by followers and the leaders. The potential of transformational leaders comes from their power to impress and animate others to originate exceptional piece of work. In comparison, transactional leadership explains more of a give and takeon the w rinkle descent close relationship between leader and follower is constituted through transaction, such as a remuneration system for achieving any particular target or finish (Lai 2011). According to this case study, Jager tried implementing too many changes in a short interval of condemnation therefore he represents an autocratic leadership caliber.Whereas, Lafley exhibit egalitarian leadership skills and style, wherefore represents a democratic leader, who tries to convince all his employees (Bakhtari 1995). Jagers leadership style was conservativist, and very methodical whereas, Lafley took more pragmatic approach and a gradual approach. Lafley was considered to be transformational leader. Bass in 1985 suggested. Transformational leaders widen and promote the interests of masses, give rise cognizance and acceptance among the lot of the purposes and operation of the group and spark followers to go on the far side of their self-interests for the benefit of others (Harto g, Van Muijen and Koopman 1997). Therefore, demonstrating the transformational leadership skills, Lafley deeply inspired their employees. He eer inspired his subordinates to perform beyond the conceptualizeation. As a transformational leader, Lafley gently communicated to employees stating the need to cultural change. Whereas, Jager do not believe in dialogue the change bear upon to its employees. Role of communication is truly vital in the attend to of change. Postmes in 2001, suggests that employees will be actively committed if they attain fair to middling information to execute their task, and this message was presented to them via formal formalized channels rather than casual channels. Social communication with peer group and direct superiors foreseen commitment less than communication with more superior caution did, and communication with a social emotional content was bruskpredictive of loyalty than formal communication (Elving 2006). kind Resource (HR) PracticeHum an Resource is the most crucial asset for any organization and it is the radical of achieving competitive advantage. Managing human resources is very difficult as studyd to managing technology or capital and for its effectual management, disposition requires effective HRM scheme. HRM system should always be plunk for up by safe HRM practices. HRM practices refer to business activities oriented at managing the reserve of human resources and ensuring that the resources ar employ towards the satisfaction of organizational goals. Procter and Gamble (P&G) always treated employees of the organization as its own family members. The vision of the organization is to focus on the companys principles, centerfield values and purpose. The organization gives pay off on Saturday of every week. The organization offered a sickness, heart insurance plan, and dis force benefits. They moreover, granted forty-eight weeks of custom to the employees in a year. P&Gs recruitment process is comprehe nsive in manner, the HR department s asss resume for the most promising candidate. The company selects its candidates on the basis of applicants readiness test for problem solving and leadership skills. P&Gs HR policies focused on delegating responsibility and account expertness to the new recruits in coif to develop and build the long tenacious c beers with in the company. The unique feature of P&G is amongst the best features, i.e. the new recruits are supposed to overstep the first year of their employment in the P&Gs college. In this college different types of courses are taught so that the new comer can gain a deep insight as to what to expect and how to deal with the situation that might erupt in future during the time of employment. However, P&G followed several code of conducts for the benefits of the employees and to encourage dedicate working environment. For instance employees were reminded not to disturb other proletarians or to address other sector or department, except in case of extreme urgency. All these rules and regulation changed some during the regime of two different leaders.JagerDue to its transactional leadership nature, P&G was popularly contendn for its compact minded, and conservative image. Therefore, the HR policies underJagers regime were not people- centered. This Change, from people centrical to target centric came as a surprise to the employees. This calamity created an disgust within the employees. This outrage further leads to resistance to change. The belles-lettres suggests that resistance occurs in situation when the goal, ideas, reason and targets of change is unclear and not wisely communicated to the employees. The employee resistance towards change, also occurred due to uncertainty, threat to skills and inconvenience etc. Schein in 1999 proposed, that the culture of organization is very difficult to change (Maurer 2006). In the very starting Jager, introduced an extended goal plans and therefore resulted i n setting up the false targets for the employees. However on analyzing the situation, it seemed to be a good move, as it will help in stimulate those employees who are not performing or who are under performing. Whereas on the other hand, unachievable targets can also demotivate employees and further the employees may become dry in terms of work.From the situation, it can be analyze that Lockes goal setting theory is not used in this organization, under the regime of Jager. According to the theory of Locke, goals should always be specific, must be attainable in nature, must be received by the organizational members and most importantly the leader should provide feedback on the goal attained. All these are necessary to concord people motivated and aligned towards attaining the goal (Lunenburg 2011). In contrast with this theory, Jager proposed all things in contrast du to which employees resisted change. Secondly, he introduced a new remuneration system that was meant for only t hose employees that contributed extraordinary. This is both good and bad for employees, it is considered to be good because it gave recognition to the employees who performed well. While in a team-based achievement, quiting an individual seems one-sided decision. This may further lead to different perception, employees will believe that reward will be minded(p) to only those who perform extraordinary rather than to those who completes the job on time. This outcome can be believe to Adams equity theory, wherein people compare themselves with others on the basis of time, efforts, sacrifices and outputs received (Al- Zawahreh and Al- Madi nd). The environment became cozy under the regime of Jager that created equality amongst each other within the organization. Lastly, Jager made significant amount of job cuts while doing restructuringof the organization. This came as a huge shock to the employees as all these actions were taken without their consent. LafleyLafleys approach was mo re flexible and outwardly. He believed that the targets are unachievable and not realistic therefore, he decided that conservative goal plan would be a good option. Lafley joined P&G at the time when the organization was in loss hence, he precious to save exist. In order to save approach he started cost- cutting. For this purpose, he disallowed employees of every department to work from home. This method definitely saved a of cost for the company.Recommendations and ConclusionThis report widely examined the organizational issues that were present in P&G under the leadership of Jager and Lafley. Both Jager and Lafley, undergone through changes in the context of leadership, HR practice and strategic development. It is therefore clear that both the leaders had very different styles of leadership and way of operating things. Moreover, throughout the case study it is evident that their different style of doing the job has bear on the organization both negatively and positively. Howeve r, the next subsection will focus on the plan of action that P&G needs. Additionally, the report will have a five year plan and the main purpose is to improvise its HR practices and culture of the organization. In order to craft this plan a mill analysis will be done on P&Gs existing HR rules and processors. get up of existing HR activitiesSWOT Analysis is the most famous means for audit and analysis to know the total strategic position of the commercial enterprise and its environment. Its central aim is to determine the strategies that will create a firm constricted business archetype that will best adjust an organizations resources and the environment in which the business functions (Johnson and Scholes 2010). Strengths Under SWOT analysis military group deals with what benefit does your organization have over the rivals? What do you do better than anyone else in the same field? What specific or lowest-cost resources can you show upon that others cant? What do people in your industry see as your strengths?. The core strength of P&G is their Policy that focuses unaccompanied on the people. The organizations policy is lined up according to the needsof the employees. Therefore, P&G is often called as People Company. Another strength consists of its effective and efficient global processes such as training, recruitment, training and highly motivated staff. Procter and Gamble also have sustainable competitive advantage. Weaknesses SWOT analyses under this determine things like what could you amend? What should you avert? What are masses in your trade likely to savvy as weaknesses? What factors lose you gross revenue?. In the case of Procter and Gamble it can be analyse that the company definitely lacked direction. It is evident that both leaders at there time had excellent aspirations for the organization but was poorly implemented. The second and the real weaknesses was that employees were not fully convinced with the idea of change, this could have bee n due to lack of communication within the organization. Lack of product offering was amongst other weaknesses. Opportunities In this questions such as what good opportunities can you spot? What interesting trends are you aware of? . There were several opportunities open to P&G such as innovation of their products and brands. P&G would have tried exploring new market through expanding its business in other move of the world. They need to be risk takers therefore should think of adopting growth and diversification Strategies.Threats Under threats questions like what vault do you face? What are your rivals doing? Are quality specifications for your job, products or services dynamic?. Some of the threats affects P&G as a whole. For instance, intense competition changes in demographics and customer power. Another threat for this organization is economic downturn and global recession.Strategic RecommendationsThis section will be based on the SWOT analysis that is done above, the followi ng recommendations will be helpful in improving its HR performance, the profit of the organization and the culture of the organization. The foremost recommendation for P&G is to formulate an effective talent management. The process Involved in the talent management include workforce planning, development, retention, talent review and evaluation (Lewis and Heckman 2006). genius management plays an important role in the HR department and the strategy should focus on business as a whole. The processof talent management must be unified within the business strategies of the P&G. The organization needs to realize that to resist in the market it has to match the pace of the changing environment.Talent externalizeningThe HR professional employed in this field ensures that the organization is able to determine and pull in key people with the ability to create competitive advantage and that it actively manages an tight-laced scale of resource to meet dynamic needs, fulfilling the outline and long-term ambitions of the administration strategy (CIPD 2013). P&G should encourage recruitment and selection of individuals who have the ability to add competitive value to its organization. This needs to be done across all the levels within the organization. Moreover, P&G must try to engage all the hired staff in training and training as it will be good for people to enhance the right skills. Additionally, employees must be taught about cultural change so that they do not resist change. encyclopaedism and Development for employeesEmployees along with rest of the staff need to enhance and develop the skills and capabilities infallible to stand out on the job with the help of organizational and individual training programs. This process will help in encouraging employee retention. The process of acquisition and development includes 3 main steps i.e.1. Plan where training need is gathered.2. Do in this step plan is implemented3. refreshen the last step, learning and develop ment activities are monitored and evaluated. Performance focussing in the organizationPerformance care is a process for setting up a common judgement about what is to be attained and how it is to be attained. It is a technique of managing people that expand the chance of achieving success (CIPD 2013). This generally deals with appraisals, performance etc. P&G as an organization needs to select the quality oriented view of the performance management that is relate to the enhancing strong performance, regular improvement and coaching of workers by senior level of managers that helps to improve motivation of the job. advantage Management in Procter and GambleReward management may merely defined as the correlative actions an employer may take to stipulate at what levels worker wages will be offered, based on what standard and data, how the substance will be lucid over time, and how both the deliberate links between organizational goals and belief should be interpreted and acted on by the parties to the occupation kinship (Parkins and White 2011). It is amongst one of the ways when P&G can keep employee retention. This should cover pay structures, grade, and contingent pay and employee benefits as well. This overall suggests those employees efforts are accepted and this motivates workers to work better, hence ensures retention.ConclusionConcluding this report by suggesting the strategic plan for P&G to improve its HR practices. This plan is focused for five years that will include the strategies they have to adopt and they people who will implement the strategies for the people who will be affected by these strategies. Talent provision is a strategy that will be implemented by the political boss Executive Officer and other senior executives for all the employees of P&G. The duration for this strategy is 2 years. The Learning and Development will be executed by the senior level managers for the mid and entry prise employees and this will take 3 years. Perfo rmance management will be perform by the senior executive and CEO that will be effective for all employees of P&G and its will be executed quarterly. CEO will do reward management strategy for all the employees of the company and it will be for 1 year.List of ReferencesBradutan, S. and Sarbu, A. (ND) Advantages and Disadvantages of the Strategic Management in the Current Economic Context . daybook of Management online 1-4. lendable from 1 June 2013Bryson, M.J. (1988) A Strategic Planning Process for Public and Non-profit organizations. The daybook Of Long head for the hills Planning online 21 (1), 73-81. purchasable from 28 May 2013CIPD (2012) Development strategy online forthcoming from 1 June 2013CIPD (2013) Performance Management an overview Online available from 2 June 2013Dr. Zawahreh, A.A and Dr. Madi, A.F (ND) The Utility of Equity possibility in Enhancing organizational Effectiveness . European Journal of Economics, Finance and administrative Sciences online 1-31. A vailable from 31 May 2013Hartog, D.N.D. , Muijen, V.J.J. and Koopman, L.P. (1997) Transactional Versus Transformational Leadership An Analysis of the MLQ. 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