In Armstrong (2000) view, HR director should be include on the board as they are there envision HR strategy. The inclusion of HR director on the board of NZB indicates vertical integration between HR strategy and the business strategy. This alignment is very important because it enables HR strategy to be incorporated into business strategy when drafting business strategy. In a similar view, [Millward et al (2000) cited in Marchington & Wilkinson] suggested that for HR issues to be taken seriously in organization, an HR specialist person must be present on the board.
Dennis Finn attempted to make HR initiative measurable, record able and actionable with clear linkage to strategic performance indicators. Also increase training to a minimum of five days per year for employees, so that HR initiative are integrated with Business Strategy. So vertical integration is present which resulted in the growth of the company. In Mullins (1999), training in the key element in improving organisational performance. The purpose of training is to improve knowledge and skills, and to change attitude. It is one of the most important potential motivators.
The increase in training to 5 days per employee per as one of HR initiative indicates a vertical integration between HR strategy with business strategy. The organisational climate survey in [French et al (1985) cited in Armstrong 2003] sees it as the relatively persistent set of perception held by organisational members concerning the characteristic and quality of organisational culture. The organisational climate survey conducted by HR on NZB employees ensure the involvement of employees in decision making and improves their perception of the organization.
It also ensures increase in employee performance. “Reward system design features are not stand-alone items. There is considerable evidence that they affect each other and, as such, need to be supportive of the same type of behavior, reflect the same overall managerial philosophy, and be generated by the same business strategy. ” (Lawler 1984:145: People Management & Development) Individual attitude helps to achieve business goals through their commitment, support, recognition and responsibility.
In this case vertical integration is present but by the third year the standard is dropped. HR Director needs to concentrate on this area to see what is affecting their performance and quality to maintain the standards. The Reward system in NZB is up to standard because it measures favourably with the local standards. The reward system in NZB like in any organization is important because according to Bratton and Gold (2003), “pay is a ‘key lever’ in pursuit of the HRM goals of commitment, flexibility and quality”.
Priority is given to appraisal and feedback in NZB for the chief reason that it affords the employees opportunity to measure the impact of their productivity and at the same time make contributions to the organization and other employees. This is better called 360 degrees feedback. In Bratton and Gold’s words “feedback received from different sources including peers, subordinate staff, customers and employees themselves allows for balance and objectivity”. All these methods were adapted for more participatory organizational culture.
And also Development assessments are carried out by team leaders and managers in January and February and training development starts in May at the start of a 9 to 12 month plan for each individual. The figure below shows the achieving maximum output and standards through the performance management process. This should apply to all staff to reinforce performance standards. In addition, SWOT analysis was conducted to locate the weaknesses of the organisation and to improve them by adding value.
As the data from the case study clearly states that the performance of the organisation is satisfactory, but nevertheless training ; development needs more attention. One of the methods deployed in the NZB, accordingly to the case study, to measure the added value of the HR initiatives is the annual climate questionnaire. All the employees from the different department were given this form to evaluate which area needed attention. The Director argues that soon after conducting the first survey, managers were able to initiate an almost immediate improvement in the culture of NZB.
Feed back from the climate questionnaire is encouraging in respect that HR initiatives appear to have had an impact. The HR Director made an effort to measure the effect of initiatives and link them to strategic performance indicators like earning before interest and tax (EBIT). Hence, the organization’s HR activities are documented in detail and so is their connection to the organization’s performance. This model brings out three outcomes measurement which NZB can add value to their organisation.
This model measures the growth and performance of the system i. e. Employees productivity and also new clients which results in increase of brand loyalty as Canterbury Draught is a strong regional brand and won a gold medal at the 1994 Monde Selection Awards in Belgium. This leads to employee’s satisfaction and retention. As a result of employee’s satisfaction, retention and productivity sets out staff competences, technology infrastructure and the climate for action.