Leadership And Human Capital Development

Leadership and Human Capital Development

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MBA MODULE OF LEADERSHIP AND HUMAN CAPITAL DEVELOPMENT QUESTION ONE Source : http://wwww.harris-serv.com/humancapitol.htm 1.1 With reference to the above diagram, discuss the human capital development process in an organization with relevant examples.(15) 1.2 Discuss your understanding of the human capital development approach in contrast to a human resource management approach. (10) QUESTION TWO Read the following extract to answer the questions that follow. STARBUCKS’PARTNERSHIP APPROACH “Treat employees like partners, and they act like partners.” —Fred Allen, American radio personality It sounds like such a simple phrase, yet it carries a lot of weight. If words could change the world, then these nine words would transform much of business today. But, what exactly do these words mean? On the surface, they seem fairly self-explanatory. “Treat employees like partners, and they act like partners” is sage, simple, and memorable advice. However at the root, the phrase also can serve as the basis of an entire business model for companies such as coffee giant Starbucks. In fact, at Starbucks, a true partnership approach applies to all stakeholders, employees, shareholders, suppliers, and even customers. From the perspective of Starbucks leaders, the strong loyalty connection the brand enjoys with its customers is linked directly to the way in which those leaders connect with and develop their employees, or partners, as they are called. In fact, every aspect of training—from new hire orientation to ongoing personal and professional development—is guided by a commitment to build a dynamic learning community at Starbucks. In new hire training, for example, Starbucks leaders utilize a 70/20/10 approach. Based on research on how people integrate and utilize new information, baristas (coffee servers) at Starbucks receive approximately 70 percent of their initial coffee education through on-the-job experience and hands-on practice. Another 20 percent of their training is the result of feedback and mentorship from their peers, their learning coach, and store management. And 10 percent is derived from an online modularized curriculum. As a front-line partner at Starbucks, there is more to learn and discover than just what goes into making a triple vanilla latte (although clearly that is a central job skill). New partners must pass a knowledge test before even touching a cup of coffee and then they get to demonstrate their competency skills to their store manager. While rich knowledge and skills-based education alone do not guarantee that certified baristas will have a passion for the products they prepare and serve, education and personal growth do increase a barista’s awareness of and appreciation for coffee. To be certified as a barista, a new partner must complete the following curriculum: Learning Block 1: First Impressions and Customer Experience, Starbucks Experience, Coffee Brewing and Tasting, Espresso Bar Basics, and Food Warming Learning Block 2: Beverage Essentials, Cold Beverages, Coffee Growing and Processing, and Point of Sale Learning Block 3: Beverage Preparation, Customer Service Essentials, and Coffee Roasting and Packaging To fuel ongoing personal development and partner engagement, leaders at Starbucks have merged on-the-job-training with formal academic offerings in a concept they call Starbucks University. Starbucks U refers to a recently created program for U.S. partners, wherein they are eligible to receive college credits for training provided as part of their job (e.g., the barista training course described above, shift supervisor training, etc.). Starbucks leaders have secured college-credit eligibility for partners by working with the American Council of Education (ACE) to accredit select training offerings. Similarly, leadership has collaborated with City University of Seattle and Strayer University to amplify the impact of the company’s existing tuition reimbursement for eligible partners in the U.S. and Canada. The City University program, for example, provides Starbucks partners the opportunity to have their application fee waived, a 25 percent reduction in all undergraduate and graduate tuition, and exclusive scholarships, among other benefits. Similarly, the Strayer University program offers 20 percent tuition discounts, free academic tutoring and advising, and the flexibility of 24/7 online courses. Leaders who are interested in growing their people find ways to collaborate with other business and learning institutions like Strayer University and City University to offer benefits they might not be able to provide alone. By finding strategic alliances, these leaders stretch and extend their employee benefit budgets and serve to answer an important question for their people, “Do you care enough about me to help me achieve personal, as well as professional, development objectives?” Starbucks leaders demonstrate their care for their partners and, in turn, their customers. They deploy training and development to drive partner engagement. That engagement, in turn, leads to increased visit frequency, wider product penetration, greater customer retention, consistent product sell-through, and employee pride and knowledge. And it adds to the bottom line as reflected in Starbucks record-breaking third-quarter earnings numbers in 2015. Source : https://trainingmag.com/starbucks%E2%80%99-parternship-approach 2.1 Critically analyse Starbuck’s leadership approach in dealing with their human capital. (10) 2.2 Discuss the various employee development methods available to global firms. (10) 2.3 Evaluate Starbuck’s employee development initiatives. (10) QUESTION THREE Read the following extract to answer the questions that follow. McDonald’s Human capital initiatives Most organizations handle their employees in a universal fashion across the business, tailoring their policies and initiatives only by job level. However, developing specific initiatives targeted to different age groups provides more opportunities to boost employee satisfaction. McDonald’s tailors its policies and programs to different age groups. Every age group welcomes open, two-way engagement about the business, about the particular restaurant they work in, and on personal issues, like their own career. While the type of information being communicated hasn’t changed much over the generations, the style of delivery and the communication channels used certainly have. Shaun Ee, Human Resources Manager for McDonald’s Singapore, believes “Nothing can go wrong from communicating the right thing in the right way. People, no matter how young or old they are, value engagement from wherever it comes from.” McDonald’s has given their employees a number of methods for horizontal and vertical engagement. For younger employees there is a social network called “Ketchup”, an obvious pun on the words “Catch Up”. This Facebook-style application allows employees to communicate with their peers, HR, and even senior management. The ease of engagement using this social media breaks down the barriers of shyness or job level, and truly gives the younger employee a voice in the company. However, the older, more traditional employees are also taken into account. For example the Singapore office has a red post box so that any employee can write an anonymous message and post it directly to the Managing Director. The age of the employee is a major factor in making the business relevant to them. Understanding the common concerns that employees of a certain age have is of major importance here. “To stay relevant [to young people], we ask ourselves, what do they value. After a global study, we found they value family and friends, their future with McDonald’s, and flexibility. In the older generation, the focus on the future isn’t as strong; they want to come to a workplace that is respectful and caring, where they have friends around them, along with the usual “bread and butter” issues. Flexibility is a big plus for our mature people enabling them to better plan their lives around their work.” Initiatives are then decided based on age-group relevance. A good example is the “Voice of McDonald’s”, an American Idol-style global singing competition. Although obviously geared toward the younger employees, older employees also take part. “This creates great vibes in our restaurants” says Shaun. Other examples are managers taking younger employees to more hip, trendy, young hangouts to chill out. For more mature employees, the manager may bring them to family-oriented activities, such as fish farms. However, the importance of full-group activities are not forgotten, as these are vital for inter-group interaction. McDonald’s relevance strategy is based on an “Employee Value Proposition” composed of these three pillars: family and friends, the future, and flexibility. Under “family and friends”, employees are part of the McFamily and the company ensures that their medical and other needs are taken care of. Under “flexibility”, employees are given full flexibility in terms of their work schedules, so they can meet their home and childcare needs. Under “future”, McDonald’s offers a university-accredited program to meet the aspirations of their employees to attain diplomas and degrees. Recognizing and staying relevant to their different employee age groups cuts down the common workplace scenario of similar-aged employees keeping to themselves. “The younger crew will tell you that they view the more mature ones as their elders, who care of the juniors. The older crew feels like they can connect with the younger crew and reach out to them.” Particularly for the younger set of employees, empowerment is a powerful tool for improving employee engagement. As seen in our Best Employer Asia Pacific data, our Generation X and Y participants placed “I receive appropriate recognition (beyond my pay) for my contributions and accomplishments” among their lowest scores. Shaun highlights McDonald’s strength in this regard: “One of our mantras is that ‘Every crew can be a manager’. No matter how young or old you are, you have the opportunity to become a manager. This is very relevant to our young people.” As well as opportunities for advancement, McDonald’s gives recognition to their “McFamily” in other ways, for example, incentives at stores, talent development, and leisure activities, such as outings. Source : http://www.aon.com/apac/human-resources/thought-leadership/asia-connect/2011-nov/mcdonalds-case-study.JSP 3.1 Discuss the importance of diversity management in 21st century knowledge economies (15) 3.2 Discuss McDonald’s approach to handling human capital in the organisation stating how it motivated its employees to achieve its objectives. (15) QUESTION FOUR Discuss your understanding of the various human capital traits as outlined in the diagram and explain their interconnectedness in relevance to an organization (15)