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EXECUTIVE SUMMARY

Allshade being one of the largest shade port manufacturers in Greece maintains a high
standard of service to its customers through its good force of employees whom are
highly qualified and provide their skills and expertise for quality service.

Allshade is equipped with advanced machinery for production of all the parts needed
in the manufacturing of shade port structures.

Its employees need to be trained to keep up with up to date technology.

Its HR department provides policies to maintain a balance within the working


environment of the company. Its incentive policies offer its staff with financial
rewards based on cash payments such as salaries, wages, profit sharing, bonuses,
commissions and increments as well as non financial rewards such as free medical
care, welfare and recreation, praise and reward for additional certifications.
These methods are implemented to attract, please, stimulate and motivate its
employees to work more intensively.

Another policy is its training program “on and off the job training”. This stimulates
the employees to further qualifications and incentives within the company and makes
employees work wisely , efficiently and effectively.

By combining these two policies our company’s aim is to provide better service,
professionalism, customer care, quality and satisfaction. Using new policies correctly
within the company and in all the departments, the organization will have more
satisfied and loyal customers, better quality products and services, with a greater
growth potential. Allshade’s Vision, Mission and Goals can thus be reached in the
near future making it a leader within its industry.

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I. INTRODUCTION

Allshade Company Profile

Allshade has over 10 years of experience abroad and specializes in the construction of
protection of shade structure systems. It has now transferred its activities to Greece
and represents exclusively to the Greek market. The flexible colourshade material
from Knittex which has unique qualities, increased resistance to U.V degradation and
is adaptable to stylish designs.

Our structures have been tested in all sorts of conditions and have been developed to
adapt for every special application and region.

Allshade has created its reputation with its steady commitment to conforming to the
highest quality standards and with its consistency in all sectors of its business
activities.

Allshade is situated in Chalkida/Evia and its factory located in Drosia can be visited
and viewed with its advanced machinery for the production of all material used for the
building of structures including the cutting, sizing and sewing of the material.

Vision

• To be continuously growing as a company

• Harness our growth potential and sustain profitable growth

• Deliver high quality and cost competitive products and be the first choice of
customers

• Create an inspiring work environment to unleash the creative energy of people

• Achieve excellence in enterprise management

• Be respected, ensure clean and green environment and develop vibrant


communities around us

Mission

• To be the leading shadenet carport manufacturers and leading shadenet


material distributors.

Objectives

• Increase turn over

• Achieve higher levels of customer satisfaction than competitors

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• Sustain the right attitude amongst employees and facilitate them to excel in
their professional, personal and social life

• To be recognized as an excellent business organization by 2011-2012

• Be proactive in conserving environment, maintaining high levels of safety and


addressing social concerns.

Allshade Organizational Chart

ALLSHADE
COMPANY

MANAGING
DIRECTOR

EXECUTIVE
DIRECTOR

HR & ADMIN FINANCE MAINTANANCE MARKETING OPERATIONS PRODCTION

W ORKSHOP SALES CU STOM ER C AR E

GALVANISING CLEANING SEWING


DRIVERS

HR POLICIES IN THE COMPANY AND ITS EFFECTIVENESS

We at ALLSHADE believe that our company policy to have a strategic concept of


people initiatives. To be based on values and missions to all those who are dealing
with people and employees.

More than any other factor, is the know-how, skills and competence of our people
which will decide on the company’s success in the market place. Therefore, it is
crucial how we treat our people and each other within our company and how we
define our values and objectives.

Recognizing this, Allshade management has created this policy to address key issues
as to how we attract, retain and develop our people and to be committed to this.

We at ALLSHADE , believe that our employees are the most important resource. To
realize full potential of our employees, our company is committed to:

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• Provide work environment that makes the employees committed and
motivated for maximizing productivity.
• Empower employees for enhancing commitment, responsibility and
accountability.
• Establishing systems for maintaining transparency, fairness and equality in
dealing with employees
• Encourage teamwork, creativity, innovativeness and high achievement
orientation.
• Provide growth and opportunities for developing skill and knowledge.
• Ensuring functioning of effective communication channels with employees.

II. HARD AND SOFT VERSIONS OF HRM

Hard HRM

It emphasizes the need to manage people in ways that will obtain added value from
them and thus achieve competitive advantage. Thus it concentrates on quantitative,
measurable criteria, control and performance management.

The hard approach emphasizes:

• The interests of management.


 In our company, management is committed to quality, looking after
our employees thus achieving higher profits.
• Adopting a strategic approach that is closely integrated with business strategy.
 We adopt this strategic approach enhancing our companies’
competitiveness.
• Obtaining added value from people by the process of Human Resource
development and performance management.
 That is why in our company by adding value from our people through
the process of HR we have competitive high performing employees.
• The need for a strong corporate culture expressed in mission and valued
statements and reinforced by communications, training and performance and
management process.
 We obtain better management within our company of long and short
term objectives thus allowing us to be dynamic and flexible.
• Employees are treated as a resource.
 In our company our employees are treated fairly with respect making it
a comfortable working environment thus the company is gaining hard
working staff achieving the goals that are set.

Soft HRM

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The soft model of HR is based upon treating employees as valued assets, a source of
competitive advantage, through their commitment, adaptability and high quality and
to be developed to ensure they are being used optimally.

• The need to gain commitment of employees giving them the ability to carry
out tasks.
 In our company our employees are committed due to the fact that they
love their work and enjoy working there thus producing quality work.
• The interests of management of employees should coincide.
 We coincide management interests with our employees for a far more
pleasurable and healthy working environment, achieving cost effective
methods, stimulating and motivating workers for business
performance.
• Integration and team work.
 That is why everybody works together, being productive team
members having higher performing employees thus achieving goals
been set within the company.

Soft HRM has become a preference in Allshade due to its advantages and the benefits
it provides. However Allshades HRM structure does not always use the soft approach,
it may be integrated with some elements with hard HRM management. Soft HRM is
recognized as more popular and productive.

III. ALLSHADE COMPANY

1. INCENTIVE POLICY

Description

The compensation packages offered to employees by Allshade is important not only


because it costs money, but because it is likely the primary reason the employees
work for our company. Ivancevich and Glueck (1989) say that, “The compensation
received from work is one of the chief reasons people seek employment”.
Compensation packages with good pay and benefits can help attract and retain the
best employees. A quick survey of Allshades employees about compensation is likely
to reveal an expectation that wages cover basic living expenses, leave some money for
saving maybe for retirement or leisure.

Allshade employees are more likely to look at what our company pays rather than
what it says. In many ways people behave as they are rewarded and then willingly
commit themselves. Beardwell and Holden (1997) say that, “employees must have the
ability to carry out tasks and must believe in the quality of their work, and hence their
reward is directly related to and reflects the effort they put into the job”.
Therefore if quality is an important value for us, it should be reinforced through some
element of a compensation system.

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Financial Incentive Assessment in Allshade

Our company provides its employees with direct financial incentive based on cash
payments i.e wages, salaries, profit sharing, bonuses, commissions and increments.

Taking into consideration that:

• SALARIES – a good salary based on qualification and experience to stimulate


human efforts to higher performance.

• WAGES – payment arrangement according to needs helps the employee be


more flexible to his financial needs.

• PROFIT SHARING- An arrangement employer shares some of its profits with


its employees. It offers flexibility to target specific outcomes can be used to
drive performance and helps increase the involvement of employees in
business success, it saves time. The problem with this plan is that the link
between a persons efforts and rewards is unclear.

• BONUSES – Incentive payment that is supplemental to the base wage for cost
reduction, quality improvement, or other performance criteria. “Unlike
salaries, which are rarely reduced to reflect fall off in performance, bonuses
can easily have plus or minus adjustments of percentage or in total
pay.”(Dessler,1988)

• COMMISSIONS – the payment of commissions for services rendered or


products sold. It is a common way to reward sales people or agents. The
trouble with straight commission is that there is a tendency to focus on quick
sales or “big ticket” items and to disregard long term customer building.

• INCREMENTS – increase of some amount, the fixed or variable for example


one’s salary may have a fixed annual increment or one based on a percentage
of its current value. It is an employee incentive (raise).

To attract a worker and stimulate him to work, it can be financial or non financial to
stimulate human efforts to higher performance.

These incentive plans sometimes fail because workers usually do not believe that
effort on their part will lead to obtaining the reward or the reward is not important to
them. Specific problems are unfair standards, the fear of rate cut, group restrictions,
lack of understanding and lack of required tools or training.

Enhancement and improvement

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In order to improve the company we review its business conduct to find cost effective
methods to stimulate and motivate workers for business performance, employee
involvement commitment and communication by introducing non financial incentives
which result to satisfaction from the job i.e reward to a worker other than extra pay:

• COMPANY CARS
• FREE MEDICAL CARE
• BIGGER BUDGETS
• BETTER OFFICE SPACE
• HOUSING
• WELFARE AND RE-CREATION
• SUBSIDIZE LUNCH
• REWARD FOR ADDITIONAL CERTIFICATION
• VACATION
• DAY CARE
• SECURITY PLANS, PENSION OR RETIREMENT BENEFITS
• PRAISE AND REWARDS

Reasons for Employee Benefits:

• Do not attract tax, beneficial for employer and employee.


• Provided cheaply through economy of scale
• Some are needed for the execution of duties of employee such as company
cars for sales representatives or special/safety equipment or clothing for
workers.
• Company could offer discounts on their own products.
• Provision of these benefits ensure employees’ long term commitment to the
company and this inhibits turnover by imposing a relatively large economic
cost on leavers.

• Therefore management use fringe benefits as a deterrent against quitting by


making employees the particular vehicle through which seniority benefits are
obtained.(Beardwell,Holden,1997)

By introducing non financial incentive it can help build feelings of confidence and
satisfaction in employees. It can be very important for their long term effect.

Conclusion:

Although non-financial measures are increasingly important in decision-making and


performance evaluation, companies should not simply copy measures used by others.
The choice of measures must be linked to factors such as corporate strategy, valued
drivers, organizational objectives and competitive environment.

In addition, companies should remember that performance measurement choice is a


dynamic process, measures may be appropriate today, but the system needs to be
continually reassessed as strategies and competitive environments develop.

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With this new policy we attracted and retained:

• COMPETITIVE HIGH PERFORMING EMPLOYEES


• MORE PRODUCTIVITY
• COST MINIMIZATION AND PROFIT INCREASE
• INCREASED MARKET SHARES
• INCREASED VOLUME OF SALES
• BETTER MANAGEMENT OF LONG AND SHORT TERM FINANCIAL
OBJECTIVES

2. TRAINING POLICY

Description

ON THE JOB TRAINING: Training at work therefore learning and working at the
same time, one on one interaction.

The method of training we use at Allshade uses our more knowledgeable, experienced
and skilled employees such as managers and supervisors to give training to less
knowledgeable employees. Sitting by the senior and learning by doing. Disadvantages
are that the trainer (the more experienced employee) is not usually trained in the skills
and methods of training and therefore it is time consuming for newcomers as they
struggle to cope with the with the trainers explanations.(Beardwell, Holden,1997).

This policy of training takes place at the work place in an informal manner.
The participant observes more experienced, knowledgeable and skilled trainer who is
an employee.

Methods:

• Demonstration/Instruction: showing the trainee how to do the job

• Coaching: intensive method of training involving a close working relationship


between experienced employee and trainee.

• Job rotation: where trainee is given several jobs in succession to gain an


experience of a wide range of activities.

• Projects: employees join a project team which gives them exposure to the parts
of the business and allows them to take part in new activity.

Assessment and Evaluation

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The method, process and technique are well discussed before, during and after trainer
has explained about performing the task. When the trainer is prepared the trainee
starts performing on the work place.

The trainer provides continuing direction of work and feed back. The trainee is given
more work so that he accomplishes the job flawlessly.

Training not done to a sufficient standard due to the fact that the trainer has
insufficient specialist skills. The trainer is not given enough time to spend with the
employees to teach them properly which means sub-standard training has been
achieved and training has only been half done.

The trainer possesses bad habits and passes them on to the trainee, and trainers do not
understand the importance of close supervision within the training program.

As Ivancevich and Glueck (1989) say “Although his program is simple and relatively
less costly, if it is not handled properly the costs can be high in damaged machinery,
unsatisfied customers, misfiled forms, and poorly taught workers.”

Enhancement and Improvement (Off the Job Training):

This allows the trainee to learn and study theoretical information away from the work
environment which gives the opportunity to be exposed to new and innovative ideas.
(Beardwell, Holden 1997).

The advantages are as follows:

• Use of specialist trainers and accommodation.

• Employee can focus on the training and not be distracted by work.

• Opportunity to mix with employees from other businesses and allow them to
network and perhaps drum up business.

• Training can be more concentrated.

• Can be a source to supply the latest information, current trends, skills and
techniques that may be bought back to the company.

• Makes employees feel more valued as they receive more quality training and
knowledge.

• Tests and examinations are common in courses which provides certification


thus making the employee feel more self improved and worthy.

Conclusion:

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With this new policy bought into the company it provides all the departments in the
company with higher skilled employees which provide:

• Quality, professionalism and higher standards.

• Up to date with technology and information.

• Satisfied employers and employees.

• Obtain loyalty and good relationship between company and customer.

• Long term organization in the future.

• Trust of service to customers.

• Moneys worth therefore satisfied customers.

IV. HOW THESE POLICIES EFFECT PRODUCTIVITY OF ALLSHADE

By introducing the incentive policy and training program to Allshade and combining
the two together, our company’s intentions would be for a successful organization by:

REDUCING:

 Costs
 Time wastage
 Low man power
 Slow productivity
 Material wastage

AND

INCREASING:

 Strong competitors
 Market shares
 Increased volumes of sales
 Increased profits
 Increased productivity
 Increased labour efficiency
 Increased skilled employees
 Increased time efficiency to meet targets
 Being in touch with latest information, technology and ideas

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TO PROVIDE:

 Service
 Professionalism
 Customer care and satisfaction
 Quality

V. HORIZONTAL INTEGRATION

We have found that these two policies have improved the productivity in all of
Allshades departments. The success of aligning the two policies and the effects it has
made on the departments and on the commitment and dedication of the employees is
shown below:

• HR Department
 Incentives: Employees are highly motivated and satisfied. Quality of
employees and the development through incentive schemes make
employees far more productive and an asset to our company.
 Training: Employees manage resources wisely, it unlocks their
potential and they realize excellence, inspiration and are more
developed adding value to the company.

• Sales Department
 Incentives: Increase volume of sales due to the fact that if sales people
want to earn more money must work harder and smarter because sales
personnel usually work on a commission or an incentive basis.
 Training: Employees work efficiently and effectively. Feel more
confident and self aware.

• Production Department
 Incentives: Employees feel positive and are driven to work more
efficiently. There is less time wasted and productivity is increased.
 Training: Product quality will be improved with less error making and
more positive self decision making.

• Finance Department
 Incentives: Motivate executives to maximize the future growth and
profitability of the company with better management of long and short
term financial objectives.
 Training: Resources are managed skillfully providing excellent
decision making employees.

• Marketing Department
 Incentives: Due to the fact that employees are rewarded there will be
an improvement in sales and market share will increase. Give our
competitors a run for their money.

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 Training: Employees can maintain cost minimization and decrease in
production cost with an increase in profit margins

VI. CONCLUSION

The future contribution of human resource policies towards the company Allshade is
intended to create utility within the employees, therefore leading to a co-operative
working environment where employees feel comfortable on an everyday basis. By
introducing new policies results in a positive impact on the organizations’
effectiveness which thus sustains long term development. The development of
expertise in certain departments is important for the company’s success, ensuring its
growth on a continuous basis and therefore building staff to have personal attitudes
and professional skills enabling them to develop a long term relationship with the
company. With these policies used correctly within the company and in all the
departments, the organization will have more satisfied and loyal customers, better
quality products and services, with a greater growth potential.

Sustaining the right attitude amongst our employees and facilitating them to excel in
their profession will create an inspiring working environment. Unleashing our staffs
creative energy within our organization will contribute in making Allshade a leading
shadenet carport manufacturer and shadenet material distributer with an increase in
turn over and with a higher level of customer satisfaction.
Higher levels of safety will be maintained within the company, will be proactive in
conserving the environment and will be recognized as an excellent business
organization.

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VII. BIBLIOGRAPHY

Beardwell, I.,Holden,L.,(1997) “Human Resource Management: A Contemporary


Perspective”, Second Edition, Pitman, GB.

Dessler, G., (1988) “Personnel Management”, Fourth Edition, Prentice Hall


International Editions, USA.

Ivancevich, J.M., Glueck, G.G., (1989) “Human Resource Management: Foundations


of Personnel”, Fourth Edition, Richard D. Irwin Inc, USA.

Internet sites:

Free Management Library, www.managementhelp.org


The Society of Human Resources Management, www.shrm.org
Advancing Employee Productivity, www.accel-team.com
The Manager, www.themanager.org
Office of Personnel Management, www.opm.gov

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