Risk Management of Terminal Development at Airport

Risk Management of Terminal Development at Airport Dissertation Objectives Investigate the problems at the terminal 5 opening, especially with the baggage handling system despite extensive simulated testing using thousands of bags and more than two thousand volunteers in the run up to the opening of T5 Identify the necessary risk strategies to be considered for such mega-projects, the benefits of such approaches, taking into account previous failed and successful projects, and any lessons to be learnt Discuss the implementation approach adopted by BAA and the risk associated with this approach Provide formative evaluation summarising key findings and conclusion based on evidence gathered from research T5 Synopsis The terminal 5 project in addition to being a statement of intent for the future of British aviation was built with the aim of improving customer experience and to exhibit Heathrow as a world class international airport. The baggage handling system at T5 was designed to be the largest baggage handling system in Europe for a single terminal. The system consists of a main baggage sorter and a fast track system. The system was designed by an integrated team from BAA, BA and Vanderlande Industries of the Netherlands, with the aim of handling both intra-terminal and inter-terminal luggage. Its processing capacity was intended to be 70,000 bags a day. Bags are meant to undergo several processes on the way through the system, these include; automatic identification, explosives screening, fast tracking for urgent bags, sorting and automatic sorting and passenger reconciliation. The scheduled completion and opening date was March 2008, and T5 was on time and on budget. This was a remarkable achievement especially in a sector where project delays and vast overspends are commonplace (the Millennium dome, Wembley stadium and the Scottish Parliament buildings were all opened late and cost a lot more than the original estimate). However, on its first day in operation, T5s bespoke baggage system was affected by technical software problems, which led to a number of issues, such as cancelled flights, lost baggage, and substantial delays, but more importantly, BAs challenge were its people issues and integrating teams of staff. Initial reports suggest that the day one issues were less to do with technology issues and more to do with inadequate staff training, and this was not just for one group of people but at all levels. Below is a summary of its problems on the opening day: Hundreds of staff found it difficult finding the staff car park entrance Check-in staff struggled with their systems, these problems ranged from very simple tasks such as logging into the baggage system to complex tasks Security personnel who were totally ignorant of their new roles and had to be taken through new procedures in the morning in front of passengers Ground staff and crews and ground staff getting lost in the huge building Baggage handlers struggled to get a hang of the new baggage system Baggage truck drivers got lost within the terminal and needed directions to the aircraft Baggage drivers and handlers could not get luggage from the conveyors to the gates On nine occasions, inspectors from the department of transport had managed to bypass security checks during trials of the terminals new systems and that the terminals alarm system was not working properly Going through these problems therefore suggest that the entire problem was down to lack of adequate training or simply inappropriate appraisal of risk involved. This is very surprising as this was a very high profile project and taking into account that this was a simple 3 team process get baggage, take baggage to aircraft and load baggage onto aircraft. Training System Testing Prior to Opening Based on initial interviews with BAs CIO, it would suggest that the human elements were given the importance it required. BAs CIO, Paul Coby told CIO UK [in March 2007] â€Å"the IT work to support such a large-scale, new-build project was also going well. â€Å"Devices are deployed, connections are being integrated and 2007 will be testing year. The airline is moving onto the T5 systems, so they run for a year ready to operate at the new terminal when it opens in 2008†. According to XXXXX, in the run up to the opening of T5 there were a series of overnight baggage-systems tests using thousands of bags, up to 2000 volunteers and full trials of the check-in procedure for all the IT systems. According to the spokesman for Vanderlande Industries, in testing the baggage handling system, emulation models were utilized broadly to test the low-level controls software, while computer programs took the place of the baggage handling system, and which behave (almost) the same as the part they replace. The report also suggests that for the high-level controls software, the emulation model was broadened by connecting the loose individual models into a large integrated system in which the physical equipment was replaced by a number of interconnected emulation models. According to a number of the volunteers who tested the system prior to its opening commented that the demos were extremely impressive and felt the system was ready in advance of its opening. T5 System Simulation Prior to Opening According to the spokesman for Vanderlande Industries, low-level emulation models were utilized in place of the physical transport equipment in each of the conveyor lines. The low and high level models that were developed produced the same electrical outputs in response to the same electrical inputs as their corresponding physical equivalent (motors, photo-electric cells, barcode scanners, etc), which in the view of both the software developers and management of BA, proof of extensive system testing. System interaction was facilitated with the use of control panels, and with the right frequency, set of bags or multiple bags were generated. During the testing, the conveyor motors were stopped and started utilizing different scenarios in order to generate as much errors as possible with the hope of fixing them. The spokesman also stated that the transport time between two photocells in emulation was equal to the actual time using the real equipment. The same measurement also applied to the total transport time. In addition, during testing the T5 project, over 90 individual low-level emulation models were created as individual models were integrated into 5 different configurations. A separate team spent 4800 hours on building and testing these emulation models. Questions: Training Testing But the first set of questions now has to be asked: how adequate was the tests and training were carried out in relation to T5s baggage systems in advance of the opening? What were the results? What were the problems revealed? and what steps were taken to resolve the problems revealed? Were the tests re-run and, if so, what was the result? Was the right implementation strategy adopted? Or would it not have been better to open Terminal 5 on a phased basis, to make sure that all its systems were working before going fully operational? The second set of questions to be asked would be: knowing that extensive simulation testing was carried out on the baggage system successfully; doesnt that then suggest that carrying out simulated testing without the real customers is inadequate? With regards to the people issues, what sort of dry runs were carried out? If they were indeed adequate, why were the opening day hiccups not identified? Where there extra staff or volunteers in anticipation of potential glitches? If yes were these trained adequately? For every eventuality or possible scenario, what were the contingency plans? In spite of the extensive testing carried out on the baggage system and the confidence which this would have placed on top management, from the experience on the opening day, we can conclude that in reality, the prospects of operating an airport terminal of such magnitude and scale would require more than simulated testing as the operations are virtually impossible to fully replicate. This then suggests that the risk management utilized by the BA was not robust to take the people issues into account. Good risk management might have come to the conclusion, if there was the possibility of failure. Risk Management: Definitions In order to manage risks we have to understand what a risk is. Smith and Merrit (2002) said that three essential aspects of risk are uncertainty, loss and time, see Figure 1. Uncertainty: A project manager has to identify as many uncertainties as possible. A risk may or may not happen. This inherent uncertainty cannot be eliminated, but it can be made little clearer by clarifying the probability of occurrence of the risk, to get at better understanding of the consequences and alternatives if the risk occurs and determine the factors that influence the magnitude and likelihood of occurrence of the particular risk. This means that an uncertainty can never be completely eliminated, but it can be reduced to a level the project find tolerable. This means that even with the best plans there cannot be any guarantees that there will be no surprises [3]. Loss: A risk is always something that involves some kind of loss. If there is no loss possible, then the project is not concerned about the risk, because it cannot compromise the project [3]. Time: Associated with every risk there is a time where the risk no longer exists. Either the risk has occurred and the loss has been suffered or the potential problems that could cause the risk have been resolved and no longer pose a threat. It is important to know when this time has arrived so the risk can be removed from the agenda [3]. Among writers and in the literature there are differences in the meaning of risk management and risk analysis. Frosdick (1997) says that there are no clear views of the differences and what one writer defines as risk management another writer is calling it risk analysis. Frosdick‘s own view is that he separates them by saying that risk analysis is the sum of the processes of risk identification, estimation and evaluation and risk management is about planning, monitoring and controlling activities that are produced by the risk analysis activity. The Association for Project Management (Chapman, Simister 2004) definition of risk analysis is similar to Frosdick‘s, they have however divided the risk analysis into two stages. The first stage is called the Qualitative Analysis and it is where risks are identified and subjectively assessed. These identified risks are then analysed in terms of e.g. cost and time estimates and that is called the Quantitative Analysis. Just like for Frosdick it is then followed by the risk management process. In their definition it is the process of formulating responses, both proactive and reactive ones. Pennock Haimes (2001) said that risk management could be represented in six steps, three each for risk assessment/analysis and risk management, where each step is a question. Risk assessment/analysis What can go wrong? Identify as many risks as possible. The risks can be of any kind financial, time, resources etc. and no risk is too small to not be included [3]. What is the likelihood for the risk to occur? Try to measure how likely, or unlikely, it is for the risk to occur. Maybe some risks are dependent on each other [3]. What are the consequences? What will be the impact on the project if the risk occurs, is it a minor risk or maybe a stopping fault that endangers the whole project [3]. Risk management What can be done and what options are available? How to decrease the chance of a risk occurring, for example get more resources or have them readily available [2,3]. What are the tradeoffs in term of all costs, benefits and risks among the available options? For every risk there is somewhere a limit for how costly measures one can put in, where there is no economy in putting in more measures. Often the budget is not enough to eliminate all risks therefore one must choose which risks to put more emphasis on [2,3]. What are the impacts on current decisions on future options? [3] The official definition provided by Professor James Garven, University of Texas at Austin is from the American Risk and Insurance Association: Risk management is the systematic process of managing an organizations risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organizations resources, earnings, and cash flows. Another definition given by Larry Krantz, Chief Executive of Euro Log Ltd in the UK, states that A risk is a combination of constraint and uncertainty. We all face constraints in our projects, and also uncertainty. So we can minimise the risk in the project either by eliminating constraints (a nice conceit) or by finding and reducing uncertainty []. The objectives of risk management/analysis The Association for Project Management (Chapman, Simister 2004) defines Risk Management/Analysis as a process designed to remove or reduce the risks that threaten the achievement of project objectives. Properly undertaken it will increase the likelihood of successful completion of a project in terms of cost, time and performance objectives. PMBOK (PMBOK Guide, 2004) describes it similarly where they say that the objectives of project management are to increase the probability and impact of positive effects and decrease the probability and impact of events adverse to project objectives. Kendrick (2003) list seven benefits on the use of risk management: Project Justification: Project risk management is undertaken primarily to improve the chances that a project will achieve its objectives. While there are never any guarantees, broader awareness of common failure modes and ideas that make projects more robust can significantly improve the odds of success. The primary goal of project risk management is either to develop a credible foundation for each project, showing that it is possible, or to demonstrate that the project is not feasible so that it can be avoided, aborted, or transformed [1]. Lower Costs and Less Chaos: Adequate risk analysis reduces both the overall cost and the frustration caused by avoidable problems [4]. The amount of rework and of unforeseen late project effort is minimised. Knowledge of the root causes of the potentially severe project problems enables project leaders and teams to work in ways that avoid these problems. Dealing with the causes of risk also minimises fire-fighting and chaos during projects, much of which is focused short-term and deals primarily with symptoms rather than the intrinsic sources of the problems [1]. Chadbourn (1999) describes it similarly when he likened the uncertainties to chaos, where a poorly designed project could be described as a room full of mousetraps, each with a ping pong ball [5]. Before you know it, someone not under your control tosses in the first ball, thus mayhem and chaos erupts [5]. In the ideal project the mousetraps are gone. In their place there is a network of dominos, where each action and reacti on could be foreseen [5]. It is within the role of organisations to try and identify these mousetraps and replace them with an orderly string of dominos [5]. Project Priority and Management Support: Support from managers and other project stakeholders and commitment from the project team are more easily won when projects are based on thorough, understandable information [11]. High-risk projects may begin with lower priority, but a thorough risk plan, displaying competence and good preparation for possible problems, can improve the project priority [11]. Whenever you are successful in raising the priority of your project, you significantly reduce project risk—by opening doors, reducing obstacles, making resources available, and shortening queues for services [11]. Project Portfolio Management: Achieving and maintaining an appropriate mix of ongoing projects for an organisation uses risk data as a key factor. The ideal project portfolio includes both lower- and higher-risk projects in proportions that are consistent with the business objectives [13]. Fine-Tuning Plans to Reduce Risk: Risk analysis uncovers weaknesses in a project plan and triggers changes, new activities, and resource shifts that improve the project. Risk analysis at the project level may also reveal needed shifts in overall project structure or basic assumptions [14]. Establishing Management Reserve: Risk analysis demonstrates the uncertainty of project outcomes and is useful in setting reserves for schedule and/or resources. Risky projects really require a window of time (or budget), instead of a single-point objective. While the project targets can be based on expectations (the most likely versions of the analysis), project commitments should be established with less aggressive goals, reflecting overall project risk. The target and committed objectives set a range for acceptable project results and provide visible recognition of project risk [18]. Project Communication and Control: Project communication is more effective when there is a solid, credible plan. Risk assessments also build awareness of project exposures for the project team, showing how painful the problems might be and when and where they might occur. This causes people to work in ways that avoid project difficulties. Risk data can also be very useful in negotiations with project sponsors. Using information about the likelihood and consequences of potential problems gives project teams more influence in defining objectives, determining budgets, obtaining staff, setting deadlines, and negotiating project changes [18]. Risk Assessment Risk Control There are two stages in the process of Project Risk Management, Risk Assessment and Risk Control. Risk Assessment can take place at any time during the project, though the sooner the better. However, Risk Control cannot be effective without a previous Risk Assessment. Similarly, most people tend to think that having performed a Risk Assessment, they have done all that is needed. Far too many projects spend a great deal of effort on Risk Assessment and then ignore Risk control completely [19]. Risk Assessment has three elements: Identify Uncertainties In this element, the entire project plans are explored, with special focus on areas of uncertainty [20]. Analyse Risks In this element, the requirement is to specify how the areas of uncertainty will have an impact on the performance of the project, either in duration, cost or meeting the users requirements [20]. Prioritise Risks At this stage the requirement is to establish which of the Risks identified should be eliminated completely [20]. This step is only is carried out due to the potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention [20]. In the same way, Risk Control has three elements, as follows: Mitigate Risks According to Mobey et al (2002), risk mitigation would include taking the necessary actions that are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan [20]. Plan for Emergencies For all those Risks which are deemed to be significant, have an emergency plan in place before it happens [19]. Measure and Control This involves tracking the effects of the risks identified and managing them to a successful conclusion [19]. Different strategies There are different strategies and methods that have different approaches toward risk management. JISC (Joint Information Systems Management) says that the focus for risk management should be on risks related to the particular project, not project management in general (http://www.jisc.ac.uk/proj_manguide15.html). The overall goal according to Kendrick (2003) for risk management in a single project is to establish a credible plan consistent with business objectives and then to minimise the range of possible outcomes. That is why risk management in a project is about identifying potential risks, analyse the ones that have the greatest likelihood of occurring, grade their different levels of impact on the project and define a plan of how to avoid the risk and if it occurs how to reduce its impact (Heldman, 2005). Smith Merrit (2001) sees risk strategy as a five step process. Figure 3 shows the flow through the five-step process and lists deliverables from each step: Step 1: Identify risks that you could encounter across all facets of the project [28]. Step 2: Analyse these risks to determine what is driving them, how great their impact might be, and how likely they are [28]. Step 3: Prioritise and map the risks so that you can choose those most important to resolve [28]. Step 4: Plan how you will take action against the risks on this short list [28]. Step 5: On a regular basis, monitor progress on your action plans, terminate action plans for risks that have been adequately resolved, and look for new risks [28]. Frosdick (1997) also mentioned Strutt‘s, definition of the concept of risk analysis that is a seven stage process. Systematic assessment (item by item question every part of the system) [13]. Identification of risks [13]. Assessment of risks (frequencies and consequences) [13]. Establish acceptable/tolerable levels of risk [13]. Evaluate the risks. Are they acceptable? Can they be reduced and at what cost? Determine whether the risks are as low as reasonably practicable [13]. Determine risk reduction measures where appropriate [13]. Risk Assessment Evaluation There are many ways and different techniques to evaluate what the risks are, what the effect they have on the project and what measures can be put in if the risks should occur [19]. Risk assessment is by most people divided into two areas, Quantitative Risk Analysis and Qualitative Risk Analysis. Quantitative In its most basic form the formula for risk quantification is: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢Rate of occurrenceà ¢Ã¢â€š ¬Ã¢â‚¬â€œ multiplied by the à ¢Ã¢â€š ¬Ã¢â‚¬ ¢impact of the eventà ¢Ã¢â€š ¬Ã¢â‚¬â€œ = risk. Methods based on this method are often called à ¢Ã¢â€š ¬Ã¢â‚¬ ¢expected value analysisà ¢Ã¢â€š ¬Ã¢â‚¬â€œ and include models like Annualized Loss Expectancy (ALM), the Courtney formula, the Livermore Risk Analysis Methodology (LRAM) and Stochastic Dominance (Snyder, Rainer Jr., Carr 1991). The advantages of Quantitative Risk Analysis methodologies are that they are good at identifying the most critical areas that, if something happens, will have the largest impact on the project. There are also disadvantages to Quantitative Risk Analysis. When one measures the probability of damage to the project the quantitative approach tends to average the events leading up to a problem (Snyder, Rainer Jr, Carr 1991). Qualitative Qualitative methods attempts to express risks in terms of descriptive variables rather than an economic impact. These approaches are based on the assumption that certain threat or loss of data cannot be appropriately expressed in terms of dollars or pounds and that precise information is impossible to obtain. These methodologies include Scenario Analysis/Planning, Fuzzy Metrics and questionnaires (Snyder, Rainer Jr., Carr 1991). The advantages of Qualitative Risk Analysis methodologies are that they save time, effort and expense over quantitative methods. This is because assets do not need exact values in dollars or pounds nor do threats need to have exact probabilities. It is also a valuable methodology in identifying significant weaknesses in a risk management portfolio. There are disadvantages with this method as well. Qualitative Risk Analysis is inexact, the variables used (e.g. low, medium and high) must be understood by all parties involved (Snyder, Rainer Jr., Carr 1991). Risks Reduction Once risks have been identified and evaluated they have to be responded to in some way. Wideman (1992) lists seven basic responses on identified risks: Recognised but no action taken (absorbed as a matter of policy) Avoided (by taking appropriate steps) Reduced (by an alternative approach) Shared (with others, e.g., by joint venture) Transferred (to others through contract or insurance) Retained and absorbed (by prudent allowances) Handled by a combination of the above Dorfman (1997) says that all techniques to manage the risk fall into one or more of these four major categories (remembered as the 4 Ts): Tolerate (aka Retention) Treat (aka Mitigation) Terminate (aka Elimination) Transfer (aka Buying Insurance) Bliss (2005) listed these five types of similar risk responses as Dorfman and Wideman. Risk avoidance: Also known as risk removal or risk prevention, risk avoidance involves altering the original plans for the project so that particularly risky elements are removed. It could include deciding not to perform an activity that carries a high risk. Adopting such avoidance techniques may seem an obvious way to deal with all risks. However, often the areas of the project that involve high risks are also the areas of the project that potentially contain the highest worth or the best value for money. Avoiding such risks may also result in removing potentially the best bits of a resource, and an alternative strategy that retains these risks may be more appropriate [13]. Risk reduction: Risk reduction or risk mitigation involves the employment of methods that reduce the probability of a risk occurring, or reducing the severity of the impact of a risk on the outcome of the project. The loss of highly skilled staff is a considerable risk in any project and not one that can be totally avoided. Suitable risk mitigation could involve the enforcement of a notice period, comprehensive documentation allowing for replacement staff to continue with the job at hand and adequate management oversight and the use of staff development programmes to encourage staff to stay [20]. Risk transfer: Risk transfer moves the ownership of the risk to a third party normally by contract. This also moves the impact of the risk away from the project itself to this third party [20]. Risk deferral: The impact a risk can have on a project is not constant throughout the life of a project. Risk deferral entails deferring aspects of the project to a date when a risk is less likely to happen. For example managing the expectations users have about the content and delivery of a resource can be time-consuming, one way to reduce this risk is by not making a web resource available until user testing is complete [20]. Risk retention: Whilst a certain number of the risks to the project originally identified can be removed by changing the project plan or dealt with by transferring the responsibility of the risk to third parties inevitably certain risks have to be accepted as a necessary part of the project. All risks that have not been avoided or transferred are retained or accepted risks by default [20]. Previous Successful Project: St Pancras International Rail Station According to XXXXXX, before St Pancras International rail station was opened; a number of days were devoted to testing all the systems and processes, using an army of thousands of volunteer passengers. These tests were carried out much before the opening day, thus providing enough time to resolve issues that might have occurred during testing [26]. By carrying out the testing in phases much long before the opening, members of staff were able to familiarize themselves with the systems and get actual hands-on experience before the station was opened to Eurostar traffic. Dry-runs were carried out as well with the vital lessons were learnt and adjustments made before exposing paying customers to the St Pancras experience. Inevitably the result was that on the opening day, everything went without glitches on the first day of international service [26]. Previous Failed Project: Denver International Airport The Denver International Airport was scheduled to open on October 31, 1993 with all three of its concourses fully running on the BAE automated baggage handling system that. On February 28, 1995, the new airport finally opened. Its opening came sixteen months late. The automated baggage system was supposed to improve baggage handling by using a computer tracking system to direct baggage contained in unmanned carts that run on a track. BAE systems presented the City of Denver with a proposal to develop â€Å"the most complex and automated [and integrated] baggage system ever built. Original target opening date for the airport was (delayed seven times over the next three months). City of Denver invited reporters to observe the first test of the baggage system without notifying BAE. This was a public disaster! Reporters saw piles of disgorged clothes and other personal items lying beneath the Telecars tracks. Lots of mechanical and software problems plagued the automated baggage handling system. When the system was tested, bags were misloaded, sent to different routes, and fell out of automated telecarts, thus causing the system to jam. The automated baggage system still continued to unload bags even though they were jammed on the conveyor belt, because the photo eye at this location could not detect the pile of bags on the belt and hence could not signal the system to stop. Main Lessons One of the lessons BA and BAA might have been learnt from the Denver project, was that BAE actually built a prototype of the automated baggage handling system in a 50,000 sq. ft. warehouse near its manufacturing plant in Texas. But as similar to the T5 project, there was no evidence of adequate training and the results from simulation testing has been proven to be different to a real world scenario with real customers. I addition, research also shows that BAE had given an initial estimate of at least a year to test the system and get the system up and running, but United airlines and the other stakeholders pressed for a much shorter timeframe. City of Denver got the same story from technical advisers to the Franz Joseph Strauss airport in Munich (that less complicated system had taken 2 years testing and was running 24 hours a day for 6 months before the airport opened. Risks recognised early in the Project Very large scale of the project. Enormous complexity. Newness of the technology. Large number of entities to be served by the system. The high degree of technical and project definition uncertainty. Risk Identification PMBOK (PMBOK Guide, 2004) lists five tools and techniques for risk identific Risk Management of Terminal Development at Airport Risk Management of Terminal Development at Airport Dissertation Objectives Investigate the problems at the terminal 5 opening, especially with the baggage handling system despite extensive simulated testing using thousands of bags and more than two thousand volunteers in the run up to the opening of T5 Identify the necessary risk strategies to be considered for such mega-projects, the benefits of such approaches, taking into account previous failed and successful projects, and any lessons to be learnt Discuss the implementation approach adopted by BAA and the risk associated with this approach Provide formative evaluation summarising key findings and conclusion based on evidence gathered from research T5 Synopsis The terminal 5 project in addition to being a statement of intent for the future of British aviation was built with the aim of improving customer experience and to exhibit Heathrow as a world class international airport. The baggage handling system at T5 was designed to be the largest baggage handling system in Europe for a single terminal. The system consists of a main baggage sorter and a fast track system. The system was designed by an integrated team from BAA, BA and Vanderlande Industries of the Netherlands, with the aim of handling both intra-terminal and inter-terminal luggage. Its processing capacity was intended to be 70,000 bags a day. Bags are meant to undergo several processes on the way through the system, these include; automatic identification, explosives screening, fast tracking for urgent bags, sorting and automatic sorting and passenger reconciliation. The scheduled completion and opening date was March 2008, and T5 was on time and on budget. This was a remarkable achievement especially in a sector where project delays and vast overspends are commonplace (the Millennium dome, Wembley stadium and the Scottish Parliament buildings were all opened late and cost a lot more than the original estimate). However, on its first day in operation, T5s bespoke baggage system was affected by technical software problems, which led to a number of issues, such as cancelled flights, lost baggage, and substantial delays, but more importantly, BAs challenge were its people issues and integrating teams of staff. Initial reports suggest that the day one issues were less to do with technology issues and more to do with inadequate staff training, and this was not just for one group of people but at all levels. Below is a summary of its problems on the opening day: Hundreds of staff found it difficult finding the staff car park entrance Check-in staff struggled with their systems, these problems ranged from very simple tasks such as logging into the baggage system to complex tasks Security personnel who were totally ignorant of their new roles and had to be taken through new procedures in the morning in front of passengers Ground staff and crews and ground staff getting lost in the huge building Baggage handlers struggled to get a hang of the new baggage system Baggage truck drivers got lost within the terminal and needed directions to the aircraft Baggage drivers and handlers could not get luggage from the conveyors to the gates On nine occasions, inspectors from the department of transport had managed to bypass security checks during trials of the terminals new systems and that the terminals alarm system was not working properly Going through these problems therefore suggest that the entire problem was down to lack of adequate training or simply inappropriate appraisal of risk involved. This is very surprising as this was a very high profile project and taking into account that this was a simple 3 team process get baggage, take baggage to aircraft and load baggage onto aircraft. Training System Testing Prior to Opening Based on initial interviews with BAs CIO, it would suggest that the human elements were given the importance it required. BAs CIO, Paul Coby told CIO UK [in March 2007] â€Å"the IT work to support such a large-scale, new-build project was also going well. â€Å"Devices are deployed, connections are being integrated and 2007 will be testing year. The airline is moving onto the T5 systems, so they run for a year ready to operate at the new terminal when it opens in 2008†. According to XXXXX, in the run up to the opening of T5 there were a series of overnight baggage-systems tests using thousands of bags, up to 2000 volunteers and full trials of the check-in procedure for all the IT systems. According to the spokesman for Vanderlande Industries, in testing the baggage handling system, emulation models were utilized broadly to test the low-level controls software, while computer programs took the place of the baggage handling system, and which behave (almost) the same as the part they replace. The report also suggests that for the high-level controls software, the emulation model was broadened by connecting the loose individual models into a large integrated system in which the physical equipment was replaced by a number of interconnected emulation models. According to a number of the volunteers who tested the system prior to its opening commented that the demos were extremely impressive and felt the system was ready in advance of its opening. T5 System Simulation Prior to Opening According to the spokesman for Vanderlande Industries, low-level emulation models were utilized in place of the physical transport equipment in each of the conveyor lines. The low and high level models that were developed produced the same electrical outputs in response to the same electrical inputs as their corresponding physical equivalent (motors, photo-electric cells, barcode scanners, etc), which in the view of both the software developers and management of BA, proof of extensive system testing. System interaction was facilitated with the use of control panels, and with the right frequency, set of bags or multiple bags were generated. During the testing, the conveyor motors were stopped and started utilizing different scenarios in order to generate as much errors as possible with the hope of fixing them. The spokesman also stated that the transport time between two photocells in emulation was equal to the actual time using the real equipment. The same measurement also applied to the total transport time. In addition, during testing the T5 project, over 90 individual low-level emulation models were created as individual models were integrated into 5 different configurations. A separate team spent 4800 hours on building and testing these emulation models. Questions: Training Testing But the first set of questions now has to be asked: how adequate was the tests and training were carried out in relation to T5s baggage systems in advance of the opening? What were the results? What were the problems revealed? and what steps were taken to resolve the problems revealed? Were the tests re-run and, if so, what was the result? Was the right implementation strategy adopted? Or would it not have been better to open Terminal 5 on a phased basis, to make sure that all its systems were working before going fully operational? The second set of questions to be asked would be: knowing that extensive simulation testing was carried out on the baggage system successfully; doesnt that then suggest that carrying out simulated testing without the real customers is inadequate? With regards to the people issues, what sort of dry runs were carried out? If they were indeed adequate, why were the opening day hiccups not identified? Where there extra staff or volunteers in anticipation of potential glitches? If yes were these trained adequately? For every eventuality or possible scenario, what were the contingency plans? In spite of the extensive testing carried out on the baggage system and the confidence which this would have placed on top management, from the experience on the opening day, we can conclude that in reality, the prospects of operating an airport terminal of such magnitude and scale would require more than simulated testing as the operations are virtually impossible to fully replicate. This then suggests that the risk management utilized by the BA was not robust to take the people issues into account. Good risk management might have come to the conclusion, if there was the possibility of failure. Risk Management: Definitions In order to manage risks we have to understand what a risk is. Smith and Merrit (2002) said that three essential aspects of risk are uncertainty, loss and time, see Figure 1. Uncertainty: A project manager has to identify as many uncertainties as possible. A risk may or may not happen. This inherent uncertainty cannot be eliminated, but it can be made little clearer by clarifying the probability of occurrence of the risk, to get at better understanding of the consequences and alternatives if the risk occurs and determine the factors that influence the magnitude and likelihood of occurrence of the particular risk. This means that an uncertainty can never be completely eliminated, but it can be reduced to a level the project find tolerable. This means that even with the best plans there cannot be any guarantees that there will be no surprises [3]. Loss: A risk is always something that involves some kind of loss. If there is no loss possible, then the project is not concerned about the risk, because it cannot compromise the project [3]. Time: Associated with every risk there is a time where the risk no longer exists. Either the risk has occurred and the loss has been suffered or the potential problems that could cause the risk have been resolved and no longer pose a threat. It is important to know when this time has arrived so the risk can be removed from the agenda [3]. Among writers and in the literature there are differences in the meaning of risk management and risk analysis. Frosdick (1997) says that there are no clear views of the differences and what one writer defines as risk management another writer is calling it risk analysis. Frosdick‘s own view is that he separates them by saying that risk analysis is the sum of the processes of risk identification, estimation and evaluation and risk management is about planning, monitoring and controlling activities that are produced by the risk analysis activity. The Association for Project Management (Chapman, Simister 2004) definition of risk analysis is similar to Frosdick‘s, they have however divided the risk analysis into two stages. The first stage is called the Qualitative Analysis and it is where risks are identified and subjectively assessed. These identified risks are then analysed in terms of e.g. cost and time estimates and that is called the Quantitative Analysis. Just like for Frosdick it is then followed by the risk management process. In their definition it is the process of formulating responses, both proactive and reactive ones. Pennock Haimes (2001) said that risk management could be represented in six steps, three each for risk assessment/analysis and risk management, where each step is a question. Risk assessment/analysis What can go wrong? Identify as many risks as possible. The risks can be of any kind financial, time, resources etc. and no risk is too small to not be included [3]. What is the likelihood for the risk to occur? Try to measure how likely, or unlikely, it is for the risk to occur. Maybe some risks are dependent on each other [3]. What are the consequences? What will be the impact on the project if the risk occurs, is it a minor risk or maybe a stopping fault that endangers the whole project [3]. Risk management What can be done and what options are available? How to decrease the chance of a risk occurring, for example get more resources or have them readily available [2,3]. What are the tradeoffs in term of all costs, benefits and risks among the available options? For every risk there is somewhere a limit for how costly measures one can put in, where there is no economy in putting in more measures. Often the budget is not enough to eliminate all risks therefore one must choose which risks to put more emphasis on [2,3]. What are the impacts on current decisions on future options? [3] The official definition provided by Professor James Garven, University of Texas at Austin is from the American Risk and Insurance Association: Risk management is the systematic process of managing an organizations risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organizations resources, earnings, and cash flows. Another definition given by Larry Krantz, Chief Executive of Euro Log Ltd in the UK, states that A risk is a combination of constraint and uncertainty. We all face constraints in our projects, and also uncertainty. So we can minimise the risk in the project either by eliminating constraints (a nice conceit) or by finding and reducing uncertainty []. The objectives of risk management/analysis The Association for Project Management (Chapman, Simister 2004) defines Risk Management/Analysis as a process designed to remove or reduce the risks that threaten the achievement of project objectives. Properly undertaken it will increase the likelihood of successful completion of a project in terms of cost, time and performance objectives. PMBOK (PMBOK Guide, 2004) describes it similarly where they say that the objectives of project management are to increase the probability and impact of positive effects and decrease the probability and impact of events adverse to project objectives. Kendrick (2003) list seven benefits on the use of risk management: Project Justification: Project risk management is undertaken primarily to improve the chances that a project will achieve its objectives. While there are never any guarantees, broader awareness of common failure modes and ideas that make projects more robust can significantly improve the odds of success. The primary goal of project risk management is either to develop a credible foundation for each project, showing that it is possible, or to demonstrate that the project is not feasible so that it can be avoided, aborted, or transformed [1]. Lower Costs and Less Chaos: Adequate risk analysis reduces both the overall cost and the frustration caused by avoidable problems [4]. The amount of rework and of unforeseen late project effort is minimised. Knowledge of the root causes of the potentially severe project problems enables project leaders and teams to work in ways that avoid these problems. Dealing with the causes of risk also minimises fire-fighting and chaos during projects, much of which is focused short-term and deals primarily with symptoms rather than the intrinsic sources of the problems [1]. Chadbourn (1999) describes it similarly when he likened the uncertainties to chaos, where a poorly designed project could be described as a room full of mousetraps, each with a ping pong ball [5]. Before you know it, someone not under your control tosses in the first ball, thus mayhem and chaos erupts [5]. In the ideal project the mousetraps are gone. In their place there is a network of dominos, where each action and reacti on could be foreseen [5]. It is within the role of organisations to try and identify these mousetraps and replace them with an orderly string of dominos [5]. Project Priority and Management Support: Support from managers and other project stakeholders and commitment from the project team are more easily won when projects are based on thorough, understandable information [11]. High-risk projects may begin with lower priority, but a thorough risk plan, displaying competence and good preparation for possible problems, can improve the project priority [11]. Whenever you are successful in raising the priority of your project, you significantly reduce project risk—by opening doors, reducing obstacles, making resources available, and shortening queues for services [11]. Project Portfolio Management: Achieving and maintaining an appropriate mix of ongoing projects for an organisation uses risk data as a key factor. The ideal project portfolio includes both lower- and higher-risk projects in proportions that are consistent with the business objectives [13]. Fine-Tuning Plans to Reduce Risk: Risk analysis uncovers weaknesses in a project plan and triggers changes, new activities, and resource shifts that improve the project. Risk analysis at the project level may also reveal needed shifts in overall project structure or basic assumptions [14]. Establishing Management Reserve: Risk analysis demonstrates the uncertainty of project outcomes and is useful in setting reserves for schedule and/or resources. Risky projects really require a window of time (or budget), instead of a single-point objective. While the project targets can be based on expectations (the most likely versions of the analysis), project commitments should be established with less aggressive goals, reflecting overall project risk. The target and committed objectives set a range for acceptable project results and provide visible recognition of project risk [18]. Project Communication and Control: Project communication is more effective when there is a solid, credible plan. Risk assessments also build awareness of project exposures for the project team, showing how painful the problems might be and when and where they might occur. This causes people to work in ways that avoid project difficulties. Risk data can also be very useful in negotiations with project sponsors. Using information about the likelihood and consequences of potential problems gives project teams more influence in defining objectives, determining budgets, obtaining staff, setting deadlines, and negotiating project changes [18]. Risk Assessment Risk Control There are two stages in the process of Project Risk Management, Risk Assessment and Risk Control. Risk Assessment can take place at any time during the project, though the sooner the better. However, Risk Control cannot be effective without a previous Risk Assessment. Similarly, most people tend to think that having performed a Risk Assessment, they have done all that is needed. Far too many projects spend a great deal of effort on Risk Assessment and then ignore Risk control completely [19]. Risk Assessment has three elements: Identify Uncertainties In this element, the entire project plans are explored, with special focus on areas of uncertainty [20]. Analyse Risks In this element, the requirement is to specify how the areas of uncertainty will have an impact on the performance of the project, either in duration, cost or meeting the users requirements [20]. Prioritise Risks At this stage the requirement is to establish which of the Risks identified should be eliminated completely [20]. This step is only is carried out due to the potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention [20]. In the same way, Risk Control has three elements, as follows: Mitigate Risks According to Mobey et al (2002), risk mitigation would include taking the necessary actions that are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan [20]. Plan for Emergencies For all those Risks which are deemed to be significant, have an emergency plan in place before it happens [19]. Measure and Control This involves tracking the effects of the risks identified and managing them to a successful conclusion [19]. Different strategies There are different strategies and methods that have different approaches toward risk management. JISC (Joint Information Systems Management) says that the focus for risk management should be on risks related to the particular project, not project management in general (http://www.jisc.ac.uk/proj_manguide15.html). The overall goal according to Kendrick (2003) for risk management in a single project is to establish a credible plan consistent with business objectives and then to minimise the range of possible outcomes. That is why risk management in a project is about identifying potential risks, analyse the ones that have the greatest likelihood of occurring, grade their different levels of impact on the project and define a plan of how to avoid the risk and if it occurs how to reduce its impact (Heldman, 2005). Smith Merrit (2001) sees risk strategy as a five step process. Figure 3 shows the flow through the five-step process and lists deliverables from each step: Step 1: Identify risks that you could encounter across all facets of the project [28]. Step 2: Analyse these risks to determine what is driving them, how great their impact might be, and how likely they are [28]. Step 3: Prioritise and map the risks so that you can choose those most important to resolve [28]. Step 4: Plan how you will take action against the risks on this short list [28]. Step 5: On a regular basis, monitor progress on your action plans, terminate action plans for risks that have been adequately resolved, and look for new risks [28]. Frosdick (1997) also mentioned Strutt‘s, definition of the concept of risk analysis that is a seven stage process. Systematic assessment (item by item question every part of the system) [13]. Identification of risks [13]. Assessment of risks (frequencies and consequences) [13]. Establish acceptable/tolerable levels of risk [13]. Evaluate the risks. Are they acceptable? Can they be reduced and at what cost? Determine whether the risks are as low as reasonably practicable [13]. Determine risk reduction measures where appropriate [13]. Risk Assessment Evaluation There are many ways and different techniques to evaluate what the risks are, what the effect they have on the project and what measures can be put in if the risks should occur [19]. Risk assessment is by most people divided into two areas, Quantitative Risk Analysis and Qualitative Risk Analysis. Quantitative In its most basic form the formula for risk quantification is: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢Rate of occurrenceà ¢Ã¢â€š ¬Ã¢â‚¬â€œ multiplied by the à ¢Ã¢â€š ¬Ã¢â‚¬ ¢impact of the eventà ¢Ã¢â€š ¬Ã¢â‚¬â€œ = risk. Methods based on this method are often called à ¢Ã¢â€š ¬Ã¢â‚¬ ¢expected value analysisà ¢Ã¢â€š ¬Ã¢â‚¬â€œ and include models like Annualized Loss Expectancy (ALM), the Courtney formula, the Livermore Risk Analysis Methodology (LRAM) and Stochastic Dominance (Snyder, Rainer Jr., Carr 1991). The advantages of Quantitative Risk Analysis methodologies are that they are good at identifying the most critical areas that, if something happens, will have the largest impact on the project. There are also disadvantages to Quantitative Risk Analysis. When one measures the probability of damage to the project the quantitative approach tends to average the events leading up to a problem (Snyder, Rainer Jr, Carr 1991). Qualitative Qualitative methods attempts to express risks in terms of descriptive variables rather than an economic impact. These approaches are based on the assumption that certain threat or loss of data cannot be appropriately expressed in terms of dollars or pounds and that precise information is impossible to obtain. These methodologies include Scenario Analysis/Planning, Fuzzy Metrics and questionnaires (Snyder, Rainer Jr., Carr 1991). The advantages of Qualitative Risk Analysis methodologies are that they save time, effort and expense over quantitative methods. This is because assets do not need exact values in dollars or pounds nor do threats need to have exact probabilities. It is also a valuable methodology in identifying significant weaknesses in a risk management portfolio. There are disadvantages with this method as well. Qualitative Risk Analysis is inexact, the variables used (e.g. low, medium and high) must be understood by all parties involved (Snyder, Rainer Jr., Carr 1991). Risks Reduction Once risks have been identified and evaluated they have to be responded to in some way. Wideman (1992) lists seven basic responses on identified risks: Recognised but no action taken (absorbed as a matter of policy) Avoided (by taking appropriate steps) Reduced (by an alternative approach) Shared (with others, e.g., by joint venture) Transferred (to others through contract or insurance) Retained and absorbed (by prudent allowances) Handled by a combination of the above Dorfman (1997) says that all techniques to manage the risk fall into one or more of these four major categories (remembered as the 4 Ts): Tolerate (aka Retention) Treat (aka Mitigation) Terminate (aka Elimination) Transfer (aka Buying Insurance) Bliss (2005) listed these five types of similar risk responses as Dorfman and Wideman. Risk avoidance: Also known as risk removal or risk prevention, risk avoidance involves altering the original plans for the project so that particularly risky elements are removed. It could include deciding not to perform an activity that carries a high risk. Adopting such avoidance techniques may seem an obvious way to deal with all risks. However, often the areas of the project that involve high risks are also the areas of the project that potentially contain the highest worth or the best value for money. Avoiding such risks may also result in removing potentially the best bits of a resource, and an alternative strategy that retains these risks may be more appropriate [13]. Risk reduction: Risk reduction or risk mitigation involves the employment of methods that reduce the probability of a risk occurring, or reducing the severity of the impact of a risk on the outcome of the project. The loss of highly skilled staff is a considerable risk in any project and not one that can be totally avoided. Suitable risk mitigation could involve the enforcement of a notice period, comprehensive documentation allowing for replacement staff to continue with the job at hand and adequate management oversight and the use of staff development programmes to encourage staff to stay [20]. Risk transfer: Risk transfer moves the ownership of the risk to a third party normally by contract. This also moves the impact of the risk away from the project itself to this third party [20]. Risk deferral: The impact a risk can have on a project is not constant throughout the life of a project. Risk deferral entails deferring aspects of the project to a date when a risk is less likely to happen. For example managing the expectations users have about the content and delivery of a resource can be time-consuming, one way to reduce this risk is by not making a web resource available until user testing is complete [20]. Risk retention: Whilst a certain number of the risks to the project originally identified can be removed by changing the project plan or dealt with by transferring the responsibility of the risk to third parties inevitably certain risks have to be accepted as a necessary part of the project. All risks that have not been avoided or transferred are retained or accepted risks by default [20]. Previous Successful Project: St Pancras International Rail Station According to XXXXXX, before St Pancras International rail station was opened; a number of days were devoted to testing all the systems and processes, using an army of thousands of volunteer passengers. These tests were carried out much before the opening day, thus providing enough time to resolve issues that might have occurred during testing [26]. By carrying out the testing in phases much long before the opening, members of staff were able to familiarize themselves with the systems and get actual hands-on experience before the station was opened to Eurostar traffic. Dry-runs were carried out as well with the vital lessons were learnt and adjustments made before exposing paying customers to the St Pancras experience. Inevitably the result was that on the opening day, everything went without glitches on the first day of international service [26]. Previous Failed Project: Denver International Airport The Denver International Airport was scheduled to open on October 31, 1993 with all three of its concourses fully running on the BAE automated baggage handling system that. On February 28, 1995, the new airport finally opened. Its opening came sixteen months late. The automated baggage system was supposed to improve baggage handling by using a computer tracking system to direct baggage contained in unmanned carts that run on a track. BAE systems presented the City of Denver with a proposal to develop â€Å"the most complex and automated [and integrated] baggage system ever built. Original target opening date for the airport was (delayed seven times over the next three months). City of Denver invited reporters to observe the first test of the baggage system without notifying BAE. This was a public disaster! Reporters saw piles of disgorged clothes and other personal items lying beneath the Telecars tracks. Lots of mechanical and software problems plagued the automated baggage handling system. When the system was tested, bags were misloaded, sent to different routes, and fell out of automated telecarts, thus causing the system to jam. The automated baggage system still continued to unload bags even though they were jammed on the conveyor belt, because the photo eye at this location could not detect the pile of bags on the belt and hence could not signal the system to stop. Main Lessons One of the lessons BA and BAA might have been learnt from the Denver project, was that BAE actually built a prototype of the automated baggage handling system in a 50,000 sq. ft. warehouse near its manufacturing plant in Texas. But as similar to the T5 project, there was no evidence of adequate training and the results from simulation testing has been proven to be different to a real world scenario with real customers. I addition, research also shows that BAE had given an initial estimate of at least a year to test the system and get the system up and running, but United airlines and the other stakeholders pressed for a much shorter timeframe. City of Denver got the same story from technical advisers to the Franz Joseph Strauss airport in Munich (that less complicated system had taken 2 years testing and was running 24 hours a day for 6 months before the airport opened. Risks recognised early in the Project Very large scale of the project. Enormous complexity. Newness of the technology. Large number of entities to be served by the system. The high degree of technical and project definition uncertainty. Risk Identification PMBOK (PMBOK Guide, 2004) lists five tools and techniques for risk identific

Managerial Role in HR Strategy Development

Managerial Role in HR Strategy Development Executive Summary I am pleased to present this report as part of my academic module of Human Resource Planning. The word Change is now a constant term that takes place in every in every part of organisation. Time has brought a huge change with broader invention, new techniques of implication and human feelings and willingness. The Human Resource Management (HRM) has been well diversified and enriched with information resources, development of technology and globally acceptable policies. So we need to find approaches to managerial involvement in developing efficient HR Planning and Management. In this report I tried to critically evaluate Managerial role in HR strategy development and practices including barriers preventing Line Managers(LMs) from getting involved in HR Planning and Management (HRPM), Measures to overcome the barriers, Risk of involving LMs in HRPM to extensive extent and easiness resulted by the development and uses of Technology in involving LMs in HR practices. I specially want to thank RDI for designing such a pragmatic course with great contents including models outline and techniques in such a way that inspired and helped me a lot to prepare this report. Introduction: Planning Human Resource is a critical aspect within overall organizational framework. Time has brought a great extent of change in policies, theories, techniques, HR equipment and in planning and practices if Human Resources to achieve enterprise goals through establishing wide range of successful management and designing efficient HR strategy. Critical evaluation of the role of senior managers in developing an organizations overall Human Resource Strategy: Senior managers play a pivotal role in developing an organizations overall Human Resource (HR) strategy. Before starting the development of Human Resource (HR) Strategy, the managers need to realize Human Resource Management (HRM) activities and their integration to each other and the HR cycle as because of the strategy is designed to perform those activities efficiently to achieve a set of predetermined objectives. HRM activities and HR cycle are shown in the following diagram with their relationship to each other. HRM Activities Figure: Human Resource Management Activities Human Resource Cycle In developing overall Human Resource strategy in an organization there are three steps: Human resource planning in an organisation: To establish effective human resource strategy in an organization the senior managers need to plan Human Resource, which must be consistently aligned with the organizational framework. Investigation and analysis The managers need to investigate and analyze current situation and of internal and external trends of the organization as the first step of planning HR. The managers should mainly focus on the following key issues: Identify which works need to be done Selecting the approach of performing those works effectively and efficiently to achieve the organizations objectives Identify the skills and experience the organization will need Identify the internal and external factors affect the supply and quality of labor, the demand for labor, and the likely people gap Forecasting Senior managers need to forecast beforehand to develop HR strategy where they will: Predict the likely demand for labor Predict the likely level of labor supply Considering both those levels in relation to the numbers of staff and also to the skills and experience that are needed. Based on those predictions, organizations can assess whether the required numbers of people, with the relevant competencies, are likely to be available. If not, then the organization must carefully identify where the skill gaps are likely to occur and decide what it is going to do about those. Planning and Resourcing The Human Resource Strategy Cycle in an organization: Senior managers need to start-up with human resource cycle as depicted by the Michigan Schools matching model of four generic process can be graphically presented by Harvard framework as shown below: Figure: The Harvard Framework The senior managers needs to plan the four generic process of Human Resource cycle in organization where. The components of this process are: Selection: matching people to jobs Appraisal of performance Rewards: emphasizing the real importance of pay and other forms of immediate and long-term compensation in achieving results Development of skilled individuals According to the Harvard Framework the senior managers must develop two aspects of strategic vision. Employees must be involved in and developed by the organization; and HRM policies must be developed to achieve those goals. The approach of senior managers emphasizes the importance of two elements as: Line managers in ensuring that competitive strategy and HR policies are aligned HR managers in setting policies that fit well with the organizations overall aims. The key components of Harvard Framework are shown below: Figure: The Harvard Framework In the first instance, senior managers will carefully identify the fundamental issues, which are important to develop an organizations Human Resource Strategy. These may involve: Workforce plan Skills plan Equity plan Economic plan Motivation and fairness planning Pay levels design, retaining and motivating employees Planning employment issues, which impact, on staff recruitment, retention, motivation etc. Designing a framework of performance management issues Planning career strategy An efficiently designed HR strategy will make it substantially easier for the organization to achieve its goals. Thus the senior managers must have to be cautious about the impact of HR strategy on greater environment of overall organization. A strategic human resource planning model There is no single approach to developing a Human Resources Strategy. The specific approach will vary from one organization to another. Even so, an excellent approach towards an HR Strategic Management System is evident in the model presented below. This approach identifies six specific steps for senior managers in developing HR Strategy: Planning Steps: 1. Setting the strategic direction 2. Designing the Human Resource Management System 3. Planning the total workforce Execution Steps: 4. Generating the required human resources 5. Investing in human resource development and performance 6. Assessing and sustaining organizational competence and performance Figure: Strategic HR model Analysis: Implementation and control Using the process model discussed earlier, the managers need to design specific components of the HR Strategic Plan as described below. Setting the strategic direction Through this process managers focus on aligning human resource policies to support the accomplishment of the Companys mission, vision, goals and strategies. In this regards the following actions are recommended for the senior managers: Perform external scanning evaluating its impact on the organizational objective Identify organizational vision, goal, mission, objective and principles for guidance Identify strategies Designing the Human Resource Management System In this stage managers focus on the selection, design and alignment of HRM plans, policies and practices. Managers will particularly need HRM policies and practices to support strategic organizational objectives. For the managers a good approach in developing appropriate HR strategy is to identify the appropriate HRM practices which support the organizations strategic intent as it relates to recruitment, training, career planning and reward management. In this regards senior managers are recommended to: Identify appropriate human resource plans, policies and practices needed to support organizational objectives Identify relevant human resource best practices Conduct an employment systems review Planning the total workforce Managers need to determine future business requirements, especially those relating to manpower requirements, represents one of the most challenging tasks facing HR managers. The development of a workforce plan is a critical step for managers.Workforce planning is a systematic process of identifying the workforce competencies required to meet the companys strategic goals and for developing the strategies to meet these requirements. It is a methodical process that provides managers with a framework for making human resource decisions based on the organizations mission, strategic plan, budgetary resources, and a set of desired workforce competencies. In this regards senior managers are recommended to do the folloeing: Determining appropriate structure to support objectives Designing key activities Developing workforce planning Compiling a workforce framework and identify designated groups and current competencies for workforce Generating the required human resources In this process senior managers focus on recruit and hire of people, classify them, train them and assign employees on the basis of strategic plan. It requires a comprehensive workplace skills planning which will identify appropriate training priorities based on the organizational requirements within the context of present and future. In this regards senior managers are recommended to do the followings: Evaluating recruitment practices and selection procedure in respect of strategic objectives Developing and implementing comprehensive workplace skills planning thorough training necessity analysis Implementing leadership strategy Adopting occupational techniques and categorizing the group classification Investing in HR Development and Performance Through development responses managers will aim to increase business skills, the application of business skills and the behavioral elements to an organizations effective performance. In many ways, the Skills Development legislation has required managers to re-engineer their developmental methods and practices. Through reward strategies managers aim to align the performance of the organization with the way it rewards its people, providing the necessary incentives and motivation to staff. Its components can be a combination of base pay, bonuses, profit sharing, share options, and a range of appropriate benefits, usually based on market or competitor norms and the organizations ability to pay. In this regards senior managers are recommended to do the following: Determine the appropriate policies, procedures and practices in respect of Designing career path Initiating performance appraisals through relevant analysis Framework of employee development and training Planning reward management Designing promotional activities and classifying job assignment with prudent assignment planning Assessing and sustaining organizational competence and performance Finally, few managers effectively measure how well their different inputs affect performance. In particular, no measures may be in place for quantifying the contribution people make to organizational outcomes or, more important, for estimating how changes in policies and practices, systems, or processes will affect that contribution. In this regards senior managers are recommended to: Evaluating organizational culture Implementing succession plan Evaluating strategy for human resource through quantitative measures Revising and adapting Human Resource strategies Making the HR Strategy integral to the organization The senior managers also should make sure that the strategies of Human Resource are integrated with overall organizational goals. To achieve these goals, the senior managers should: Discuss with all stakeholders about the nature of the strategies; Focus on benefits derived from the strategies; Ensuring real commitment to the strategies at the all levels of organization; Giving feedback on the implementation of the plan; They should involve HR strategy as part of induction process. The barriers which may prevent line-managers becoming more involved in HR Planning Management and Measures can be take to overcome them: HR hierarchy shows LMs are key persons to run the organization where all other department and their activities and success depend upon responses and performance of LMs. So LMs are prevented by many seasons and amongst the two principal barriers to most line managers supporting the HRPM are: Heavy workloads Line Managers (LMs) are always assigned with extensive workload to keep operation department running to achieve predetermined targets. In a study shown that 96% Line Managers agreed that Heavy workload keep them always busy to concentrate somewhere else. As a result, LMs heavy workload prevents LMs from taking part in HRPM as a principal barrier. Short-term job pressures 87% LMs agreed that Time constrain in respect of short-term job pressure as second principal barrier which prevent them from involving with HRPM. To overcome these barriers proper utilization of technology to minimize the workload or increase the number of Line Managers to share short-term job pressures so that there is enough people to take over while another is working in HR. Other barriers to line manager are: Human Resource Planning and Management (HRPM) is a difficult process Line Managers (LM) are designated and assigned for operational activities and performance appraisal through practices of already designed and managed activities HR activities. HR planning and Management is a technical approach where HR manager is specialized with the knowledge and skills to perform the HRP and HRM activities. But the line managers may not have this skills and knowledge. So they most of the times are reluctant to be involved with the process. In this regard, senior managers should design the roles and responsibilities of a line manager very carefully where there are scopes of being involved with HRP and HRM. As a mandatory process top managers may include special training session to enrich them with HR ideologies and management practices so that the line managers without HR background may learn about the technical approaches involved in the HRP and HRM. Lack of desire The fact that LMs are not always sufficiently willing to take on HR responsibilities or that their motivation to do so is lacking highlights a lack of personal incentives for using HR practices. So lack of desire for any reason including lack of incentives, workload, time constraint is one of the barriers that prevent them to be involved with HRP and HRM. Institutional incentives can persuade LMs to give HR activities serious consideration. So adapting such a business policy where line managers are motivated enough to prioritise HR roles or by making HR responsibilities an integral part of LMs own performance appraisals, their job descriptions may improve their attitude towards being invloved with HRP/HRM. Lack of capacity LMs need time to learn and implement HRP/M successfully. Because HR tasks are generally devolved to LMs without reducing their other duties lack of their capacity to deal with challenges involved in HRP/M. This implies, lack of capacity is another constrain hindering Line Managers taking part in HRP/M. The design of line managers responsibilities should apply variability approach where there should be enough room for them to act with HRP/M. they are usually given a short-term target to be achieved and their time is appropriately aligned with other responsibilities. So there should be alternative choices for them to be involved e.g. if a line manager is getting involved with HR practices, their other jobs are shared with other managers i.e. compromise with their workload or extra facilities may attract them to get involved with HRP/M. Lack of competencies There is a need for HR-related competencies for successful HRP/M implementation. LMs lack specialist knowledge and skills in terms of labor law, HR strategy, HR technology etc. So this lacking may prevent them from getting involved with HRP/M. Through a comprehensive training program this barrier can be overcome. There are specific legal requirements and practices and it is evident that many organizations arrange HR training program for Line Managers. Lack of support There is a need for support from HR managers for successful HRP/M implementation. If HR specialists are unable or unwilling to provide clear and proactive support, LMs will lack sufficient HR skills (Gennard/Kelly 1997; Renwick 2000) and proper encouragement to plan and manage the workforce effectively. So this barrier may also prevent the line managers to take part at HR activities. In these circumstances, senior managers have make sure that the HR managers properly cooperate with Line managers. Senior managers can design a certain set of alternatives that the line managers may follow including IT enabled automatic systems in case of HR managers limitations including inability, unavailability or unwillingness where they will be appreciated instead of being criticized. Lack of policy and procedures There is a need for a clear overall HR policy and accompanying procedures to coordinate which practices LMs should use and the way they should take part in HRP/M. This may prevent line managers to take part in HRP/M. In this case senior managers can consult with LMs about the devolution of their responsibilities and design an agreed set of terms and condition for line mangers which will specify their roles and mechanisms they will be willing to be involved in the process of HRP/M. Role and opinion conflict The conflict of roles, responsibilities and opinion may hinder LMs to get involved with HRP/M. Because In this case taking part in the HRP/M by a line manager is monitored and authorised by HR Manager. In this case, senior managers need to improve information sharing between the managers and top-level management may involve to assure and recognize LMs involvement. Rapid Change Rapid change business policy, economic environment and technology also may prevent the Line Managers from getting involved in HRP/M. Because the changes have impact on HR planning and Management practices. Arranging the frequent employee forum discussion or meeting about the changes so that there should not be any ambiguity or conflict about the changes took place in HR practices due to the above changes. The legal framework There are some legal bindings in HR practices which may de-motivate LMs to take part in HRP/M. This may arise from labour and mercantile law relating to nature of business, demographic issues and managerial roles. This is the fact of limitation of knowledge where only the way to overcome this is arranging proper training sessions for LMs about the implications and consequences. In addition to above measures to overcome those barriers, the following steps are recommended to get line managers involved in HRPM: Employment security Pfeffer considers that this is the essential HR outcome. People cannot be expected to offer their ideas, commitment and hard work unless they have job security. Realising that job security for life is not a realistic aim, Pfeffer goes on to describe the benefits of offering internal job transfers rather than sacking people during a period of organisational change. Extensive training, learning and development The aim is to encourage learning that benefits both the individual and the organisation. There are thus implications for the amount of training provided, the types of training, and the ways in which that training facilitates wider employee development. Employee involvement and information sharing By openly sharing information on performance, financial matters, and so on, organisations may show that they trust their employees and may also encourage them to focus on ways of improving future performance. Many modern approaches to teamworking encourage open discussion of current practice and planning ways of creating improvement. This discussion and planning can only be effective if people have the relevant information. Pay and performance-related rewards There are two key issues relating to rewards. First, high-level employees can be retained by giving higher-than-average rewards. Second, rewards should reflect different levels of contribution particularly successful individuals, teams or departments should be rewarded for their efforts. Harmonization Again based on Japanese production companies, some organisations have tried to make their workplaces more egalitarian, for example through the use of uniforms, shared canteens, harmonisation of working conditions e.g. paid holidays, extensions to share ownership and so on. Risks inherent in line-managers becoming more involved in HRPM An extensive body of literature suggests that giving a major role and influence to LMs in HRM can be problematic (Kirkpatrick et al. 1992; McGovern et al. 1997; Renwick 2003; Maxwell and Watson 2006), and even counter-productive (Thornhill and Saunders 1998). Reservations against assigning strong power to Line managers (LMs) in HRPM challenge their capacity to take on new roles parallel to their current workload, as well as their motivation to care about employees. Moreover, a well-known criticism concerns the gap between what is said and what is practiced. Some researchers even suspect that the trend towards greater delegation of responsibilities to LMs often derives from companies desires to cut structural costs as well as to companies desires to free themselves from some responsibilities. Indeed, due to contradictions that are found in HR practices some responsibilities regarding HRPM are difficult to assume. In this perspective, it is negatively reflected that the companys will is to disengage from specialized services rather than a true redefinition of roles. Thus, the claim that if HRPM is to be taken seriously, personnel managers must give it away can be misleading. As implementing ambitious HR practices is likely to be easier for qualified HR specialists than for LMs, the role of the former is too critical to be given away too quickly. LMs need well designed HR practices to use in their management activities. It is up to HRM specialists to put in place systems that create a favourable climate and enable employees and managers to know what is expected from them. The role of the HR specialists is all the more significant than that of the HR function should be viewed as a critical resource for the company: for example, the expertise necessary for the identification and use of accurate work systems can be thought of as a competitive advantage. In other words, we believe that HR specialists still have a major role to play. This role may be displayed in different ways according to organizational culture. In this context tested hypotheses is that the organizational performance is weak for companies in which decisions regarding major HRPM policies are influence more by LMs than by HR specialists. Line managers are assigned with a critical set operational responsibilities which involves day to day operation with a short-term target. Achieving this short-term target is a basis of overall organisational goals. So if line managers get involved more in HR practices, there is a risk of overall failure to achieve organisational goal due to negative impact on operational success. Despite the positive impact may resulted from Line managers involvement in HRPM, recent research has shown that delegating HRPM responsibility carries a number of challenges and risks of line management involvement in HRPM and there are certain complications. Research provides mixed results about the implications of devolution and the competence of line managers in HRPM work more generally. It has been confirmed that workloads of line managers may marginalize their efforts in developing employees and they may not be able to pay sufficient attention to employee development. Performance criteria and reward systems are more likely to consider business results, than a longer term people development role. The responsibility for HRPM is not very often included among line managers performance objectives. Also, it might be difficult for line managers to play two opposing roles of assessor and coach. Moreover, line managers are not specialists in HR practices and may lack confidence, knowledge and organizational support to assume the responsibility for HRPM. Senior managers must be highly supportive in HRPM role of line managers and an incentive system should be developed to motivate them. Furthermore, acting as a HRPM facilitator demands a coaching management style, as opposed to a directive management style. Lack of coaching skills and insufficient line management motivation for this role is reinforced by findings that the least popular HRPM delivery mechanisms include coaching and mentoring. This may be due to the large commitment of time and resources needed. In respect of Employment law the work of Human Resource functions is increasingly controlled by the requirements of the law. There is an extensive risk of avoiding laws that relate to employment, for example laws on health and safety, on diversity and equality, on employment rights, on rights to strike and so on. The state and the law perform three primary roles in relation to employment as: A restrictive role The state provides a set of rules which limit is what is, and is not, allowed in industrial relations. For example the state defines in what situation workers can go on strike and also defines what management can and cannot do in those situations. A regulatory role This defines the basic rights of all workers. This began with rights for relatively safe working for those employed in mines but has expanded to cover everyone in the workplace. It now also covers many aspects of employment, for example legislation on unfair dismissal means that organisations have to keep careful records on performance, disciplinary procedures and grievances. An auxiliary role Many government bodies give advice, for example on health and safety or equal opportunities, that goes beyond the strict statement of the law. As a result of above employment law being involved in HRPM, excessive involvement of Line manager may result to several conflicts as described below. Conflict with line managers The focus of many line managers will be towards achieving their own, and their teams, targets. This may lead to the manager ignoring guidelines and legislation on working hours, bullying, safety and other issues. Those working in an HR role need to focus on the long-term needs of the organisation: good employee/management relations; working within the legislation, and so on. These long-term needs are of greater importance than achieving a teams short-term targets. Employment and conflicting priorities Managers have a primary aim of adding value to their organisation. By LMs short-term benefit may be gained by sacking employees during periods of low activity. In the long term, however, this is likely to adversely affect staff morale and will also incur costs when new recruits must be found in the future. Freedom and control Conflict may occur between managers wishes to exert freedom in how they run their teams and the strategic need of organisations to exert control and work for at least some degree of consistency. As an example think of policies towards overtime. Line managers may want freedom to use overtime as they think suitable resulting inter-team conflict or problems when employees move between teams. Disputes and grievances The ambiguous nature of HR work is perhaps most clear when disputes occur between employees and management. This may involve a grievance by an individual Line Manager (LM); it may involve a major dispute such as a strike. Technological developments assist the process of facilitating greater line-manager involvement in HRPM Technology Technology refers to the information, equipment, techniques processes required to transform inputs into outputs. It is considered as the basic factor in the process of development. The use of technology lead to increase in the productivity of labor, capital others factors of organization. Role of Technology Increasing the productivity of the workers Utilization of the resources Higher level of output per worker. Creation of the employment More profit for the organization Cost minimization When Human Resource Management (HRM) involves Information Technology (IT) then it is called HRM Information Systems (HRMIS) or in short HRIS. In this modern period of time technology is widely used in HR practices even in developing HR strategy and in their implementation. HRIS is an organized approach for obtaining relevant and timely data, analyze and disseminate data and use them in HR practice and management. We now have the technology to allow us to reduce HR administration and to provide improved levels of service to our internal customers. Through HRIS the managers are able to access up-to-date, accurate, concise, relevant and complete information. Because of HR technology HR roles and practices are changing as shown below: The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. The work time gathers standardized time and work related efforts. The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. The HR management module is a component covering many other HR aspects from application to retirement. The training module provides a system for organizations to administer and track employee training and development efforts. The Employee Self-Service module allows employees to query HRPM related data. Thus, development of Technology played a significant role to overcome barriers preventing LMs from getting involved and it contributed positively to minimize the risk of LMs being more involved in HRPM which illustrated below: More efficient and time saving approach Uses of technology save lots of time in the process where Line Managers are involved. The LMs workloads is minimized and there is availability in time to get involved in HRPM. Better Communication Techno Managerial Role in HR Strategy Development Managerial Role in HR Strategy Development Executive Summary I am pleased to present this report as part of my academic module of Human Resource Planning. The word Change is now a constant term that takes place in every in every part of organisation. Time has brought a huge change with broader invention, new techniques of implication and human feelings and willingness. The Human Resource Management (HRM) has been well diversified and enriched with information resources, development of technology and globally acceptable policies. So we need to find approaches to managerial involvement in developing efficient HR Planning and Management. In this report I tried to critically evaluate Managerial role in HR strategy development and practices including barriers preventing Line Managers(LMs) from getting involved in HR Planning and Management (HRPM), Measures to overcome the barriers, Risk of involving LMs in HRPM to extensive extent and easiness resulted by the development and uses of Technology in involving LMs in HR practices. I specially want to thank RDI for designing such a pragmatic course with great contents including models outline and techniques in such a way that inspired and helped me a lot to prepare this report. Introduction: Planning Human Resource is a critical aspect within overall organizational framework. Time has brought a great extent of change in policies, theories, techniques, HR equipment and in planning and practices if Human Resources to achieve enterprise goals through establishing wide range of successful management and designing efficient HR strategy. Critical evaluation of the role of senior managers in developing an organizations overall Human Resource Strategy: Senior managers play a pivotal role in developing an organizations overall Human Resource (HR) strategy. Before starting the development of Human Resource (HR) Strategy, the managers need to realize Human Resource Management (HRM) activities and their integration to each other and the HR cycle as because of the strategy is designed to perform those activities efficiently to achieve a set of predetermined objectives. HRM activities and HR cycle are shown in the following diagram with their relationship to each other. HRM Activities Figure: Human Resource Management Activities Human Resource Cycle In developing overall Human Resource strategy in an organization there are three steps: Human resource planning in an organisation: To establish effective human resource strategy in an organization the senior managers need to plan Human Resource, which must be consistently aligned with the organizational framework. Investigation and analysis The managers need to investigate and analyze current situation and of internal and external trends of the organization as the first step of planning HR. The managers should mainly focus on the following key issues: Identify which works need to be done Selecting the approach of performing those works effectively and efficiently to achieve the organizations objectives Identify the skills and experience the organization will need Identify the internal and external factors affect the supply and quality of labor, the demand for labor, and the likely people gap Forecasting Senior managers need to forecast beforehand to develop HR strategy where they will: Predict the likely demand for labor Predict the likely level of labor supply Considering both those levels in relation to the numbers of staff and also to the skills and experience that are needed. Based on those predictions, organizations can assess whether the required numbers of people, with the relevant competencies, are likely to be available. If not, then the organization must carefully identify where the skill gaps are likely to occur and decide what it is going to do about those. Planning and Resourcing The Human Resource Strategy Cycle in an organization: Senior managers need to start-up with human resource cycle as depicted by the Michigan Schools matching model of four generic process can be graphically presented by Harvard framework as shown below: Figure: The Harvard Framework The senior managers needs to plan the four generic process of Human Resource cycle in organization where. The components of this process are: Selection: matching people to jobs Appraisal of performance Rewards: emphasizing the real importance of pay and other forms of immediate and long-term compensation in achieving results Development of skilled individuals According to the Harvard Framework the senior managers must develop two aspects of strategic vision. Employees must be involved in and developed by the organization; and HRM policies must be developed to achieve those goals. The approach of senior managers emphasizes the importance of two elements as: Line managers in ensuring that competitive strategy and HR policies are aligned HR managers in setting policies that fit well with the organizations overall aims. The key components of Harvard Framework are shown below: Figure: The Harvard Framework In the first instance, senior managers will carefully identify the fundamental issues, which are important to develop an organizations Human Resource Strategy. These may involve: Workforce plan Skills plan Equity plan Economic plan Motivation and fairness planning Pay levels design, retaining and motivating employees Planning employment issues, which impact, on staff recruitment, retention, motivation etc. Designing a framework of performance management issues Planning career strategy An efficiently designed HR strategy will make it substantially easier for the organization to achieve its goals. Thus the senior managers must have to be cautious about the impact of HR strategy on greater environment of overall organization. A strategic human resource planning model There is no single approach to developing a Human Resources Strategy. The specific approach will vary from one organization to another. Even so, an excellent approach towards an HR Strategic Management System is evident in the model presented below. This approach identifies six specific steps for senior managers in developing HR Strategy: Planning Steps: 1. Setting the strategic direction 2. Designing the Human Resource Management System 3. Planning the total workforce Execution Steps: 4. Generating the required human resources 5. Investing in human resource development and performance 6. Assessing and sustaining organizational competence and performance Figure: Strategic HR model Analysis: Implementation and control Using the process model discussed earlier, the managers need to design specific components of the HR Strategic Plan as described below. Setting the strategic direction Through this process managers focus on aligning human resource policies to support the accomplishment of the Companys mission, vision, goals and strategies. In this regards the following actions are recommended for the senior managers: Perform external scanning evaluating its impact on the organizational objective Identify organizational vision, goal, mission, objective and principles for guidance Identify strategies Designing the Human Resource Management System In this stage managers focus on the selection, design and alignment of HRM plans, policies and practices. Managers will particularly need HRM policies and practices to support strategic organizational objectives. For the managers a good approach in developing appropriate HR strategy is to identify the appropriate HRM practices which support the organizations strategic intent as it relates to recruitment, training, career planning and reward management. In this regards senior managers are recommended to: Identify appropriate human resource plans, policies and practices needed to support organizational objectives Identify relevant human resource best practices Conduct an employment systems review Planning the total workforce Managers need to determine future business requirements, especially those relating to manpower requirements, represents one of the most challenging tasks facing HR managers. The development of a workforce plan is a critical step for managers.Workforce planning is a systematic process of identifying the workforce competencies required to meet the companys strategic goals and for developing the strategies to meet these requirements. It is a methodical process that provides managers with a framework for making human resource decisions based on the organizations mission, strategic plan, budgetary resources, and a set of desired workforce competencies. In this regards senior managers are recommended to do the folloeing: Determining appropriate structure to support objectives Designing key activities Developing workforce planning Compiling a workforce framework and identify designated groups and current competencies for workforce Generating the required human resources In this process senior managers focus on recruit and hire of people, classify them, train them and assign employees on the basis of strategic plan. It requires a comprehensive workplace skills planning which will identify appropriate training priorities based on the organizational requirements within the context of present and future. In this regards senior managers are recommended to do the followings: Evaluating recruitment practices and selection procedure in respect of strategic objectives Developing and implementing comprehensive workplace skills planning thorough training necessity analysis Implementing leadership strategy Adopting occupational techniques and categorizing the group classification Investing in HR Development and Performance Through development responses managers will aim to increase business skills, the application of business skills and the behavioral elements to an organizations effective performance. In many ways, the Skills Development legislation has required managers to re-engineer their developmental methods and practices. Through reward strategies managers aim to align the performance of the organization with the way it rewards its people, providing the necessary incentives and motivation to staff. Its components can be a combination of base pay, bonuses, profit sharing, share options, and a range of appropriate benefits, usually based on market or competitor norms and the organizations ability to pay. In this regards senior managers are recommended to do the following: Determine the appropriate policies, procedures and practices in respect of Designing career path Initiating performance appraisals through relevant analysis Framework of employee development and training Planning reward management Designing promotional activities and classifying job assignment with prudent assignment planning Assessing and sustaining organizational competence and performance Finally, few managers effectively measure how well their different inputs affect performance. In particular, no measures may be in place for quantifying the contribution people make to organizational outcomes or, more important, for estimating how changes in policies and practices, systems, or processes will affect that contribution. In this regards senior managers are recommended to: Evaluating organizational culture Implementing succession plan Evaluating strategy for human resource through quantitative measures Revising and adapting Human Resource strategies Making the HR Strategy integral to the organization The senior managers also should make sure that the strategies of Human Resource are integrated with overall organizational goals. To achieve these goals, the senior managers should: Discuss with all stakeholders about the nature of the strategies; Focus on benefits derived from the strategies; Ensuring real commitment to the strategies at the all levels of organization; Giving feedback on the implementation of the plan; They should involve HR strategy as part of induction process. The barriers which may prevent line-managers becoming more involved in HR Planning Management and Measures can be take to overcome them: HR hierarchy shows LMs are key persons to run the organization where all other department and their activities and success depend upon responses and performance of LMs. So LMs are prevented by many seasons and amongst the two principal barriers to most line managers supporting the HRPM are: Heavy workloads Line Managers (LMs) are always assigned with extensive workload to keep operation department running to achieve predetermined targets. In a study shown that 96% Line Managers agreed that Heavy workload keep them always busy to concentrate somewhere else. As a result, LMs heavy workload prevents LMs from taking part in HRPM as a principal barrier. Short-term job pressures 87% LMs agreed that Time constrain in respect of short-term job pressure as second principal barrier which prevent them from involving with HRPM. To overcome these barriers proper utilization of technology to minimize the workload or increase the number of Line Managers to share short-term job pressures so that there is enough people to take over while another is working in HR. Other barriers to line manager are: Human Resource Planning and Management (HRPM) is a difficult process Line Managers (LM) are designated and assigned for operational activities and performance appraisal through practices of already designed and managed activities HR activities. HR planning and Management is a technical approach where HR manager is specialized with the knowledge and skills to perform the HRP and HRM activities. But the line managers may not have this skills and knowledge. So they most of the times are reluctant to be involved with the process. In this regard, senior managers should design the roles and responsibilities of a line manager very carefully where there are scopes of being involved with HRP and HRM. As a mandatory process top managers may include special training session to enrich them with HR ideologies and management practices so that the line managers without HR background may learn about the technical approaches involved in the HRP and HRM. Lack of desire The fact that LMs are not always sufficiently willing to take on HR responsibilities or that their motivation to do so is lacking highlights a lack of personal incentives for using HR practices. So lack of desire for any reason including lack of incentives, workload, time constraint is one of the barriers that prevent them to be involved with HRP and HRM. Institutional incentives can persuade LMs to give HR activities serious consideration. So adapting such a business policy where line managers are motivated enough to prioritise HR roles or by making HR responsibilities an integral part of LMs own performance appraisals, their job descriptions may improve their attitude towards being invloved with HRP/HRM. Lack of capacity LMs need time to learn and implement HRP/M successfully. Because HR tasks are generally devolved to LMs without reducing their other duties lack of their capacity to deal with challenges involved in HRP/M. This implies, lack of capacity is another constrain hindering Line Managers taking part in HRP/M. The design of line managers responsibilities should apply variability approach where there should be enough room for them to act with HRP/M. they are usually given a short-term target to be achieved and their time is appropriately aligned with other responsibilities. So there should be alternative choices for them to be involved e.g. if a line manager is getting involved with HR practices, their other jobs are shared with other managers i.e. compromise with their workload or extra facilities may attract them to get involved with HRP/M. Lack of competencies There is a need for HR-related competencies for successful HRP/M implementation. LMs lack specialist knowledge and skills in terms of labor law, HR strategy, HR technology etc. So this lacking may prevent them from getting involved with HRP/M. Through a comprehensive training program this barrier can be overcome. There are specific legal requirements and practices and it is evident that many organizations arrange HR training program for Line Managers. Lack of support There is a need for support from HR managers for successful HRP/M implementation. If HR specialists are unable or unwilling to provide clear and proactive support, LMs will lack sufficient HR skills (Gennard/Kelly 1997; Renwick 2000) and proper encouragement to plan and manage the workforce effectively. So this barrier may also prevent the line managers to take part at HR activities. In these circumstances, senior managers have make sure that the HR managers properly cooperate with Line managers. Senior managers can design a certain set of alternatives that the line managers may follow including IT enabled automatic systems in case of HR managers limitations including inability, unavailability or unwillingness where they will be appreciated instead of being criticized. Lack of policy and procedures There is a need for a clear overall HR policy and accompanying procedures to coordinate which practices LMs should use and the way they should take part in HRP/M. This may prevent line managers to take part in HRP/M. In this case senior managers can consult with LMs about the devolution of their responsibilities and design an agreed set of terms and condition for line mangers which will specify their roles and mechanisms they will be willing to be involved in the process of HRP/M. Role and opinion conflict The conflict of roles, responsibilities and opinion may hinder LMs to get involved with HRP/M. Because In this case taking part in the HRP/M by a line manager is monitored and authorised by HR Manager. In this case, senior managers need to improve information sharing between the managers and top-level management may involve to assure and recognize LMs involvement. Rapid Change Rapid change business policy, economic environment and technology also may prevent the Line Managers from getting involved in HRP/M. Because the changes have impact on HR planning and Management practices. Arranging the frequent employee forum discussion or meeting about the changes so that there should not be any ambiguity or conflict about the changes took place in HR practices due to the above changes. The legal framework There are some legal bindings in HR practices which may de-motivate LMs to take part in HRP/M. This may arise from labour and mercantile law relating to nature of business, demographic issues and managerial roles. This is the fact of limitation of knowledge where only the way to overcome this is arranging proper training sessions for LMs about the implications and consequences. In addition to above measures to overcome those barriers, the following steps are recommended to get line managers involved in HRPM: Employment security Pfeffer considers that this is the essential HR outcome. People cannot be expected to offer their ideas, commitment and hard work unless they have job security. Realising that job security for life is not a realistic aim, Pfeffer goes on to describe the benefits of offering internal job transfers rather than sacking people during a period of organisational change. Extensive training, learning and development The aim is to encourage learning that benefits both the individual and the organisation. There are thus implications for the amount of training provided, the types of training, and the ways in which that training facilitates wider employee development. Employee involvement and information sharing By openly sharing information on performance, financial matters, and so on, organisations may show that they trust their employees and may also encourage them to focus on ways of improving future performance. Many modern approaches to teamworking encourage open discussion of current practice and planning ways of creating improvement. This discussion and planning can only be effective if people have the relevant information. Pay and performance-related rewards There are two key issues relating to rewards. First, high-level employees can be retained by giving higher-than-average rewards. Second, rewards should reflect different levels of contribution particularly successful individuals, teams or departments should be rewarded for their efforts. Harmonization Again based on Japanese production companies, some organisations have tried to make their workplaces more egalitarian, for example through the use of uniforms, shared canteens, harmonisation of working conditions e.g. paid holidays, extensions to share ownership and so on. Risks inherent in line-managers becoming more involved in HRPM An extensive body of literature suggests that giving a major role and influence to LMs in HRM can be problematic (Kirkpatrick et al. 1992; McGovern et al. 1997; Renwick 2003; Maxwell and Watson 2006), and even counter-productive (Thornhill and Saunders 1998). Reservations against assigning strong power to Line managers (LMs) in HRPM challenge their capacity to take on new roles parallel to their current workload, as well as their motivation to care about employees. Moreover, a well-known criticism concerns the gap between what is said and what is practiced. Some researchers even suspect that the trend towards greater delegation of responsibilities to LMs often derives from companies desires to cut structural costs as well as to companies desires to free themselves from some responsibilities. Indeed, due to contradictions that are found in HR practices some responsibilities regarding HRPM are difficult to assume. In this perspective, it is negatively reflected that the companys will is to disengage from specialized services rather than a true redefinition of roles. Thus, the claim that if HRPM is to be taken seriously, personnel managers must give it away can be misleading. As implementing ambitious HR practices is likely to be easier for qualified HR specialists than for LMs, the role of the former is too critical to be given away too quickly. LMs need well designed HR practices to use in their management activities. It is up to HRM specialists to put in place systems that create a favourable climate and enable employees and managers to know what is expected from them. The role of the HR specialists is all the more significant than that of the HR function should be viewed as a critical resource for the company: for example, the expertise necessary for the identification and use of accurate work systems can be thought of as a competitive advantage. In other words, we believe that HR specialists still have a major role to play. This role may be displayed in different ways according to organizational culture. In this context tested hypotheses is that the organizational performance is weak for companies in which decisions regarding major HRPM policies are influence more by LMs than by HR specialists. Line managers are assigned with a critical set operational responsibilities which involves day to day operation with a short-term target. Achieving this short-term target is a basis of overall organisational goals. So if line managers get involved more in HR practices, there is a risk of overall failure to achieve organisational goal due to negative impact on operational success. Despite the positive impact may resulted from Line managers involvement in HRPM, recent research has shown that delegating HRPM responsibility carries a number of challenges and risks of line management involvement in HRPM and there are certain complications. Research provides mixed results about the implications of devolution and the competence of line managers in HRPM work more generally. It has been confirmed that workloads of line managers may marginalize their efforts in developing employees and they may not be able to pay sufficient attention to employee development. Performance criteria and reward systems are more likely to consider business results, than a longer term people development role. The responsibility for HRPM is not very often included among line managers performance objectives. Also, it might be difficult for line managers to play two opposing roles of assessor and coach. Moreover, line managers are not specialists in HR practices and may lack confidence, knowledge and organizational support to assume the responsibility for HRPM. Senior managers must be highly supportive in HRPM role of line managers and an incentive system should be developed to motivate them. Furthermore, acting as a HRPM facilitator demands a coaching management style, as opposed to a directive management style. Lack of coaching skills and insufficient line management motivation for this role is reinforced by findings that the least popular HRPM delivery mechanisms include coaching and mentoring. This may be due to the large commitment of time and resources needed. In respect of Employment law the work of Human Resource functions is increasingly controlled by the requirements of the law. There is an extensive risk of avoiding laws that relate to employment, for example laws on health and safety, on diversity and equality, on employment rights, on rights to strike and so on. The state and the law perform three primary roles in relation to employment as: A restrictive role The state provides a set of rules which limit is what is, and is not, allowed in industrial relations. For example the state defines in what situation workers can go on strike and also defines what management can and cannot do in those situations. A regulatory role This defines the basic rights of all workers. This began with rights for relatively safe working for those employed in mines but has expanded to cover everyone in the workplace. It now also covers many aspects of employment, for example legislation on unfair dismissal means that organisations have to keep careful records on performance, disciplinary procedures and grievances. An auxiliary role Many government bodies give advice, for example on health and safety or equal opportunities, that goes beyond the strict statement of the law. As a result of above employment law being involved in HRPM, excessive involvement of Line manager may result to several conflicts as described below. Conflict with line managers The focus of many line managers will be towards achieving their own, and their teams, targets. This may lead to the manager ignoring guidelines and legislation on working hours, bullying, safety and other issues. Those working in an HR role need to focus on the long-term needs of the organisation: good employee/management relations; working within the legislation, and so on. These long-term needs are of greater importance than achieving a teams short-term targets. Employment and conflicting priorities Managers have a primary aim of adding value to their organisation. By LMs short-term benefit may be gained by sacking employees during periods of low activity. In the long term, however, this is likely to adversely affect staff morale and will also incur costs when new recruits must be found in the future. Freedom and control Conflict may occur between managers wishes to exert freedom in how they run their teams and the strategic need of organisations to exert control and work for at least some degree of consistency. As an example think of policies towards overtime. Line managers may want freedom to use overtime as they think suitable resulting inter-team conflict or problems when employees move between teams. Disputes and grievances The ambiguous nature of HR work is perhaps most clear when disputes occur between employees and management. This may involve a grievance by an individual Line Manager (LM); it may involve a major dispute such as a strike. Technological developments assist the process of facilitating greater line-manager involvement in HRPM Technology Technology refers to the information, equipment, techniques processes required to transform inputs into outputs. It is considered as the basic factor in the process of development. The use of technology lead to increase in the productivity of labor, capital others factors of organization. Role of Technology Increasing the productivity of the workers Utilization of the resources Higher level of output per worker. Creation of the employment More profit for the organization Cost minimization When Human Resource Management (HRM) involves Information Technology (IT) then it is called HRM Information Systems (HRMIS) or in short HRIS. In this modern period of time technology is widely used in HR practices even in developing HR strategy and in their implementation. HRIS is an organized approach for obtaining relevant and timely data, analyze and disseminate data and use them in HR practice and management. We now have the technology to allow us to reduce HR administration and to provide improved levels of service to our internal customers. Through HRIS the managers are able to access up-to-date, accurate, concise, relevant and complete information. Because of HR technology HR roles and practices are changing as shown below: The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. The work time gathers standardized time and work related efforts. The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. The HR management module is a component covering many other HR aspects from application to retirement. The training module provides a system for organizations to administer and track employee training and development efforts. The Employee Self-Service module allows employees to query HRPM related data. Thus, development of Technology played a significant role to overcome barriers preventing LMs from getting involved and it contributed positively to minimize the risk of LMs being more involved in HRPM which illustrated below: More efficient and time saving approach Uses of technology save lots of time in the process where Line Managers are involved. The LMs workloads is minimized and there is availability in time to get involved in HRPM. Better Communication Techno

Muslims, Jews, and Christians Must Embrace Each Other Essay -- Philoso

Muslims, Jews, and Christians Must Embrace Each Other From the dawn of creation, God has been and will always be the central foundation of life. God created man to worship Him, but throughout the ages men have gone their separate ways to create different ways to worship God. From this separation many different religions have formed. Each distinct religion has various forms of beliefs. Although Islam, Judaism, and Christianity established their roots in God, each religion differs in living out their faith and in their own way discriminates against people with different beliefs from their own. Muslims, along with non-Arabs, practice the religion of Islam. Muslims believe that â€Å"Islam has always been the only acceptable religion in the sight of God† (Squires). Muslims feel as if their religion is the only real religion; â€Å"anyone who submits completely to God and worships Him alone is a Muslimâ€Å" (Squires). Muslims also believe that their religion is one of peace, so they try and convert many people to Islam. One aspect of the Islamic religion deals with salvation. Muslims accept that a person is saved through their works. Some of their works include â€Å"offering prayers five times a day, giving alms, and making a pilgrimage to Mecca at least one in their lifetime† (Best). Muslims hold on to their faith in that if they accomplish these different works, they will be saved and go to heaven. But, by any chance that they live an indifferent life, Muslims can receive an â€Å"automatic ticket to heaven by killing an infidel, someone who will not convert to Islam† (Best). The Islamic religion believes that Almighty God, or Allah, shows grace through saving sinners, and through Allah’s grace a sinner may find his... .... â€Å"Young Goodman Brown.† Making Literature Matter: An Anthology for Readers and Writers. Ed. John Schilb and John Clifford. Boston: Bedford/ St. Martin’s, 2000. 1086-95. Hooks, Dr. Steve. Personal interview. 25 April 2003. Life Application Bible. King James Version. Wheaton, Illinois: Tyndale House Publishers, Inc., 1988. Rahman, Fazlur. â€Å"Islam: An Overview.† The Encyclopedia of Religion, 1987. Robertson, Pat. Are God and Allah the Same? The 700 Club. 27 April 2003 . ----. Why Jews Don’t Accept Jesus: A Look At History. The 700 Club. 27 April 2003 . Scott, Delaware Walter. Christianity and the Jew. Cincinnati: The Standard Publishing Co., 1914. Squires, Robert. Introduction to Islam. Muslim Answers. 2000 .

Shamanism Essay -- essays research papers

Shamanism Shamanism in Anthropology has been an entity in a constant metamorphosis. It has always been considered exotic and its existence around the globe was never contradicted. However, over the years it did not receive the scholarly attention that it so requires. The age of discovery garnered a multitude of information on shamanism all over the world. The reporters invested a great deal of accuracy in the gathering of the information, but their observational skills were mostly underdeveloped. Furthermore as could be expected, they saw and evaluated things solely on the basis of European religion and social customs (Flaherty, 1992, pp.3) without having it necessary to view its ramifications to the people who are so imbued by it. Despite these methodologies which were grave in nature, matters began to shift during the 1940's and 1950's when the social sciences were rapidly coming into their own disciplines. Shamanism, was beginning to be looked upon as a complex religious notions and modes of behaviour (Lommel, 1967, pp.8). Although shamanism was beginning to harness scholarly attention there were still different contradicting theories being laid out in the scientific community. More recently since the notion of tribalism has become more prevalent shamanism is beginning to be recognized as holding the key puzzle in life. Furthermore, it is growing and encompassing many areas such as Psychology, Pharmacology, and even believe it or not Physics. Now before we elaborate on the historical significance of shamaninsm in anthropology it is imperative that a general definition of shamanism is established. In order to study shamanism the shaman must first be understood. The original word shaman came form the Ural mountains in Russia. It applied to people who acted in several 'non-ordinary' capacities for their tribes. Shamans may be defined as man or a woman who through their ability to enter a trance state in any given moment can influence the course of events, find lost or stolen items and identify the criminal when a crime takes place. Thus in a sense shamanism is the practising of these mechanisms in trying to make sense of the world. As you can see it encompasses various facets of the social life from healing illness to maintaining social order. This definition of shamanism is very brief and reall... ...ps altered its course. The implications of these questions go on and on however, one thing is for certain and that the study of shamanism with its recent glorification is rapidly expanding. It is beginning to encompass areas that it never permeated for this reason perhaps it is time that a new discipline is created. One that in its own way will combine the best of humanities with certain aspects of anthropology, medicine and the physical sciences. " Perhaps it is time for a shamanology " (Flaherty, pp.215) BIBLIGRAPHY 1. Eliade, Mircea. Shamanism And Archaic Techniques of Ecstasy. Paris, 1951. 2. Devereux, G. Normal and Abnormal: Key problems of Psychiatric Anthropology. Washingtno, 1956. 3. Flaherty, Gloria. Shamanism In The Eighteen Century. Princeton: Priceton University Press, 1992. 4. Krader, L. `Buryat Religion and Society`, Southwestern Journal of Anthropology, 10, 1954. 5. Lewis, I.M. Ecstatic Religion. Middlesex: Penguin, 1971. 6. Lommel, Andreas. Shamanism: The Beginnings of Art. New York: McGraw- -Hill, 1973.

Hcs 325 Week 2 Effective Communication Paper

Effective Communication Paper Your name HCS/325 March 29, 2011 Instructor name Any organization large or small depends on the hard work of its employees to be successful. This is why communication is vital to the organization. With communication, employees can coordinate their efforts with other employees and managers to make their hard work seem almost effortless. One of the biggest reasons a company fails is ineffective communication among employees as well as supervisors and upper management. If the staff has not been made aware that there is a goal to attain, they certainly cannot contribute to accomplishing it. Several methods of communication exist to efficiently communicate within any organization. In my organization, emails messages are largely used to communication inside and outside of the organization. Although, email is somewhat informal, it is the quickest and most effective method of sending and receiving messages and they can also be considered a formal method of communication, depending on the contents and whether or not there is any formal correspondence attached. Email can involve one-to-one communication, but it also supports one-to-many transmissions in which the same message can be sent to lists of people (Reddick and King, 2001:24). Scheduling conferences and meetings, changing policies and procedures, keeping employees and staff apprised of any changes, and sending and receiving formal documents are just a few of the things email is used for in my organization. Email also works tremendously well when collaborating on a project. However, emails should only be used for quick messages or communication among staff members. While the majority of the employees in my organization rely on email messages and the internet to communicate with co-workers and other staff members, face-to-face communication is still a popular method of communication in my workplace. Regardless of how effective email messages are, they cannot replace the immediacy and closeness of people communicating face-to-face. Eye contact facial expressions and the tone in one’s voice are important when communicating face-to-face with another individual and influence the way the message is interpreted. However, with all this in mind, face-to-face is not the most effective way to communicate in my organization. Communicating face-to-face does pose some challenges for select employees when receiving information, especially in the form of a delegated task. Oftentimes, when a task is delegated to these select employees, it is not completed or completed in the wrong way. With face-to-face communication, the sender has to be sure they are clear and concise in the way they are conveying the message, as well as be fully aware of their body language and tone. The receiver of information also has to have good interpretation skills in order to decipher what the message actually is. For effective communication, a sender transmits his or her message in a clear and organized form to maintain and promote the need and interest of the receivers. Receivers or listeners show interest only if the person communicating is loaded with confidence, gestures and softness. Apart from management professionals, good communication skills are also required at all stages of life (WordPress, 2011). The use of email also presents challenges when communicating effectively. One must consider that there will technical difficulties such as risking that the email might not reach its destination or the proper recipient, risking that the recipient might misinterpret the information on the email message and that ease of using emails may decrease the accuracy of the information. In addition, when messages do go out with incorrect information, it is difficult to immediately correct due to the rapid distribution of the email. One might say that my organization clearly fits the description of a boundaryless organization very well, especially since we communicate mainly through virtual methods such as email messages and sometimes through telephone and voicemail messages. Perhaps making small adjustments like working in smaller teams or units to accomplish short term goals and specific projects might help achieve the long term goals quicker. In addition, tasks might be easier to delegate as well as follow. Virtual meetings such as teleconferences and video chats might be a useful addition o communicate effectively in such a large organization. An organization’s success cannot be achieved without excellent communication among team members. The greatest leaders set the tone and foster an environment for team members to reach their individual potential (Adubato, 2010). References Email. (2005). In Key Concepts in Journalism Studies. Retrieved from http://www. credoreference. com/entry/sageukjour/email Ad ubato, S. (2010). Communication is key to effective office team building. njbiz, 23(27), 9. WordPress. (2011). Good communication skills. Retrieved from http://www. goodcommunicationskills. net/

No Dogs Allowed Essay

1. Who benefits from the construction of the park? How should the park be distributed? What feedback will the citizens reciprocate? Will management of the park promote progress and inspire future projects? 2. The town would likely need all factors of production; raw materials, human labor, and machinery to construct and maintain the park. 3. The town’s resources are limited. The land value is priced around $125,000 per acre. Limited resources include natural resources, raw material, renewable resources, and actual resources. 4. The consumers using the park will probably be pet owners. 7,000 residents, whom own dogs, are currently registered by the town council. 5. The benefit forgone is the benefit of constructing a dog park. The gross benefit of having the park built is $125,000 per acre; so the net benefit is $625,000. The opportunity cost of not building the park is $3,625,000. Despite holding the largest sum of money, the alternate decision to not build the park leaves les s space and recreation. The majority of residents in town are registered pet owners. Leaving the land undeveloped will waste the opportunity to provide the citizens with free recreation. The only local park that exists in town is not pet-friendly. On the other hand, limiting open space eliminates the burden of management and developing infrastructure. Selling the land to real estate developers to build homes benefits the luxury develops and possible buyers. However, selling the land does nothing to help with the current repairs of the school. This decision might even upset the citizens who want a recreational park instead of a dog park. There is little space available from the natural environment. Market failures depend on the distribution of the goods. Possible market failures could stem from underinvestment and non-excludability. There are always gains and losses when a public good/service is exchanged. The possible externalities that may produce if the park is built could include noise pollution and visual pollution. The cost used to produce landscape architecture may also exceed the private cost. The town’s government could substitute some decisions for an environmentally appropriate solution. As the town council already suggested, charging a yearly fee to citizens that use the park. Littering and polluting will result in a double-fee. Lisa Mullinax, a certified professional dog trainer, fondly remembers taking her canine pal to the park for the first time. She gripped the leash and wandered into the crowd, toward the jubilant cries of a playful pup. Her giddy companion was bound up with energy; she needed to run free amongst the others. â€Å"It dramatically improved our bond,† says Mullinax, now teaching group class seminars at 4Paws University. As pointed out above, the lack of recreational dog parks is detrimental because it encourages urbanism over environmentalism. Martinsville has little space for forty new luxury townhouses. The decision to construct a recreational dog park for 7000 of the 100,000 residents implements competitive market equilibrium. With no negative or positive externalities, the consumers and producers are able to benefit from economical efficiency. Dedicating at least one park to the pet owners enables private benefit. The residents may be considered free-riders at the behest of ur banites. Comparatively, Martinsville is a flourishing town. The recent developments are highly valued and consumers are offered great public services. Even local gyms and country clubs provide recreational opportunities. With a budget surplus, the town can afford the proposal cost, as well as any externalities. However, eliminating an externality is not economically beneficial. With exclusive property rights, comes responsibility. It is a pet owner’s responsibility to ensure the park is clean and manageable. These are the private costs borne of the producers and handled by society at large. The social cost represents the total sum of production, including externalities and privacy costs. Hence, the exclusive right to pet owners in the park privately benefits them. The lack of dog parks reduces opportunity cost; whilst an increase in constructing these parks greatly influences a more holistic view of a company. Not only does the surrounding environment become included in business operations, but ecosystem services as well! Unlike the negative externalities an industrial  park may produce (pollution); dog parks are essential ly eco-friendly. The proposed location is only slightly wooded and would not require much management. The majority of the townsfolk would likely use the park for its private benefits.