Analysis of Human Resources (HR) Department

Analysis of Human Resources (HR) De partlymentWe be possessed of chosen Al Futt take up hosting as the subject of our research. The aim of our research is to review the HR discussion section and point out the weaknesses. To hand this goal we post review the backdrop and history volition give us an bringing close together about the achievements and/or obstacles that faces the guild. Also, we go forth stateing at the organizational structure of the throng and the recognise hatful who ar managing it. It is important for our research to have a end idea about the managerial practices and the HRM role in accordance with the a nonher(prenominal) departments. We allow for evaluate the strength and weaknesses of the HRM and we will end our research with recommendations with for accomplishable improvements.HISTORY AND BACKGROUNDAl Futtaim sort out is a family trade which was launch in the 1930s as a trading fraternity. The owners of the group temper the upper cente ring positions headed by Majid Al Futtaim as the chairman of the gore of acquitors. The companies run lowing within the group have developed quickly and became a regional integrated commercial, industrial and services duty enterprise located in the Gulf Area. Currently, the group consists of much than 40 companies dominating many an(prenominal) commercializeplace segments in the UAE, Bahrain, Kuwait, Qatar, Oman, Egypt and Pakistan. The group has cardinal subsidiaries which ar Majid Al Futtaim Properties, Trust, Retail, and Ventures. The group was created with a purpose of managing its subsidiaries and supervising the work in lay to develop the affair and achieve unified goals. The troubles promise is to respond quickly to the customers destiny and forgather the groups sh arholders. Moreover the management gives its word to provide ch entirelyenging opportunities for the employees in order to enhance their get a longance. a nonher(prenominal) promise is to serve th e community, protect the surround and achieve a notable corporate social responsibility. (companys official website)MANAGEMENT PRACTICESThe gathering consists of some(prenominal) core ancestryes that complement each other, however they be on an individual basis managed. This strategy provides naughtyer flexibility and better potentials beca workout the separate operating di kens after part grasp different opportunities. At the same judgment of conviction, different di imaginations work unitedly on key projects and pass, as a group, to the achievements and the avail. There ar business agreements of cooperation and management within the group. The management relies on the differentiation of the retail brands in order to gain customer loyalty which in turn will enhance the sales harvest-home and business development. (companys official website)To face the market challenges, and because the group has large companies and diverse employees which serves diverse customer segme nts, the management has continually brought innovations and change to a conventional industry. The group declares that they are both socially and environmentally prudent which has positive consequences such(prenominal) as increasing employees loyalty, ensuring growth and increasing profit. Moreover, the groups strategy is built on creating a win-win situation for the organization, primary(prenominal) stakeholders (such as employees and customers), and the communities where they are functioning. To achieve this strategy, the group has a soundly schematic HR department answerable for a large number of employees and workers.With its objectives and goals in mind, Majid Al Futtaim group cautiousnesss about the human resources working for the group. As an example, we tidy sum look at one important division which is Al-Futtaim Electronics Sanyo. In this department, the management has laid down the ground for its human recourses to take ownership of the beginning(a) called Custome r 2000. This initiative calls for a change in the cater position and approach as intumesce as a change in the working environment as a completely. In other terminology it is a call for a change in the way business is conducted. This initiative is a mean to enhance productivity and powerfulness of the employees. They are calculateed to become more alert and alert of the Internal Customers and at the same time they should have the ability to focus on the out of doors(a) Customers. By taking this step, and to be able to coordinate the hunting expeditions and expertise of their staff, the management formed a core committee whose role is to open the conference channels between the management and the employees. The committee performs as a meeting place to convey and formalize the concepts and ideas that will eventually carry on to the objective of append customer satisfaction. The committee organizes open sessions and ensures the participation of all the managers and depar tment heads of profit-centers. These sessions provide a chance for healthy discussions and exchange of ideas and points of views. The group functions according to the school of thought of Prosperity through and through Customer Satisfaction. To face the new challenges and to chief(prenominal)tain the increment thrust, the core committee holds its sessions on a weekly basis and ensures through one on one meeting that the information is absorbed by all the staff. (companys official website)THE ORGANISATIONAL STRUCTUREStrategy and supplying march claim a powerful management to transfer the perspectives into reality. Al Futtaim is a modify group and a large organization managed by the owner, Majid Al Futtaim, as the president and the head of the management hierarchy. The chairman is Sir Michael Rake, an international expert who is an summation for the group because of his long experience and professional background. The board consists of a group of members who have particular ex pertise in certain areas and who tail assembly contribute to the decisions and the prosperity of the group. The CEO is Mr. Iyad Malas a young Arab who earned his education in one of the American universities in the region. Mr. Iyad and his administrator team are responsible for the strategy for the solid group which includes what the businesses are in addition to the whole financial cognitive operation of the group. At this train of the management planning includes prognostication of change in all the functions of the group.The CEO police lieutenant is Mr. Ahmad Bin Brek, who is besides a competent manager who has the ability to lead the group to its goals. The undermentioned level is the business decision maker team which consists of several(prenominal) young and puff up educated employees who experience the plans and run the business according to the agreed upon and well thought out strategy. found on the bottom-up input, the business executive managers report to Mr. Iyad and contribute to the business strategy exhibit.The following level in the hierarchy consists of the department heads and their assistants. Their roles are to orient, gift and manage their staff in order to contribute to the common functioning of the company. The line managers report to their managers and they in turn report to their presidents who are responsible for the specific business strategy. At the end of the management hierarchy come the line and office managers and their assistants who work in the field with the staff and monitor the executing of the plans and report to their superiors in the same business unit. At this organizational level the unit executive managers are responsible for the strategy. Part of the groups business planning scenario is the industrial context of use economy, government, territories, existing market cultures. The other part is of the planning is the goals and targets which are undertake in the groups strategy and the strategic group model.In the second level come the department managers then(prenominal) the line managers then the supervisors who report to their ac cost managers. In each department in that location are the employees with different lines and responsibilities. If the whole working team does not work together, no goals will be achieved. And if the human resources are not satisfied by the working environment in general they will not be able to perform well. (companys official website)At this point, HRM has a important role to play. Without the human resources, no(prenominal) of the aforementioned strategies would be achieved without having efficient employees. These employees must be managed effectively in order to gain their loyalty and ensure that they will perform t the best of their abilities and lead the company to meet the vision, mission, and goals of the company.HRM has several functions all of them are associate to the human resources in the group. Some of the functions are the fol lowing recruitment AND SELECTIONOne of the most important functions of HRM is the staffing process. This process is costly and time and effort consuming. The HR professionals know that this process should be well aforethought(ip) to save the group the continuous expenses of advertisements, legal procedures, and cooking the new employees. HRM is responsible for analyzing the commercial enterprises, generating job descriptions, advertising the openings, analyzing the applicants CVs, interviewing the candidates, selecting the best candidates and closing the deal by offer the new employees the contract. All these processes are completed in cooperation with the managers of the different departments by and by signing the contract, the HRM is always ready with an orientation program delivered by the direct managers. The orientation includes the policies and procedures, group culture, guarantor and safety issues, work practices and other related issues to help the new employee to get a cquainted with others, place and the new tasks he/she will perform.Later on, when the new employee starts the job, the HRM is responsible, in cooperation with the managers, for the appraisal process. The result of the appraisal helps the HR professionals to set the educate plan in order to empower the employee with any essential skills.Majid Al Futtaim group has a strategic vision concerning its employees. The strategy recommends that employees be chosen ground on fixed criteria. The staffing process, to an extent, ensures recruiting the see and efficient employees. As a private LLC, the management worries about the shareholders cling to and prosperity and the strategies and plans revolve around increasing sales, profit and expansion of business. These precedents are behind hiring effective people who can contribute to the groups success.HUMAN RESOURCES formulationAlso, HRM controls the number of employees and keep it in the appropriate range too oftentimes employees is cost ly and wasteful of resources. On the other hand, too little employees is a barrier to meet the goals and affects the overall performance of the group.Staffing in Al Futtaim group is affected by many factors such as the budget, the need of expertise and the turn over of employees. Also, the need to control the staffing process depends on the one- socio-economic class appraisals, business outcomes, and the efficiency of current employees in relation to the change and development. governing regulations and changes in business trend are important factors in damage of increasing or decreasing the number of staff.The role of HRM goes beyond the planning role to implement the plans and take decisions about what is better for the organization. HRM in AL Futtaim root are seen as reactive rather than be proactive because they are doing the minimum abideed from a big and rich group. The reason is not the inefficiency of the HR professionals or in the plans and documentation. The issue is that the group is possess by a family and the last decision is for the owner. Usually in this suit of company what really matter is decreasing the expenses and increasing the profit. In this font the HRM cannot implement the change nor can they function according to the international high standard and ideal practices.EMPLOYEE MOTIVATIONEmpowering and motivating employees to complete their tasks expeditiously is an HRM responsibility. Employees must be rewarded for their efforts or else they will transfer to another company and the company will lose their experience and knowledge of the ideal work practices. As mentioned before, recruiting new staff member will cost the company money, effort and time. Moreover, a company with high retention is neer the choice of professionals who look for job security.AL Futtaim group care about its human resources. The HRM has a prep plan and it was implemented for many eld in the past. like a shot things are changed. The world financial cris is affected the business in general and the extra returnss for the employees are reduced to the minimum and the new workers are get lower salaries and zero benefits. According to one of the groups employees, the workers are complaining in regards to their salaries and the overall standard of living. As everyone knows, the rents have risen tremendously in the last year. This issue has put a burden on the abroad employees and slightly of them left the work to another job for less then AED 300 open fire in their salaries. This would not happen if the HR management in accordance with the financial department adjusts the pay rate and implement a plan to offer financial reward to the nigh(a) employees so that the group will gain their loyalty.The employees need to be motivated in order to attach their efforts and work to the best of their abilities. In AL Futtaim radical, Bonuses as incentives are offered to the managers and they are excluding the workers. The common way to encoura ge the workers is choosing one of the good workers as the employee of the month. This will influence the workers appraisal at the end of the year and the chance of getting a raise becomes higher. More incentives are required if the group wants to attain the loyalty of all the employees.EMPLOYEES APPRAISALHRM has a main role in assessing the performance of the employees. It is a very important process because the decision makers will have a full picture of the strengths and weaknesses of the staff. Based on the appraisal decisions will be taken to improve the performance of individuals and to point out the potentials within the company.Al Futtaim group HRM pays a finical attention to the assessment process. The employees are assessed formally and informally through the year. The main appraisal is conducted on annual basis and ground on the results, some changes are made.Based on the result of the appraisal HRM sets a training plan to enhance the performance of the staff members. some other importance of the yearly appraisals is to link the payments to the competency of the employee. What is happening now is that due to the recession, the group did not give a pay raise to the majority of the staff which has a negative impact on their performance of the individuals. Yet, the appraisal is used efficiently to make use of the talents which already exist in the group. When openings are stick on internally, the chance is given to the employees to apply and they are chosen based on their performances, yet not for the upper management posts. The weakness in this process is the results of the appraisal are not used to give the employees the incentives they deserve. The raise in the salaries and wages, if decided, is based on the market situation not on the performance and achievement of the individual.EMPLOYEE RELATIONSAmong the HRM roles is to manage the complex employee (industrial relations) between the following partiesWorkers and their official and unofficial representatives.Workers and their managersGovernment, organizations and related agencies.The UAE is shifting to a service based industry. The business requires qualified and skillful people to do the jobs which make the influence of workers more influential. The wise management of the group is aware of this issue and has built, to an extent a kinship with the employees and to maintain the mental contract with them. HRM in Al Futtaim Group have an industrial relations program. The employees do have a psychea and it is deviseed in the management actions. A good example is the (customer 2000) project where workers can express themselves while developing their skills. It gives them a chance to get snarly in the planning for offering better services to the customers.There are several evidences demonstrating that HRM policies demonstrate groups concern of the individuals performance. As a result we expect to see these policies are well implemented for the benefit of these individual s. Cost based barriers could be responsible for not taking the right actions. Workers are motionless considered as machines and no margin for mistakes is allowed. The work time is calculated by minutes and the overtime payments are less than the working hours wage. In al Futtaim group there is no win-win situation because the main concern as we have mentioned before is the customer. Satisfying the customer means more profit tor the shareholders. The only benefit for the workers is that they keep their jobs. There are hard workers in the company who were never acknowledged or took any bonus as an appreciation for their achievements.It is true that HRM in A Futtaim Group is effective in basis of generating all the documents which govern the consanguinity with the employees. HR professionals doctord the job specification, job appraisal, induction programs, training courses, performance management and reward management, malpractice policy, etc. But in general all these documents ar e for the benefit of the business first and none of them demonstrates the importance of the employee as an individual.So we can say that the importance of the psychological contract is not to the full considered. For example, competent employees in Al Futtaim group are offered opportunities to upgrade their positions and their income but these chances are never open to reach to the upper management positions. Such actions affect the relationship with the employees and reduce their loyalty and level of job satisfaction. Another issue is that the cost based management implemented in Al Futtaims private companies affects the psychological contracts with the staff members. Employees lose trust in their management and it would be unimaginable to retain them. The minute they find a new job they will leave taking with them their experience and their relationships with the customers.A part of the HRM is that the employee relations professionals posit reports for the management to keep the m updated about the current situation, changes or new trends. The mangers/ owners use this information in negotiations, conferences and press releases. The staff interprets and administers the contract in terms of problems, salaries, insurance, safety, management practices etc. in AL Futtaim Group as there are no grasp unions or employee association representatives, and this is do with individuals who have no power over the management of the group. So, the real purpose of these negotiations is not achieved.PROVISION OF EMPLOYEE SERVICESCaring about the employees well-being functions is one of the HRM functions which aim to retain good staff and attracting others to work with the company. Services that can be offered to the employees are many. They vary between understanding the someoneal circumstances of the employee such as extended sick leaves, allowing emergency leaves, and offering loans to the employee in need. Another service is to help the employees to resolve personal iss ues, to move them to an easier work in movement they have special medical needs, and assisting the sick people to benefit from better treatment in better hospitals.In Al Futtaim group HRM has a plan for the provision of employee services but it is not fully amended. The following points can be seen as weaknessesNumber of the disabled people working in the company.Lack of financial and other activities conditions such as sports and hobbies related to the workOffering financial aids to workers in need or maybe having a fund program to help workers in difficulty.On the other hand the group has good safety and security practices. They have a good safety manual with clear policies and procedure. The employees are trained on first aid and evacuation in case of fire. SO we can say that HRM in Al Futtaim group care about their employees in terms of maintaining safety by raising the workers awareness and training them on the policies and procedures.EMPLOYEES TRAINING AND EDUCATIONTraining the employees to develop their skills and to raise their awareness is one of the HRM functions. Also the training courses are necessary to prepare some of the employees to acquire higher positions. Training and empowering the employees in Al Futtaim is part of the groups promise. The aim behind focusing on training the employees is enhancing the performance of the staff members.As a result of monitoring and assessing the employees work a training plan is set. Lists are prepared and training agencies are approached but, not all the plan is usually implemented. Financial factors affect the process, so sometimes the training courses are cancelled or the number of participants is reduced. The other option isAnother plan is usually set for the in house training courses which are better implemented because of the cost is less and the timing can be adjusted. Also from time to time the Group outsources some technical or information based training courses. These trainings are usually attende d by the supervisors whom in turn give the information to the workers. This does not work well all the time because not all the supervisors have the ability to train and convey clear information to others.OUR COMMENTSIn any organization the HRM is effective when the functions are related to the vision, mission and vision and values. The organizational structure influences the implementation of the plans. In Al Futtaim Group, the HR department is managed by professionals who are aware of and experienced in the best practices of HRM. There are some obstacles which derives from the type, culture, policies and procedures of the Group. As a family business, the main purpose is to satisfy the customers in order to increase the profit. In this case the employees are required to perform to the best of their abilities and no mistakes are allowed. Individuals who have any special circumstances and cannot do the job effectively will not be given the chance to go back to the track. The manageme nt will look for a substitute who will not cost the Group extra expenses.The recruitment process is done carefully because the management wants to decrease the expenses. They look for the good qualification in the applicant but the person who will cost them less will be employed. The relation between the management and the individuals is limited to how much this person will benefit the company rather than how can we make this person comfortable and satisfied. The global political and economical issues affects the plans as the group is managed based on cost. Any factor can affect the employees benefit and the company will not accept to pay any extra expenses or increase the HRM budget. In the contrary, if the market is down the budget is decreased.If we are deviation to compare HRM in Al Futtaim with other similar companies, we can say, as aforementioned, that it has some advantages. Yet, what we are looking for is an HRM who has the authority and the power to fulfill the functions as they should be done. HRM is about the human resources in the group. Their satisfaction influences the outcomes of the group positively. It is not enough to pay the minimum salary and follow the basic labor laws in the country to gain the loyalty of the workers. There are several functions for the HRM that should be decided and implemented internally to distinguish the employees and the business as a whole from others. Open channels with the employees, empowering them, building a relationship with them, offering them opportunities to meet their personal goals, helping them to solve their problems and supporting outside activities will enhance their belonging top the group and will reflect on the work environment and the business as a whole. additionMANAGEMENT ORGANIZATIONAL STRUCTUREThe organizational of the group give an idea of the hierarchy of power in the group. We can see there is a diversity in the managers nationalities which adds to the experiences and the qualifications o f the management team as a whole. Al Futtaim Group is managed by qualified people who have a long experience in management of similar industries and who are able to lead the company according to the international standards. .The local and foreign managers are working hand in hand for the benefit of the company and its stakeholders. The group includes several companies and a diverse work force which has to be managed effectively by managers who have cultural awareness and UAE work experience. In AL Futtaim group, the management has proved its efficiency in running the business. In the following page, we include the biography of the chairman and other managers to demonstrate their effectiveness and experience in managing the group and meeting the goals.PresidentMajid Al Futtaim chairmanSirMichael Rake pass Executive OfficerMr. Iyad Malas lineup MembersSirMichael RakeMr. Waldemar SchmidtMr. Tarek Ben HalimMr. Richard matingDr. Fahad AlmubarakMr. Paul genus ManducaMr. Trevor CoatesMr. Philip YeaDr. Khalid AlkhazrajiManagementMr.Iyad MalasChiefExecutive OfficerMr. Ahmed Bin BrekDeputy Chief Executive Officerhttp//www.majidalfuttaim.com/images/maf_chart.jpgBIOGRAPHYMajid Al FuttaimMajid Al Futtaim, the better and President of the Majid Al Futtaim Group has successfully brought the concepts of regional shopping malls and hypermarkets to the region. His pioneering vision has changed the face of shopping, entertainment and leisure in the nerve centre East and coupling Africa (MENA).Majid Al Futtaim opened his first shopping mall in 1995 and has since created a business of international significance. Over the past decade the Group has taken his groundbreaking concepts into other major cities in the United Arab Emirates and throughout the Middle East and North Africa including Oman, Qatar, Saudi Arabia, Bahrain, Egypt, and Lebanon.SirMichael RakeSir Michael Rake is Chairman of BT Group and the UK Commission for date and Skills, as well as a conductor of Barclays PLC , McGraw-Hill Inc and the Financial Reporting Council. He is also chairman of the private fair play oversight group the Guidelines Monitoring Committee. BT pays him an annual salary of 600,000.1From May 2002 to phratry 2007 Rake was Chairman of KPMG internationalistic. Prior to his appointment as Chairman of KPMG world(prenominal) he was Chairman of KPMG in europium and Senior Partner of KPMG in the United Kingdom. He joined KPMG in 1974, and worked in Continental Europe before transferring to the Middle East to run the practice for three years in 1986. He transferred to London in 1989, became a member of the UK Board in 1991, and had a number of leadership roles in the UK before being elected UK Senior Partner in 1998. Rake is also a Vice President of the RNIB, a member of the Board of the Trans Atlantic commercial enterprise Dialogue, a member of the CBI International consultative Board, the Chartered Management Institute, the DTIs US/UK Regulatory Taskforce, the Advisory C ouncil for Business for New Europe, the Ethnic Minority Employment Taskforce, an Association Member of BUPA, The School of Oriental and African Studies Advisory Board, the Advisory Board of the Judge Institute at the University of Cambridge, Senior Adviser for Chatham phratry and the Global Advisory Board of the Oxford University Centre for Corporate Reputation. He was Chairman of Business in the Community from 2004-2007 and a member of the board of the Prince of Wales International Business Leaders Forum from 1998 to 2007. Rake is also a governor of Wellington College and a board member of Guards Polo Club.He is married with four children and five stepchildren, and was knighted in 2007.Mr. Iyad MalasIyad Malas is the CEO of Majid Al Futtaim Trust, the family office of the Majid Al Futtaim family in Dubai. Previously, Mr. Malas was the Regional Director for South Asia for International Finance Corporation, based in New Delhi. He had responsibility for all of IFCs investments in al l sectors in the South Asian markets, including India. Mr. Malas worked with IFC beginning in 1987, investing in many regions of the emerging markets and was the Division Manager for Central Asia, Middle East and North Africa before working for four years in Egypt, first as CEO of Fleming CIIC and then as the Chief Operating Officer and spike of Asset Management for the preeminent Egyptian investment bank, EFG-Hermes from 2000 to 2004. Mr. Malas was educated at the American University in Beirut and earned an MBA from George Washington University. Mr. Malas is also a Chartered Financial Analyst.