1.0 Introduction
Strategic human resource management has become a significant phenomenon in modern organizations. Beam Suntory Inc. is the world’s number three premium spirits company having headquarters in Illinois. The primary products of the enterprise are tequila, Canadian Whisky, Scotch whiskey, rum, vodka, and other ready-to-drink pre-mix cocktails. The company was established in 2011 as a separate identity after it spun off from Fortune Brands holding company. At present, the company is a subsidiary of Suntory Beverage and Food Limited, Japan. The company sells brands that are produced directly by the enterprise. Along with it, it also imports and markets brands produced by some other companies (History, 2014). As Beam Inc. started its operations as a separate business entity in 2011, it needs proper strategic human resource practices in place to attain its business objectives. For any new and independent company, keeping policy and objectives in tandem with human resource strategy gives the benefit to the firm in the form of Intelligent Toolbox. Involving human resource management at the first stage of the decision making process supports the line management to implement the decision in an efficient and responsible manner (Deb, 2006, p.62). Three SHRM practices, their way of implementation and how it can benefit Beam Suntory Inc. are discussed in the following sections.
2.0 SHRM practice 1: Training and development
Training and development is one of the key SHRM areas meant for the survival of the organization. Individuals need to be developed and progressed through training. It can be regarded as a specialized developmental function of the overall management of the company. Continuous learning is an essential part of business growth. Training is a strategic tool for building a high and competitive training organization. It can be defined as an act of an organized procedure with the help of which people learn and acquire knowledge and skill for meeting a definite purpose. Training and development are done for various reasons, such as requirements for the job, technological changes, organizational complexities, human relations and internal mobility (Deb, 2006, p. 232).
2.1 Implementation of training and development at Beam Suntory
At present, Beam Inc. has 3400 employees. At the new Beam, managers want and desire a culture that encourages people to think and act more like entrepreneurs. The company wishes to have holistic managers who can take on deeper responsibilities of HR. As part of the transformation, following training and development stages will be implemented at Beam Inc.
Alignment of business: Under this step, strategic plan of the company, challenges, and the competitive environment is considered. Beam Inc. aims for building winning markets and fueling its business growth with the help of entrepreneurial thinking.
Expected impact of the strategy on business: Expected impact of the policy has to be analyzed for the coming years of the company. For example, the strategy of developing holistic managers will have an impact on how operations are carried out in the enterprise.
Competencies, knowledge, and talent: Technical skills and knowledge along with soft skills are required to perform deeper HR functions in Beam Inc.
Team checks: The step includes the plant manager to evaluate every employee on an individual basis for training and development.
Consolidation: It involves answering questions, such as time and organization of training. Planning and communication of shared vision are also done (Dochy, Gijbels, Segers and Bossche, 2012, p. 90).
The plan can be implemented in following manner: In order to train and develop recruits and already working employees on the basis of holistic approach, each hire will complete two compulsory rotations in commerce (marketing and sales) and supply chain (quality control, packaging, logistics) each lasting 4 months. A third rotation can be provided as per the chosen field of specialization and interest in the field ranging from human resource, finance, and technology.
The line manager of the company at every plant will guide the employee towards his or her development and career in the organization. Both compulsory and optional courses can be provided in the training and development department of Beam Suntory. If the course is vital to enhancing the skill on the job, it will be mandatory to enroll while other courses can be taken as optional. These courses will add on to on-the-job experience of the employee, and the technical training that the employee receives from the department. Coaching and support will be made a part of talent management and the program would include a peer, a mentor outside the line management, and the concerned line manager. However, vigilance is needed for framing such a detailed training and development program. Without proper monitoring and reviewing the program, the company cannot know whether the program adds value to employees’ lives. It can lead to weak bondage between the organization and the worker (Werner and DeSimone, 2011, p. 347).
2.2 Reason for benefits of the practice
Beam Suntory Inc. can benefit from the practice of training and development in various ways. A diverse induction and training program presents the organization with an opportunity have the right people with the right skills and knowledge that can lead the company on the path to growth and profitability. A trained and developed individual becomes satisfied both with the work at both personal and professional levels. It reduced high attrition rate and it also helps in creating a strong link between the employee and the employer. With the help of training and development, the employees of the company can develop personal, commercial, and managerial skills (Deb, 2006, p. 238). When the system is both structured and flexible, it meets the individual needs of employees of Beam Suntory Inc. The company believes that its every employee should get off on the right foot having innovative, and holistic skills (Is HR at Its Breaking Point, 2013). Therefore, planning an extensive induction program helps in setting the context of the role of the new hire in supporting the enterprise in exceeding the expectations of the customers while showing commitment to the company values.
3.0 SHRM Practice 2: Performance Management
Performance management practices typically involve performance appraisal and employee development. Performance management system of a company should be such that it helps in improving the performance. The system should be such that it establishes clear goals for performance, generates honest and valuable feedback, and uses the technology in order to streamline the overall process. Performance management system helps in supporting payment decisions, employee development decisions, and promotion decisions. It takes into account both business needs and entrepreneurial culture (Performance Management, 2014). The framework comprises of interlinked processes, tools, systems, and governance arrangements.
3.1 Implementation of performance management system in Beam Suntory
Beam Suntory Inc. focuses on the culture of entrepreneurial thinking that leads to encouragement of innovative and creative solutions. Building a collaborative mindset is the ultimate vision of the leader of the company, Matt Shattock (Vision and Strategy, 2014). The stages of implementation of Beam Suntory Inc. are as follows:
Performance planning and setting objectives: It involves reviewing performance expectations with employees. Behavioral standards for entry level employee, experienced employee, and first-level manager should be set. For entry level employees, meeting expectations include straightforward communication, doing paperwork and records in an accurate and timely manner. For experienced employee, meeting expectations will include organized, timely, and concise communication on complex topics and active adaptation of communication style. For first-level manager, meeting expectations include preparation of high-visibility communications and skillful tailoring of highly complex communications for internal and external audiences with effective targeting (Performance Management, 2014).
Performance evaluation: Performance information will be collected from multiple sources. A benefit of using rating sources is that they provide different views of the performance of an employee. Thus, the strategic HR manager has a complete picture of the overall effectiveness of the employee performance. For instance, peer and customer appraisal cannot provide information on how the employee develops or leads his/her subordinates. Direct reports will prove to be an excellent source for collecting such information. Multiple rating at Beam Suntory Inc. will also take out the role of the manager as the sole evaluator and judge. Thus, the line manager can assume a greater important role of performance coach or helper. However, a major hurdle in the process is increased complexity of the collected information. In such scenario, it is highly desirable to have automated processes in place for collection of ratings from multiple sources (Performance Management, 2014).
Performance review: The feedback to employees has to be provided on an ongoing basis. Performance review will contain no surprises, and it would be a recap of what all has occurred within the rating period. A performance review session will also be held for planning developmental activities with the employees of Suntory Inc. If any gap were found in any of the set performance standards, they would be identified as developmental areas. If all criteria would be met, employees and managers will together look at the next level of performance standards (Bogardus, 2006, p.196).
3.2 Value addition, through performance management
Beam Suntory Inc. will be benefitted from the practice of performance management because the system uses employee input in an efficient manner. It will clarify job responsibilities and job expectations. Furthermore, it will enhance both individual and group productivity, which will help Beam Suntory to create innovative business solutions for meeting customer demands. As performance management involves giving useful feedback and coaching, it would develop the capabilities of employees of Beam Suntory Inc. to the fullest extent (Performance Management, 2014).
The performance management system will add value to current processes and policies of Beam Suntory Inc. in various ways. As the company is aimed at people driven progress, employee input in the performance management system will play a fundamental role in aligning the system with the strategy of the company (Is HR at Its Breaking Point, 2013). Employee generated accomplishments can be included in the formal appraisal process. It will reduce the writing requirements of the manager, which is necessary in the light of the fact that the company is planning to centralize its HR functions. It will reduce the burden on the manager, and both the manager and subordinates can have a healthy relationship, thus adding value to the organization (Performance Management, 2014).
4.0: SHRM practice 4: Employee relations
Employee relations management is an important practice in SHRM. It involves creation of commitment in employees, consideration of the mutual benefits of employees, using and applying techniques of employee participation and its enhancement, increasing the level of flexibility in the work arrangements, giving significant emphasis on teamwork along with the aim of empowering new hires. Importance is given to maintaining individual employee relations under the practice of strategic human resources (Ravand, 2014, p. 155).
4.1 Implementation of employee relations management at Beam Suntory Inc.
The president and CEO of Beam Inc., Matt Shattock state the linkage between employee engagement and the overall success of the spirits’ producer. Facilitation of communication and teamwork is the top priority of the company practices and the related transformation process. The more engaged workforce reflects consistent higher productivity and greater returns to the bottom line. Taleo is an online talent management program that already provides the company with automated employee survey results. The need of the hour is to introduce employee engagement as a collaborative mindset, rather than just any other project. It has to be ongoing and should be a continuous learning process (Beam Serves Up Employee Engagement With a Twist, 2013). Further enhancement in improving the process can be done in the following stages or steps:
Listening: The leader has to listen to employees and has to remember that the process is continuous. Listening will increase the engagement of workers, which in turn will increase the productivity and employee retention.
Measuring current level of employee engagement: As Beam Suntory Inc. has already focused on employee engagement program through introduction of practices, such as Taleo and employee surveys, the next is to know the degree to which employees are actually engaged in the program. Carrying out employee engagement satisfaction survey will let the manager know the level of commitment and will act as a start point towards the efforts of optimizing employee engagement (Bridger, 2014, p.187).
Identification of problem areas: It relates to dealing with disengaged employees. Plans should be made to motivate them to put extra efforts for the company for doing what is required to meet commitments (Korrapati, 2014).
Taking action: Communication is the key to improving employee relations and acting upon the identified problem areas. Letting the employees feel valued by considering their feedback is needed. The communication has to be two-way for building confidence in the employee. Employee related initiatives should be taken, such as profit sharing and work-life balance activities (Korrapati, 2014).
4.2 Value addition, through the practice
The method will add value to the company because it lays the groundwork for new steps and strategic planning initiatives. Actions related to maintaining employee relations at Beam Suntory Inc. are not just meant for shaping the company policy. They are intended for the introduction of new and innovative ways of doing business in the routine (Beam Serves Up Employee Engagement With a Twist, 2013). Value addition will be created through creation of conversation with both employees and managers, setting expectations as per the company strategy and aims and instilling personal and professional employee development as the system of ongoing g behavior.
5.0 Conclusion
Strategic human resource management is capable of delivering value to an organization in particular domains, such as a strategic domain, human resource services domain, and administration domain. It can add significant value to the organization and focus on the contribution of human resource management in attainment of business objectives. An external and an internal fit needs to be present for activities of human resource management and the organization strategic goals. Implementation of three SHRM practices- training and development, performance management, and employee relations will help Beam Suntory Inc. to reach great heights in its industry. Since it has started working as a separate business entity only in 2011, SHRM will create a path for the company to attain its vision of outperforming the market with the help of a dedicated team of employees.
References
Beam Serves Up Employee Engagement With a Twist, 2013. [online]. Available at: http://humancapitalmedia.com/item/beam-serves-employee-engagement-twist-5 [Accessed 15 December 2014].
Bogardus, A.M., 2006. Human Resources JumpStart. New York: John Wiley & Sons.
Bridger, E., 2014. Employee Engagement. Germany: Kogan Page Publishers.
Deb, T., 2006. Strategic Approach to Human Resource Management. New Delhi: Atlantic Publishers & Dist.
Dochy, F., Gijbels, D., Segers, M.and Bossche, P.V.D., 2012. Theories of Learning for the Workplace: Building Blocks for Training and Professional Development Programs. London: Routledge.
History, 2014. [online]. Available at: http://www.beamsuntory.com/about/history [Accessed 15 December 2014].
Is HR at Its Breaking Point, 2013. [online]. Available at: http://www.workforce.com/articles/is-hr-at-its-breaking-point [Accessed 15 December 2014].
Korrapati, R., 2014. A+ Manager: DNA Decoded. New Delhi: Diamond Pocket Books Pvt Ltd.
Performance Management, 2014. [pdf]. Available at: http://www.shrm.org/india/hr-topics-and-strategy/performance-management/creating-high-performance-culture/Documents/Performance%20Management.pdf [Accessed 15 December 2014].
Ravand, M., 2014. Human Resource Professionalism: A Panacea for Public Organizations. London: Author House.
Vision and Strategy, 2014. [online]. Available at: http://www.beamsuntory.com/about/leadership-team [Accessed 15 December 2014].
Werner, J. and DeSimone, R., 2011. Human Resource Development. Mason: Cengage Learning.
