Brand development is an important issue. Every enlightened enterprise struggles to develop its brand to ensure rising image and market acceptability of its products/services. Efforts put into in this direction is enabling several countries to have better image and organisations within their set up are seeing their global brand values increasing at a fast speed.
The internet showed that Coca Cola enjoyed number one position in the Global 100 brands with around $50 + billion as its brand value. Now in 2010, the pyramid has changed.
Based on available information the top five brands out of 100 top brands are a sunder:
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Company Brand Value $ b
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Google 114
IBM 86
Apple 83
Microsoft 76
Coca Cola 68
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All the above enterprises have added a fifth factor of production in the overall study of economics namely, intellectual capital. Earlier the four factors of production were: land, labour, capital and organisation. This changing scenario has raised a question. New role of human resource in a changing world. Therefore, one hypothesis to be tested is: Is there any relation in the increase of brand value with using human resource as a brand for overall development of company's development of brand value. In this backdrop, thus paper addresses some significant issues.
CONSTITUENTS:
This piece addresses the following 12 aspects:
1. HR-Inretrospect, 2. Changing Paradigms, 3. HR-Models, 4. HR-Current Challenges, 5. HR Brand Development Process, 6. Building HR Brand: Suggested Approach, 7. HR Practices for Brand Development: Some International Experiences, 8. HR Brand Compared to 100 Global Brands, 9. HRD Systems: Maturity Score for HR Brand, 10. Best Global Companies for Executive Development, 11. Linkages of the Best Global Companies for Executive Development with Global 100 top Brands, 12. Divine Guidance.
Now each of the above aspect is briefly explained.
HR-INRETROSPECT:
HR practices have been changing in the last several centuries. Before the 16th century, paternalism dominated HR scene. During the 16th and 17th centuries commercial and industrial revolutions took place in Europe. Two outputs of these revolutions were: replacement of physical muscle by mechanical devices and introduction of the joint stock companies with limited liability. These put pressure on companies to develop personnel policies. During the 18th century industrialisation problems were identified with the appointment of welfare secretaries. In the 19th century, HRM developed as an independent specialist subject. It also saw the beginning of scientific management and introduction of incentive plans.
The 20th century witnessed government legislation, governing minimum wages, working conditions, trade unions, industrial relations, dispute settlement, safety, environment and labour practices, workforce and beginning of acceptability of human asset as a capital.
The dawn of the 21st century has seen the use of HR as an instrument for creating wealth for nations, companies and individuals and now how HR can be used for brand development.
CHANGING PARADIGMS:
The earlier times emphasised on government legislations, role of security men and legal approach. The current thinking focuses HR as an institutionalised effort. Institutions of higher education are now offering "HR" as specialisation as part of MBA specialisation. Top management is giving high priority to HR with a serious attitude cushioned with managerial and financial commitment. Future augurs well in this respect as the expected outcomes of HR's new emerging role for enriching the environment of organisation and beef up the bottom line of the organisation units, besides creating wealth for the nation.
HR MODELS:
The world has tried several HR models. Four are listed below:
TRADITIONAL:
1. Preparation of Manpower Planning, 2. Recruitment, Selection and Retention, 3. Training & Development, 4. Performance Appraisal Methods
COMMON:
1. HR Planning: Strategically to be Done, 2. Recruitment, 3. Orientation & Training, 4. Development, 5. Appraisal, 6. Compensation, 7. Services
STRATEGIC MODEL:
1. Strategic HRM, 2. HRP, 3. Staff Acquisition and Retention, 4. Training & Development, 5. Performance Management & Appraisal, 6. Communication Design and Administration, 7. Transformational Leadership, 8. International HRM, 9. Organisational Communication
HR CURRENT CHALLENGES:
Some of the significant HR current challenges include: strategic role, focus on competitive business, recruiting the best, change management, mergers & acquisitions and emphasis on brand with the direction of continuous improvement of brand, add value to it and be on the top global brand.
HR BRAND DEVELOPMENT PROCESS
The systems must create delight for the employees, particularly in an unexpected manner. Performance of the work should be linked with bonuses for increasing productivity. Open culture of management should be practised, evaluation system of employees for their performance should be transparent and fair. Knowledge sharing within the system should be encouraged for obtaining positive feedback. For corrective action, open house sessions should be held. Differentiated awards should be introduced and award ceremonies should be held in a befitting manner. The work place should be full of happiness and safety. All told, effort should be made to help develop a motivational system so that HR Brand Development Process is introduced in the organisation and it is institutionalised with trust amongst the stakeholders.
BUILDING HR BRAND: SUGGESTED APPROACH
Tri-dimensional Approach is suggested in respect of building HR brand.
(1) Staff meetings with productive approach should be encouraged.
(2) Study Circles should be set up.
(3) Quality Circles (QCs) should be institutionalised. QCs should focus on managerial aspects to include full support from the top management and a productive role by the Team Leader. The social aspects should encourage commitment by employees. QCs may consist of 7-10 members, participation of employees should be encouraged on a free wheeler approach basis and motivation should be encouraged so that employees may decide their own action. The technical aspects would include such as brain-storming, use of process flow chart, cause and effects analysis, data capturing, use of graphs including histograms, carrying out ABC analysis, developing scatter diagram and using control charts.
HR PRACTICES FOR BRAND DEVELOPMENT
Recently, top 100 global brands are available on the Internet. We have tried to study HR Practices which enabled some of the top companies to achieve greater heights. In this study, we found that there was a positive relationship between excellent HR practices and increase in the value of brands of the top companies. In this respect, the following chart would highlight some International experiences:
9. HRD SYSTEMS: MATURITY SCORE FOR HR BRAND
Gary Dessler in his celebrated book entitled: "Personnel Management", has listed the following twelve (12) HRD Systems for Maturity Score for HR Brand:
Employee competencies and commitment can be developed through appropriate HRD mechanisms (tools and systems). In an HRD mature organisation, there will be the following well-developed HRD systems leading to HR as brand:
1. Human resource planning and recruitment, 2. Performance management systems
3. Feedback and coaching mechanisms, 4. Training, 5. Career development and succession planning, 6. Job-rotation, 7. OD interventions
8. HR information systems (HRIS), 9. Worker development methods and systems
HR information system, 11. Potential appraisal and development, 12. Other subsystems, if any
Source: Personnel Management by Gary Dessler.
BEST GLOBAL COMPANIES FOR EXECUTIVE DEVELOPMENT:
We have downloaded the following ten (10) Best Global Companies for Executive Development.
1. GE, 2. Johnson & Johnson, 3. Dell Inc, 4. IBM, 5. Weyerhaeuser, 6. Bank of America, 7. Pepsi Co, 8. UBS, 9. Proctor & Gamble, 10. Cisco System
GE: Development Executive Talent
LINKAGE OF THE BEST GLOBAL COMPANIES FOR EXECUTIVE DEVELOPMENT WITH GLOBAL 100 TOP BRANDS:
In the back drop of above ten (10) Best Global Companies for Executive Development, we have undertaken some research to establish co-relation of their rank and their Global brand value. This is captured in chart no. 5.
DIVINE GUIDANCE: God revealed the first verse in Holy Quran by stating that:
"Read in the name of God Who has created all the things in the world". Accordingly, indepth study is In-built in Islamic thought as a Divine gift.
For accountability of the work, God, in Surah Yaseen, has very clearly stated:
"On the Day of Judgement, We will seal your mouth. Your hands will speak to us and your feet will stand testimony to what you used to do in this world."
This ensures of thought of self-accountability for employees for top performance so that brand value of the company continues to be upswing. Moreover to encourage fair work, their honest, dedicated and transparent behaviour God has gifted the world with His Divine value system. He orders that three things should be done, namely:
--- Justice should be delivered.
--- Welfare should be extended.
--- Charity should be distributed amongst the kindred.
--- He further orders that three things should never be done, namely:
--- No act of indecency should be undertaken.
--- No oppression should be resorted to.
--- No wickedness should be committed.
--- Therefore, God encourages the development of a healthy, clean and transparent society so that all stakeholders in general and employees in particular undertake all such efforts which ensure optimal performance by employees resulting into their role as an internal ambassador for brand development of an organisation.
The Divine guidance constitutes as an independent subject and also requires intensive research but considerable guidance from God is available in Al-Quran as Islam is a comprehensive religion / Deen offering solutions across the board for all sort of problems.
(The writer is Professor Emeritus and Founder Principal of Hailey College of Banking & Finance, University of the Punjab, Lahore.)
[email protected]
Chart No 1
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HR Practices for Brand Development
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Company HR Component HR Practices for Brand Development
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1. Google Recruitment & Selection 1. Proud to be geeks.
2. Best campaigning.
3. Second home-attract the best talent.
4. Non-performance of an employee is regarded as recruitment fault.
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2. Micro Soft Recruitment & Selection 1. Priority to thought process.
2. Problem Solving working habits.
3. Projects itself as a college campus.
4. Right person rather than right skill.
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3. Boston Consulting Group Training & Developing 1. Every employee needs a career development committee to meet twice a year.
2. Business essential program for non MBA employees.
3. Training by seniors to juniors.
4. Ambassador program.
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4. Google Training & Development 1. Minimum 120 hours of training per year.
2. Growth path for every individual.
3. Free to choose any type of training for self development.
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5. Novartis Compensation: -Monetary 1. Pay for performance.
2. Annual incentive plan.
3. Stock incentive.
4. Health & insurance coverage.
5. Two weeks paid vacations.
Compensation: Non-Monetary 1. Disability coverage.
2. Life insurance and survival income plan.
3. Snap awards.
4. Prudential award for overall excellence.
5. Well furnished bed rooms for employees staying late nights.
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6. Delotte Working Conditions & Retention 1. Gym & Yoga room.
2. Coffee Day Restaurants.
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7. Google Working Conditions & Retention 1. Flexible work hours.
2. Tele commuting
3. 18 weeks bending leaves for mothers and for 7 for fathers.
4. Seminars bet others for developing sense of belongingness.
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8. Google Communication 1. Job satisfaction surveys.
2. Results published in newsletter.
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Chart No 2
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S. No Company World Rank Value Remarks
in Brand $ Billion
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1. Google 1 114 See parate comments.
2. Apple 3 83 CEO's role (fortune magazine; the best CEO of the decade).
3. Microsoft 4 76 Bill Gate's role (world rank as billionaire no. 3).
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Chart No 4
1. GE
2. Johnson & Johnson
3. Dell Inc.
4. IBM
5. Weyerhaeuser
6. Bank of America
7. Pepsi Co.
8. UBS
9. Proctor & Gamble
10. Cisco System
GE: Development Executive Talent
Chart No 5
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Company Rank Brand Value $b Executive
Development
Rank
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1. IBM 2 86 4
2. GE 9 45 1
3. CISCO System 35 17 10
4. Bank of America 37 16 6
5. Pepsi Cola 58 13 7
6. Dell 66 12 3
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