Friday, October 11, 2019

Meluk Competence Base

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1. Meluk Competence Base


The concept of competencies has become important at both strategic and human resource level in the last decade. Competencies are not universal, they may differ accordingly to national cultures, industry cultures or cultures within individual organisations.


Hamel and Prahalad define core-competence as a bundle of skills and technologies rather than a single distinct skill or technology.


The resource based view of the organisation identifies distinctive competence that may derive from the individual or team activity as well as knowledge, technical and market attributes and potential sources of exploitation and profitability. However there are two avenues for decision making, in most cases the strategy is developed which then dictates the requirements for certain competencies within the organisation. Alternatively existing competencies can be directed because of their distinctiveness to determine strategy.


Cheap Custom Essays on Meluk Competence Base


Matsushita tends to identify the strategy, whilst developing the competencies to meet the strategic intent. The Matsushita organisation is driven by a business philosophy and seven basic principles and its strategic thinking considers its responsibilities as an industrialist. An example of this was Matsushitas response to diminishing market share amid serious world wide competition. The strategy was to regain market share by fully utilising one of its core-competencies, product innovation, the aim being to deliver quality products to the market place faster than its competitors. Hendry, Pettigrew and Sparrow (188) model links business performance and human resource responses.


Product


Market


Development


Competitive Business Skill


Pressure Performance Performance Human Resource


Gap Gap Activity


Technical


Change


Adopting this model to the Matsushita scenario identified several gaps which needed attention.


i. All new models designs taken place in Japan.


ii. Market demands necessitated quicker and more responsive action.


iii. Local operations had little or no experience of design.


Strategically Matsushita set up its European research and development centre at its Meluk site in Cardiff. High priority was placed on selective recruitment for high calibre professionals across a wide technological spectrum. To complement this human resource professionals were seconded


whilst several key staff were trained to ensure selective training programmes were implemented to meet the strict disciplines associated with product quality, performance and development.


As previously mentioned Matsushita focuses its business activity around a basic business philosophy and seven principles. One of the seven principles is people before products, where people are considered Matsushitas primary asset and figure highly in strategic thinking and subsequent organisational activity. The Matsushita culture is based on having a skilled, flexible and loyal workforce, which constantly requires training and education, to meet the ever changing demands that are placed on the business. However peoples attitudes are changing, in Japan for instance life long employment is diminishing. At Meluk, the recent turbulent times have meant that over 800 permanent people left the organisation on a voluntary separation basis. Meluk manages its seasonal variations in demand by utilising temporary workers via and employment agency. So with the diminishing loyalty and the ever increasing reliability on temporary workers is it worth while training? Schultz (180) points out that the rise in the value of human time is part a consequence of the formation of new kinds of capital in response to economic incentives.


Meluks response is a continual review of training and educational facilities, investment in training per head has risen by 1% in the last years, as it strives to provide added value to its human capital.


The core competencies associated with Meluk begin with the induction and probation period which is supported by basic organisation and general awareness training. This covers all new recruits at all levels as well as temporary workers. The next stage is quality appreciation training, where the emphasis is on the individual to develop an understanding of techniques such as S.P.C. and Poka Yoke. This part of the training is seen by Meluk as extremely important to organisational learning, as the aim is to encourage learning to implement change and improvement into the work place. A simple example of this is the 5 whys method which is aimed at finding the route cause of the problem and eliminating it, essentially incorporating double loop learning.


Beyond this initial training are a variety of opportunities, desires for training and development can be individually driven, organisationally driven or both. To support this Meluk has acquired status as investors in people, is an approved Nebsm, City and Guilds and NVQ (level ) centre providing a large array of training facilities. However specific blanket training facilities may not satisfy each individual, as desires and drive will vary from person to person. Therefore the appraisal system becomes an integral tool for identifying individual needs, and assesses the practicalities of such needs in line with organisational requirements. This has taken on more prominence recently as strategic human resource activity places more emphasis on line managers for assessing of individual needs.


Training beyond supervisory level is fragmented, formal Matsushita programmes exist for developing a further insight into the philosophy and the ethics behind organisational activity. Professional and academic qualifications are generously supported by Meluk, but these tend to satisfy the individuals rather than the organisation. This is because of the absence of clear


progression within the ranks. and one of the major problems is employees leaving the organisation after -5 years, who have acquired skills and qualifications with a high profile organisation i.e. career launch pad.


Meluk is committed to providing a competent work force through an array of techniques and programmes specifically designed to enhance the individual and the organisation. It is worth noting that individuals seek training in order to create individual mobility in the case of potential job losses, and to enhance their overall attractiveness to potential employers whether internal or external. Matching the balance between individual and organisational requirements needs constant monitoring and amendments to be introduced when necessary.


.Competence Base Development at Meluk


Organisational competencies vary from organisation to organisation and the competencies within each organisation can be classified as either core or non core in relation to company prosperity. Hamel and Prahalad (14) state that not all competencies are equal and those that are core must be desegregated down to individual level. The aim of the organisation is therefore competence mastery as it bids to create a competitive advantage over its rivals. Development of a human competence base is subject to the challenge of transforming it into efficient work performance. This challenge will involve other forms of strategic human resource management, but essentially accepting and understanding that employees are not automatons but sentient self interested individuals are vital to any future success.


As mentioned previously Meluk conducts its business around the Matsushita basic business policy and its 7 principles this has provided the backbone for competency development for many years. The recent economic changes and the expectant economic climate have forced Matsushita to review its operational competency base.


Market demands are for cheaper high tech products that are available on demand, environmental issues with regard to the manufacture and control of operations are being forcibly pursued by legislation in Europe. From within the organisation there are changes in the way Matsushita sees itself, recent restructuring have meant several managerial levels being removed from the organisation hierarchy. President Nakamura recently stated that agility is the key to the rapidly evolving networking society. Therefore fresh management styles for the creation of new business and innovation products and services are vital to future development, which will make life more convenient for our customers world-wide and thereby maximise our corporate value. Meluk is therefore tasked with establishing core competence and linking them to the strategic intent of the organisation.


Meluk has modified its business set up and its primary goal is to manufacture and distribute high value added products. This has necessitated significant changes within the Meluk operations, the high volume production runs and continuos flow lines have been replaced by cellular and more sophisticated assembly activities. There is a competence change demand from a simplistic operation to one that requires a wide skill base, greater levels of flexibility and a high degree of commitment. Operators are expected to take on more responsibility, working in smaller self contained groups, where they have greater freedom and control over the process.


Supervision levels have experienced similar changes, the switch from continuous flow line production where the environment was controlled, to a more dynamic and innovative environment has necessitated a more effective leadership role where a wider range of responsibilities are undertaken.


Meluk, for many years operated within itself, ultimately by utilising one of its core competencies (product innovation) it was able to maintain a high profile and a profitable existence without networking to establish bench mark statistics for performance analysis. This has generated a culture that has a high resistance to change, statistically 61% of all permanent employers have been with the company for over 8 years and have become embedded within the operational culture.


The business philosophy and associated principles are dated, they attract negative thoughts and ideas, they need to be updated into the modern European language that can be expressed through corporate activity and understood by all employees.


Meluk needs to remove barriers that are resisting change, mindsets must be changed, recruitment and retention must be focused on employees who are adaptive, innovative and accept as well as implementing change.


Nordhaug (1) identifies 6 dimensions of competence that attempts to differentiate the types of skills and to know how to acquire them. Whilst most consideration is given to task orientated competencies that preside within an organisation it is easy to overlook the non-specific competencies of an organisation. With increasing pressure for change, greater considerations must be given to non specific competencies if organisations are to be capable of adjusting to external conditions. It is feasible that task specific competencies will become eroded over time, many skills which had previously been owned by employees have now been taken over by technology. Therefore if the anticipated durability of any given competencies is short then the organisation is likely to invest more money and training where durability is long term.


Meluk has a clear strategic direction, its route is blocked by many obstacles, e.g. resistance to change, economic uncertainty, environmental issues etc. It has to pursue its objectives aggressively, to this extent it must start to work outside the box and establish collective competencies. Only when this type of practice takes place will Meluk begin to establish itself within the context of a modern organisation.


.Recommendations for Improvement


The ability to develop human resource capital to meet and achieve organisational objectives is itself a competence. Skill and competence development can arise from, at one end of the spectrum, classroom instruction through less formal constructional activities such as seminars to much more informal modes of learning. Job rotation for example can be planned but others can be personal learning e.g. reading, or at the other end of the spectrum, responding to unplanned circumstances that can be seen as the extreme dimension of learning the job. The majority of learning takes place outside the employment context and even within it much is derived from informal or accidental processes which may not be an explicit part of the development policy of the organisation.


Mabey, Salaman and Storey 001, emphasise in their model strategic training and development a stakeholder approach that training and development strategies are better understood from a


stakeholder perspective. Basically the model acknowledges that the various stakeholders will have a different interest in influencing and ownership of training and development strategies and outcomes. There is a necessity to incorporate training and planning providers to liaise with line managers to identify and maximise employee potential by clear definitive training packages that are potentially unique to a particular process. It is not unusual to find employees adapting , accommodating and improving around organisational procedures. Research tends to indicate that participants in career development practice prefer the collaborative and overt philosophy of development centres, especially where the centre facilitated an honest discussion about career prospects with someone tuned into the nexus of organisational politics, the more analytical, opaque and controlling tenor of assessment centre (Mabey and Iles1). Beattie and Mcdougall (18) found that where relationships are imposed on employees (chose for them) and when the relationship is hierarchical (i.e. boss-subordinate) effect and supportive mentoring relationships tend not to develop.


Occupational competence offers the facility to assess employees against national industry accepted criteria.The emphasis is on competencies in the workplace and on output criteria for observed skills. It allows the organisations to analyse ability that reflect against national standards, it also allows individuals to participate in nationally recognised courses and achieve qualifications that potentially satisfy their own desires (i.e. to create flexibility and enhancement). Meluk identifies closely with occupational competencies, as previously mentioned Meluk is a nationally accredited centre for N.V.Qs and Nebsm. Additionally Meluk sees the national qualification as an integral part of its development of life cycle training, where training and education are systematically mapped out clearly identifying expected competence and education levels with specific career paths.


Another area for consideration is the use of competence which are based on behaviour and psychology rather than job based functional ones, the aim being to identify those particular competencies which distinguish this high performer from the rest. Boyatzis (18) has identified 1 types of behavioural characteristics which are grouped into 5 distinct categories; goal and action management, leadership, human resource management, directing subordinates, and focus on others. The impact of the competencies is to illustrate to employees what behavioural attributes the company expects and the process of setting them up, especially if done through consultation can help clarify what rules actually require. The emphasis must be on simplicity if they are going to be understood, yet the simpler the structure the more general the attributes


become in a context where the relationship between attributes and effective work performance is likely to be a complex one.


This competence is generally focused on management, where competencies are set up through a mixture of methods including the analysis of good performers and the predictions of competence that the organisation will require in the future and bench marketing against similar organisations.


Repertory grid technique and critical incident analysis are useful tools in that they help to identify ways in which good and poor performers differ.


Competence frameworks are not easy to use and their success depends on the ability of the people to implement and understand them. On a positive note they can offer valuable insight into future skill development. On a negative perspective, assessment management is difficult with much emphasis on managers judgement which potentially could cause conflict between other staff members who have a different view. Another negative aspect is the relationship between competencies and business success. This proves difficult for managers who must utilise the competence whilst dealing with a wide range of variables which impact on business success. Change creates difficulties, as potentially, competencies have to be modified or completely new ones drawn up. However as Meluk accepts that it has to manage change, the drivers from behavioural competence will potentially deliver clear indicators of future skill requirements which if managed correctly would be a valuable source of information for future planning.


Strategic training and development offer only short term benefits as these practices are easily copied or key resources are poached. Adopting a resource based view of human resources, identifies that policies are likely to be effective if undertaken with other policies that affect other strategic assets. Mueller (16) comments that instead of espousing high expectations with regard to employee development and training policies, it would be more advantageous to devise policies while keeping the principle of resource interdependence in mind. As the more interdependent approach to developing human capabilities draws on an organisations broad array of material and intellectual resources it is less immitable and thus represents a resource mobility factor, which in turn enhances competitiveness. By specifying how investment in training links with such strategic assets e.g. brand image, it is more likely to lead to sustained strategic benefits. This puts the emphasis firmly on the organisations leaders and managers to implement thoughtful training objectives that are tailored to the organisations needs.


The strategic direction adopted by Meluk has necessitated significant changes to the operational aspect of the business. Further changes are required as Meluk adapts to the changing demands of a very cost competetive market. The emphasis must be on ensuring that there is linkage between training policy and organisational strategy. Commitment must come from the top and in President Nakumura there is a leader who is forcibly behind organisational reform, this must be pursued through the organisation in an agressive but controlled manner.


4.Summary Conclusion


Since its inception in 1, Matsushita has developed a world-wide reputation for innovative products and its disciplined business approach. Severe pre-tax losses for the fiscal year 001-0 are casting serious doubts over its future, strategic business units like Meluk effectively have to change if they are to remain operational.


Alignment of Meluks business and human resource strategies is a key objective. Guest (1-1) in his model Human Resource Management suggests that competitive advantage will only accrue when four human resource policy goals of integration, commitment, flexibility and quality are present. Therefore Meluk must identify its strategic direction and mobilise the appropriate policies, behaviours and styles to achieve this.


The recommendations that have been identified in the tmas cover a wide spectrum of human resource activity that are directed at improving the performance of Meluk. In isolation the recommendations will have little impact, the key task for the organisation is to integrate them into the corporate strategy of the organisation. Operationally Meluk must recognise that business plans both affect and are affected by human resource activities, this requires direction and clarification from executive and local board levels.


The strategic business units are currently having a negative effect, each with different objectives they are effectively pulling the Meluk operation in 4 different directions. Therefore in effect we need to pull the 4 units together by forcibly pursuing a policy of integration across the site. Initially this must be specifically aimed at skill competencies and rewards in order to establish common ground, this will provide the platform for future planning both on a resource and skills basis. There will certainly be variations in interpretations and requirements and there will be no quick fix. This potentially will necessitate several recipes for evaluation, as no single option may exist for total control. Commitment of the management and supervision are a prerequisite and by linking unit business plans to reflect the common goal of the business will provide a stable platform. The business plans will need to encompass common human resource requirements, which will provide further issues that necessitate evaluation and ultimate linkage within Meluk.


The ability to measure the performance of an organisation is of significance, and therefore an array of measuring techniques are required. The ability to track, evaluate and identify corrective action where necessary can offer significant benefits. Therefore concentration on internal measures e.g. evaluation of training, internal strategic measures e.g. competence assessment,


and external measures e.g. customer satisfaction are useful in determining organisational development.


The development of strategic assets with the objective of creating uniqueness and scarcity are of significance to organisational development. Dedicated planning and monitoring are integral to improving the strategic asset base. However the management and control require detailed examination, and the selection of the right people with the relevant skills and intellect are of similar importance.


Adoption of a strategic human resource approach can add value and provide significant value to critical success factors identified by the organisation, it can also serve as a tool for identification of further core activities to enhance performance. Ultimately its success depends on the commitment, drive and ability of its key asset people.


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