Marketing Analysis Polyphonic HMI free essay sample

Uncertain Attractive Yet Challenging Music Industry Landscape The music Industry is a 32 billion dollar industry, offering a huge opportunity if it can be penetrated. However, it is fraught with challenges. Arthritiss, producers, and record companies have little idea on how to find and create success in the industrys ABA. The dominant players, I. E. Record companies outfit pursuing the production of teethe next big hit by producing In masses and hoping hope that one turns out good, . This Is shown evidenced by the low hit success rate of 10%. A song topping music charts (Peg. 1, PA). What entails is an Industrial marketing practice of huge inefficiencies and unwise budget expenditure (Peg. 8, PA4). These problems stem from the market interactions of the industry, such as theistic is dictated by popular culture. There is constant and rapid evolution due to both volatility of popular music culture and lack of fail-safe apparatus to accurately predict upcoming trends. We will write a custom essay sample on Marketing Analysis Polyphonic HMI or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Hence, all segments need a tool that Improver tool that Improves their chances of landing a hit song and reduce the need for excessive marketing expenditure..The satisfaction gratification of this need is ever more urgent due to falling sales and increasing music piracy (Peg. 5, PA). Can HAS be the answer to the industry needs? 2. Harnessing Overcoming Polyphonic HIM Barriers Opportunities Polyphonic HIM has significant barriers to overcome. Upon failing to impress hardware providers, HIM is lacking capital and time. In an Industry that Is normally associated with art, they have not found a way to make science and music mesh.However, they possess the potential to revolutionize the music industry. Polyphonic Whims core competencies IEEE in its technical expertise in artificial intelligence and natural science applications (Peg. 2, PA). Even though it does not provide specific feedback on how to improve a song, Haste HAS scientific product has the ability to revolutionize the music industry Phelps to eliminateeliminating the uncertainties of relying on instinct while incorporating humanistic music preferences In predicting future successes..It will serve to reduce marketing Inefficiencies, thereby allocating concentrated efforts and budgets to refocus efforts and budgets towards hits that have a A wheelwright likelihood of success of making the next big hit. Below are further issues of consideration, specific to HIM. What stand in its way is the minor issues detailed below. Minor Issues 1. Shoestring Marketing Budget HIM operates on a limited budget of $1 50,000 and this creates two Implications. First, HIM Is unable to reach out to the entire market and It limits them to target only 1 segment at this juncture..Pricing is critical as well, given that it needs to ensure that it recovers its operating fixed costs. Secondly, HIM is in dire need of a off cost efficient marketing plan is unable to do advertising and has to strategically come up with a feasible selling process. What is Hisss ideal marketing mix? 2. Dealing with Competition In Dalton to the budget constraints, HIM cannot simply Consigliore are competitors compartmentalizing forces, which lies in the substitutes of HAS which are traditional call-out studies and individuals gut instincts (preference surveys).These conventional substitutes depended on human instincts and thus it makes consumers highly skeptical of the abrupt replacement with machines. Depending on the different uses of spectrophotometer, it is pertinent to note that levels of skepticism Mould differ across segments and in turn affect the adaptability of HAS. Thus, based on the target market, how should HIM needs to position itself using an optimal marketing strategy to minimize skepticism and ensure highest possible profits?. Strategic Options: Option 1 : Target Unsi gned artists (AU). The AU segment comprises of hundreds of thousands of hopefuls that dream of a shot at fame and who are willing to spend money to further their dreams. Value Drivers: For AAAS, nothing gets in the way of pursuing their dreams. In addition, they form a mostly technologically as. N. Y crowd ho are willing to adopt new technologies like HAS. The potential of this segment is age where 300-400 demos are sent to a record label per week. Approximately 187,200 demos (350 demos per week) are sent in per year to the dozen or so ARCS under Universal Music Group for the US market (Peg. , PA). Risk Drivers: The core needs of CIA is to get a contract from Arcs, but as ARCS might not align their tastes and preferences to the scoring criteria of HAS (Peg. 12, AS), a good report from HAS does not directly translate to the CIA being signed by the RCA. USA have financial constraints Inch have prevented them from seeking available avenues like Internet Polls and Call-out surveys that costs above $1000 (Peg. 0, Pl). The shoestring budget does not allow for extensive advertising as it is costly for outreach to the massive number of USA (Peg. 1, PA). Lastly, the reports may be too complex for USA to understand, resulting in low adaptability. Option 2: Target Producers. This segment comprises 20-30 successful producers, few hundred producers with occasional hits and thousands of minor producers. Value Drivers: The use of HAS can help to diminish uncertainty to a certain extent, giving producers a better gauge of the potential of their songs. Risk Drivers: There are a few noteworthy risks. Outfits, there is a disconnection with the primary needs of the producers.Producers need to create hit songs but HAS merely suggests whether the songs that have the potential to become hits, showing limited effectiveness in tweaking songs. Therefore, HAS can only be seen as a subordinate tool in meeting producers needs. Secondly, thereafter is a high level of skepticism as producers pride themselves as artists with skills that cannot be replaced by a machine. Lastly, they might feel threatened that the software Nail replace their Job and hence refuse to adopt it.Risk Drivers: The core needs of AU s to get a contract from Arcs, but as ARCS might not align their tastes and preferences to the scoring criteria of HAS (Peg. 12, AS), a good report from HAS does not directly translate to the CIA being signed by the RCA. Thus, HAS is unable to meet the needs of this segment. Next, CIA have financial constraints which had prevented them from seeking available avenues like Internet Polls and Call-out surveys that costs above $1000 (Peg. 10, Pl). Thus, this is a highly price sensitive segment.In addition, Polyphonic does not have the full registry of CIA. The shoestring budget does not low for extensive advertising as it is costly for outreach to the massive number of in low adaptability. Option 3: Target Record Companies(RCA). This segment comprises of five major ARCS with combined share of 84% in the U. S. Market, each being home to at least a dozen labels. In addition, there are also tens of thousands of other small and midsized ARCS (Peg. 6, Pl). Value Drivers: The core needs for of ARCS is to reduce fixed costs that mainly stem from marketing initiatives(Peg. , PA). Hence, the core competency of HAS can directly address the by helping them filter hits and needs of Arcs, which is to predict hit songs with high accuracy for better allocation of baccalaureate budget to support likely hits and generate higher expected revenues. In addition, ARCS areas more a price insensitive, segment predisposed with higher budget and resources. A partial ACCORD analysis shows that this segment has high adaptability: HAS with an accuracy of 80% would be perceived to be more superior to traditional research methods of fairly low accuracy of 10% (Peg. 0, PA3). HAS is highly compatible as it suits the labels current behavior of sending songs for in-depth analysis in the form of reports. And since ARCS have familiarity with interpreting reports, complexity is low. The massive use of HAS in the music industry will definitely allow HAS to get noticed and tributes will spread by word-of-mouth, ensuring high communicability. Risk Drivers: However, Record labels under the same record company have significant collective buyer power to congregate and pressurize Polyphonic to reduce prices for their reports.In addition, major ARCS are hierarchical and operate with red tape, so the process of implementing HAS would be cumbersome. Recommendation: Option 3 is recommended. As the music industry faces a decline in album sales, the ARCS are forced to practice caution in launching albums. Consumers have become more discerning with their product expenditure. Every album launch requires a gamble on the part of the RCA marketing expenditure of $300,000 and upwards do not guarantee success in recouping the costs and profitability.An axiom of the industry is that less than 15% of released music titles generate profit, meaning the bulk of marketing investment are moot. Therefore, HAS brings about intervention to support the inner workings of Arcs. HAS sifts out the albums that do not make the cut room the manufacturing line, which avoids wastage of marketing budget. On the other hand, HAS could direct the ARCS to focus their endeavors on potential hit albums by allocating the bulk of budget to support likely hits. As such, HAS helps the ARCS to streamline marketing initiatives, and extract higher values from marketing investments.The ARCS can then reap higher margins from a reduction of fixed marketing costs. With predictive accuracy of about 80%, ARCS will perceive HAS as instrumental in turning their performance around. Justification of Recommendation Positioning Statement: Balance between Science and Art Within the business of research technologies in the pop music industry available to Arcs, Hit Song Science deviates from subjective preference sampling of limited individuals by Juxtaposing the test song and mathematical attributes of past hits alliterated by masses.HAS is thus the new-edge scientific humanistic tool that engages a million cultured ears to increase the likelihood of producing hits and reduce marketing expenditure. Generate u nbiased and technical assessments of songs, regardless of the reputation of the artiste. Financial Attractiveness Option 2: Producers option 3: RCA Target Volume 0,000 songs 5,500 songs 1 1 ,OHO songs Marketing Cost $1. 51 Unsigned artist $98. 41 Producer $2,500/ label target top 5 first) areas Even Price (BEEP) $95/ song $130/ song $89. 1 song above PVC) $30,000 $19,500 $33,000 Assumptions for all segments: Annual Fixed Cost=$500,OHO, Marketing budget= per song = $30, 10 songs/artist, Figures are for North America. Assumptions for CIA: 100,000 unsigned artists (Peg. 5, PA), Penetration Rate (PR)=I% Assumptions for Producers: 25 top producers(20 artists each) (Peg. 7 PA),500 one hit producers(10 artists each)l ,OHO aspiring producers (1 artist each) PR=I% Assumptions for RCA: 12 labels per record company (Peg. , PA), 5 major Arcs, 10,000 small Arcs, 2,500 unique albums and 3,000 unique singles, PR=50% Unit Contribution Analyzing the financial of each segment, it corroborates that targeting major ARCS Option 3) is the optimal choice. The $1 50,000 marketing budget is sufficient due to the least outreach that needs to be marketed to (12 labels or 5 Arcs). It Justifies the higher arbitrary market penetration rate set at 50%. Comparing with Option 2 and 3, marketing budget will be overstretched due to the much larger base of interested parties. Egg: only $1. Racketing dollars can be spent per unsigned artist which is probably close to production cost of a leaflet for promotion. Even though Option 1 and 2 have higher gross song volumes, the higher market penetration in Option 3 ensures the highest effective volume of songs that HAS technology captures (11,000 songs). Option 3 is also the most financially viable because it delivers the lowest areas-Even Price ($89/song) and highest Total Unit Contribution ($33,000). ), assuming that each song is priced 10% above Variable Cost of $30 for all 3 options.Value Sharing between ARCS and Humiliated by HAS for Record Companies To Justify he premium pricing of HAS(see later), we first considered Hisss value add for to the two main sources: (1) Marketing Cost Savings and (2) Increase in Expected Revenues. Marketing Cost Savings Before HAS After HAS Success rate of marketing to get hits Singles to market 2 Marketing and Promotion cost/singles Total marketing cost Marketing cost savings Assumptions: (1) Peg. 10 PA, Assume conservative 50% success rate instead of 80%. (2) Peg. 9 PA, Assume HAS capture only 50% of 3000 new singles. (3) Peg. PA, Assume $300,000 marketing cost and $100,000 promotion fees (1): Usage of HAS dramatically educes Marketing Expenses of newly released singles. Traditionally, there are about 3000 singles released per year, of which HAS technology captures half due to the 50% market penetration rate. Given that the HAS software increases success rate of marketing hits from 10% to 50%, we only have to promote 300 singles (instead of 1,500) to get 150 hits. Assuming each single is marketed and promoted at $400,000 per single (Peg. 8 PA), this results in 80% decrease in marketing expenditure from MM to $MM, generating potential cost savings of $MM. 2): Assuming hit success rate remains at 10%, there will also be an increase of expected revenues of MM. With the implementation of HAS technology, there is now 80%there is 40% probabilistically predictability (50% instead of 10% based on AR) that 1 out of 10 albums/singles marketed will become hits, generating increased probability- Knighted expected revenues of $776. MM for albums and $65. MM for singles. Increase in Expected Revenues Hit Success Rate (Fixed) Success rate of marketing to get hits Number of hit albums 125 381 Number of non-hit albums 1,375 Probability weighted revenues from non-hit albums (Table A)Increase in expected revenues from albums Number of non-hit singles 150 Probability weighted revenues from hit singles (Table A)Weighted expected revenues from hit singles 11,500,000 1,350 Probability weighted revenues from non-hit singles (Table A)Weighted expected revenues from non-hit singles 4,950,000 Total Increase in Expected Revenues Assumptions: Hit albums = Hit Success unique albums-?125 ton-hit albums-2500-125) Hit singles = Hit success * *3000 unique singles-?1 50 (Non-hit singles=3000-1 50) Probability weighted revenues from hit-singles/albums= Success rate of marketing /3)*Low Estimate+(l /3)*Med Est 3)*High Est] *Hit singles/liberalnesss in expected revenues from singles Sensitivity Analysis to Determine Optimal Procrastinating hit success rate remains at 10%, there will also be an increase of expected revenues of $MM. With the implementation of HAS technology, there is now 80% probability (instead of 10% based on A) that 1 out of 10 albums/singles marketed will become hits, generating increased probability-weighted expected revenues of $776. MM for albums and 565. MM for singles. Sensitivity SVGA Market Penetration Rate 75% Success Rate of Marketing to get hits 37801,477 1 51 337,931 ,250 1 ere sensitivity table proves that implementing HAS technology improves success rate of marketing, which in turn increases the SVGA for the Arcs. However, we observe that SVGA is limited by the market penetration rate, depending on how best HIM utilizes its marketing budget to capture the largest possible portion of the market, reinforcing the importance of Promotion and Distribution strategies. Its marketing mix. SVGA was then utilized to derive the price ceiling, price floor and target price of HAS technology on a per song basis. Based on target price of $60,105 per song or $600,105 per album, HIM is able to achieve a profit margin of 99. 85%.Price Ceiling Price Floor Target Price Assumptions 100% Penetration Rate Success Rate 1% Penetration Rate 11% Success Rate Penetration Rate Share of GAVE Price/songs $181,730 $6,873 $60,105 Net Value Add to Arcs 1$2. 68 bill) $1. 32 bill $661 mil Profit Margin of HIM(PM) 39. 97% 56. 58% 39. 85% Assumptions: (1) SVGA divided by target volume(market penetration * total volume of songs) (2) Net Value Add= Gross Value Add- Cost of Reports; Cost of Reports = Price per song * Market Penetration Rate * Volume of Songs (3) Assume that HIM will share alee created with record companies equally The sensitivity table proves that implementing HAS technology improves success rate of marketing, which in turn increases the SVGA for the Arcs.However, we observe that SVGA is limited by the market penetration rate, depending on how best HIM utilizes its marketing budget to capture the largest possible portion of the market, reinforcing the importance of Promotion and Distribution strategies. SVGA was then utilized to derive the price ceiling, price floor and target price of HAS technology on a per song basis. Based on target price of 60,105 per song or $600,105 per album, HIM is able to achieve a profit margin of 39. 85%. To analyze the mutual benefit of implementing HAS, we analyzed Hisss deducting all the relevant costs (Peg. 8 PA). With the implementation of HAS technology target price and assuming that Universal claims 32% the $661 M net value created See Pricing of HAS), this results in 8% increase in profit margin. PM.Suggested Marketing Mix for HAS Short Term: HIM should first target one major RCA to the top Major ARCS and hope to achieve industry awareness and accreditation of the technology and capture the ailing with at least one major Record Company. Patenting the HAS technology and giving competitive exclusive rights to one RCA will diminish buyer power that major ARCS hold when they congregate. Seethe suggested Pricing is standardized at $60,000 per song. The Product is homogeneous and utilized on master recordings of established artists. Pertaining Promotion and Place, HIM would seek the management of ARCS management via professional connections of HIM board members.Advertising leaflets are published to inform about the product. Salesmen and technical satisfactoriness would execute On-site Demonstrations to entice and enlighten Interested Arcs. Follow-ups are conducted to update ARCS on changing market trends and consumer preferences. For further market awareness, HAS guaranteed stickers Nail be placed on record label albums to enhance visibility of product. Mid-term and needed:Hem would now target small/medium sized Arcs, Producers and Unsigned Artists. The aim is to increase sales volume in other segments using the Market and Product Development strategy. Pricing is discriminated between Producers and Unsigned Artists.The Product is licensed as a software to major Arcs, while reports re personalized and simplified for USA and aspiring producers. Promotion and Place Initiatives are done via personal selling and one-to-one consultation with ARCS with the incentive of volume discounts. HIM can also offer trials of one unreleased song and four recently released songs to validate predictive and post-deceive accuracy. A chart release of Top 100 songs screened through by HAS technology and online retailers reviews increases product visibility. HIM will pursue the development of mobile APS and DID online websites for unsigned artists and producers to encourage easier consumer adoption.

100+ Power Words to Include in Your Résumé

100+ Power Words to Include in Your Rà ©sumà © Imagine that youre a hiring manager sifting through stacks of incoming rà ©sumà ©s- all using the same (or nearly the same) language. Beyond the sheer boredom of having to read them, the repetitive phrasing comes across as a rà ©sumà © that has been built with a template and without any distinguishing characteristics that would make an individual stand out. With this being the norm, when one particular rà ©sumà © stands out as different, its a big impact. So, the question then becomes: How can I make my rà ©sumà © stand out from the rest?Oprah Winfreys advice on rà ©sumà © building is the perfect answer to this question: The challenge of life, I have found, is to build a rà ©sumà © that doesnt simply tell a story about what you want to be, but its a story about who you want to be.Keep that advice in mind as we go over 100+ power words to include in your rà ©sumà © to set yours apart from the rest.Including power words on your rà ©sumà © will help you stand out from th e pack. Photo by rawpixel on UnsplashCompany valuesA companys primary goal in hiring is to find a capable, talented individual that can reflect the companys values in his or her work. The most obvious way to let them know youre that individual is to take awhile to look over the companys mission statement and vision- both of which are most often found on a companys website. Lets look at an example and pull some power words from it that could be included in your rà ©sumà ©:Christine H. is looking for a job with Boys Girls Clubs of America and goes to their website to find the company values and mission statement. In doing so, she finds the following information:MissionTo enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens.VisionProvide a world-class Club Experience that assures success is within reach of every young person who enters our doors, with all members on track to graduate from high school wi th a plan for the future, demonstrating good character and citizenship, and living a healthy lifestyle.Boys Girls Club of AmericaNow, to pull some power words from these statements, Christine might choose:enablereach their full potentialcaringresponsibleplan for the futuregood charactercitizenshiphealthy lifestyleFrom this list of power words, pulled straight from the target employers website, Christine can now craft her objective statement, summary, and even past job details with these words included. For example, if she has teaching experience, instead of writing something like this as a detail on her job description:Helped students with social skills and peer interactionShe could rather write:Discussed and emphasized citizenship roles and caring for their peersInstead of using a typical objective statement such as:Recent graduate seeking a job with an employer that is making a difference in the world.She could write a summary statement that has far more impact, using the power w ords pulled from the companys mission statement:Caring and forward-thinking teacher seeking a job that allows me to enable young people to become the best version of themselves and practice a healthy, responsible lifestyle.The result of changing her summary statement to reflect some of the power words noted in the companys mission statement is an automatic connection between the teacher she wants to be (remember Oprahs advice) and the teacher they are seeking.Same idea, better wordsWhile these example sentences communicate the same idea, by choosing power words from the companys mission statement, she has immediately set herself apart from the rest of the applicants and shown that she has a unique ability to meet the vision that Boys Girls Clubs of America has for its work. In doing so, shes showing that shes an ideal candidate for the position.The same thing can be done with the job description itself. Look over the language used in the job description and pull out some of the key power words. Use these words in your summary and former job details (if they fit) and allow them to be the focus on your rà ©sumà ©. Obviously, you need to make sure you can back up your statements with experience. If there is a power word you have noted that you cant tie directly with your past course work or experience, its best to leave it out and find one that will easily correlate to your employment or educational history.Atypical action verbsBeyond using language from the companys mission statement and job description as power words in your rà ©sumà ©, unique action verbs will stand out more than the more commonly used ones such as worked, oversaw, managed, performed or did. If your job description bullet points contain these overused words, go through the list of atypical action verbs below to see if another might fit and offer a more powerful word choice.Here are some atypical rà ©sumà © action verbs to consider in place of repeating the tired, overused ones that are used in everyone elses rà ©sumà ©:AchievedAcquiredActivatedAmendedAnalyzedAppraisedArbitratedAscertainedAssessedAttainedAuthoredBalancedBoostedBolsteredBrainstormedBuiltCentralizedChartedCoachedCommissionedCompiledConceptualizedConsolidatedConstructedConvincedCritiquedDecipheredDeliberatedDeterminedDiagnosedDirectedDraftedEducatedElicitedEmpoweredEncouragedEnrichedEvaluatedExaminedExpandedFacilitatedForecastedFormulatedFosteredFoundedGuidedIllustratedImplementedInfluencedInformedInitiatedInnovatedInspiredIntegratedInterpretedIntroducedInvestigatedJustifiedLecturedLinkedMediatedMobilizedModernizedMonitoredMotivatedMultipliedOrchestratedOrganizedOrientedPartneredPersuadedPioneeredPolishedProcuredProjectedPromotedQueriedReconciledRecruitedRefinedRehabilitatedRejuvenatedRevampedSanctionedScrutinizedShapedSpearheadedStreamlinedStrengthenedStimulatedSustainedSynthesizedTailoredTracedTransformedTransmittedUpdatedUpgradedValidatedVisualizedLets look at the difference these words can make on a typical rà ©sumà ©. Before using power words, Christines job experience bullet points read like this:Performed duties such as grading and lesson planningContacted parents relating to their childs progressTaught students soft skills for the workplaceWorked with fellow teachers on curriculum development goalsAfter replacing the typical verbs with atypical action verbs, her job experience bullet points now read like this:Created lesson plans and evaluated grades to determine student progressFacilitated open communication with parents as stakeholders in their childs educational progressEmpowered students with soft skills that would enrich their career searchCollaborated with peers to integrate curriculum goals into teaching practiceImmediately, youll notice how the tasks using power words and atypical action verbs seem more important, with more personal involvement on Christines part. While both examples show the same tasks, the second one will stand out to a potential employer w ho is seeking someone who can empower, collaborate and create. These words have much more impact than performed, contacted, taught, and worked.Choose power words with greater impact for your rà ©sumà ©. Photo by Sarah Cervantes on Unsplash.Popular skillsThe modern workplace often looks vastly different than workplaces just 20 years ago. While some skills have remained in demand- such as communication skills, organization skills, etc.- others have grown in demand only recently. For example, 10 years ago, employers didnt care whether you have social media literacy, unless you were working specifically in that field. Now, its a factor many employers consider in their new hires, especially since the effect of social media has intensified in the past decade.This article on career-building website Monster.com lists the top seven skills employers are currently looking for, in general, in new-hires:Problem solvingData analyticsSocial media literacyCreativityResilienceGood business senseWi llingness to learnThese skills are power words in their own way, and including them on your rà ©sumà © will help boost your chances of being hired and distinguish you from the pack. Obviously, employers from different sectors will list other skills that are needed to fulfill the job role. However, having the core basic skills and including them on your rà ©sumà © is a power play that will get you noticed, regardless of the sector to which youre applying.Final thoughtsIts important to understand that you can use every power word possible on your rà ©sumà ©, but if you submit it with grammar, syntax, or spelling mistakes, that power is lost. One risk you might run into in using atypical action verbs is spelling them incorrectly, so whatever words you use, make sure youve checked and then rechecked again to ensure accuracy.Also, be careful to avoid throwing in power words without knowing their meaning. This could result in using a word out of context, which will make it seem like you dont know what youre doing, and are simply using big words for the sake of using them. This will come across to your potential employer as dishonest and unprofessional, so whatever words you use- understand their connotation and definition fully before doing so.

Competency BasedCurriculum Development Essay Example | Topics and Well Written Essays - 1500 words

Competency BasedCurriculum Development - Essay Example What host of questions remains unexamined?† The paper includes recommendations on curriculum trends likely to remain prominent for managing the interests of state and federal governments, the needs of individual students, the academic freedom of teachers, and the requirements of employers and the community. Jackson’s statement is part of a debate on competency based education and training (CBET) that has gone on for decades despite wide acceptance in a growing number of developed and developing countries. Stevenson and Brown (1994) state that the main point of contention is the answer to the following question: what is the purpose of education? The varied answers explain why educators and policymakers are divided into three camps: those who see CBET as a pariah, as a panacea, or as neither of the two (Bowden, 1998). Hager (1994, cited in Jones, 1999, p. 156) traces these debates to the longstanding dispute on â€Å"vocational versus general education† and to the main issue of whether and to what extent vocationalism should drive education (Kerka, 1998). CBET started out as a system of vocational instruction in U.S. factories early in the last century. Having experienced its effectiveness, U.S. policymakers applied competency based methods to teacher training in the late 1960s and used it a decade later to reform the curricula in other professions (Bowden, 1998). Its relative success helped it spread to other countries, notably the U.K., Australia, and New Zealand in the 1980s (Herschbach, 1991, p.3). The evolution from competency based training (CBT) to CBET is evident in the design of a competency based curriculum that, like an evolving living creature, reflects the â€Å"genetic code† of its conceptual ancestors. Not only does the competency based curriculum of, say, a course in medicine adopt key principles from CBT, but the competency based curriculum of, say, a vocational training course

Personal Development Statement Example | Topics and Well Written Essays - 1250 words

Development - Personal Statement Example My goals for next week are to continue writing. 3 Understanding Information and Data It sure was a lot of specific information. I learned about writing and research styles and referencing techniques. My goal for next week is to understand first hand how to conduct library research. 4 Presentations I love presentations. I learned the appropriate way to design slides. My goal for next week is to keep up with the matrix. 5 How Information Is Used This was a really cool lecture. I learned about the different methods of systemic thinking. My goals for next week are to continue with my matrix and try to implement systemic analytic thinking. 6 Information in Global Business Communications I never thought of communication like this before. I learned about the history and methods of business communications. My goals for next week include keeping up with assignments and lectures. 7 Information in Business This was the most interesting lecture to me so far. I learned about how information technology augments business. My goals are to complete this module strongly. Summary Personal Learning and Skills Matrix Semester General reflection Subject specific reflections New goals, new behaviors Challenge It was a real challenge to keep the matrices. Although I know it will probably help me in the future, I wish there was an easier way to use reference styles. I aim to implement more structured time management and find an easier way to do formal citations. Expectations I learned nearly everything I expected from this module. I like the parts about report writing, web communications, and systems thinking most. I hope to apply the principles wherever I can. Responsibilities I feel I have a responsibility to apply this information effectively in the...Although I am proud of my academic achievements, I wish I could apply what I learned more specifically in the workplace. In the appropriate business setting, much of this is quite applicable, but in others they were not so much. I suppose it takes the right type of environment to express scholarly skill and be appreciated for it. I am more used to people being intolerant to academic achievement. I am not sure why. I do not see the harm in bringing knowledge to bear on one's life. I am not overbearing about it, and I do not use it intrusively. I can only gather that among certain circles learning is seen as a threat. It is a threat to some people because of low self-esteem I guess. It seems they are not willing to sacrifice for knowledge so they do not wish anyone else to either. It is a threat to some because of sheer jealousy. They are unwilling to let others grow professionally who will serve them directl y. I do not really know. It is all speculation if I am to be perfectly honest. Human psychology presents the most challenging systems analysis task in the known universe. One thing is certain. Some people are intolerant toward learning for whatever reason. Despite the intolerance of those around me, I am proud that I have accomplished so much in the face of such unnecessary odds.

Challenges to Managing Business Process Outsourcing (BPO)

Challenges to Managing Business Process Outsourcing (BPO) One of the major challenges facing Human Resource Management is the introduction and management of Business Process Outsourcing (BPO). In dyads or tryads produce a group briefing paper for either; Directors of a company or a specific trade union, of your choice, regarding the changes taking place in the UK labourmarket and economy regarding the impact of outsourcing and/or offshoring. INTRODUCTION The current economic climate is forcing organizations to explore tactics to remain competitive. According to the traditional ‘make or buy decision framework, the fundamental value proposition behind BPO is cost reduction. The recent economic downturn forced HR departments to do more with less. Many HR organisations were asked to increase the scope of their capabilities without increasing overall headcount. As a result, some organisations viewed outsourcing as a way of combating current economic situation and achieving competitive advantage. In spite of the recent economic slowdown, Gartner Group stated that, the worldwide business process outsourcing (BPO) market, is continuing to grow by approximately 9.5. Organisations are increasingly seeking standardization as part of a re-emphasis on strategic business initiatives. They realise that they need to standardize HR processes and policies as a first step in their HR transformation. Business process outsourcing of certain functions is becoming an increasingly popular way to improve basic services while allowing HR professionals time to focus on issues vital to the businesss strategic initiatives, instead of being burdened with HR administration. Chaffey (2003) defines BPO as â€Å"the contracting out of specified services to a third party with a controlled, flexible relationship†. Lee (2002) refers to BPO as the ‘outsourcing of different managerial and operational functions. Specifically in HR, BPO is designed to ensure that a companys HR system is supported by the latest management information systems, with self-access and HR data warehousing options. The Business Issues (1995) further views BPO as ‘the delegation of one or more business processes to an external provider, who then owns, manages and administers the selected processes based on defined and measurable performance metric. The CIPD defines off-shore as ‘the process of outsourcing business activities or services overseas, as a direct or indirect employer. Off-shore does not always involve the services of an external provider . According to the Oxford Dictionary it means: ‘made, registered or situated abroad. The concept of outsourcing centres on David Ricardos theory of Comparative Advantage (cited in Mullins 2001) which states that even if a country could produce everything more efficiently than another country, it would still reap gains from specialising in what it was best at producing and trading with other nations. AIM OF BRIEFING The aim of this briefing is to brief the Directors of Name of our company the effect of outsourcing the HRM function and will encompass its influence on organisational performance and culture; and concurrently its impact on the UK Labour market and economy. The team will carry out a case-study on BT and will critically evaluate, analyse and highlight the advantages and disadvantages of HR outsourcing with the intention of reviewing the outcomes and where necessary suggest solutions where likely problems can be encountered. An analytical review will be carried out of the major HRM problems which can arise from organizational change and where required recommendations made. The team will use British Telecommunications as a case study to establish the impact of BPO. This briefing aims to provide a reasoned critique of existing literature based on surveys, textbooks, journals and official trade data. BACKGROUND British Telecommunications (BT) is a wholly owned subsidiary of BT Group Plc, a public limited company registered in England and Wales and listed on the London and New York Stock Exchanges . BT is one of the worlds leading providers of communications solutions and services operating in 170 countries. It principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.Its main activities are web hosting, IT solutions, Internet services, telecommunications and broadband networks. In the fiscal year ended 31 March 2007 BT had a net turnover of  £9,499 billion. In the UK alone it has pool of 87,000 employees and 180,000 pensioners, whilst on a global scale it has 10,000 employees spread over the countries it operates within. For years, British Telecom ruled the UK market as a monopoly. It was the British Telecommunications Act of 1981 that brought this to an end and put in its place a duopoly, where BT competed with Mercury. The company was formed in 1981 as a subsidiary of Cable Wireless, mainly to challenge the monopoly of British Telecom. The privatisation of British Telecom in 1984 opened the industry to full competition and in 1991, this effectively brought the duopoly share by BT and Mercury to an end. With the liberalisation and opening up of the phone market to global competition came renewed pressure on BT from the telecoms watchdog Oftel to open up more of its network to competitors and cut its prices. The pressures on BT became greater than ever. The stiff competition in the telecoms market, the huge cost of paying for third-generation (3G) mobile phone licences, pressure from the industry regulator Oftel to lower its prices and informed, discerning customers meant BT had to deliver even higher levels of quality and service, at competitive prices in order to stay afloat. All these pressures necessitated mindset change and BT was forced to review its business processes. In order to meet up with the arrival of new competitors and the quickening pace of technological change in the industry, speed of action and reaction became critical success factors. With the competition that flooded the UK market in the 1990s, BT started considering cost reduction that will maximise efficiency without compromising quality. One of the major steps taken was to outsource the transactional side of its human resources operation to Accenture HR Services, which in turn off-shored to its India branch. BT believed that the competitive edge for any global communications provider is human capital and to survive and thrive, it requires world-class human resource (HR) competencies and the processes for managing them. Youndt et al. (1996) highlights that a HR system focused on human capabilities is directly related to multiple dimensions of operational performance. Huselid and Becker (1997) describe that a firms effectiveness is associated with HR capabilities and its attributes. ADVANTAGES OF OUTSOURCING / OFFSHORING Outsourcing enables an organisation to improve its focus on its core values allowing it to remain competitive on the market (Morello, 2003) . Prahalad and Hamel 1990 state that firms must concentrate on core competencies to gain competitive advantage. Through outsourcing specialist skills can be drawn out from a pool of expertise when and where needed whilst opportunities for enriched career development exist for the remaining staff. Organisations are able to turn over certain classes of risks to their suppliers, such as demand variability and capital investments. Unlike the buyer, the outsourcing buyer can spread these risks over multiple clients. Profitability can be achieved as outsourcing increases a businesss cashflow by creating cost reductions through cheap labour and reduced operational expenses i.e. office space, utility. Funds which would have been used for large capital investments can be released for other uses. Contracting out operational functions reduces the competition on capital as the outsourcing company provides the capital investment as part of its overheads. Companies can create an integrated market as it is a cost effective way of globalisation particularly when it selects the best available resources and labour. Figure [rumbi insert appendix] reflects the changes to operational costs which BT experienced when it outsourced. According to Som Mittal, former Managing Director of Compaq India has claimed that payroll processing to countries like India companies can achieve a 20-25% gain in productivity. Outsourcing can increase the service level given to clients. With offshoring an organisation has the ability to have a 24-hour a day workforce resulting in a more timely service which would not be possible if the organisation operated in once country. BT gained flexibility through outsourcing to Accenture as agility or quick response to business demands was made. Competitive advantage can be attained through cheaper prices. When the product prices cannot come down further operating in a highly skilled, low-wage labour area will be advantageous. (Frubel, Heinrichs and Kreye 1980) . As the product price falls consumers are willing to demand a larger amount of goods. The off-shored countries receive economical benefits. Nasscom Chairman Som Mittal remarked ‘Its a win win situation for countries which allow outsourcing and the countries which receive outsourcing (Ahmed 2004) . DISADVANTAGES OF OUTSOURCING/OFFSHORING: When outsourcing to a third party resentment can occur between permanent and contracted staff. Contract/temporary staff may fail to have a sense of belonging whilst permanent staff can remain aloof in order to protect their works hindering teamwork. Offshoring particularly on the outsourcing of work to India as the UK labour force believes that they are losing out on career opportunities. However the McKinsey Global Institute Report states that there are actually too many jobs and not enough people in the UK to fulfil them. Therefore fears of a widespread unemployment are unlikely and thus this resentment could be seen as unnecessary (Lander 2006) . The lack of direct communication between the organisation and the client can hinder the development of solid relationships and can result in the main organisation lacking control of the outsourced project. One of the key aspects of motivation is social interaction and self actualisation (Maslow cited in Mullins, 2001). Another perceived drawback of off-shoring is the decrease in levels of communication. When English is not the native language of the source area, poor command of the English Language leads to prominent resentment of offshored services (Ahmed,2004). Results of a survey carried out by the Nationwide building in 2005 reflected that 91% of UK adults would prefer their calls to be handled by UK-based call centres (Lander (2006). A major drawback is the expense of regaining a customer once lost, because it could cost up to 6 times more in marketing costs to gain a replacement. Cultural differences can be a disadvantage of offshoring i.e. Ryan Kinzy of K3 Group a large outsourcing company states that there are 3 months which are viewed as the most auspicious time for weddings in India, for example half the staff are out of the office. Ryan highlights that building up teamwork is a difficult challenge as employees may lack intuition due to their culture, Indian workers require a lot of direction. Their relationships are hierarchal, family and caste dependent and they have an educational system that emphasises routine learning over independent research. Outsourcing can prove expensive as payment of redundancy packages for the laid off staff can be a major drawback. As the number of companies offshoring to India rises, employee retention becomes a challenge due to the fact that as market competition increases, salaries are required to be competitive. Organisations will have to decide whether the cost-savings outweigh the revenue generated. Risks can be encountered due to the socio-economic conditions which can hinder the progression of operations i.e. maintaining trade risks. The chance of off-shore fraud also exist as the use of funds can be diverted. There is also the risk or data loss. BT faces the risk of fraud emanating from HR outsourcing as off-shore workers have full access to personnel details ranging from bank account numbers, home addresses and other personal details. Non-automated transactions and processing responsibilities enable off-shore workers to have access to highly confidential information. There is an increase in foreign organised crime groups who have targeted foreign off-shore enterprises to gain access data which they process. Organisiations can face compliance risks and their reputation being damaged due to negative publicity resulting from the third party being inconsistent in meeting ethical standards and internal policies. The organisation needs to carryout thorough audits to ensure control . Expertise levels need to be measured to ensure that required service levels of service are met. {Figure xxRumbi to appendix 2} reflects results of problems faced by several companies which have off-shored. The main problem met appears to be low control of performance and data. Offshoring has the limited disadvantage in that the core function of an organisation cannot be accomplished if passed onto an external source . A business which outsources a department still requires in-house technical experts to monitor activities (Greco 1997) Political infrastructure such as changes in government can affect can impact the outsourcing company. Shortly after the election of Sonia Ghandi stock markets plummeted on fears that her leftist allies would roll back fundamental economic reforms. Erratic power grids inexperienced officials and unmotivated employees can also prove to be a disadvantage. ORGANISATIONAL CULTURE BTs management believes organisational culture is innovative with teams that are strategically aligned to BTs operations. Advances in technologies have been applied to benefit BT and its customers to improve processes. Culture can be an object which is manipulated to achieve productivity and organisational improvements, and change over time (Tran, 2008) . In this context, culture is the character of an organisation. However if culture is accepted as being â€Å"†¦.the basic, taken- for- granted assumptions and deep patterns of meaning shared by organisational participation and manifestations of these assumptions†¦Ã¢â‚¬  ( Johnson, 2007) then in this respect culture can be difficult to change. In order to explain the content of cultural context in BT after HR outsourcing, the cultural web will be used. The table below shows the content of the organisational culture with HR outsourcing. Rumbi to appendix 1] According to the above table the organisational culture hinders collective learning in the organisation. Individuals see each other as rivals, rather than a partners. This paradigm creates various obstacles for learning within the organisation, that usually arise due to rivalry, power conflicts and absence of network communication channels (Mullins, 2001). The disadvantage of this power structure is explained by Mullins (2001) who claims that such approach decrease the effectiveness and efficiency of operations management, as participants are detached from the decision-making. BTs new organisational structure is bureaucratic, with the emphasis on standard procedures and operational routines. It might slow down the communication process, with the absence of feedback channels and unnecessary layers that might increase obstructions and cause various distortions in the communication process( Graham Bennet, 1998) . BT has placed its employees after revenues. The management has failed to take into account individual needs of each employee hence developing a coercive rather than participative approach. Within this approach people are being treated as liabilities rather than the core elements of the operations management process, where people become the primary determinant of the outcome quality (Armstrong, 2003) . The organisational culture implies for traditional type of performance appraisal system, which utilises various types of monetary techniques. Wright (2007) argued that the utilisation of monetary tools does not provide the development of a higher level of effective commitment or higher degree of intrinsic motivation and provides a blurred understanding of the relationship between their performance and corresponding appraisal. The communication component forms an important of the above mentioned changes. According to McGregor (1960, cited in Mullins, 2001) in order to get people to direct their efforts towards organisational objectives, management must tell them what to do, judge how well they are doing and reward or punish accordingly. There is also an informative and a motivational purpose. He claims that a clear and thorough description of individual duties and rights within the framework of the organisation may prevent the rise of unmet expectations. As it shows on the table, the communication in the company is of a top-down nature, without proper feedback. This type of communication scheme is good for conveyer-type organisations and not ideal for innovative market-led companies. CHANGE MANAGEMENT The new requirements for adaptation made it necessary for the company to undertake the reengineering of the whole business process, including both â€Å"hard â€Å"and â€Å"soft† elements. According to Senior (1997) â€Å"hard system† change implies â€Å" an attempt to use the benefits of a scientific method whilst recognising that in the real world of business where thing are happening fast, there may not be time to be as scientific as one would like†. In BTs case, â€Å"hard system† change referred to the introduction of new operations management systems, equipment and business facilities, designed to speed up existing operations and reduce the cost per a single transaction. It was designed to maximise the efficiency of every single operation within the business process. Senior (1997) indicates that â€Å"Soft System† changes imply for the change of the organisational culture. The main idea of this approach is listening to the organisation, good communication, developing a shared, vision, gaining real commitment to the change and the vision, education and training, and understanding the tools and techniques for the process. William et al.(1993) indicates that to facilitate effective adaptation of the employees to new working conditions, managers shall reduce restraining forces and reinforces driving forces. However, it shall be considered, that not all measures are equally effective. As Hetzbergs maintainance theory ( cited in Mullins, 2001) shows , the presence of certain factors may act as a powerful motivating factors, while the absence of other elements may produce slight dissatisfaction. At the same time strategic priorities shall reflect the current organisational aims. Under such conditions in order to improve the situation and meet objectives (create a better customer focus) the high involvement of senior managers, who acts as a link between operational and business levels of the organisation, is required. Senior managers shall act as major change agents. Taking the role of change agents, it is important for senior managers not to ignore employees natural resistance to new systems, but to create appropriate incentives to fasten the transactional process from resistance to commitment (Graham and Bennet, 1998). The ignorance of or resistance to changes will introduce different open conflicts, which will significantly worsen the organisation environment affecting its performance level and flexibility. This could result to failure to raise performance and attract or retain customers, which may lead to significant costs and even reduce the companys chances to survive and succeed in changing market conditions. According to Mintzberg Quinn and Ghoshall (1995) the overall rationale for any outsourcing activity is that outsourcing provides, greater economies of scale, flexibility, increase in levels of expertise, cost effectiveness, reduced costs and added value to any organisation. The rationale of BT outsourcing its HRM functions were to increase shareholder value, sustain progress and cope with the pace of change. Outsourcing of parts of the HR function has become more common. Lonsdale and Cox (1998) argue that outsourcing decisions can be classified under the following three headings: 1 outsourcing for short-term cost and headcount reductions; 2 core-competence-based outsourcing, where peripheral activities are passed to third parties and core activities are retained in-house; 3 iterative and entrepreneurial outsourcing, where periodic reviews of critical market activities are undertaken, with subsequent decision to retain or outsource. IMPACT ON UK LABOUR FORCE Human capital is emphasized as the most valuable asset of the 21st century business. The primary effects of outsourcing/offshoring on HR and Labour Relations are related to managing transition in HRM such as personnel changes, managing layoff, downsizing issues, and the costs/dynamics of actually managing an off-shore contract. The laying off of UK employees as a result of restructuring to effect the outsourcing contracts can have a negative impact on employees. Layoffs cause major morale problems among in-house ‘survivors and may lead to dissatisfaction and reduced delivery speed. Some UK companies experienced productivity dips and potential legal action from laid off employees resulting in costs of severance, retention bonuses and retraining being encountered. According to a survey by Deloitte and YouGov (2006) revealed that fear of job losses was prevalent in the UK with 82% of public perceiving offshoring as a threat . 1 in 3 people stated that UK companies should be forced to bring back jobs to the UK. Chief economist of the Work Foundation, Ian Brinkley commented ‘Fears have been stoked by claims that the Chinese and Indians are coming to get your lunch to describe the insecurity that offshoring has caused. With regards to knowledge transfer there is concern that some of the job experience is being exported. If low-level skill tasks are sent off-shore then so is the experience gained from performing those tasks. When the time comes to perform higher-level tasks where previous experience is mandatory, there is no alternative than to go off-shore because that is where the experience will available. In some instances company plans imply that higher-level tasks will remain performed on-shore, the lower-level tasks are performed miles away. The knowledge and experience of those ‘low-level jobs will be gone forever, and may impact the proper development of the ‘higher-level jobs. Forrester a US research group released a study that by 2015 Europe will have lost a collective number of 1.2 million jobs to off-shore locations increasing its reliance. Alan Blinder a US economist and former advisor to Bill Clinton has supported this thesis by stating that offshoring will lead to a ‘third Industrial Revolution. He views that off-shore is now a man-made comparative advantage and that workers will be forced to seek employment in personal services which remain non-tradable. There is a long-term impact on the types of jobs that people are training for, as well as the ‘transfer of knowledge relating to many job structures in the workplace such that there is a ‘domino effect. Steve Loy feels that these ‘outgoing tide of jobs could threaten fundamental technology research as well as jobs. The astute students will recognise the rapidly dwindling job opportunities in HRM and will choose other programs of study thus loss will be encountered in HR leading to a labour-force that has inadequate HRM knowledge to compete in a high knowledge based economy. The evaluation of the impact of off-shore is mainly based on estimations of collective data. Jobs most at risk are non-client facing and low knowledge content jobs those which use a lot of Information technology, creating outputs that can be transmitted via IT. An analysis by the CPRP concluded that 20% of non-client facing jobs are likely to be moved abroad. The potential is apportioned as a function of international trade and investment, the industrial structure of the economy, human capital, employment indicator, product market regulations indicator. Not all jobs created off-shore by UK companies automatically translates to job losses in the UK labour market. Employees are increasingly demanding services hence time difference plays a role in off-shore, offering them extended services. The lower price makes it possible for instance to offer services which would not be available otherwise i.e. 24 hr call centres. The information collated by the European Restructuring Monitor (ERM) s hows that job loss due to offshoring is in fact very small. During the first quarter of 2007 ERM recorded 420 restructuring cases in Europe. They announced 137,762 job losses and 184,511 job gains. Only 5.5% of all jobs lost were due to offshoring activities. For the year 2005 the percentage of job losses due to offshoring was only 3.4% of the total job losses. To measure the extent of job loss due to restructuring we can use redundancy notification, the effects of offshoring does however vary with the country. In France, national Institute for Statistics and Economic Studies estimates in its 2007 report on the French economy that offshoring has been responsible for the destruction of 15,000 jobs per year between 2000 and 2003. This is to contrast with a job creation in the private sector of 200,000 per year . In the UK there is no significant decline as per the results of the LFS Redundancy Tables ‘Employment growth in the occupations considered susceptible to offshoring has been very strong. The redundancy levels for these occupations, although high relative to the whole economy, have been falling in the last four years. The overall employment rate for these occupations has also shown an increase showing the cost of moving low-skilled jobs abroad is either falling or positive job creation is highly prevalent in the IT enabled occup ations. This does not mean that jobs are not being off-shored, and it is entirely possible that in the absence of offshoring, employment in these areas might have been higher. The adverse impact is entirely triggered by much larger changes in domestic demand for such services, the UK in particular has been extremely successful in developing as a world leader in knowledge based international trade. Jobs created through the expansion of exports of services are likely to outweigh the contraction of jobs caused by import of services. According to a report by Amiti and Jin Wei (2005) job growth at divisional levels has not been negatively related to service outsourcing but has had a negative impact on the demand for unskilled labour. In the UK outsourcing has had no reflected effect on the labourforce. The Deloitte and Recruitment Employment Confederation Report states that both permanent and temporary staff billings continue to rise. National press recruitment advertising in the UK went down by 11.3% in July 2005 in both public and private sectors reflecting a positive direction in the labour market and no relevant changes in the economy. Outsourcing is increasing consultancy work in the United Kingdom hence is beneficial as it offers flexible working hours / days for UK employees. This is particularly favorable for women who are raising children as is allows them to earn a salary whilst at the same time having adequate time with their children. There is also the flexibility of home-working. Structural changes can occur in the economies of both the outsourced/sourcing companies and due to the debate on who is benefiting/losing racism can be allowed to rear its head. A report prepared for the Department of Trade Industry by Ovum (2006) concludes that even though the actual impacts of an increase in trade and the expansion of global sourcing have been quite modest to date, offshoring can change the skills structure of labour demand, increasing the vulnerability of low-skilled workers in particular. ECONOMIC IMPACT Concern over off-shoring has become a surrogate for wider issues about economic insecurity, said Work Foundation chief economist Ian Brinkley. An interesting corollary benefit of outsourcing is the benefit to the economy. Indias National Association of Software and Services Companies commissioned a report by Evaluserve that stated that for every $100 worth of work sent abroad by US companies, $130 to $145 will be reinvested in the US economy. Cost savings are said to create value in the UK economy. Ahead of monetary capital, knowledge economy has become a focal point in the policy of outsourcing and off-shore. Strategies have been devised i.e. the Lisbon Strategy centres to promote, research, innovation in the development of human capital. In the future, human capital is the only way that Europe can remain prosperous. The main beneficiaries in the UK are the educated high skilled workers and the losers will be semi/low skilled workers. The UK government needs to investment more in education to continue pushing towards a leading knowledge based economy to avoid vulnerability. It needs to investment in human capital and focus on domestic policy choices for the losers of rapid structural changes within the UK. As a result of off-shoring the UK government is losing funds which could possibly be raised by corporate and income tax. However, it has stated that it does not have plans in place as yet to prevent outsourcing. The Department of Trade Industry has stated ‘it is a commercial decision for companies to decide where to locate their business operations such as call centres. The absence of official statistics on off-shore outsourcing leads to speculation and there is also misinterpretation of indirect measures/evidence. The experience of an individual company may or may not select a trend in a specific sector but does not allow conclusions to be made on the economy as a whole. It is possible that the rise in rice prices caused by lower production could be a result of a shift by the working population in India from working in the agriculture moving to the services sector. A great deal of knowledge is tacit and therefore difficult to transfer. Its reproduction can be extremely costly and requires an environment in which it can be harnessed effectively. According to a recent World Bank publication India is at the bottom end ranking 98 out of 128 countries of an index that measures the ability to create, absorb and diffuse knowledge therefore its threat is minimal to the UK economy. The economy-wide measures such as a countrys balance of payments can assist us in understanding the patterns of cross border trade and establish the impact of offshoring. If the outsourcing of tasks by UK based companies to off-shore locations i.e. India is soaring then the UK should be importing more of these services from India. The CBI has stated that the UK companies have benefited from off-shore as they are now receiving improved work-force skills at a low rate making their enterprises more profitable. According to results obtained from the Office for National Statistics the redundancy rate for the three months to January 2008 was 4.4 per 1,000 employees, down 0.9 over the quarter and down 1.1 over the year. These figures on the redundancy rate reflect that though a large number of organizational services have been off-shored services this has not had a significant impact on the UK economy. The UK has emerged as a world leader in ‘knowledge services and between 1995 2005 exports of its services grew by over 100% compared to its exports of traditional service exports such as transport. India is ranked 6th for global ‘insourcing behind the US, UK, German France and the Netherlands who appear to be the top rec Challenges to Managing Business Process Outsourcing (BPO) Challenges to Managing Business Process Outsourcing (BPO) One of the major challenges facing Human Resource Management is the introduction and management of Business Process Outsourcing (BPO). In dyads or tryads produce a group briefing paper for either; Directors of a company or a specific trade union, of your choice, regarding the changes taking place in the UK labourmarket and economy regarding the impact of outsourcing and/or offshoring. INTRODUCTION The current economic climate is forcing organizations to explore tactics to remain competitive. According to the traditional ‘make or buy decision framework, the fundamental value proposition behind BPO is cost reduction. The recent economic downturn forced HR departments to do more with less. Many HR organisations were asked to increase the scope of their capabilities without increasing overall headcount. As a result, some organisations viewed outsourcing as a way of combating current economic situation and achieving competitive advantage. In spite of the recent economic slowdown, Gartner Group stated that, the worldwide business process outsourcing (BPO) market, is continuing to grow by approximately 9.5. Organisations are increasingly seeking standardization as part of a re-emphasis on strategic business initiatives. They realise that they need to standardize HR processes and policies as a first step in their HR transformation. Business process outsourcing of certain functions is becoming an increasingly popular way to improve basic services while allowing HR professionals time to focus on issues vital to the businesss strategic initiatives, instead of being burdened with HR administration. Chaffey (2003) defines BPO as â€Å"the contracting out of specified services to a third party with a controlled, flexible relationship†. Lee (2002) refers to BPO as the ‘outsourcing of different managerial and operational functions. Specifically in HR, BPO is designed to ensure that a companys HR system is supported by the latest management information systems, with self-access and HR data warehousing options. The Business Issues (1995) further views BPO as ‘the delegation of one or more business processes to an external provider, who then owns, manages and administers the selected processes based on defined and measurable performance metric. The CIPD defines off-shore as ‘the process of outsourcing business activities or services overseas, as a direct or indirect employer. Off-shore does not always involve the services of an external provider . According to the Oxford Dictionary it means: ‘made, registered or situated abroad. The concept of outsourcing centres on David Ricardos theory of Comparative Advantage (cited in Mullins 2001) which states that even if a country could produce everything more efficiently than another country, it would still reap gains from specialising in what it was best at producing and trading with other nations. AIM OF BRIEFING The aim of this briefing is to brief the Directors of Name of our company the effect of outsourcing the HRM function and will encompass its influence on organisational performance and culture; and concurrently its impact on the UK Labour market and economy. The team will carry out a case-study on BT and will critically evaluate, analyse and highlight the advantages and disadvantages of HR outsourcing with the intention of reviewing the outcomes and where necessary suggest solutions where likely problems can be encountered. An analytical review will be carried out of the major HRM problems which can arise from organizational change and where required recommendations made. The team will use British Telecommunications as a case study to establish the impact of BPO. This briefing aims to provide a reasoned critique of existing literature based on surveys, textbooks, journals and official trade data. BACKGROUND British Telecommunications (BT) is a wholly owned subsidiary of BT Group Plc, a public limited company registered in England and Wales and listed on the London and New York Stock Exchanges . BT is one of the worlds leading providers of communications solutions and services operating in 170 countries. It principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.Its main activities are web hosting, IT solutions, Internet services, telecommunications and broadband networks. In the fiscal year ended 31 March 2007 BT had a net turnover of  £9,499 billion. In the UK alone it has pool of 87,000 employees and 180,000 pensioners, whilst on a global scale it has 10,000 employees spread over the countries it operates within. For years, British Telecom ruled the UK market as a monopoly. It was the British Telecommunications Act of 1981 that brought this to an end and put in its place a duopoly, where BT competed with Mercury. The company was formed in 1981 as a subsidiary of Cable Wireless, mainly to challenge the monopoly of British Telecom. The privatisation of British Telecom in 1984 opened the industry to full competition and in 1991, this effectively brought the duopoly share by BT and Mercury to an end. With the liberalisation and opening up of the phone market to global competition came renewed pressure on BT from the telecoms watchdog Oftel to open up more of its network to competitors and cut its prices. The pressures on BT became greater than ever. The stiff competition in the telecoms market, the huge cost of paying for third-generation (3G) mobile phone licences, pressure from the industry regulator Oftel to lower its prices and informed, discerning customers meant BT had to deliver even higher levels of quality and service, at competitive prices in order to stay afloat. All these pressures necessitated mindset change and BT was forced to review its business processes. In order to meet up with the arrival of new competitors and the quickening pace of technological change in the industry, speed of action and reaction became critical success factors. With the competition that flooded the UK market in the 1990s, BT started considering cost reduction that will maximise efficiency without compromising quality. One of the major steps taken was to outsource the transactional side of its human resources operation to Accenture HR Services, which in turn off-shored to its India branch. BT believed that the competitive edge for any global communications provider is human capital and to survive and thrive, it requires world-class human resource (HR) competencies and the processes for managing them. Youndt et al. (1996) highlights that a HR system focused on human capabilities is directly related to multiple dimensions of operational performance. Huselid and Becker (1997) describe that a firms effectiveness is associated with HR capabilities and its attributes. ADVANTAGES OF OUTSOURCING / OFFSHORING Outsourcing enables an organisation to improve its focus on its core values allowing it to remain competitive on the market (Morello, 2003) . Prahalad and Hamel 1990 state that firms must concentrate on core competencies to gain competitive advantage. Through outsourcing specialist skills can be drawn out from a pool of expertise when and where needed whilst opportunities for enriched career development exist for the remaining staff. Organisations are able to turn over certain classes of risks to their suppliers, such as demand variability and capital investments. Unlike the buyer, the outsourcing buyer can spread these risks over multiple clients. Profitability can be achieved as outsourcing increases a businesss cashflow by creating cost reductions through cheap labour and reduced operational expenses i.e. office space, utility. Funds which would have been used for large capital investments can be released for other uses. Contracting out operational functions reduces the competition on capital as the outsourcing company provides the capital investment as part of its overheads. Companies can create an integrated market as it is a cost effective way of globalisation particularly when it selects the best available resources and labour. Figure [rumbi insert appendix] reflects the changes to operational costs which BT experienced when it outsourced. According to Som Mittal, former Managing Director of Compaq India has claimed that payroll processing to countries like India companies can achieve a 20-25% gain in productivity. Outsourcing can increase the service level given to clients. With offshoring an organisation has the ability to have a 24-hour a day workforce resulting in a more timely service which would not be possible if the organisation operated in once country. BT gained flexibility through outsourcing to Accenture as agility or quick response to business demands was made. Competitive advantage can be attained through cheaper prices. When the product prices cannot come down further operating in a highly skilled, low-wage labour area will be advantageous. (Frubel, Heinrichs and Kreye 1980) . As the product price falls consumers are willing to demand a larger amount of goods. The off-shored countries receive economical benefits. Nasscom Chairman Som Mittal remarked ‘Its a win win situation for countries which allow outsourcing and the countries which receive outsourcing (Ahmed 2004) . DISADVANTAGES OF OUTSOURCING/OFFSHORING: When outsourcing to a third party resentment can occur between permanent and contracted staff. Contract/temporary staff may fail to have a sense of belonging whilst permanent staff can remain aloof in order to protect their works hindering teamwork. Offshoring particularly on the outsourcing of work to India as the UK labour force believes that they are losing out on career opportunities. However the McKinsey Global Institute Report states that there are actually too many jobs and not enough people in the UK to fulfil them. Therefore fears of a widespread unemployment are unlikely and thus this resentment could be seen as unnecessary (Lander 2006) . The lack of direct communication between the organisation and the client can hinder the development of solid relationships and can result in the main organisation lacking control of the outsourced project. One of the key aspects of motivation is social interaction and self actualisation (Maslow cited in Mullins, 2001). Another perceived drawback of off-shoring is the decrease in levels of communication. When English is not the native language of the source area, poor command of the English Language leads to prominent resentment of offshored services (Ahmed,2004). Results of a survey carried out by the Nationwide building in 2005 reflected that 91% of UK adults would prefer their calls to be handled by UK-based call centres (Lander (2006). A major drawback is the expense of regaining a customer once lost, because it could cost up to 6 times more in marketing costs to gain a replacement. Cultural differences can be a disadvantage of offshoring i.e. Ryan Kinzy of K3 Group a large outsourcing company states that there are 3 months which are viewed as the most auspicious time for weddings in India, for example half the staff are out of the office. Ryan highlights that building up teamwork is a difficult challenge as employees may lack intuition due to their culture, Indian workers require a lot of direction. Their relationships are hierarchal, family and caste dependent and they have an educational system that emphasises routine learning over independent research. Outsourcing can prove expensive as payment of redundancy packages for the laid off staff can be a major drawback. As the number of companies offshoring to India rises, employee retention becomes a challenge due to the fact that as market competition increases, salaries are required to be competitive. Organisations will have to decide whether the cost-savings outweigh the revenue generated. Risks can be encountered due to the socio-economic conditions which can hinder the progression of operations i.e. maintaining trade risks. The chance of off-shore fraud also exist as the use of funds can be diverted. There is also the risk or data loss. BT faces the risk of fraud emanating from HR outsourcing as off-shore workers have full access to personnel details ranging from bank account numbers, home addresses and other personal details. Non-automated transactions and processing responsibilities enable off-shore workers to have access to highly confidential information. There is an increase in foreign organised crime groups who have targeted foreign off-shore enterprises to gain access data which they process. Organisiations can face compliance risks and their reputation being damaged due to negative publicity resulting from the third party being inconsistent in meeting ethical standards and internal policies. The organisation needs to carryout thorough audits to ensure control . Expertise levels need to be measured to ensure that required service levels of service are met. {Figure xxRumbi to appendix 2} reflects results of problems faced by several companies which have off-shored. The main problem met appears to be low control of performance and data. Offshoring has the limited disadvantage in that the core function of an organisation cannot be accomplished if passed onto an external source . A business which outsources a department still requires in-house technical experts to monitor activities (Greco 1997) Political infrastructure such as changes in government can affect can impact the outsourcing company. Shortly after the election of Sonia Ghandi stock markets plummeted on fears that her leftist allies would roll back fundamental economic reforms. Erratic power grids inexperienced officials and unmotivated employees can also prove to be a disadvantage. ORGANISATIONAL CULTURE BTs management believes organisational culture is innovative with teams that are strategically aligned to BTs operations. Advances in technologies have been applied to benefit BT and its customers to improve processes. Culture can be an object which is manipulated to achieve productivity and organisational improvements, and change over time (Tran, 2008) . In this context, culture is the character of an organisation. However if culture is accepted as being â€Å"†¦.the basic, taken- for- granted assumptions and deep patterns of meaning shared by organisational participation and manifestations of these assumptions†¦Ã¢â‚¬  ( Johnson, 2007) then in this respect culture can be difficult to change. In order to explain the content of cultural context in BT after HR outsourcing, the cultural web will be used. The table below shows the content of the organisational culture with HR outsourcing. Rumbi to appendix 1] According to the above table the organisational culture hinders collective learning in the organisation. Individuals see each other as rivals, rather than a partners. This paradigm creates various obstacles for learning within the organisation, that usually arise due to rivalry, power conflicts and absence of network communication channels (Mullins, 2001). The disadvantage of this power structure is explained by Mullins (2001) who claims that such approach decrease the effectiveness and efficiency of operations management, as participants are detached from the decision-making. BTs new organisational structure is bureaucratic, with the emphasis on standard procedures and operational routines. It might slow down the communication process, with the absence of feedback channels and unnecessary layers that might increase obstructions and cause various distortions in the communication process( Graham Bennet, 1998) . BT has placed its employees after revenues. The management has failed to take into account individual needs of each employee hence developing a coercive rather than participative approach. Within this approach people are being treated as liabilities rather than the core elements of the operations management process, where people become the primary determinant of the outcome quality (Armstrong, 2003) . The organisational culture implies for traditional type of performance appraisal system, which utilises various types of monetary techniques. Wright (2007) argued that the utilisation of monetary tools does not provide the development of a higher level of effective commitment or higher degree of intrinsic motivation and provides a blurred understanding of the relationship between their performance and corresponding appraisal. The communication component forms an important of the above mentioned changes. According to McGregor (1960, cited in Mullins, 2001) in order to get people to direct their efforts towards organisational objectives, management must tell them what to do, judge how well they are doing and reward or punish accordingly. There is also an informative and a motivational purpose. He claims that a clear and thorough description of individual duties and rights within the framework of the organisation may prevent the rise of unmet expectations. As it shows on the table, the communication in the company is of a top-down nature, without proper feedback. This type of communication scheme is good for conveyer-type organisations and not ideal for innovative market-led companies. CHANGE MANAGEMENT The new requirements for adaptation made it necessary for the company to undertake the reengineering of the whole business process, including both â€Å"hard â€Å"and â€Å"soft† elements. According to Senior (1997) â€Å"hard system† change implies â€Å" an attempt to use the benefits of a scientific method whilst recognising that in the real world of business where thing are happening fast, there may not be time to be as scientific as one would like†. In BTs case, â€Å"hard system† change referred to the introduction of new operations management systems, equipment and business facilities, designed to speed up existing operations and reduce the cost per a single transaction. It was designed to maximise the efficiency of every single operation within the business process. Senior (1997) indicates that â€Å"Soft System† changes imply for the change of the organisational culture. The main idea of this approach is listening to the organisation, good communication, developing a shared, vision, gaining real commitment to the change and the vision, education and training, and understanding the tools and techniques for the process. William et al.(1993) indicates that to facilitate effective adaptation of the employees to new working conditions, managers shall reduce restraining forces and reinforces driving forces. However, it shall be considered, that not all measures are equally effective. As Hetzbergs maintainance theory ( cited in Mullins, 2001) shows , the presence of certain factors may act as a powerful motivating factors, while the absence of other elements may produce slight dissatisfaction. At the same time strategic priorities shall reflect the current organisational aims. Under such conditions in order to improve the situation and meet objectives (create a better customer focus) the high involvement of senior managers, who acts as a link between operational and business levels of the organisation, is required. Senior managers shall act as major change agents. Taking the role of change agents, it is important for senior managers not to ignore employees natural resistance to new systems, but to create appropriate incentives to fasten the transactional process from resistance to commitment (Graham and Bennet, 1998). The ignorance of or resistance to changes will introduce different open conflicts, which will significantly worsen the organisation environment affecting its performance level and flexibility. This could result to failure to raise performance and attract or retain customers, which may lead to significant costs and even reduce the companys chances to survive and succeed in changing market conditions. According to Mintzberg Quinn and Ghoshall (1995) the overall rationale for any outsourcing activity is that outsourcing provides, greater economies of scale, flexibility, increase in levels of expertise, cost effectiveness, reduced costs and added value to any organisation. The rationale of BT outsourcing its HRM functions were to increase shareholder value, sustain progress and cope with the pace of change. Outsourcing of parts of the HR function has become more common. Lonsdale and Cox (1998) argue that outsourcing decisions can be classified under the following three headings: 1 outsourcing for short-term cost and headcount reductions; 2 core-competence-based outsourcing, where peripheral activities are passed to third parties and core activities are retained in-house; 3 iterative and entrepreneurial outsourcing, where periodic reviews of critical market activities are undertaken, with subsequent decision to retain or outsource. IMPACT ON UK LABOUR FORCE Human capital is emphasized as the most valuable asset of the 21st century business. The primary effects of outsourcing/offshoring on HR and Labour Relations are related to managing transition in HRM such as personnel changes, managing layoff, downsizing issues, and the costs/dynamics of actually managing an off-shore contract. The laying off of UK employees as a result of restructuring to effect the outsourcing contracts can have a negative impact on employees. Layoffs cause major morale problems among in-house ‘survivors and may lead to dissatisfaction and reduced delivery speed. Some UK companies experienced productivity dips and potential legal action from laid off employees resulting in costs of severance, retention bonuses and retraining being encountered. According to a survey by Deloitte and YouGov (2006) revealed that fear of job losses was prevalent in the UK with 82% of public perceiving offshoring as a threat . 1 in 3 people stated that UK companies should be forced to bring back jobs to the UK. Chief economist of the Work Foundation, Ian Brinkley commented ‘Fears have been stoked by claims that the Chinese and Indians are coming to get your lunch to describe the insecurity that offshoring has caused. With regards to knowledge transfer there is concern that some of the job experience is being exported. If low-level skill tasks are sent off-shore then so is the experience gained from performing those tasks. When the time comes to perform higher-level tasks where previous experience is mandatory, there is no alternative than to go off-shore because that is where the experience will available. In some instances company plans imply that higher-level tasks will remain performed on-shore, the lower-level tasks are performed miles away. The knowledge and experience of those ‘low-level jobs will be gone forever, and may impact the proper development of the ‘higher-level jobs. Forrester a US research group released a study that by 2015 Europe will have lost a collective number of 1.2 million jobs to off-shore locations increasing its reliance. Alan Blinder a US economist and former advisor to Bill Clinton has supported this thesis by stating that offshoring will lead to a ‘third Industrial Revolution. He views that off-shore is now a man-made comparative advantage and that workers will be forced to seek employment in personal services which remain non-tradable. There is a long-term impact on the types of jobs that people are training for, as well as the ‘transfer of knowledge relating to many job structures in the workplace such that there is a ‘domino effect. Steve Loy feels that these ‘outgoing tide of jobs could threaten fundamental technology research as well as jobs. The astute students will recognise the rapidly dwindling job opportunities in HRM and will choose other programs of study thus loss will be encountered in HR leading to a labour-force that has inadequate HRM knowledge to compete in a high knowledge based economy. The evaluation of the impact of off-shore is mainly based on estimations of collective data. Jobs most at risk are non-client facing and low knowledge content jobs those which use a lot of Information technology, creating outputs that can be transmitted via IT. An analysis by the CPRP concluded that 20% of non-client facing jobs are likely to be moved abroad. The potential is apportioned as a function of international trade and investment, the industrial structure of the economy, human capital, employment indicator, product market regulations indicator. Not all jobs created off-shore by UK companies automatically translates to job losses in the UK labour market. Employees are increasingly demanding services hence time difference plays a role in off-shore, offering them extended services. The lower price makes it possible for instance to offer services which would not be available otherwise i.e. 24 hr call centres. The information collated by the European Restructuring Monitor (ERM) s hows that job loss due to offshoring is in fact very small. During the first quarter of 2007 ERM recorded 420 restructuring cases in Europe. They announced 137,762 job losses and 184,511 job gains. Only 5.5% of all jobs lost were due to offshoring activities. For the year 2005 the percentage of job losses due to offshoring was only 3.4% of the total job losses. To measure the extent of job loss due to restructuring we can use redundancy notification, the effects of offshoring does however vary with the country. In France, national Institute for Statistics and Economic Studies estimates in its 2007 report on the French economy that offshoring has been responsible for the destruction of 15,000 jobs per year between 2000 and 2003. This is to contrast with a job creation in the private sector of 200,000 per year . In the UK there is no significant decline as per the results of the LFS Redundancy Tables ‘Employment growth in the occupations considered susceptible to offshoring has been very strong. The redundancy levels for these occupations, although high relative to the whole economy, have been falling in the last four years. The overall employment rate for these occupations has also shown an increase showing the cost of moving low-skilled jobs abroad is either falling or positive job creation is highly prevalent in the IT enabled occup ations. This does not mean that jobs are not being off-shored, and it is entirely possible that in the absence of offshoring, employment in these areas might have been higher. The adverse impact is entirely triggered by much larger changes in domestic demand for such services, the UK in particular has been extremely successful in developing as a world leader in knowledge based international trade. Jobs created through the expansion of exports of services are likely to outweigh the contraction of jobs caused by import of services. According to a report by Amiti and Jin Wei (2005) job growth at divisional levels has not been negatively related to service outsourcing but has had a negative impact on the demand for unskilled labour. In the UK outsourcing has had no reflected effect on the labourforce. The Deloitte and Recruitment Employment Confederation Report states that both permanent and temporary staff billings continue to rise. National press recruitment advertising in the UK went down by 11.3% in July 2005 in both public and private sectors reflecting a positive direction in the labour market and no relevant changes in the economy. Outsourcing is increasing consultancy work in the United Kingdom hence is beneficial as it offers flexible working hours / days for UK employees. This is particularly favorable for women who are raising children as is allows them to earn a salary whilst at the same time having adequate time with their children. There is also the flexibility of home-working. Structural changes can occur in the economies of both the outsourced/sourcing companies and due to the debate on who is benefiting/losing racism can be allowed to rear its head. A report prepared for the Department of Trade Industry by Ovum (2006) concludes that even though the actual impacts of an increase in trade and the expansion of global sourcing have been quite modest to date, offshoring can change the skills structure of labour demand, increasing the vulnerability of low-skilled workers in particular. ECONOMIC IMPACT Concern over off-shoring has become a surrogate for wider issues about economic insecurity, said Work Foundation chief economist Ian Brinkley. An interesting corollary benefit of outsourcing is the benefit to the economy. Indias National Association of Software and Services Companies commissioned a report by Evaluserve that stated that for every $100 worth of work sent abroad by US companies, $130 to $145 will be reinvested in the US economy. Cost savings are said to create value in the UK economy. Ahead of monetary capital, knowledge economy has become a focal point in the policy of outsourcing and off-shore. Strategies have been devised i.e. the Lisbon Strategy centres to promote, research, innovation in the development of human capital. In the future, human capital is the only way that Europe can remain prosperous. The main beneficiaries in the UK are the educated high skilled workers and the losers will be semi/low skilled workers. The UK government needs to investment more in education to continue pushing towards a leading knowledge based economy to avoid vulnerability. It needs to investment in human capital and focus on domestic policy choices for the losers of rapid structural changes within the UK. As a result of off-shoring the UK government is losing funds which could possibly be raised by corporate and income tax. However, it has stated that it does not have plans in place as yet to prevent outsourcing. The Department of Trade Industry has stated ‘it is a commercial decision for companies to decide where to locate their business operations such as call centres. The absence of official statistics on off-shore outsourcing leads to speculation and there is also misinterpretation of indirect measures/evidence. The experience of an individual company may or may not select a trend in a specific sector but does not allow conclusions to be made on the economy as a whole. It is possible that the rise in rice prices caused by lower production could be a result of a shift by the working population in India from working in the agriculture moving to the services sector. A great deal of knowledge is tacit and therefore difficult to transfer. Its reproduction can be extremely costly and requires an environment in which it can be harnessed effectively. According to a recent World Bank publication India is at the bottom end ranking 98 out of 128 countries of an index that measures the ability to create, absorb and diffuse knowledge therefore its threat is minimal to the UK economy. The economy-wide measures such as a countrys balance of payments can assist us in understanding the patterns of cross border trade and establish the impact of offshoring. If the outsourcing of tasks by UK based companies to off-shore locations i.e. India is soaring then the UK should be importing more of these services from India. The CBI has stated that the UK companies have benefited from off-shore as they are now receiving improved work-force skills at a low rate making their enterprises more profitable. According to results obtained from the Office for National Statistics the redundancy rate for the three months to January 2008 was 4.4 per 1,000 employees, down 0.9 over the quarter and down 1.1 over the year. These figures on the redundancy rate reflect that though a large number of organizational services have been off-shored services this has not had a significant impact on the UK economy. The UK has emerged as a world leader in ‘knowledge services and between 1995 2005 exports of its services grew by over 100% compared to its exports of traditional service exports such as transport. India is ranked 6th for global ‘insourcing behind the US, UK, German France and the Netherlands who appear to be the top rec

Environmental Proposal

Baderman Island Resort The Baderman Island Resort is a luxury style resort whom depends on its elite location, all-inclusive accommodations, and cultural attractions to catch the attention of its guests. Boardman Management Group is responsible for the operations of three hotels, several restaurants, two gift shops, a golf pro shop, and a spa. Baderman Island Resort attracts events such as company retreats, conventions, expositions, and family or couple vacations; which happen to be the key of growth for the resort.To assure the attraction and maintain revenue, the resort in combination with its staff must be able to provide a luxurious environment for its recreational guests and a world-class environment for its business clientele. This paper will present recommendations to improve the environment at Baderman Island Resort. Creating Alliance Baderman Island knows that their internal and external stakeholders; their employees and their guests, are the most valuable people for keeping their business a success.There are always ways to improve a business and they understand that. So the first strategy recommended for Baderman Island would be to reduce workplace stressors. Role stressors, workload, work-family conflict, job insecurity, and organizational constraints are a few workplace stressors. Some specific stressors for Baderman Island employees could be that they feel overwhelmed since there is so much future development being planned, as well as never having a quiet calm workplace since tourists are always visiting.There are ways to reduce stressors though. â€Å"Organizational efforts to reduce the impact of job-related stressors generally take one of five forms: (1) stress management training, (2) reduction of stressors, (3) alternative work schedules and telecommuting, (4) family-friendly benefits, and (5) health and fitness programs† (Jex, 2008, p. x). Having a stress management program would be very helpful for Baderman Island employees, so they c an be educated in the nature of stress and its effects.Since this is a resort destination, the company could offer family-friendly benefits by offering a weekend where employees and their families are invited to enjoy the island and its amenities together at no cost. Health and fitness programs are another reducer of stressors, so Baderman Island could offer the golf course and spa at discounted rates to their employees. Offering the Hot Stone Massage for $50 rather than $115 could definitely benefit the employees.A second strategy recommended to Baderman Island to create alliances between the company and their employees and customers would be to motivate employees with different types of goals. The goals would have to do with the customers. For example, Baderman Island could start sending out surveys when people depart from the island asking for feedback and the goal would be to receive a certain amount of high customer satisfaction. This would not only assure that the customers ar e enjoying their time on the island, but also motivating the employees to be hard and helpful workers.Jex (2008) explains the three main reasons that goals have motivational value: Directs employee’s attention and effort in a particular direction, avoid being sidetracked by maintaining task persistence, and facilitate the development of task strategies, which could mean employees coming up with innovative ideas to reach the goals (p. x). Meaning this is a win-win situation for Baderman Island, its employees, and the guests. Leadership versus management differences A leader is a person who leads whereas a manager is on who manages. A leader is to motivate people.Manager is given powers by the company and the subordinates and they have to do as they are told. There is a difference within them both. Managers think incrementally, leaders think radically. Managers tend to do everything by the book and with leaders the just go with the flow. BMG hire managers that are experienced i n their field. They also look and hire people that have new ideas and the visions for the island, that way they don’t have the necessary experience. The resort is managed by the Boardman Management Group (BMG) who is responsible for various strategic functions.The CEO reports to the Chairman of the Board of Resort Management, and works closely with the Resort Board of Directors and supervises the relationship between Baderman Island Resort and the Boardman Resort Management Boardman Management Group (BMG) is responsible for handling the following departments resort-wide: †¢ Regulatory †¢ Finance/Accounting (Consolidated Statements) †¢ Legal †¢ Marketing †¢ IT Services Each unit is headed by a General Manager that reports to the Vice President, that handles all locations within their specified areas. Lodging: Main Hotel, The Tenney, Melancon Convention Hotel †¢ Convention: Convention center building and meeting rooms. †¢ Food Services: All re staurants and kiosks †¢ Merchandising: All hotel shops and visitor center shops †¢ Recreation and Activities: Visitor center, golf, pro shop, beach activities, botanical garden. †¢ Engineering/Transportation: Maintenance and repair, housekeeping, transportation, building upkeep, ferry, train Each unit is considered a profit center, except for Engineering and Transportation, and is responsible for their own budget and overall profitability and growth.Each SBU is charged back for the service utilized from Engineering/Transportation. With in the Baderman Island Resorts the managers of each area can also be good leaders to lead their employees to perform the highest customer service. They would also have to appoint some one as a crew leader. A manager needs to be formal authority or management to be really effective. Having a set crew leader for each area of the resort that way the employees have someone to come to with issues instead of going directly to the manager.If t he leader isn’t able to help or answer their questions or problems then the leader would have to go to the manager for management response. Environmental Proposal Baderman Island resort and spa has created a destination desired by worldwide travelers. The vacation atmosphere is visually created by the brick and mortar presence of the lighthouse, hotel, botanical gardens, and island. The vacation experience is created by Baderman Island employees.Baderman Island management wants to create a corporate environment that acculturates supportive team function and learning while empowering sustainable innovation and creativity. To promote team-oriented behavior throughout the Baderman Island corporate culture several recommendations are presented. Each department within the organization will be considered a team. To begin, create recognition and reward systems highlighting and promoting the team. Suggestions and recommendations to innovate, develop, and improve services and systems throughout the organization will be recognized at the team evel. If a team’s suggestion results in an implemented policy or program, it will be named after the team that made the suggestion. The rationale for naming the policy or program after the proposing team is the elevated sense of contribution to the organization’s core function bestowed upon the team. Teams will enjoy worldwide recognition for suggestions implemented to improve organizational relations with the local community, organic farmers, or botanical organizations.To create an environment that encourages and rewards innovation and creativity, any team suggestion implemented that create corporate efficiencies that can be calculated as a savings will be remunerated as a spiff to the suggesting team members as long as they are with the organization. The spiff will be 2% of the corporate savings to the team up to $50,000 annually, and 1% of corporate saving to the team if the spiff exceeds $50,000 with no max imum. To encourage individuals’ participation within team structures each team will be able to put individual members on probation, with cause.Management will be required to review team members put on probation to make a move or remove determination. Teams will collectively have the discretion for individuals’ movement between teams to empower teams to elevate morale. The corporation’s international customers will be better serviced by employees who know French and Spanish. Employees will be encouraged to expand their individual repertoire and receive a $500 spiff for learning French or Spanish and pass a language test. Team participation will be encouraged with a $10,000 team spiff when all team members learn French and Spanish and pass a language test.To build corporate buy-in and develop employee knowledge a $500 spiff will be given to employees learning two sister teams’ role, function, and responsibilities and passing a test. To encourage intra-team collaboration a $10,000 team spiff will be awarded when all team members learn two sister teams’ role, function, and responsibilities. Conclusion The alliance created between Baderman Island Resort, the employee, and their clientele are the key to success for the all-inclusive, luxury resort.Baderman Island Resort will prosper in growth and revenues as a result of the satisfaction of all entities responsible. Throughout the recommendations, job satisfaction and customer satisfaction are the basis for success. When the entities believe they are a key to the success, they are more willing to participate in the recommendations. We have made several recommendations on how to improve the environment of Baderman Island Resort and these recommendations now lie within the decisions of the management team.