ALAM MD MAHBUB UL Student ID# 101847503 Strategic Human Resource Management in Chiyoda Corporation A Study on the Problem and Solution for the Improvement of Current Human Resource Management System of Chiyoda Corporation From the establishment of 1948
ALAM MD MAHBUB UL
Student ID# 101847503
Strategic Human Resource Management in Chiyoda Corporation
A Study on the Problem and Solution for the Improvement of Current Human Resource Management System of Chiyoda Corporation
From the establishment of 1948, Chiyoda Corporation, has become one of the world’s leading integrated engineering companies specializing in industrial facilities, such as oil refineries and LNG facilities. With its workforce involved in construction projects all over the world, Chiyoda Corporation’s requirements for qualified manpower never stops. As of March 31, 2018, Number of Employees: 6,176 people(Consolidated and Equity Method Companies), 1,495 people (Non-consolidated). While the company already had talent acquisition processes in place for new freshman, but it did not have a dedicated Strategic Human Resource Management System for short/long term employment management. It’s just follow manager’s own decision for hiring new employee which led the company, in many cases to source for potential candidates through third-party agencies, which increasing cost-to-hire and also effect of company’s performance. Time-to-hire and candidate experience were also affected by not having a dedicated SHRM(Strategic Human Resource Manager) in place.
“We were keen to internalize the entire talent acquisition process and build solid talent pools of qualified resources that could be solicited quickly in the future. We also knew we needed to improve on candidates’ feedback when applying for jobs at Chiyoda Corporation, if we were to encourage job seekers to re-apply again in the future”, Said by Talent Acquisition lead at Chiyoda Corporation.
Company’s human resources have a straight effect on the company’s future. As a strategic human resource manager, I emphases on human resource programme of Chiyoda Corporation that has long term objectives. I am focusing on internal human resource issues as well as on addressing and solving problems that effect management programs in the long term. The main goal of strategic human resources is to boost employee productivity by focusing on business confrontation that take place outside of human resources.
SHRM duty included to develop Chiyoda group employees strategies that help to develop the business performance of Chiyoda and help to build an environment of modernism and flexibility among employees. As a head SHRM I have define the main actions are to identify key HR areas where strategies can be implemented in the long run of progress the overall employee motivation and productivity.
Current HRM system of Chiyoda
Chiyoda Corporation is currently followed the traditional Japanese styles HRM Model which include the following,
1. Once a year graduates (freshman) recruitment (typically in April)
2. Integrated personnel management of while-collar and blue-collar employees
3. Chiyoda own company training and education
4. Promotion based on internal evaluation which increases periodic salary increment
5. Fixed job assignments and employee are divided in small group activities
6. Job security until the age of mandatory retirement
7. Joint employee-management consultations and enterprise union
Issues in current HRM system of Chiyoda
Chiyoda Corporation is facing issues of the Japanese traditional recruiting systems, as from a Chiyoda Group internal audit found that, in this so called “Shin’nyusei” culture, where in every year in April recruiting new fresh graduate in systematically based on their personal ambition, own communication skills and character. Unfortunately, these freshmen didn’t have any specific job skills and most of them was assigned in different job position, where they are studied. In internal organization analysis found, nearly 65% of the managers reported that they face difficulty finding right candidates with required level of technical knowledge in their essential position. White-collar recruiting typically begins at the graduate level, where company ready promising students for “lifelong employment”.
The company training module and training for new employees is so called traditional training which give new employees about culture, ethics, and behavior and so. Not any technical issues.
As the employment is done by the managers choice, thus Company facing difficulties when looking for talent in emerging technologies such as artificial intelligence, self-driving technology, financial planning analysis, and web analytics. Managers choices in dispute of thinking Employees own skill / interest field. Its make employee to think himself unfair. The same internal survey shows, 72% of section leader reported that, their sections anticipated progress have been affected by talent shortage.
As most of the employee think himself a permanent and life time employment, sometimes its make them less creative, less motivated and its make effects in company’s overall performances.
Japanese vertical society or “Tateshakai”, age and seniority are untouchable. This process demoralizing young creative employees who are facing issues to go superior position based on own interpersonal skill. Traditionalism, teamwork and loyalty are all important attributes to go ahead, where as personal desires have no place.
Less social and cultural involvement is another obstacle, as most of employee out of social platform and they tried to works in long time that make distance with family less social.
Analysis of Current HRM system
From the internal audit it was found that, 27% of new recruit employee leave the organization within two years of their assignment. It was happens for various reasons and causes the serious effect in company’s performance and reputations. Apart of Shin’nyusei for the short term employment’s it was found that most of the employee didn’t wants to continue after finish the current assignment.
The effective execution and general effect of the HRM procedure should to be rely upon the capacity and responsibility of managers, related sections and senior administration. The parts of each key performers must undertake follows,
The role of senior management: The findings clearly highlight the need to raise the profile, role and capability of the personnel section at section department level. Best practice demonstrates that the degree to which this is accomplished is affected fundamentally by the conviction of senior administration in the additional esteem that HRM can add to the association, and in the unmistakable help given to HRM.
The role of the HRM section: Best practice shows that the fruitful progress from work force administration to key HRM is reliant on furnishing HR staff with the fitting learning, abilities and demeanors. Line offices need to start or accelerate the way toward getting and creating specialisms in their staff segments.
The role of the line manager: Various variables will be critical to the effective devolution of HRM to section managers. Devolution must occur inside the expansive system of key and business making arrangements for the division overall instead of being a different exercise. Administrative abilities under the new execution administration and improvement framework should put an accentuation on aptitudes and practices required for the viable advancement and administration of staff. It is similarly vital that sufficient assets are apportioned to the preparation and instruction of section managers.
The role of the center: In the more extended term, the issue of more prominent adaptability in connection to reviewing and pay may should be returned to, if a completely coordinated way to deal with HRM is to wind up a reality. Consistently, concentrated enlistment forms require some change if section offices are to be encouraged in better arranging and sending their HR. In future, the center should focus on giving direction and aptitude to divisions in creating HR methodologies, executing execution administration and professionalizing HR at the staff area level.
Actions plan as a new SHRM
As a new SHRM, after observation and analysis of the current Chiyoda Corporation HRM system, I would like to propose the below steps to meet the HRM system of Chiyoda group to meet the current upcoming new age challenges.
Resource planning: Resources are very important and should to be available to meet both current and future Chiyoda business needs according to company strategy. It was found that, manager is asking for new recruitment without considering the resources and or without analyze the actual requirements. Manager should to be provide the real situation with the assessment of request.
Workforce planning and recruiting: HRM should to define control making techniques, including those for institutionalization activities, in view of the comprehension of their own areas administration prerequisites and business systems. Such HR supervisor should to have vital information concerning the objectives of worker of institutionalization endeavors and the structures, definition forms, or other fundamental learning of standards.
Generate an own employee development plans: For long term benefited workface, having qualified employees is only one step, however for long run company growth employee need to support form organization. Some steps which company can be taken as follows
? Before set objectives for employees, Chiyoda should try to align their development plan with company’s own needs.
? Sections managers should to consider that, just undertake to know employees’ skill levels and career aspirations not give them the actual situation. It’s required talking with employee frequently.
? Once managers looked at each of employee’s abilities and experience, as well as company’s needs, managers should decide precisely what skills each person needs to obtain.
? Once managers/ company know what the objectives are, it’s easy to figure out how employee will go about achieving the goal.
? It’s recommendable to set up some opportunities where employees can quickly apply their own interpersonal new skills effected their assign job and get positive feedback.
Measuring performance management: The experts should have skills necessary to draft standards and to negotiate such prepared standards with ultramarine participants and should to be able to achieve the standardization efforts defined in their sections rule-making strategies. Artificial intelligence can be used as performance measurements process.
Generate a succession plan: A succession plan can support to minimize disruption by identifying critical roles in Chiyoda business and employees who have the skills to closely undertake the vacant positions, if someone leave, succession plan can be implement behind the scenes.
Chiyoda specific training and certification:
? Carrier Development Plan (CDP): CDP can be created to support development of individual carrier path for employees CDS(Carrier development sheet) which shows details of desired carrier steps. Using this CDS manager and HRM supervisor can arrange employee’s carrier development training.
? Stage up Training: Various training program can be arranged at employee’s carrier milestones stages. These training focus employees capability, potentiality of improvement
? Training for Project Management / Key positions: Training can be arranged for improving employee’s capability for future opportunity of PRM, PKP (Project Key Person), EM (Engineer Manager) and BM (Business Manager).
? Talent management through the performance appraisal system: Young employee and supervisor can share the goals of skill, knowledge and experience for implementing knowhow, obtaining qualifications and for external activities.
? Self-improvement training program: Chiyoda can provide financial support to acquire knowledge and skills related to executing job, official qualifications and licenses etc.
A Satisfying working Environment
A satisfying working environment can be achieve considering more about these
? Holidays Systems (Seasonal, Refresh, Anniversary holiday and accumulation of holidays)
? Shorter working hours, nursing leave, child care leave etc.
? Support for volunteer activities
? Health management (Physical health, health design program, mental health).
? Promotion of diversity (Diversity, individuality ; characters of employees are respected)
Factors to be considered as a new SHRM
Contribution of SHRM to the achievement of Chiyoda’s organizational objectives,
? Company culture
? Business / company Growth
? Profit increasing
? Impact of technology
? Competitive advantages of Business Competition
? Satisfaction of Stakeholders