Manage Workforce Planning

The assessment tasks for BSBHRM513 Manage workforce planning are included in this Student Assessment Tasks booklet and outlined in the assessment plan below.

To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.

Assessment plan

Assessment Task	Overview
Written questions	You must correctly answer all questions.
Develop a workforce plan project	You are required to develop a workforce plan for King Edward VII College and meet with stakeholders to seek feedback on the plan, as well as confirm approval.
Implement diversity actions project	You are required to implement diversity actions from the workforce plan.
Workforce plan implementation project	You are required to identify required competencies for an employee and develop a career development plan as part of implementing a succession planning program. You must also develop a redundancy and redeployment policy and procedure.
Workforce plan review and evaluation briefing report	You are required to write a report on a review and evaluation of the workforce plan.

Assessment preparation

Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions.

When you have read and understood this unit’s assessment tasks, print out the Student Assessment Agreement. Fill it out, sign it and hand it to your assessor, who will countersign it and keep it on file.

Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.

Assessment appeals

If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s assessment appeals process.

You have the right to appeal the outcome of assessment decisions if you feel you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment instructions

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet

This must be filled out, signed and submitted with your assessment responses.

If you are submitting hardcopy, the Assessment Task Cover Sheet should be the first page of each task’s submission.

If you are submitting electronically, print out the Assessment Task Cover Sheet, fill it out, sign it and then scan and submit the file.

The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback on the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on reassessment opportunities as per your RTO’s reassessment policy.

Depending on the task, this may include

resubmitting incorrect answers to questions (such as written questions and case studies)

resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task

redoing a role play after being provided with appropriate feedback about your performance

being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.

Assessment task information

This gives you:

a summary of the assessment task

information on the resources to be used

submission requirements

resubmission opportunities if required.

Assessment task instructions

This includes questions you will need to answer or tasks that you need to complete.

Your answers must be typed using software as indicated in the assessment task Instructions.

Copy and paste each task’s instructions into a new document and use this as the basis for your assessment task submission. Include this document’s header and footer.

If you are submitting electronically, give the document a file name that includes the information as indicated in the section called ‘Naming electronic documents’ (see below).

Naming electronic documents

It is important that you name the documents that you create for this Assessment Task in a logical manner.

Each should include:

Course identification code

Assessment Task number

Document title (if appropriate)

Student name

Date it was created

For example, BSBHRM513 AT2 Workforce Action Plan Joan Smith 20/10/20.

Icons

Icons are used in task instructions to indicate three of the common stages within the task.

	This icon indicates that you will need to meet with your assessor (and possibly other students) to complete a meeting or role play.
	This icon indicates that you will need to communicate via email or send documents to via email.
	This icon indicates that the you will need to submit an item of evidence.
	This icon indicates all other stages during the task, which may include research, developing documents, brainstorming ideas and so on.

Additional resources

You will be provided with the following resources before you begin each assessment task.

Assessment Task 2:

· Strategic and Operational Plan

· Workforce Information 2018

· Workforce Action Plan Template

Assessment Task 3:

· Recruitment, Selection and Induction Policy and Procedures

Assessment Task 4:

· Career Development Plan Template

· Role Competencies Statement

Assessment Task 5:

· Exit Interview Results

· Focus Group Results

· Workforce Information 2018

· Workforce Information 2019

· Briefing Report Template

Checklist

This will be used by your assessor to mark your assessment. Read through this checklist as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses or observing your performance.

Student assessment agreement

Make sure you read through the assessments in this booklet before you fill out and sign the agreement below.

If there is anything that you are unsure of, consult your assessor prior to signing this agreement.

Have you read the assessment requirements for this unit?	Yes	No
Do you understand the requirements of the assessments for this unit?	Yes	No
Do you agree to the way in which you are being assessed	Yes	No
Do you have any specific needs that should be considered	Yes	No
If so, explain these in the space below.

Do you understand your rights to reassessment?	Yes	No
Do you understand your right to appeal the decisions made in an assessment?	Yes	No
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date

Assessment Task 1 Cover Sheet

Student declaration

To be filled out and submitted with assessment responses

I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).

I understand that if I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.

I have correctly referenced all resources and reference texts throughout these assessment tasks.

Student name
Student ID number
Student signature
Date

Assessor declaration

I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor name
Assessor signature
Date
Assessment outcome	S	NS	DNS	Resubmission	Y	N

Feedback

Student result response

My performance in this assessment task has been discussed and explained to me.

I would like to appeal this assessment decision.

Student signature
Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

Assessment Task 1: Written questions

Task summary

This is an open-book test, to be completed in the classroom.

A time limit of 1 hour to answer the questions is provided.

You need to answer all of the written questions correctly.

Your answers must be word processed and sent to the assessor as an email attachment.

Required

Access to textbooks and other learning materials.

Computer with Microsoft Office and internet access.

Timing

Your assessor will advise you of the due date of this assessment.

Submit

Answers to all questions.

Assessment criteria

All questions must be answered correctly in order for you to be assessed as having completed the task satisfactorily.

Resubmission opportunities

You will be provided feedback on your performance by the assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you with written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Reassessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel you have been dealt with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Written answer question guidance

The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to assist you to provide the type of response expected.

Note that the following guidance is the minimum level of response required.

Analyse: when a question asks you to analyse something, you should do so in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.

Compare: when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.

Contrast: when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.

Describe: when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.

Discuss: when a question asks you to discuss something, you are required to point out important issues or features and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.

Evaluate: when a question asks you to evaluate something, you should put forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.

Examine: when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.

Explain: when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.

Identify: when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.

List: when a question asks you to list something, this means that you are asked to briefly state information in a list format.

Outline: when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.

Summarise: when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.

Assessment Task 1 Instructions as provided to students

Provide answers to all of the questions below:

Explain how the ABS Labour Force Survey can be used by an organisation to assist in workforce planning.

Outline the purpose of the Labour Market Information Portal and give two examples of information included in the Portal that can assist with workforce planning.

Explain the purpose of the National Skill Needs List and how it can be used for workforce planning.

Outline the key provisions of the Fair Work Act 2009.

Outline the minimum entitlements of National Employment Standards that have to be provided to all employees.

Explain the purpose of enterprise agreements.

Explain the use of modern awards in workplaces.

Identify at least two examples of modern awards using the Fair Work Ombudsman website. Write down the name of the award and the minimum wages under the award and minimum working hours.

Outline the role of trade unions in the Australian work relations system and indicate whether employees are required to join a union.

Outline the role of the Fair Work Commission in Australia’s national workplace relations system.

List two sources of expert advice that could be used when seeking industrial relations advice. Include the name of the organization and the services they provide.

Describe the purpose of the labour force participation rate and how it can assist in analysing the labour force.

Describe the purpose of the employment to population rate and how it can assist in analysing the labour force.

Outline two commonly used forecasting models that can assist with identifying future workforce needs.

Assessment Task 1 Checklist

Student’s name:
Did the student provide a sufficient and clear answer that addresses the suggested answer for the following?	Completed successfully?	Comments
	Yes	No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Task outcome:	Satisfactory	Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 2: Develop a workforce plan project

Task summary

This assessment task requires you conduct research and develop a workforce plan for King Edward VII College. You will also be required to communicate the rationale for, as well as objectives of, the plan to the CEO.

This assessment is to be completed in the simulated work environment in the RTO.

Required

· Access to textbooks/other learning materials

· Computer with Microsoft Office and internet access

· Strategic and Operational Plan

· Workforce Information 2018

· Workforce Action Plan Template

· Access to a meeting space and roleplay participant (the assessor)

Timing

Your assessor will advise you of the due date of these submissions.

Submit

· Email with Workforce Action Plan attached

· Email with Revised Workforce Action Plan attached

Assessment criteria

For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.

Resubmission opportunities

You will be provided feedback on your performance by the assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 2 Instructions as provided to students

Complete the following activities:

Carefully read the following scenario.

King Edward VII College was established in 2010. The College is based in the Melbourne CBD and it offers a range of courses in management, marketing, human resources and international business. It currently has around 500 students enrolled across all of its courses.

The College is very popular due to its competitive pricing structure, innovative teaching methods and state of the art facilities.

Due to its success, the College plans to establish two additional campuses, one in Brisbane and one in Sydney. The Brisbane campus will commence in October 2020 and Sydney in early 2021. Campus locations are already in place, with the process being overseen mainly by the CEO and Finance Manager. No staff have been employed as yet, but it is anticipated that each campus will require a receptionist, a student services officer and 4 trainers.

All other staff functions will be completed by existing staff at the Sydney campus until such time as student numbers increase substantially.

It is anticipated that maximum student numbers at the new campuses will be up to 50 students per campus.

The College currently employs 24 staff members. That includes the CEO, a Marketing Manager and a Marketing Assistant, Human Resources Manager, Finance Manager, Administration Manager, Office Assistant, Receptionist, Academic Manager, Student Services Officer and approximately 14 trainers.

Information about the staff, including employment status, age, gender and cultural background is provided in Workforce Information 2018.

All staff are employed via individual contracts, and there is no enterprise agreement in place.

1. Research workforce requirements.

Review the scenario information, as well as the Strategic and Operational Plan and Workforce Information 2018.

Identify sources of information that you can use to research workforce supply in the education sector as in the scenario information and as indicated below.

Make notes in relation to:

· The organisation’s requirements for a skilled and diverse workforce as reflected in its strategic objectives.

· Workforce issues as identified in the Strategic Plan and that must be reflected in workforce objectives.

· Workforce objectives that are required to meet the overall strategic objectives.

· Workforce characteristics of King Edward VII College staff, including employment status, age, gender and culture.

· Assessment of staff turnover rate and whether the rate is acceptable or not.

· Factors affecting workforce supply, including economic conditions, industry trends, skills and labour shortages, unemployment rate and competition for workers. Your analysis should be both general, as well as specific to the education sector within which King Edward VII College operates.

· The industrial relations framework that applies to King Edward VII College workforce.

Your notes should be comprehensive, as you will need to use them to complete the workforce plan template that you have been provided with.

Develop a workforce action plan.

Using your research and the notes that you have made, develop your workforce plan.

The workforce plan that you develop must address:

· Purpose of the workforce plan

· Strategic objectives and key workforce requirements

· External environment analysis to identify external factors that impact on the company and its workforce

· Industrial relations relating to the education and training industry, as well as King Edward VII College

· Analysis of current workforce characteristics and profile using workforce information provided.

· Future workforce needs

· Gap analysis to identify the gaps between future workforce need and existing workers

· Workforce plan objectives, including attracting and retaining skilled staff and workforce diversity and cross-cultural management.

· Key workforce plan issues and actions.

· Communication and consultation strategy to assist with organisational changes.

· Contingency plans so as to ensure that the organization can access skilled labour in the event of unplanned events.

Use the Workforce Action Plan Template to guide your work.

Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment, seek their feedback and for the place, date and time of a meeting to discuss it.

Attach your workforce action plan to the email.

Meet with the CEO to establish agreement on workforce action plan.

This part of the assessment requires you to meet with the CEO (roleplayed by your assessor) to discuss the workforce plan you have developed and seek their input.

Print off a copy of your workforce action plan to take with you to the meeting.

Take notes on the CEO’s feedback, as you will be expected to update your action plan with this in the next activity.

Before concluding the meeting, ensure that you have the CEO’s approval and endorsement of your plan.

You should gain their agreement and support for the plan’s objectives and proposed performance indicators.

During the meeting, demonstrate effective communication skills including:

· Speaking clearly and concisely

· Using non-verbal communication to assist with understanding

· Asking questions to identify required information

· Responding to questions as required

· Using active listening techniques to confirm understanding

Revise the Workforce Action Plan.

Update your Workforce Action Plan, incorporating the CEO’s feedback from the meeting.

Name this document Revised Workforce Action Plan.

Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the meeting and the contents of the attachment, and seek their approval.

Attach your revised workforce action plan to the email.

Send an email to all staff (your assessor).

The final part of the assessment requires to you send your final Workforce Action Plan to the CEO and to all staff. Assume that this is part of your strategy to assisting staff to deal with organisational change so you should ensure that you clearly communicate the benefits of the Workforce Action Plan and summarise changes that will occur.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

Attach your Final Workforce Action Plan to the email.

Assessment Task 2 Checklist

Student’s name:
Did the student:	Completed successfully?	Comments
	Yes	No
Analyse King Edward VII’s requirements for a skilled and diverse workforce through a review of the Strategic Plan and scenario information?
Analyse workforce information to identify staff turnover and demographics including age, gender, employment status and cultural background?
Identify and assess external factors for their influence on workforce supply for King Edward VII College?
Develop workforce objectives and strategies that align with strategic objectives and address attracting and retaining a skilled workforce, including addressing staff turnover.
Develop workforce objectives and strategies that align with strategic objectives and address workforce diversity and cross-cultural management.
Develop performance indicators for workforce plan actions?
Develop strategies to assist staff to deal with organisational change?
Develop and document contingency plans?
During the meeting, demonstrate effective communication skills including: · Speaking clearly and concisely · Using non-verbal communication to assist with understanding · Asking questions to identify required information · Responding to questions as required · Using active listening techniques to confirm understanding
Confirm support for workforce plan including objectives and targets?
Implement strategies to assist staff to deal with organisational change?
Task outcome:	Satisfactory	Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 3: Diversity objectives implementation project

Task summary

In this assessment task, you are required to review initiatives in the Workforce Plan for King Edward VII College relating to recruitment and diversity. You will also assist the College in being recognized as an employer of choice, and implement the required actions.

This assessment is to be completed in the simulated work environment in the RTO.

Required

· Access to textbooks/other learning materials

· Computer with Microsoft Office and internet access

· Recruitment, Selection and Induction Policy and Procedure

Timing

Your assessor will advise you of the due date of these submissions.

Submit

· Email with updated Recruitment, Selection and Induction Policy and Procedures

· Email with Diversity Calendar

Assessment criteria

Resubmission opportunities

You will be provided feedback on your performance by the assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Reassessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 3 Instructions as provided to students

Complete the following activities:

Review the following information from the King Edward VII College Workforce Plan:

Issue/need	Action	Outcomes	Resources	Timelines
Attract and retain a diverse workforce/be known as an employer of choice regarding diversity	Update recruitment, selection and induction procedures to increase diversity of employees	Organisational capacity to fill vacancies	Human resources	End 2020
Acknowledging and celebrating calendar days that relate to workplace diversity	Develop a calendar of events	Various important dates and cultural events are advertised and celebrated	Human resources	End 2020

1. Update Recruitment, Selection and Induction Policy and Procedures to increase diversity.

Review the scenario information above, as well as the Recruitment, Selection and Induction Policy and Procedures for King Edward VII College.

Use the internet to research best practice for increasing diversity through improved recruitment and selection practices.

Update the recruitment, selection and induction policy and procedure to reflect best practice procedures for increasing diversity in recruitment and selection.

Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

The email text should outline the importance of diversity in recruitment and selection as well as key changes that you have made to the Policy and Procedures.

Attach your Updated Recruitment, Selection and Induction Policy and Procedures to the email.

Develop a diversity calendar for 2020.

Review the scenario information above.

Research important dates for diversity and cultural events occurring in 2020 in Sydney.

Identify at least 6 important dates and develop a calendar of events. For each event, identify how the College will celebrate that day or event.

Your calendar may be developed in any format, as long as it addresses the above content requirements.

Send an email to King Edward VII College staff (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

The email text should explain the purpose of the calendar and advising staff to note the dates in their calendar.

Attach your diversity calendar to the email.

Assessment Task 3 Checklist

Student’s name:
Did the student:	Completed successfully?	Comments
	Yes	No
Implement workforce planning initiatives to attract and retain a diverse workforce?
Review workforce plan requirements to support the attraction and retention a diverse workforce?
Research and develop required documentation?
Share information with staff and to assist with dealing with organisational change because of the introduction of diversity initiatives?
Task outcome:	Satisfactory	Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 4: Workforce planning implementation project

Task summary

In this assessment task, you are required to implement a number of actions from the Workforce Plan for King Edward VII College to assist in meeting agreed objectives for training, redeployment and redundancy, as well as succession planning and being an employer of choice.

This assessment is to be completed in the simulated work environment in the RTO.

Required

Access to textbooks/other learning materials

Computer with Microsoft Office and internet access

Career Development Plan Template

Role Competencies Statement

Timing

Your assessor will advise you of the due date of these submissions.

Submit

· Email with Career Development Plan, Mentoring Guide and Redundancy and Redeployment Policy and Procedures attached.

Assessment criteria

Resubmission opportunities

You will be provided feedback on your performance by the assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 4 Instructions as provided to students

Complete the following activities:

Review the following information from the King Edward VII College Workforce Plan:

Issue/need

Action

Outcomes

Resources

Timelines

Ageing workforce, general attrition

Succession planning to ensure that key roles are identified.

Nominate internal candidates who can fill the roles.

Develop a training plan for identified individuals.

Organisational capacity to fill vacancies as they arise

Human resources

End 2020

No formal policies and procedures in place for retirement and redeployment.

Develop a retirement and redeployment policy

Formal processes in place for retirement and redeployment

Human resources

End 2020

Carefully read the following:

It has been identified that a critical position within the College is the Human Resources Manager. That means that if this position is vacant, it would have a significant impact on the organisation. While it has been identified that there is no shortage of Human Resources professionals, it is considered that the specialized nature of human resources within the College means it would be preferable to develop the talent from within.

A current employee, Jackie Smith, has been identified as an employee with potential for the role. Jackie has recently returned to the workforce and is working in an administration role. However, prior to leaving the workforce to bring up her children, Jackie was working in a human resources officer role. Jackie applied for the administration position as she only wanted to work part-time. However, it has been identified over time that Jackie may like to move into a full-time position, and it has identified that she has the potential to do this.

Jackie has recently completed a self-assessment against a Role Competencies Statement in order to identify areas that she would need to develop in.

1. Implement succession planning program.

Review the Role Competencies Statement.

Develop a career development plan for Jackie using the Career Development Plan Template.

The opportunities that you identify for Jackie should include a range of opportunities, including job assignments that develop a candidate’s competencies, coaching and mentoring and formal training.

The career development plan you develop should include at least six opportunities to be completed over the upcoming 12 months.

1. Implement a mentoring program.

Assume that the CEO has been communicating with you while you have been preparing Jackie’s Career Development Plan. He has advised that he believes the best way of implementing succession planning is to set up a mentoring program.

Therefore he has asked that you develop a Mentoring Guide to guide mentoring in the organisation.

Your Mentoring Guide must including information about key aspects of mentoring such as the purpose of mentoring, the mentor’s role and do’s and don’ts, how to establish a successful relationship, the mentoring process including scheduling meetings. As a guide your Mentoring Guide should be 6 – 8 pages and can include diagrams

Once you have finalised these documents, proceed with implementing the system by advising via email all staff of the planned mentoring arrangements, summarising the information from the document you have developed.

Develop redundancy and redeployment policy and procedures.

Assume that it has been identified that there is no formal process in place within King Edward VII College for redundancy and deployment. Previously, redundancies or redeployments have not been identified as issues in the workforce plan, but now a formal process is required.

Develop King Edward VII redundancy and redeployment policy and procedures that include:

· Introduction

· Aim of policy

· Key principles

· Definitions of redeployment and redundancy

· Redeployment procedure

· Redundancy procedure, including entitlements as per the Fair Work Act

Use the Redundancy and Redeployment Policy and Procedures Template to guide your work.

Send an email to your assessor.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments.

Attach your career development plan, and your redundancy and redeployment policy and procedures to the email.

Assessment Task 4 Checklist

Student’s name:
Did the student:	Completed successfully?	Comments
	Yes	No
Implement a succession planning program?
Identify gaps in a candidate’s skills, knowledge and experience against the job role?
Identify relevant learning and development opportunities and documenting in a career development plan?
Implement actions to meet the objectives for redundancy and redeployment?
Task outcome:	Satisfactory	Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 5: Workforce planning implementation project

Task summary

This assessment task requires you, in the role of Human Resources Manager for King Edward VII College to review the workforce plan, as well as evaluate workforce trends.

This assessment is to be completed in the simulated work environment in the RTO.

Required

· Access to textbooks/other learning materials

· Computer and Microsoft Office

· Access to the internet

· Workforce Information 2018

· Workforce Information 2019

· Briefing Report Template

· Focus Group Results

· Exit Interview Results

Timing

Your assessor will advise you of the due date of these submissions.

Submit

· Email with organisational climate survey attached

· Email with completed Workforce plan review and evaluation report attached

Assessment criteria

Resubmission opportunities

You will be provided feedback on your performance by the assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.

Assessment Task 5 Instructions as provided to students

Complete the following activities:

Assume the following objectives for the workforce plan:

Issue/need	Action	Outcomes	Resources	Timelines
High staff turnover within the first six months of employment	Develop a strong orientation and induction program that supports and develops new staff. Appoint mentors to support new staff.	Turnover reduced by at least 10% in the first year.	Human resources	End 2020
Building internal capacity through a strong learning program	Identify professional development needs of each staff member and implement a formal program of professional development.	Turnover reduced by at least 10% in the first year. Employee satisfaction with professional development	Human resources	End 2020
Increase diversity within the workforce	Identify diverse media networks where positions can be advertised. Explore options for flexible working arrangements.	Increase the number of females in the organisation by 20%.	Human resources	End July 2020

1. Develop a survey.

Assume that, as part of the monitoring strategies that have been implemented as part of the workforce plan in the scenario, you are required to develop an organisational climate survey. While the organisational climate survey is designed to seek feedback in relation to the new initiatives outlined in the workforce plan, the intention is to also gain feedback on overall employee satisfaction to assist with future workforce planning initiatives.

Design a survey using SurveyMonkey that:

· Includes at least 12 questions about general satisfaction with the workplace.

· Includes at least eight questions about satisfaction with new initiatives.

· allows employees to provide an answer based on a five-point scale.

You may use the following link to assist you in designing your questionnaire:

http://workplaceinfo.com.au/hr-management/communication-in-the-workplace/climate-surveys

Send an email to all staff (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and outline the purpose of the survey, give the link to the survey and give an appropriate deadline for completing it.

Develop a workforce plan review and evaluation briefing report.

You are required to develop a workforce plan review and evaluation report.

Your assessor will provide you with a template to use.

Your report should be written in clear and concise English and address the following components:

· An analysis of workforce information data

Review the workforce information for King Edward VII 2018 provided to you already and compare it to the 2019 data just received to identify:

· Current staff turnover rate

· Workforce characteristics, including age, gender and cultural background.

· Comparison with 2019 data to identify changes and to assess performance against 2018 data.

· A review of external trends

Using the Labour Market Information Portal, review current employment projections for Australia, as well as for the Australian education and training sector.

Based on your review of the data, identify labour supply trends and areas of undersupply or oversupply relevant to the College and the likely impact of these trends on the demand for labour in relation to the College’s workforce.

· A review of government policy

Identify at least two government policy initiatives that affect labour demand and supply. Outline each of the policy initiatives that you have identified and how it affects labour demand and supply.

· An analysis of focus group results.

Assume that, in addition to the survey you developed, you have already conducted a focus group to determine employee’s satisfaction. Review all of the comments from the focus group and comment on overall employee satisfaction, as well as areas of need that should be considered as part of an ongoing review of workforce planning objectives.

· Analysis of exit interviews.

Review all of the comments from the exit interviews and comment on reasons for leaving and that should be considered as part of an ongoing review of workforce planning objectives.

· Effectiveness of the workforce plan

Based on your analysis above, evaluate the effectiveness of the workforce plan in terms of the objectives specified in the scenario information.

Identify changes required to objectives and document at least two new objectives and actions for the upcoming year.

Send an email to all staff (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and a brief outline of the purpose of the report.

Attach your briefing report to the email.

Assessment Task 5 Checklist

Student’s name:
Did the student:	Completed successfully?	Comments
	Yes	No
Analyse updated workforce information against previous year to determine changes in existing employees and workforce?
Analyse labour supply trends and comment on areas of undersupply or oversupply as relevant to the College?
Analyse labour trends on demand for labour and their impact on King Edward VII College?
Review government policy and its impact on labour demand and supply and take into account in identifying changes to workforce plans?
Evaluate the effectiveness of workforce plan objectives as evidenced by the analysis of employee and workforce changes?
Recommend revised objectives and strategies based on analysis of all data and external environment and government policies?
Task outcome:	Satisfactory	Not satisfactory
Assessor signature:
Assessor name:
Date:

Final results record

Student name:
Assessor name:
Date

Final assessment results

Task	Type	Result
		Satisfactory	Unsatisfactory	Did not submit
Assessment Task 1	Written questions	S	U	DNS
Assessment Task 2	Develop a workforce plan project	S	U	DNS
Assessment Task 3	Diversity objectives implementation project	S	U	DNS
Assessment Task 4	Workforce plan implementation project	S	U	DNS
Assessment Task 5	Workforce plan review and evaluation briefing report	S	U	DNS
Overall unit results		C	NYC

Feedback

· My performance in this unit has been discussed and explained to me.

· I would like to appeal this assessment decision.

Student signature: Date:

· I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.

Assessor signature: Date:

WSC V1.0 09-2020 (Review 10-2021) RTOWORKS Quality Solutions

BSBHRM513 Manage workforce planning

Student Assessment tasks

2 of 52

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Human Relations

December 1, 2023/in Uncategorized /by Daniel Jennings

Healthcare Marketing

Module ONE Overview

Welcome to Healthcare Marketing! In this course, we will explore key marketing principles as they uniquely apply to healthcare management. Throughout the course, you will be provided with the opportunity to engage in the marketing process by establishing marketing objectives, analyzing the market environment, and developing promotions that will effectively market a healthcare product or service.

We begin the course by introducing basic marketing concepts. In this module, you will define key terms and concepts that form the foundation of marketing and will review their application to healthcare. Marketing functions, techniques, and approaches are described as we consider the challenges of adapting traditional marketing concepts to healthcare. Module One establishes a basic understanding as we prepare to expand upon these ideas in future modules.

As a healthcare marketing professional or healthcare manager, you will be expected to support your organization’s marketing efforts. In Module One, you are introduced to marketing planning, which uses a systematic process for promoting an organization, a product, a service, or a program. Marketing planning may be used for a short-term promotional project or may be a component of a long-term strategic plan. Whatever the scope and purpose, a plan should be in place before any marketing activities begin. Throughout this course, you will gain experience with all phases of marketing planning by developing a strategic marketing proposal.

1-1 Discussion: Introduction to Healthcare Marketing

Discussion Topic

In this discussion, you will have the opportunity to explore marketing strategies that are specific to healthcare. To begin, introduce yourself to your classmates and instructor. Briefly discuss your background, describe your professional goals, explain what you hope to gain from this course, and share what you enjoy doing in your free time.

Then, read Case Study 2.1 in Chapter 2 of your textbook and reflect on what you know about marketing and the concepts presented in the module in responding.

RMC deemed the campaign a success but was not able to specifically determine which promotional techniques had the most impact. To continue your initial post, discuss what you think prompted RMC to invest the time and resources to develop and promote this service line. From among the marketing techniques employed, which do you think would have been most effective in reaching the target population? Support your response by citing fundamental marketing concepts presented in your assigned readings.

(This is response post will send the posts)

In your response posts, respond to peers who selected a different marketing technique than you did in your initial post. Explain why you think the technique you selected in your initial post was more effective in reaching the target audience. Or describe how your peers’ posts helped you to understand how a different technique might be more effective.)

Example of a peer’s post

I believe RMC saw that the baby boomers were going to be needing support as they aged and they took the opportunity to provide that. RMC used direct marketing to start by using the mailing lists and mailing collateral material to those aged 50-65 to let them know if their new services. RMC eventually used social marketing and media marketing to get the word out to not just those aged 50-65 but to those individuals that may be making healthcare decisions for their loved ones that fall in that age group. I feel that the mixture of marketing techniques is what made RMC’s campaign so successful.

HERE IS THE CASE STUDY

CASE STUDY 2.1

Capturing the “Older Adult” Market

Many healthcare organizations came to see the aging of the baby boom generation as an opportunity to expand their services. Regional Medical Center (RMC, a fictional organization on which this case study is based) responded to this opportunity by establishing a service line devoted to older adults. The intent was to capture the business—and the loyalty—of this large, relatively affluent, and increasingly needy segment of the population. The service line was designed to meet the emerging needs of this population for specialty services such as cardiology, orthopedics, ophthalmology, and urology in a way that would be appealing to this relatively demanding consumer segment.

Because this service was considered innovative in the community served by RMC, an aggressive promotional campaign was undertaken. RMC’s marketing department considered a wide range of marketing options and decided on a multipronged campaign to approach the target population from a variety of directions. The first phase of the promotional campaign focused on internal marketing. It was important that RMC’s employees be familiar with this new program and be able to articulate its merits to potential customers. Many of the customers for the new program were likely to be existing patients of RMC.

Well before the new program was scheduled to open for enrollment, an aggressive PR campaign was initiated. Press releases were distributed, articles were prepared for local publications and professional journals, and celebrity spokespeople were lined up. Simple yet attractive collateral materials (e.g., business cards, letterhead, envelopes, brochures) were developed for distribution to prospective customers and to referral agents who might channel customers to RMC. Information was distributed to providers and organizations that might serve other needs of the target population, and the community’s major insurance plans were made aware of the new program and its benefits. Tours of the facility housing the new program were provided to key constituents (e.g., referring physicians and health plan representatives), and open houses were scheduled for both medical professionals and the general public.

The marketing initiative also involved direct solicitation of members of the target population. RMC extracted data from its internal database on existing customers and purchased mailing lists of households that included members aged 50 to 65. Using the findings from previous research on the “buttons to push” in this age cohort, marketing staff prepared materials that would appeal to the particular needs of older adults. The address lists were then used to mail materials directly to targeted individuals.

While RMC did not want to rely on expensive media advertising for attracting customers, its marketers felt that some media presence was necessary—not only to attract customers who might be missed through the direct mail campaign but also to make the general public aware of this new program. In some cases, other family members might be making decisions for the older adult population, and awareness of this program on the part of the general public was considered important. After careful research on the communication attributes of family caregivers, a series of newspaper, radio, and television advertisements were produced. These advertisements were placed in the sections of the local newspaper that members of this age group read, aired on the radio stations they preferred, and presented on the television channels they viewed most often. For the electronic media, particular attention was paid to the time of day and day of the week members of the target population were expected to be engaged.

The success of RMC’s new older adult service line during the first year exceeded the expectations of the organization’s administrators. While it was difficult to determine which of the promotional techniques used had the most impact on the program’s early success, the marketing staff concluded, on the basis of its evaluation of the campaign, that it was the integrated approach—a variety of coordinated activities—that led to the successful program launch.

CASE STUDY DISCUSSION QUESTIONS

1.Why did RMC think that older adults presented enough of a market opportunity to establish an entirely new program?

2.What information did RMC need to gather about this target population before the program could be established?

3.What information did RMC need to gather about this target population before the marketing campaign could be planned?

4.What were the different paths through which RMC attempted to reach the target audience?

5.Which marketing techniques did RMC use to reach the target population?

6.Why was internal marketing an important first step in marketing this new program?

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HR Related MCQs Exam

December 1, 2023/in Uncategorized /by Daniel Jennings

(1) A concern about political correctness is that it often leads to

A. creating too many categories of people.

B. blandness and imprecision in language.

C. making many people feel inferior.

D. conflict between majority- and minority-group members.
(2) According to the triarchic theory of intelligence, a person with good street smarts would be strong in the ____________ subtype of intelligence.

A. analytical

B. practical

C. creative

D. multiple
(3) A person with a high degree of self-management can readily

A. react with appropriate anger to situations.

B. develop passion about the work he or she is performing.

C. respond to the unspoken feelings of others.

D. understand his or her own moods.
(4) Tony rates high on positive affectivity. He is likely to be a(n)

A. risk taker and thrill seeker.

B. pessimist.

C. optimist.

D. emotionally unstable.
(5) An example of a cultural blooper would be for an American to

A. pressure an Asian job applicant to brag about personal accomplishments.

B. deemphasize organizational rank when conducting business in Scandinavia.

C. upon first contact, address a French executive by title and last name.

D. give a small gift to a Japanese business associate.

(6) Which of the following is not an aspect of cultural intelligence?

A. personality (the psychological)

B. cognitive (the head)

C. emotional/motivational (the heart)

D. the body (physical)

(7) When dealing with a person who is open to experience, it would be effective for you to

A. appeal to the person’s intellect.

B. avoid presenting fresh information to him or her.

C. avoid talking about cultural trends.

D. talk about traditional approaches to solving problems.

(8) Larry wants to be politically correct, so when introducing Janis Stewart, the vice president of marketing in his company, to friends at a party, he says, “I would like you to meet Janis Stewart,

A. our woman vice president of marketing.”

B. the highest placed girl in our company.”

C. one of the best female minds in marketing.”

D. our vice president of marketing.”

(9) A conclusion based on many studies found that there was a tendency for relations-oriented diversity (such as race and gender) to lead to high performance in

A. mills and mines.

B. prison settings.

C. manufacturing settings.

D. service industry settings.
(10) Cultural fluency includes

A. using a computer program to translate from one language into another.

B. wearing latex gloves to avoid germs when visiting other countries.

C. getting homesick on long visits overseas.

D. knowledge of the international business environment

(11) The term individual differences refers to the fact that

A. members of the same group behave approximately the same.

B. members of the same group often behave quite differently.

C. many individuals have personality problems.

D. many individuals have intellectual problems.

(12) Jason scores high on the personality trait, openness. He most likely is

A. well developed intellectually.

B. conscientious only on the job.

C. disagreeable in many situations.

D. emotionally unstable.
(13) A major aspect of cultural sensitivity is a willingness to investigate

A. the reasons why people from another culture act as they do.

B. why one dislikes people from another culture.

C. opportunities for overseas work.

D. opportunities for overseas travel

(14) Manfred was raised in a culture with a strong value of social support seeking, so on the job he is likely to

A. ask for help and comfort when facing a difficult problem.

B. take members of the custodial staff to lunch.

C. be persistent in asking for salary increases.

D. avoid assignments that would require him to work on weekends.
(15) A recommended tactic for overcoming cross-cultural communication barriers would be to

A. use the same nonverbal communication behaviors from one culture to another.

B. make extensive use of idioms and figures of speech.

C. use complicated language to capture the attention of the person from another culture.

D. be sensitive to differences in nonverbal communication.
(16) The results of research studies suggests that employees the most likely to quit their job tend to be

A. high on consciousness.

B. high on agreeableness.

C. low on openness to experience.

D. low on emotional stability.

(17) The theory of multiple intelligences contends that people possess

A. various ways of multiplying their intelligences.

B. two different types of intelligences, or faculties, in different degrees.

C. eight different intelligences, or faculties, in different degrees.

D. an almost unlimited number of intelligences.
(18) In cross-cultural relations, being attentive to individual differences in appearance helps overcome the problem of

A. confusing the identity of people from the same racial or ethnic group.

B. being politically correct.

C. appearing cold and distant to people from a different culture.

D. being too informal toward people of another culture.
(19) Being a little pessimistic will often help job performance when

A. worrying about negative outcomes is irrelevant.

B. positive interactions with work associates is essential.

C. prevention of problems is an asset.

D. being outgoing with people is a major part of the job.
(20) A contributing factor to the increased profits associated with diversity is that

A. cultural diversity is used to justify lower wages.

B. the workforce is similar to the customer base in appearance and customs.

C. the conflict associated with diversity leads to better product decisions.

D. customers are usually willing pay higher prices to companies with a diverse workforce

Set 2

1- A recommendation for improving listening skills is to

A. judge delivery, not content.

B. restate what you hear.

C. let listening come more naturally.

D. listen for facts.
2- Multitasking in the presence of another person or persons can result in a positive display of interpersonal skills when the

A. parties are of equal rank in the organization.

B. parties are of unequal rank in the organization.

C. parties are working close to each other physically.

D. purpose of the multitasking is to engage in joint problem solving.
3- To become a persuasive communicator,

A. be adamant about selling your proposal.

B. speak in the second person.

C. do not listen to people’s objections.

D. establish a yes pattern at the outset
4- The purpose of nonverbal communication is to

A. convey the feeling behind the message.

B. clarify the spoken word.

C. repeat the spoken word.

D. prevent the spoken word from being interpreted too literally.
5- Supervisor Barney often consults his BlackBerry while coaching people in his department. Most employees are likely to think that Barney

A. cares about them enough to electronically record their conversation.

B. is on the fast track to the executive suite.

C. dislikes being a supervisor.

D. does not think they are very important.

6- When in a vehicle with a coworker during working hours and you are driving, a positive interpersonal skill would be to

A. avoid using your cell phone for calls or text messaging.

B. send the person with you a text message, just for fun.

C. make repeated calls, using hands-free equipment.

D. use your cell phone just when you have stopped your vehicle for a red light or stop sign.
7- To get a quick read, based on nonverbal cues, of a person’s happiness, look carefully at his or her

A. hand gestures.

B. communication setting.

C. face.

D. physical distance from you.
8- Your manager discusses your job performance with you. She says, “Could you summarize for me what I’ve told you?” Your manager is attempting to overcome communication barriers by the method of

A. asking for feedback.

B. appealing to human motivation.

C. being a positive person.

D. using multiple channels.
9- When you neatly organize your work area to appear efficient, you are using the form of nonverbal communication called

A. personal space.

B. public distance. .

C. environment or setting.

D. work signals.
10- Should you have to take a cellphone call while interacting with a work associate, it is recommended that you

A. take the call on the spot to avoid wasting time.

B. move about fifteen feet away to take the call.

C. use the speakerphone function so your work associate will understand the importance of the call.

D. invite your work associate to speak to the caller.
11- A recommended technique for dealing with a stressful conversation is to

A. rehearse in advance what you intend to say.

B. use intimidation tactics during the conversation.

C. hold the conversation on Monday.

D. hold the conversation on Friday
12- Which of the following is not a recommended technique of participating in a webcam interview?

A. Create an uncluttered area around your computer.

B. Place a bright light behind your back.

C. Dress as if you were having an in-person interview.

D. Place your face about six inches from the computer screen.
13- A recommended way of demonstrating positive interpersonal skills through social networking is to

A. avoid embarrassing people by complimenting them on social networking sites.

B. post well-deserved criticisms of your employer

C. substitute online contact for almost all face-to-face contact.

D. establish meaningful contact with coworkers far and wide.
14- The aspect of nonverbal communication offering the clearest indication of interpersonal attitudes is

A. facial expressions.

B. gestures.

C. interpersonal distance.

D. posture.
15- To help overcome communication barriers, after you receive a message,

A. check for the feelings related to the message.

B. take the message at face value to avoid communicating distrust.

C. ask the sender to repeat the message twice.

D. immediately respond, “Are you telling me the truth?”

16- With respect to taking medical or legal calls in the office on your cellphone,

A. keep your cell phone at hand so you can take the call immediately.

B. take the call, but act as if you are angry because your work is interrupted.

C. advise work associates in advance that you might be receiving such a call.

D. politely tell your work associates to stop talking so you can better hear this important call.
17- Which of the following characteristics of a message is the least likely to encounter barriers?

A. factual

B. complex

C. emotionally arousing

D. clashes with the receiver’s mental set
18- Which of the following is the least likely to contribute to persuasive communication?

A. keeping your pitch about the same at the start and finish of a sentence

B. backing up conclusions with data

C. focusing on the screen rather than the audience during a slide presentation

D. getting a yes response early on
19- A recommended way of demonstrating positive interpersonal skills through social networking is to

A. invite anybody you can find to be a friend or follower.

B. show loyalty by making gracious comments about your employer.

C. lower your level of writing skills to that of the silliest bloggers.

D. blitz managers in the company with flattering messages.
20- A major problem with accessing social networking sites for nonbusiness matters during working hours is that it will often be interpreted as a(n)

A. overemphasis on technical skill in contrast to interpersonal skill.

B. desire to be fired.

C. sign of insensitivity and immaturity.

D. unsuccessful attempt at attaining a work and personal life balance.

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Agents

December 1, 2023/in Uncategorized /by Daniel Jennings

443

Chapter Fifteen Organizational Change

Facebook has a distinctive organizational culture and, in spite of its exponential growth, has discovered ways to maintain and perhaps even strengthen that culture throughout its global offices. Organizational culture consists of the values and assumptions shared within an organization.2 It defines what is important and unimportant in the company and consequently directs everyone in the organization toward the “right way” of doing things. You might think of organizational culture as the company’s DNA; it’s invisible to the naked eye, yet provides a powerful template that shapes what happens in the workplace.

This chapter begins by identifying the elements of organizational culture and then describing how culture is deciphered through artifacts. This is followed by a discussion of the relationship between organizational culture and performance, including the effects of cultural strength, fit, and adaptability. We then turn our attention to the challenges of and solutions to merging organizational cultures. The latter part of this chapter examines ways to change and strengthen organizational culture, including a closer look at the related topic of organizational socialization.

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Chapter Fourteen Organizational Culture

Elements of Organizational Culture

As its definition states, organizational culture consists of shared values and assumptions. Exhibit 14.1 illustrates how these shared values and assumptions relate to one another and are associated with artifacts, discussed later in this chapter. Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations (see Chapters 1 and 2).3 They are conscious perceptions about what is good or bad, right or wrong. In the context of organizational culture, values are discussed as shared values, which are values that people within the organization or work unit have in common and place near the top of their hierarchy of values.4 At Facebook, most employees embrace the shared values of making a difference (focus on impact), taking risks (be bold), and being entrepreneurial (moving fast).

Organizational culture also consists of shared assumptions—a deeper element that some experts believe is the essence of corporate culture. Shared assumptions are nonconscious, taken-for-granted perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities. Shared assumptions are so deeply ingrained that you probably wouldn’t discover them by surveying employees. Only by observing employees, analyzing their decisions, and debriefing them on their actions would these assumptions rise to the surface.

It has become a popular practice for leaders to identify and publicly state their organization’s shared values. Online retailer Zappos lists 10 core values, such as “Deliver WOW through Service,” “Embrace and Drive Change,” and “Create Fun and A Little Weirdness.” Gap Adventures, the Toronto-based outdoor adventure company, describes its five values: We love changing people’s lives, embrace the bizarre, lead with service, do the right thing, and create happiness and community.5

Do these values really represent the cultural content of Zappos and Gap Adventures? Very probably in the case of these two organizations, because their cultures are well known and deeply entrenched. However, the values statements of many organizations do not necessarily reflect the values that are widely shared and practiced in the organization. This distinction occurs because corporate leaders typically describe espoused values—the values that they want others to believe guide the organization’s decisions and actions.6 Espoused values are usually socially desirable, so they present a positive public image. Even if top management acts consistently with the espoused values, lower-level employees might not do so. Employees bring diverse personal values to the organization, some of which might conflict with the organization’s espoused values.

Organizational culture is not represented by espoused values. Instead, it consists of shared enacted values—the values that most leaders and employees truly rely on to guide their decisions and behavior. These “values-in-use” are apparent by watching executives

EXHIBIT 14.1 Organizational Culture Assumptions, Values, and Artifacts

Artifacts of organizational culture

Physical structures

Language

( Rituals and )

organizational culture

The values and assumptions shared within an organization.

and other employees in action, including their decisions, where they focus their attention and resources, and how they behave toward stakeholders. For example, Connections 14.1 describes how BP s stated (espoused) value of responsibility seems to be wildly at odds with the decisions, priorities, and behavior of its leaders and many employees.

CONTENT OF ORGANIZATIONAL CULTURE

Organizations differ in their cultural content, that is, the relative ordering of shared values. Facebook has an entrepreneurial culture where employees are encouraged to take risks to make a difference to the company and society. The company also recognizes that employees make mistakes (break things) along that innovation journey. The culture at Netflix is considerably different.7 Executives at the on-demand and mail-order movie rental com-i pany view themselves as a sports team. “Netflix leaders hire, develop, and cut smartly, so we have stars in every position,” a Netflix slideshow candidly states. The company even asks managers to regularly apply the “keeper test”: Determine which employees they would fight hard to prevent from leaving. And the others? “[They] should get a generous severance package now, so we can open a slot to try to find a star for that

( I connections 14.1 )

BP’s Espoused vs. Enacted Values

BP, the British energy giant, lists four core values: progressive, responsible, innovative, and performance-driven. The company says that these values “guide us in the conduct of our business.” In other words, BP claims these four core values are enacted; they are evident in the company’s decisions and allocation of resources, as well as in the daily behavior of its employees.

Most people around the Gulf of Mexico and in Alaska would quickly dismiss those claims. In particular, BP describes its “responsibility” value as being “committed to the safety and development of our people and the communities and societies in which we operate. We aim for no accidents, no harm to people and no damage to the environment.” Yet, the energy company’s track record on safety and environmentalism suggests otherwise.

BP is at the center of the Gulf of Mexico oil spill, now considered the worst environmental disaster in recent history. A few months before the spill occurred, the U.S. government’s Occupational Safety and Health Administration (OSHA) penalized BP with the largest fine in OSHA’s history for failing to sufficiently improve safety at its Texas City refinery. Four years earlier, 15 employees died in an explosion at that refinery. A U.S. government report on that explosion concluded that BP “did not provide effective safety culture leadership.”

BP’s “responsibility” value has been around for a few years, yet the company’s environmental and safety problems were well known long before the Gulf and Texas disasters. In 2003, the Norwegian government concluded that “a poor HES (Health, Environment, and Safety) culture” contributed to a fatality on a

BP describes one of its four core values as aiming “for no accidents, no harm to people and no damage to the environment,” yet the British energy company’s track record indicates that this value is espoused, not enacted.

BP oil platform. A few years earlier, a prominent newspaper concluded that a series of spills, accidents, and alleged hush-ups at the Alaskan operations managed by BP “raises serious questions about BP’s safety culture.” In short, being safety and environmentally “responsible” is an espoused value at BP but not likely part of the company’s current or recent culture.8

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Part Four Organizational Processes

aconnect

Which corporate culture do you prefer? Go to www. mcgrawhillconnect.com to estimate your preference among a small set of common cultures, as well as to assist your learning about organizational culture and effectiveness.

role.” So, while Netflix has a winner-take-all performance culture, Facebook’s culture is more entrepreneurial: empowering employees to have an impact, taking risks, and receiving support for reasonable mistakes along the way.

How many corporate cultures are there? Several models and measures classify organizational culture into a handful of easy-to-remember categories. One of these, shown in Exhibit 14.2, identifies seven corporate cultures. Another popular model identifies four organizational cultures organized in a two-by-two table representing internal versus external focus and flexibility versus control. Other models organize cultures around a circle with 8 or 12 categories. These circumplex models suggest that some cultures are opposite to others, such as an avoidance culture versus a self-actualization culture, or a power culture versus a collegial culture.9

These organizational culture models and surveys are popular with corporate leaders faced with the messy business of diagnosing their company’s culture and identifying what kind of culture they want to develop. Unfortunately, they oversimplify the diversity of cultural values in organizations. There are dozens of individual values, and many more combinations of values, so the number of organizational cultures that these models describe likely falls considerably short of the full set. A second concern is that organizational culture includes shared assumptions, not just shared values. Most organizational culture measures ignore assumptions because they represent a more subterranean aspect of culture.

A third concern is that many organizational culture models and measures incorrectly assume that organizations have a fairly clear, unified culture that is easily decipherable.10 This “integration” perspective, as it is called, further assumes that when an organization’s culture changes, it shifts from one unified condition to a new unified condition with only

Innovation

Experimenting, opportunity seeking, risk taking, few rules, low cautiousness

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Chapter Fourteen Organizational Culture

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Chapter Fourteen Organizational Culture

Stability

Predictability, security, rule oriented

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Chapter Fourteen Organizational Culture

Respect for people

Fairness, tolerance

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Chapter Fourteen Organizational Culture

Outcome orientation

Action oriented, high expectations, results oriented

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Chapter Fourteen Organizational Culture

Attention to detail

Precise, analytic

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Chapter Fourteen Organizational Culture

Team orientation

Collaboration, people oriented

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Chapter Fourteen Organizational Culture

Aggressiveness

Competitive, low emphasis on social responsibility

Source: Based on information in C.A. O’Reilly III, J. Chatman, and D.F. Caldwell, “People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit,” Academy of Management Journal 34, no. 3 (1991), pp. 487-518.

temporary ambiguity or weakness during the transition. These assumptions are probably incorrect or, at best, oversimplified. An organization’s culture is usually quite blurry, so much so that it cannot be estimated through employee surveys alone. As we discuss next, organizations consist of diverse subcultures, because employees across the organization have different clusters of experiences and backgrounds that have shaped their values and priorities. For example, after BP’s Texas refinery explosion a few years ago, an independent panel investigated the energy company’s safety culture across the United States. The panel concluded that a few of BP’s sites embraced the importance of safety, but most required a much stronger safety culture.11

Even these subcultural clusters can be ill-defined because values and assumptions ultimately vary from one employee to the next. As long as employees differ, an organization’s culture will have noticeable variability. Thus, many of the popular organizational culture models and measures oversimplify the variety of organizational cultures and falsely presume that it is relatively easy to fit organizations into these categories.

ORGANIZATIONAL SUBCULTURES

When discussing organizational culture, we are really referring to the dominant culture, that is, the values and assumptions shared most consistently and widely by the organizations members. The dominant culture is usually supported by senior management, but cultures can also persist in spite of senior management’s desire for another culture. Furthermore, organizations are composed of subcultures located throughout their various divisions, geographic regions, and occupational groups.12 Some subcultures enhance the dominant culture by espousing parallel assumptions and values. Others differ from but do not conflict with the dominant culture. Still others are called countercultures because they embrace values or assumptions that directly oppose the organization’s dominant culture. It is also possible that some organizations (including some universities, according to one study) consist of subcultures with no decipherable dominant culture at all.13

Subcultures, particularly countercultures, potentially create conflict and dissension among employees, but they also serve two important functions.14 First, they maintain the organization’s standards of performance and ethical behavior. Employees who hold coun-tercultural values are an important source of surveillance and critical review of the dominant order. They encourage constructive conflict and more creative thinking about how the organization should interact with its environment. Subcultures potentially support ethical conduct by preventing employees from blindly following one set of values. Subculture members continually question the “obvious” decisions and actions of the majority, thereby making everyone more mindful of the consequences of their actions.

The second function of subcultures is that they are the spawning grounds for emerging values that keep the firm aligned with the evolving needs and expectations of customers, suppliers, communities, and other stakeholders. Companies eventually need to replace their dominant values with ones that are more appropriate for the changing environment. If subcultures are suppressed, the organization may take longer to discover and adopt values aligned with the emerging environment.

Deciphering Organizational Culture Through Artifacts

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Shared values and assumptions are not easily measured through surveys and might not be accurately reflected in the organization’s values statements. Instead, as Exhibit 14.1 illustrated previously, an organization’s culture must be deciphered through a detailed investigation of artifacts. Artifacts are the observable symbols and signs of an organization’s culture, such as the way visitors are greeted, the organization’s physical layout, and how employees are rewarded.15 A few experts suggest that artifacts are the essence of organizational culture, whereas most others (including the authors of this book) view artifacts as symbols or indicators of culture. In other words, culture is cognitive (values and assumptions inside people’s heads), whereas artifacts are observable manifestations of that culture. Either way, artifacts are important because they represent and reinforce an organization’s culture.

Artifacts provide valuable evidence about a company’s culture.16 An organization’s ambiguous (fragmented) culture is best understood by observing workplace behavior, listening to everyday conversations among staff and with customers, studying written documents and e-mails, viewing physical structures and settings, and interviewing staff about corporate stories. In other words, to truly understand an organization’s culture, we need to sample information from a variety of organizational artifacts.

The Mayo Clinic conducted such an assessment a few years ago. An anthropologist was hired to decipher the medical organization’s culture at its headquarters in Minnesota and to identify ways to transfer that culture to its two newer sites in Florida and Arizona. For six weeks, the anthropologist shadowed employees, posed as a patient in waiting rooms, did countless interviews, and accompanied physicians on patient visits. The final report outlined Mayo’s dominant culture and how its satellite operations varied from that culture.17

In this section, we review the four broad categories of artifacts: organizational stories and legends, rituals and ceremonies, language, and physical structures and symbols.

ORGANIZATIONAL STORIES AND LEGENDS

David Ogilvy is a legend in the advertising industry, but equally significant are the stories about him that have continued to reinforce the values that he instilled. One story recounts how Ogilvy s board of directors arrived at a meeting to discover a Russian matryoshka doll at each of their seats. The directors opened each doll, one nested inside the other, until they discovered this message inside the tiniest doll: “If you hire people who are smaller than you are, we shall become a company of dwarfs. If you hire people who are bigger than you are, we shall become a company of giants.” The Russian dolls became part of Ogilvy s culture, which demands hiring talent, not subservience.18

Stories such as Ogilvy s Russian dolls permeate strong organizational cultures. Some tales recount heroic deeds, whereas others ridicule past events that deviate from the firm’s core values. Organizational stories and legends serve as powerful social prescriptions of the way things should (or should not) be done. They add human realism to corporate expectations, individual performance standards, and the criteria for getting fired. Stories also produce emotions in listeners, and these emotions tend to improve listeners’ memory of the lesson within the story.19 Stories have the greatest effect on communicating corporate culture when they describe real people, are assumed to be true, and are known by employees throughout the organization. Stories are also prescriptive—they advise people what to do or not to do.20

The transformation of Ford Motor Company illustrates many of the strategies and practices necessary to change organizations. It reveals how CEO Alan Mulally created an urgency for change, revised systems and structures to support the change, introduced a pilot project (the Ford Focus development team) to spearhead the company’s new global approach, and continuously communicated the change process. Although Ford’s turnaround sounds like an smooth-running process, most organizational change is messy, requiring considerable leadership effort and vigilance. As we will describe throughout this chapter, the challenge of change is not just in deciding which way to go; the challenge is in the execution of this strategy. When leaders discover the need for change and identify preferred paths that will take the company to a better future, the change process involves navigating around the numerous obstacles and gaining organization-wide support for that change.

This chapter unfolds as follows. We begin by introducing Lewin’s model of change and its component parts. Our discussion includes sources of resistance to change, ways to minimize this resistance, and ways to stabilize desired behaviors. Next, the chapter examines four approaches to organizational change—action research, appreciative inquiry, large group interventions, and parallel learning structures. The last section of this chapter considers both cross-cultural and ethical issues in organizational change.

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Lewin’s Force Field Analysis Model

“The velocity of change is so rapid, so quick, that if you don’t accept the change and move with the change, you’re going to be left behind.”2 This statement by BHP Billiton Chairman (and former Ford CEO) Jacques Nasser reflects the notion that organizations need to keep pace with ongoing changes in their external environment. Organizations are, after all, open systems that need to remain compatible with their external environments (see Chapter 1), such as consumer needs, global competition, technology, community expectations, government (de)regulation, and environmental standards. Successful organizations monitor their environments and take appropriate steps to maintain a compatible fit with new external conditions. Rather than resisting change, employees in successful companies embrace change as an integral part of organizational life. “I’ve always believed that when the rate of change inside an institution becomes slower than the rate of change outside, the end is in sight,” says former General Electric CEO Jack Welch. “The only question is when.”3

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It is easy to see that environmental forces push companies to change the way they operate. What is more difficult to see is the complex interplay of these forces with the internal dynamics of organizations. Social psychologist Kurt Lewin developed the force field analysis model to describe this process using the metaphor of a force field (see Exhibit 15.1).4 Although it was developed more than 50 years ago, recent reviews affirm that Lewin’s force field analysis model remains one of the most widely respected ways of viewing the change process.5

One side of the force field model represents the driving forces that push organizations toward a new state of affairs. These might include new competitors or technologies, evolving workforce expectations, or a host of other environmental changes. Corporate leaders also produce driving forces even when external forces for change aren’t apparent. For instance, some experts call for “divine discontent” as a key feature of successful organizations, meaning that leaders continually urge employees to strive for higher standards or better practices even when the company outshines the competition. “We have a habit of divine discontent with our performance,” says creative agency Ogilvy & Mather about its corporate culture. “It is an antidote to smugness.”6

The other side of Lewin’s model represents the restraining forces that maintain the status quo. These restraining forces are commonly called “resistance to change” because they

EXHIBIT 15.1

Lewin’s Force Field Analysis Model

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I I Before change ► After change

appear to block the change process. Stability occurs when the driving and restraining forces are roughly in equilibrium—that is, they are of approximately equal strength in opposite directions.

Lewin’s force field model emphasizes that effective change occurs by unfreezing the current situation; moving to a desired condition, and then refreezing the system so it remains in the desired state. Unfreezing involves producing disequilibrium between the driving and restraining forces. As we will describe later, this process may occur by increasing the driving forces, reducing the restraining forces, or using a combination of both. Refreezing occurs when the organization’s systems and structures are aligned with the desired behaviors. They must support and reinforce the new role patterns and prevent the organization from slipping back into the old way of doing things. Over the next few pages, we use Lewin’s model to understand why change is blocked and how the process can evolve more smoothly.

Understanding Resistance to Change

Robert Nardelli pushed hard to transform Home Depot from a loose configuration of fiefdoms to a more performance-oriented operation that delivered a consistent customer experience. Change did occur at the world’s largest home improvement retailer, but at a price. A large number of talented managers and employees left the company, and some of those remaining continued to resent Nardelli’s transformation. Disenchanted staff referred to the company as “Home Despot” because the changes took away their autonomy. Others named it “Home GEpot,” a disparaging reference to the many former GE executives that Nardelli hired into top positions. After five years, the Home Depot board decided to replace Nardelli, partly because he made some unsuccessful strategic decisions and partly because of the aftereffects of Nardelli’s changes.7

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(

force field analysis

Kurt Lewin’s model of systemwide change that helps change agents diagnose the forces that drive and restrain proposed organizational change.

unfreezing

The first part of the change process, in which the change agent produces disequilibrium between the driving and restraining forces.

refreezing

The latter part of the change process, in which systems and structures are introduced that reinforce and maintain the desired behaviors.

Robert Nardelli experienced considerable resistance to change at Home Depot. He has plenty of company. One survey reported that 43 percent of U.S. managers identified resistance to change as a primary barrier to workplace

How Effectively Do Organizations around the World Handle Change?8

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( 47% 43% )80% 70% 60% 50% h| 40% I 30% hi

20% 10% |

63%

49%

43%

42%

34%

31%

24%

India

United States

China United Total Germany France South Japan Kingdom Sample Korea

Percentage of employees, by selected countries, who agree or strongly agree that “change is handled effectively in my organization.” Not all 28,810 employees across the 15 countries surveyed are shown here, but all are included in the “total sample” figure.

productivity. This resistance is not short-lived. Twenty-one percent of 1,700 change agents surveyed across more than 40 countries acknowledged that employees still resisted a specific major change one or two years after it was implemented.9

Resistance to change takes many forms, ranging from overt work stoppages to subtle attempts to continue the old ways.10 A study of bank employees reported that subtle resistance is much more common than overt resistance. Some employees in that study avoided the desired changes by moving into different jobs. Others continued to perform tasks the old way as long as management didn’t notice. Even when employees complied with the planned changes, they engaged in resistance by performing their work without corresponding cognitive or emotional support for the” change.11 In other words, they resisted by letting customers know that they disapproved of the changes forced on them.

Subtle forms of resistance potentially create the greatest obstacles to change because they are not as visible. In the words of one manager, “[Change efforts] never die because of direct confrontation. Direct confrontation you can work with because it is known. Rather, they die a death of a thousand cuts. People and issues you never confront drain the life out of important [initiatives] and result in solutions that simply do not have the performance impact that they should have.”12 This resistance is not unique to North America. As Connections 15.1 describes, Mina Ishiwatari experienced various forms of resistance to her innovative marketing ideas at Hoppy, the Japanese beverage company.

EMPLOYEE RESISTANCE AS A RESOURCE FOR CHANGE

Although change agents are understandably frustrated by passive or active resistance to change, they need to realize that resistance is a common and natural human response. As economist John Kenneth Galbraith once quipped: “Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone gets busy on the proof.”13 Even when people support change, they typically assume that it is others—not themselves—who need to change. The problem, however, isn’t so much that resistance to change exists. The main problem is that change agents typically view resistance as an unreasonable, dysfunctional, and irrational response to a desirable initiative. They often form an “us versus them” perspective without considering that the causes of resistance may, in fact, be traced back to their own actions or inaction.14

The emerging view among change management experts is that resistance to change is a useful indicator rather than an impediment to change. Resistance aids change agents in

connections 15.1

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( Mina Ishiwatari (center) faced, and overcame, resistance to change in the company that her grandfath er founded. )Not Hoppy About Change

Hoppy, a carbonated, low-alcohol, malt-and-hops beverage, was popular around Tokyo after World War II as a cheap alternative to expensive beer, but it fell out of favor as beer became affordable. Mina Ishiwatari, granddaughter of Hoppy Beverage Co.’s founder, was determined to improve Hoppy’s image when she joined the company a decade ago. Unfortunately, the company’s 30 employees—mostly men in their fifties who were family relatives—didn’t want to disturb their cozy jobs.

“It was a turbulent decade of eliminating evils from the company and rebuilding a new organization from scratch,” recalls Ishiwatari, who began as a rank-and-file employee and is now the company’s executive vice president. “I tried to take a new marketing approach to change the image of Hoppy … but no one would listen to me.”

With limited support and budget, Ishiwatari developed a website that informed the public about the product, sold it online, and documented Ishiwatari’s views in an early weblog. As the contemporary marketing caught the attention of health-conscious young people, Ishiwatari pushed for further changes. Most managers who opposed Ishiwatari’s radical ideas eventually left the company.

But Ishiwatari experienced resistance even among those who remained. One day, the factory manager presented her with resignations from all of the factory workers. Ishiwatari resolved the dispute, acknowledging that she was pushing change through too quickly and without enough consideration for employee feelings.

In the seven years since Ishiwatari began introducing these changes, Hoppy’s annual sales have increased fourfold to about US$42 million, even though it is sold mainly around Tokyo. The company’s workforce has expanded to more than 50 people.15

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^connect

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three ways. First, it is a signal—a warning system—that the change agent has not sufficiently addressed the underlying conditions that support effective organizational change.16 In some situations, employees may be worried about the consequences of change, such as how the new conditions will take away their power and status. In other situations, employees show resistance because of concerns about the process of change itself, such as the effort required to break old habits and learn new skills.

Second, resistance is a form of constructive conflict that can potentially improve decision making, including identifying better ways to improve the organizations success. However, constructive conflict is typically accompanied by dysfunctional relationship conflict. This appears to be the case when change agents see resistance to change as an impediment rather than a resource. They describe the people who oppose them as the problem, whereas their focus should be on understanding the reasons why these people resist. Thus, by viewing resistance as a form of constructive conflict, change agents may be able to improve the change strategy or change process.

Third, resistance should be viewed in the context of justice and motivation. Resistance is a form of voice, so it potentially improves procedural justice (see Chapter 5). By redirecting initial forms of resistance into constructive conversations, change agents can increase employee perceptions and feelings of fairness. Furthermore, resistance is motivational; it potentially engages people to think about the change strategy and process. Change agents can harness that motivational force to ultimately strengthen commitment to the change initiative.

WHY EMPLOYEES RESIST CHANGE

Change management experts have developed a long list of reasons people do not embrace change. Some people resist change because of their personality and values.17 Aside from these dispositional factors, however, employees often lack the motivation or commitment

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identify conditions that are holding back your readiness for a specific change initiative.

to change when they believe the change will fail, is the wrong action for the situation, or will be costly to them personally.18 This cost might be in the form of lost rewards and status, or it might represent negative consequences if they attempt to support the change. Another reason for resistance is the persons inability (or perceived inability) to change due to inadequate skills and knowledge. A third reason is that employees lack role clarity about the change. This lack of role clarity occurs when people misunderstand or magnify what is expected of them in the future. These three factors—motivation, ability, and role (mis) perceptions—are the foundations of the six most commonly cited reasons people resist change, which are summarized here.19

Direct Costs Employees lack commitment to (or even compliance with) a change initiative when their personal cost-benefit analysis calculation is negative rather than positive. They might believe the benefits for them (and possibly for the organization) are trivial (i.e., some pain for little gain). They might anticipate benefits from the change but also believe that they will be worse off overall. For example, the Malaysian government has introduced sweeping changes in which managers are expected to delegate more power and responsibility to staff. However, many government managers believe these reforms will give them less power and prestige, so they have hindered the change by delegating responsibility slowly.

Saving Face Several years ago, Rob McEwan, CEO of Goldcorp and USGold, decided to post the mining company’s confidential geological data online and offer a handsome reward to anyone who could help find more gold on the property. The Goldcorp Challenge was a huge success, but the firm’s geological staff complained just before the event was launched. “We have real concerns,” they told McEwen. “You’re going to ask the rest of the world to tell you where we’re going to find gold in our mine, and we think they’re going to think we’re really dumb and that you don’t have any confidence in us.”20

Goldcorp’s geological staff resisted the global challenge because it threatened their self-esteem. Although McEwan eased those concerns, employees often continue to quietly attack changes that did not originate from them. Due to this “not-invented-here” syndrome, staff sometimes deliberately inflate problems with changes that they did not initiate, just to “prove” that those ideas were not superior to their own. This form of resistance is widespread, according to change experts. Says one consultant, “Unless they’re scared enough to listen, they’ll never forgive you for being right and for knowing something they don’t.”21

Fear of the Unknown All change includes some degree of uncertainty. This uncertainty puts employees at risk. Their knowledge and skills might become obsolete; their

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Ray Davis, CEO of Umpqua Bank, warns that employees tend to fall back into their old ways unless the change is reinforced through systems and structures. “When you are leading for growth, you know you are going to disrupt comfortable routines and ask for new behavior, new priorities, new skills,” says Davis, whose Oregon-based bank is regarded as one of America’s most innovative financial institutions. “Even when we want to change, and do change, we tend to relax and the rubber band snaps us back into our comfort zones.”23

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valued work space, perquisites, or even social relationships might be disrupted and removed. Thus, people resist change out of worry that they cannot adjust to the new work requirements or that they will produce unknown costs. Overall, this uncertainty is usually considered less desirable than the relative certainty of the status quo.

Breaking Routines People typically resist initiatives that force them out of their comfort zones and require them to invest time and energy in learning new role patterns. Indeed, most employees in one Australian survey admitted they don’t follow through with organizational changes because they “like to keep things the way they are” or the changes seem to be too complicated or time wasting.22

Incongruent Team Dynamics Teams develop and enforce conformity to a set of norms that guide behavior. However, conformity to existing team norms may discourage employees from accepting organizational change. This form of resistance occurred at electronics retailer Best Buy when it introduced the results-only work environment (ROWE). ROWE evaluates employees by their results, not their face time, so employees can come to work and leave when they want. Yet coworkers often responded to deviations from the standard work schedule with half-humorous barbs such as “Forgot to set your alarm clock again?” These jibes supported the old employment model but undermined the ROWE program. Best Buy’s consultants eventually set up sessions that warned employees about these taunts, which they called “sludge.”24

Incongruent Organizational Systems Rewards, information systems, patterns of authority, career paths, selection criteria, and other systems and structures are both friends and foes of organizational change. When properly aligned, they reinforce desired behaviors. When misaligned, they pull people back into their old attitudes and behavior. Even enthusiastic employees lose momentum after failing to overcome the structural confines of the past.

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Unfreezing, Changing, and Refreezing

According to Lewin’s force field analysis model, effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it remains in this desired state. Unfreezing occurs when the driving forces are stronger than the restraining forces. This happens by making the driving forces stronger, weakening or removing the restraining forces, or both.

The first option is to increase the driving forces, motivating employees to change through fear or threats (real or contrived). This strategy rarely works, however, because the action of increasing the driving forces alone is usually met with an equal and opposing increase in the restraining forces. A useful metaphor is pushing against the coils of a mattress. The harder corporate leaders push for change, the stronger the restraining forces push back This antagonism threatens the change effort by producing tension and conflict within the organization.

The second option is to weaken or remove the restraining forces. The problem with this change strategy is that it provides no motivation for change. To some extent, weakening the restraining forces is like clearing a pathway for change. An unobstructed road makes it easier to travel to the destination but does not motivate anyone to go there. The preferred option, therefore, is to both increase the driving forces and reduce or remove the restraining forces. Increasing the driving forces creates an urgency for change, while reducing the restraining forces lessens motivation to oppose the change and removes obstacles such as lack of ability or situational constraints.

CREATING AN URGENCY FOR CHANGE

The opening story to this chapter described how Alan Mulally began the change process at Ford Motor Company by warning staff that the company would die if it didn’t change quickly. The fact is, organizational change requires employees to have an urgency for change.25 “I think there are two attributes for every successful company,” says Warren Erhart, CEO of White

Spot, western Canada’s oldest (since 1928) and most successful restaurant chain. “One is a sense of urgency, the other is a dedication to continuous improvement.” Erhart explains the importance of these two attributes: “We know that success is fleeting. We have to keep working at it and keep focused all the time.”26

A few months after he became CEO of Nokia Corp, Stephen Elop sent employees a scorching e-mail, warning them about the urgency for change. “I have learned that we are standing on a burning platform,” wrote Elop. “And, we have more than one explosion—we have multiple points of scorching heat that are fueling a blazing fire around us.” Elop described strong competition from Apple and Google, Nokia’s falling brand preference, and its declining credit rating. “We poured gasoline on our own burning platform,” he suggested, pointing to the company’s poor accountability and leadership.27

Creating an urgency to change typically occurs by informing employees about competitors, changing consumer trends, impending government regulations, and other forms of turbulence in the external environment. These are the main driving forces in Lewin’s model. They push people out of their comfort zones, energizing them to face the risks that change creates. In many organizations, however, leaders buffer employees from the external environment to such an extent that these driving forces are hardly felt by anyone below the top executive level. The result is that employees don’t understand why they need to change and leaders are surprised when their change initiatives do not have much effect.

Customer-Driven Change Some companies fuel the urgency to change by putting employees in direct contact with customers. Dissatisfied customers represent a compelling driving force for change because the organization’s survival typically depends on having customers who are satisfied with the product or service: Customers also provide a human element that further energizes employees to change current behavior patterns.28 Executives at Shell Europe applied customer-driven change a few years ago. Many middle managers at the energy company seemed blissfully unaware that Shell wasn’t achieving either its financial goals or its customer needs; so to create an urgency for change, the European managers were loaded onto buses and taken out to talk with customers and employees who work with customers every day. “We called these ‘bus rides.’ The idea was to encourage people to think back from the customer’s perspective rather than from the head office,” explains Shell Europe’s vice president of retailing. “The bus rides were difficult for a lot of people who, in their work history, had hardly ever had to talk to a customer and find out what was good and not so good about Shell from the customer’s standpoint.”29

Creating an Urgency for Change Without External Forces Exposing employees to external forces can strengthen the urgency for change, but leaders often need to begin the change process before problems come knocking at the company’s door. “You want to create a burning platform for change even when there isn’t a need for one,” says Steve Bennett, former CEO of financial software company Intuit.30 Creating an urgency for change when the organization is riding high requires rare persuasive capability that helps employees visualize future competitive threats and environmental shifts.

For instance, Apple Computer’s iPod dominates the digital music market, but the late Steve Jobs wanted the company to be its own toughest competitor. Just when sales of the iPod Mini were soaring, Jobs challenged a gathering of 100 top executives and engineers to develop a better product to replace it. “Playing it safe is the most dangerous thing we can do,” Jobs warned. Nine months later the company launched the iPod Nano, which replaced the still-popular iPod Mini before competitors could offer a better alternative.31

Experts warn, however, that employees may see the burning-platform strategy as manipulative—a view that produces cynicism about change and undermines trust in the change agent.32 Also, the urgency for change doesn’t need to originate from problems or threats to the company; this motivation can also develop through a change champion’s vision of a more appealing future. By creating a future vision of a better organization, leaders effectively make the current situation less appealing. When the vision connects to employee values and needs, it can be a motivating force for change even when external problems are not strong.

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( EXHIBIT 15.2 Strategies for Minimizing Resistance to Change ) ( STRATEGY EXAMPLE WHEN APPLIED PROBLEMS Communication Customer complaint letters are shown to employees. When employees don’t feel an urgency for change, don’t know how the change will affect them, or resist change due to a fear of the unknown. Time-consuming and potentially costly. Learning Employees learn how to work in teams as company adopts a team-based structure. When employees need to break old routines and adopt new role patterns. Time consuming, potentially costly, and some employees might be unable to learn the new skills. Employee involvement Company forms a task force to recommend new customer service practices. When the change effort needs more employee commitment, some em ployees need to save face, and/or employee ideas would improve deci sions about the change strategy. Very time-consuming. Might lead to conflict and poor deci sions if employees’ interests are incompatible with organi zational needs. Stress management Employees attend sessions to discuss their worries about the change. When communication, training, and i nvolvement do not sufficiently ease employee worries. Time-consuming and potentially expensive. Some methods may not reduce stress for all employees. Negotiation Employees agree to replace strict job categories with multiskilling in return for increased job security. When employees will clearly lose something of value from the change and would not otherwise support the new conditions. Also necessary when the company must change quickly. May be expensive, particularly if other empl oyees want to ne gotiate their support. Also tends to produce compliance but not commitment to the change. Coercion Company president tells managers to “get on board” the change or leave. When other strategies are ineffective and the company needs to change quickly. Can lead to more subtle forms of resistance, as well as long-term antagonism with the change agent. Sources: Adapted from J.P. Kotter and L.A. Schlesinger, “Choosing Strategi es for Change,” Harvard Business Review 57 (1979), pp. 106-14; P.R. Lawrence, “How to Deal with Resistance to Change,” Harvard Business Review, May-June 1954, pp. 49-57. )REDUCING THE RESTRAINING FORCES

Employee resistance should be viewed as a resource, but its underlying causes—the restraining forces—still need to be addressed. As we explained earlier using the mattress coil metaphor, increasing the driving forces alone will not bring about change, because employees often push back harder to offset the opposing forces. Instead, change agents need to address each of the sources of resistance. Six of the main strategies are outlined in Exhibit 15.2. If feasible, communication, learning, employee involvement, and stress management should be attempted first.33 However, negotiation and coercion are necessary for people who will clearly lose something from the change and in cases where the speed of change is critical.

Communication Communication is the highest priority and first strategy required for any organizational change. According to one recent survey, communication (together with involvement) is considered the top strategy for engaging employees in the change process.34 Communication improves the change process in at least two ways.35 One way, which we described earlier, is by generating an urgency to change. Leaders motivate employees to support the change by candidly telling them about the external threats and opportunities that make change so important. Whether through town hall meetings with senior management or by directly meeting with disgruntled customers, employees become energized to change when they understand and visualize those external forces.

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The second way that communication minimizes resistance to change is by illuminating the future and thereby reducing fear of the unknown. The more corporate leaders communicate their vision, particularly details about that future and milestones already achieved toward that future, the more easily employees can understand their own roles in that future. Similarly, as the leader communicates the future state more clearly, employees form a clearer picture about how the change relates to their jobs and responsibilities. “No. 1 is to always communicate, communicate, communicate,” advises Randall Dearth, CEO of chemical manufacturer Lanxess Corp. “If you’re bringing in change, you need to be able to make a very compelling case of what change looks like and why change is necessary.”36

Learning Learning is an important process in most change initiatives because employees require new knowledge and skills to fit the organization’s evolving requirements. For example, learning was an important strategy for change at CSC. The U.S. business and technology consulting and services firm’s executive team recognized that the company’s culture required better alignment with its growth strategy. To achieve this, CSC launched a leadership development program, which would minimize resistance to the change by equipping managers with the skills to coach employees toward emerging attitudes and values.37

Employee Involvement Unless the change must occur quickly or employee interests are highly incompatible with the organization’s needs, employee involvement is almost an essential part of the change process. In the chapter on decision making (Chapter 7), we described several potential benefits of employee involvement, all of which are relevant to organizational change. Employees who participate in decisions about a change tend to feel more personal responsibility for its successful implementation, rather than being disinterested agents of someone else’s decisions.38 This sense of ownership also minimizes the problems of saving face and fear of the unknown. Furthermore, the complexity of today’s work environment demands that more people provide ideas regarding the best direction of the change effort. Employee involvement is such an important component of organizational change that special initiatives have been developed to allow participation in large groups. These change interventions are described later in the chapter.

Stress Management Organizational change is a stressful experience for many people because it threatens self-esteem and creates uncertainty about the future.39 Communication, learning, and employee involvement can reduce some of the stressors. However, research indicates that companies also need to introduce stress management practices to help employees cope with changes.40 In particular, stress management minimizes resistance by removing some of the direct costs and fear of the unknown about the change process. Stress also saps energy, so minimizing stress potentially increases employee motivation to support the change process.

With brand-name clients and more than $500 million in sales, Lopez Foods Inc. has become the 10th largest Hispanic-owned company in America. To further improve its quality and efficiency, the Oklahoma City-based beef patty and sausage manufacturer recently involved employees in the change process. The current production process was mapped out on a large wall of brown paper, and employees were asked for ways to make it better. To management’s surprise, employees were enthusiastic about suggesting productivity improvements. “Things we thought would be a hard sell on the employees, they themselves have come up to us and said, ‘We can do this better,’ or ‘We don’t need five people here, we only need three,'” says CEO Eduardo Sanchez.41

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Part Four Organizational Processes

Negotiation As long as people resist change, organizational change strategies will require a variety of influence tactics. Negotiation is a form of influence that involves the promise of benefits or resources in exchange for the target person’s compliance with the influencer’s request. This strategy potentially gains support from those who would otherwise lose out from the change. However, this support is mostly compliance with, rather than commitment to, the change effort, so it might not be effective in the long term.

Coercion If all else fails, leaders rely on coercion to change organizations. Coercion can include persistently reminding people of their obligations, frequently monitoring behavior to ensure compliance, confronting people who do not change, and using threats of sanctions to force compliance. Replacing people who will not support the change is an extreme step, but it is fairly common. For instance, one year after Robert Nardelli was hired as CEO of Home Depot, most of the retailer’s top management team had voluntarily or involuntarily left the company. Several years earlier, StandardAero CEO Bob Hamaberg threatened to fire senior managers who opposed his initiative to introduce lean management. “You must have senior management commitment,” Hamaberg said bluntly at the time. “I had some obstacles. I removed the obstacles.” Today, StandardAero is a world leader in the aircraft engine repair and overhaul business.42

Firing people is the least desirable way to change organizations. However, dismissals and other forms of coercion are sometimes necessary when speed is essential and other tactics are ineffective. For example, it may be necessary to remove several members of an executive team who are unwilling or unable to change their existing mental models of the ideal organization. This is also a radical form of organizational “unlearning” (see Chapter 1) because when executives leave, they remove knowledge of the organization’s past routines that have become dysfunctional.43 Even so, coercion is a risky strategy because survivors (employees who do not leave) may have less trust in corporate leaders and engage in more political tactics to protect their own job security.

REFREEZING THE DESIRED CONDITIONS

Unfreezing and changing behavior won’t produce lasting change. People are creatures of habit, so they easily slip back into past patterns. Therefore, leaders need to refreeze the new behaviors by realigning organizational systems and team dynamics with the desired changes.44 The desired patterns of behavior can be “nailed down” by changing the physical structure and situational conditions. Organizational rewards are also powerful systems that refreeze behaviors.45 If the change process is supposed to encourage efficiency, then rewards should be realigned to motivate and reinforce efficient behavior. Information systems play a complementary role in the change process, particularly as conduits for feedback.46 Feedback mechanisms help employees learn how well they are moving toward the desired objectives, and they provide a permanent architecture to support the new behavior patterns in the long term. The adage, “What gets measured, gets done,” applies here. Employees concentrate on the new priorities when they receive a continuous flow of feedback about how well they are achieving those goals.

Bank of New Zealand BNZ applied this refreezing strategy by changing the feedback and reward system at its call centers. Previously, call center employees received feedback and were rewarded for answering and completing calls quickly. However, management concluded that customers wanted efficient calls, not fast talkers. “What do fast calls have to do with great conversations?” asks Susan Basile, BNZ’s managing director of direct sales and service. “Sure, we don’t want to waste the customer’s time. But if we were to ask them what they most wanted from our call center, they might well say they want fast answers, but we’d be wrong to conclude they want fast talkers or hurried conversations.” Now, BNZ provides employee feedback and rewards around “great conversations,” not how quickly the call is completed. Employees are recognized for addressing customer needs rather than for how long it takes them to complete the call.47

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Jim Claire – Week 8 HRM

December 1, 2023/in Uncategorized /by Daniel Jennings

StrAtegIC Hr MAnAgeMent

case study

Case

Aetna: Investing in Diversity Case

By Wayne Cascio, Ph.D.

Project team

Author: Wayne Cascio, Ph.D.

SHR M project contributor: Nancy A. Woolever, SPHR Copy editing: Katya Scanlan, copy editor

Design: Blair Wright, senior graphic designer

Development of this case was made possible by a grant from the Society for Human Resource Management and the National Academy of Human Resources. All of the characters in the case are fictitious. Information presented was current as of the time the case was written. Any errors are solely the author’s.

Note to Hr faculty and instructors: SHR M cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class.

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09-0365

Aetna: Investing in Diversity

INtroductIoN

Raymond Marcos, chief diversity officer at Aetna, is preparing to make a presentation to the company’s board of directors at its mid-December meeting. In a deteriorating economic environment that seems to be global in its reach, the board is looking to

cut expenses in any way possible. To do that, it is reviewing every major company business initiative. Diversity is one such initiative, and the board wants to understand the business case for it. It also wants to see a clear plan to measure outcomes, including systems and data. Raymond knows that some of the board members are relatively new, that almost all of them are independent directors from outside the company and that they may not have a deep understanding of the historical roots

of Aetna’s diversity efforts or the objectives of those efforts. At the same time, he is eager to showcase the company’s diversity initiatives and their results, both direct and indirect.

The board has allocated 35 minutes for Raymond’s presentation and another 15 minutes for questions. In preparing his remarks, Raymond has assembled a wide range of information and has to decide what to include and what to exclude. Time constraints simply do not allow him to present everything he would like. Bottom

line: he has to make logical arguments and a compelling case to the board to support the company’s continued investments in diversity.

He has information relevant to the following issues:

1. Company background.

2. Current economic environment.

3. The business case for diversity.

4. Aetna’s 2009-2011 HR strategy.

5. Aetna’s values-based approach to running its business and its broad-based approach to diversity.

6. Direct and indirect payoffs from Aetna’s diversity efforts.

( 2 © 2 0 0 9 S o c i e t y f o r H u m a n r e s o u r c e M a n a g e m e n t . W a y n e C a s c i o , P h . D . )

As Raymond surveys the information, he is feeling a bit overwhelmed. He asks himself, “How am I ever going to be able to condense all of this into a 35-minute presentation?” While he is unsure of all of the details of his presentation, Raymond has a deep appreciation and understanding of diversity at Aetna. He wants to build his presentation on a long-standing belief that broadening the definition of diversity is actually an opportunity. “In the past, diversity was an employee relations issue, largely around race and gender. This was the traditional first-order view of diversity, born out of compliance and human resources. We have learned that diversity comes in many different shapes and flavors, and we have an obligation to recognize the many different ways people present to us. The beauty of diversity is the differing perspectives everybody brings to the table. Those perspectives enrich the dialog,

and that, in turn, promotes better decision-making.”1 As he ponders the best way to proceed, Raymond considers the information he has collected.

comPaNy BackgrouNd

Aetna is one of the nation’s leading diversified health care benefits companies serving approximately 37.2 million people (17.5 million medical members, 14.2 million dental members and 10.9 million pharmacy members, some of whom

fall into more than one category).2 Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical- management capabilities and health care management services for Medicaid plans. Aetna customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates.

Aetna’s health care network includes 4,919 hospitals, more than 843,000 health care professionals, and more than 490,000 primary care doctors and specialists. It subsumes five member companies: ActiveHealth Management, Aetna Student Health, Goodhealth Worldwide, Schaller Anderson and Strategic Resource Company.

More than 35,000 employees work for the company. Of those, 31 percent are people of color and 76 percent are women. People of color hold 16 percent of management/ supervisory positions, and 11 percent of senior leaders are people of color. Women hold 64 percent of management/supervisory positions, and 30 percent of senior leaders are women. Aetna’s 2007 revenue was $27.6 billion. Exhibit 1 (located in the appendix) is a snapshot of the company’s 2007 financial highlights.

Founded in 1853, Aetna has a long history of community involvement and leadership on employment and diversity issues. For example, 2009 is the “Year of the Woman”

at Aetna, where it will celebrate 100 years of employment of women.

Aetna’s diversity activities have a long history. Since 1982, Aetna has published an African-American History calendar, profiling 12 well-known and lesser-known African-Americans in a variety of fields and professions each year. In that same year, Arthur Ashe, famed tennis player and world citizen, was voted to the Aetna board

of directors. Ashe was not the first African American on Aetna’s board, however; Hobart Taylor, Jr., was named to the Aetna board of directors in 1973.

Aetna’s current ‘mature’ vision of diversity is a broad view that includes a wide variety of attributes that make all of us uniquely diverse from one another in some way. Exhibit 2 presents some key milestones in the company’s history.

curreNt ecoNomIc eNvIroNmeNt

While examining each major business initiative at Aetna, the board is well aware of global and domestic economic conditions. In 2008, widespread defaults on sub- prime mortgages triggered a global crisis in capital markets. Many of the world’s leading investment banks collapsed, credit markets tightened considerably around the globe, and governments and the private sector battled to shore up the global financial system. Following the demise of Lehman Brothers, Bear Sterns and Merrill Lynch as independent entities, the U. S. government undertook a massive bailout of troubled lenders Fannie Mae and Freddie Mac, insurance giant AIG and major banks.

All 15 European countries that use the euro currency (the “euro zone”) have been in a recession following two straight quarters of declines in their gross domestic products. Governments across the world—including the UK, Belgium, France, the Netherlands, Germany, Ireland, Italy, Spain, Portugal, Iceland, Norway, Sweden, Austria, Hungary, Ukraine, Russia, China, Saudi Arabia, the UAE, South Korea, Japan and Indonesia—stepped up interventions to stem the worst financial crisis in decades. Those interventions took the form of interest rate cuts, capital injections and lending guarantees to restore liquidity, revive the ailing banking system and rebuild investors’ confidence.3

Against this backdrop, Aetna reported its financial results for the third quarter of

2008.4 Exhibit 3 presents more detailed information for the total company, and Exhibit 4 shows the performance of Aetna’s common stock from December 2000 through November 14, 2008. In summary form, third quarter 2008 results were as follows:

n Operating earnings were $1.12 per share, a 15 percent increase over the prior-year quarter, in line with the Thomson/First Call mean of $1.12 per share.

n Net income was $0.58 per share, a 39 percent decrease over the prior-year quarter, primarily as a result of net realized capital losses.

n Net realized capital losses totaled $232 million after tax; capital adequacy and holding company liquidity remain strong.

n Medical membership increased by 169,000 to 17.7 million.

n Guidance: Full-year 2008 operating earnings per share were projected to be $3.90 to $3.95, a decrease from prior guidance due primarily to lower fourth quarter net investment income.

n Preliminary 2009 guidance: Operating earnings per share were projected to increase 3 to 5 percent over full-year 2008 operating earnings-per-share guidance. This includes a projected $0.30 to $0.40 per share increase in the company’s 2009 pension expense, driven by 2008 equity-market performance.

Commenting on these results, Aetna’s chairman and CEO said, “Despite the significant weakening of the U.S. economy as well as the unprecedented turmoil in the financial markets around the world, our core business performance remains

solid. We continue to win in the marketplace by offering a broad range of products and providing excellent customer service. Aetna also continues to be proactive at the national and state levels in promoting the important issues of increased accessibility and affordability of health care and improved quality for more Americans. Our national presence, strong competitive position and well-conceived strategy have continued to produce solid results even in this difficult economy.”

In a related comment, Aetna’s executive vice president and CFO said, “While we did incur investment losses this quarter due to the turmoil in the capital markets, Aetna is well-capitalized, with a strong balance sheet and excellent cash flows and liquidity. We expect to generate over $1 billion of excess capital in 2008 and currently have no

need to raise additional capital. Our underwriting results were strong, demonstrating our continued ability to manage costs and price with discipline.”5

tHe BusINess case for dIversIty

At Aetna, celebrating diversity means appreciating and valuing individual differences. In general, managing diversity means establishing a heterogeneous workforce (including white men) that can perform to its potential in an equitable work environment where no member or group of members has an advantage or a disadvantage.6 This is a pragmatic business strategy that focuses on maximizing productivity, creativity and commitment of the workforce while meeting the needs of diverse consumer groups. Aetna pursues a more nuanced definition of diversity, namely, that it is more than just gender and racial or ethnic diversity. It is also diversity of background, training, functional experience, generational identity, etc.

To be sure, a mature view of diversity in corporate America requires a legitimate and sellable business case of diversity for the organization and its bottom line. An internal business case for diversity must extend beyond compliance (and the pain of fines and bad PR that non-compliance can bring) to a true strategic contribution to business growth and bottom-line results, employing the resources and market view of a diverse employee population.

Aetna’s Employee Resource Groups (ERGs) are good examples of such contributions. Here are just a few of them:

n Aetna’s African American ERG served on focus groups to contribute ideas for greater penetration of urban markets, from product design to distribution and advertising.

n The Telework, Caregivers and Aetnabilities ERGs serve as invaluable resources to Aetna and strong contributors to creating a work environment that is welcoming to their particular segment while identifying external business opportunities.

n The Hispanic and Asian ERGs provide translation support. Documents translated by firms that specialize in that work may get the literal word-for-word match

from English, but that translation may not have the same overall message as was intended. The Hispanic and Asian ERGs know Aetna’s terms and the messages it wants to convey, so they help develop high-quality translations of the English text into similar-meaning texts in non-English languages.

n Gen Y ERG is helping Aetna develop a recruitment and retention strategy that resonates with this employee segment. The Gen Y ERG also assists with marketing efforts to this younger population.

Broadly speaking, there are two key drivers of Aetna’s corporate strategy to pursue diversity: (1) growth opportunities in non-traditional and other targeted growth markets (e.g., gay/lesbian/bisexual/transgender (GLBT), Asian-American business owners); and (2) the need for an organization that reflects and understands the customer base it serves. To accomplish these objectives, Aetna is taking the following steps:

» Creating innovative and tailored product and service solutions that will meet customers’ unique needs.

» Developing a diverse supplier base that reflects the company’s multicultural marketplace.

» Building a workforce that understands the communities where Aetna does business.

» Fostering a culture of inclusion that attracts a diverse talent pool and recognizes and rewards the contributions of every employee while allowing employees to do their best work.

According to Aetna’s mission and values statement (www.aetna.com/about/aetna

/ms/), Aetna appreciates effort but recognizes and rewards employees for achieving business results. Toward this end, Aetna uses the following metrics to assess the business impact of its diversity initiatives.

Initiative

Metric

Business Impact

Area Affected

Local Market Initiative and Targeted Growth Markets

• Number of new markets

• Membership growth

• Profitable growth in local markets

• Local markets

• Small and middle markets

Supplier Diversity

• Number of suppliers and amount in expenditures

• Promote strong company brand

• Profitable growth

• Small and middle markets

• Individual markets

AARP

• Number of new members 50 years of age and older

• Profitable growth

• Enterprise-wide

• 50+ demographics

Multicultural

Investments

• Money invested with minority- and woman- owned funds

• Promote strong company brand

• Competitive returns

• Enterprise-wide

Cultural Competency

Training

• Percentage of employees who have completed training

• Promote strong company brand by understanding different population segments

• Enterprise-wide

Multilingual Capability

• Percentage of employees who speak languages in addition to English

• Percentage of materials available in languages other than English

• Promote strong company brand by understanding different population segments

• Increased market share

• Enterprise-wide

Multicultural Customer

Satisfaction Index

• Percentage of customers satisfied with our products and services

• Promote strong company brand

• Increased market share from the multicultural market

• Enterprise-wide

Diversity Index Gaps

• Differences among employee demographic segments

• Increased employee engagement and productivity

• Enterprise-wide

HR Recruiting/

Retention

• Differences among employee demographic segments

• Hiring and turnover

savings

• Employee satisfaction

• Employer reputation and brand

• Enterprise-wide

Miami Advisory Council

• Miami market share

• Increased market share and brand recognition

• Miami-Dade County

Diversity Annual Report

• Reports printed and distributed

• Languages used

• Promote strong company brand as an industry leader

• Increased market share

• Enterprise-wide

Aetna’s diversity strategy is closely related to its broader HR strategy, as reflected in the overall statement of that strategy: “HR will be accountable for the advancement of a diverse, high-performing workforce to sustain industry leadership.” To operationalize that strategy from 2009 through 2011, HR at Aetna identified three key initiatives linked to business priorities and goals and tied to measurable outcomes that reflect success. An executive summary of the overall HR strategy is shown below.

executive summary: 2009–2011 Human resources strategy

Enterprise Strategy Statement

2009–2011 Human Resources Strategy

Statement

Aetna will lead the industry in providing high- quality, cost-effective health and related solutions that leverage information to meet the needs of targeted customers.

HR will be accountable for the advancement of a diverse, high-performing workforce to sustain industry leadership.

aetna’s Integrated Workforce-management strategy

Business Priorities and Goals

Key Strategic Goals

Success Measures

• Forecast and plan for a superior workforce to meet changing business needs, including local and targeted growth markets

• Attract innovative, results- focused, diverse workforce

goal #1: Workforce management

Supply a qualified workforce

to support near- and long-term business objectives

• Effectiveness of workforce plans (e.g., timely delivery of right resources to meet business needs)

• Diverse employee base that understands and reflects our constituents

• Aligned systems and practices to support delivery of strategy (e.g., utilization of Talent Manager information)

• Develop bench strength and career growth in critical job functions, succession plans and enterprise leadership to ensure our ability to meet challenges of our growth strategy

goal #2: Leadership and key talent capabilities

Identify, develop, utilize and retain talent with leadership and functional capabilities

• Internal talent placement into new and expanded roles

• Talent retention

• Middle management and functional talent development

• Diverse pipeline of internal and external talent for leadership

• Career progression

• Retain, engage and optimize performance of innovative, results-focused, diverse workforce

• Drive profitable growth

goal #3: High-Performance organization

Drive employee, team and organizational performance and advance Aetna’s growth strategy

• Pay-for-performance results

• Diversity scorecard results

• Improved employee survey results

• Employee health dashboard results

• Contribution to growth/sales

aetNa’s vaLues-Based aPProacH to ruNNINg Its BusINess aNd Its

Broad-Based aPProacH to dIversIty

Aetna employees live by a set of core values, known as the Aetna Way, which put the people who use the company’s services at the core of everything it does. While business results are important, Aetna’s senior managers believe that how the company achieves those results—how it makes a difference for the people it serves— is every bit as important. Exhibit 5 (located in the appendix) shows the company’s four core values: integrity, employee engagement, excellence and accountability, and quality service and value. Raymond focuses on the customer-centric nature of these

values—that they all revolve around Aetna’s customers. He also notes how each value

is defined operationally in terms of how employees are expected to behave.

n Integrity: Do the right thing for the right reason, honor commitments and behave ethically.

n Employee engagement: Lead people to success, value diversity, and build confidence and pride in our company.

n Excellence and accountability: Make a fair profit, innovate, anticipate the future—look, listen and learn.

n Quality service and value: Make it easy. Eliminate hassles; make Aetna the standard by which others are judged; build trusting, valued relationships with all constituents.

The “ICE” Strategy

Aetna’s diversity strategy is a unique marriage of values and business strategy with roots from more than 35 years ago.7 Its core components are integration, communication and education (ICE). Exhibit 6 is a graphic representation of this overall diversity strategy.

Integration means that all diversity components are working together across

the enterprise (marketing, HR, Aetna’s philanthropic foundation, investments, procurement, sales, etc.) and that they are fully integrated into the short- and long- term business-planning process. Communication is the creation and dissemination of information to all employees and customers. Finally, education means deepening the understanding of what the diversity strategy is, its components, how it is manifested in Aetna’s business strategy, who is included, and the creation of development tools

to increase individual and organizational competencies.

The outcome of this strategy is twofold: (1) to serve customers in current markets more effectively while (2) identifying opportunities in new markets. It recognizes that Aetna’s future success depends on a deep knowledge of all employee segments; clear and consistent communication to disseminate information to employees, customers and other key constituents; and an increased focus on developing the cultural awareness and competency necessary to sustain its business success. To

be sure, Aetna’s ICE strategy extends well beyond diversity awareness to that of a strategic advantage.

As he examines Exhibit 6, Raymond notes that under the column heading “Integration,” Aetna’s diversity strategy supports its business goals. To illustrate this linkage in greater detail, he consults Exhibit 7, which shows the interplay between the company’s strategic business goals and the diversity implications associated with them.

As for the ICE components of communication and education (of new hires, current employees and senior managers), Raymond considers some of Aetna’s major

initiatives:

» New-hire orientation includes an overview of the diversity strategy.

» The internal diversity web site includes information and resources related to diversity, including Aetna’s mission, strategy and other resources.

» Aetna’s robust performance management process includes diversity-related behaviors and competencies for all levels of employees.

» Aetna regularly publishes articles on different diversity topics on its intranet.

» Since 2005, the company has published an annual diversity report.

» Aetna sponsors a speaker series through its “Diversity in Action Lecture Series,”

available to all employees via live webcast.

» The Aetna Diversity Board, chaired by the company’s chief executive officers, is comprised of Aetna executives, including its president.

» The Aetna Diversity Alliance, a multi-level cross-organizational group that leverages and integrates each other’s resources to maximize Aetna’s diversity- related presence and reach, internally and externally.

» The Aetna Diversity Scorecard.

» An annual report for Aetna’s board of directors, which captures the company’s accomplishments related to its diversity strategy.

» Aetna’s chairman reports the results of diversity initiatives at quarterly managers’

meetings and at all-employee meetings.

» Reporting results of key external diversity assessments and surveys such as the

DiversityInc’s “Top 50 Employers for Diversity.”

Raymond identifies four diversity focus areas in Exhibit 7—namely, workforce

and workplace, suppliers, marketplace, and community and professional alliances. In thinking about the best way to integrate this material into his presentation, Raymond considers how the company measures several of these important outcomes.

Workforce

In its 2008 and 2009 workforce, Aetna measured the representation of people of color in management, noting where it has under-representation relative to its best practice corporate and industry peers.

Workplace

Through an annual employee survey for all employees, Aetna measures the work experiences and perceptions among employees of different backgrounds. Specifically, it measures the difference in responses to two questions on the employee survey, collectively referred to as the diversity index. Any difference in responses between groups is referred to as the diversity index gap, and the company works to understand its drivers and make improvements as necessary. Examples of segments measured include: employees with and without disabilities; gay/lesbian and heterosexual employees; men and women; white employees and employees of color; and employees who work at home or in the office.

These two questions ask employees how strongly they agree or disagree with the following statements about Aetna:

1. Aetna deals with all employees fairly [an indicator of how a good manager should behave].

2. Aetna enables people from diverse backgrounds (e.g., ethnicity, race, gender, religion, age, disability, sexual orientation, gender identity) to contribute to their fullest.

Suppliers

Through its supplier-diversity program, Aetna actively seeks out minority- and women-owned businesses and invites them to compete for the company’s business. By tapping into different backgrounds, perspectives and experiences, Aetna enjoys several advantages. First, it gains access to high-quality goods and services. Second, it gains valuable insight into multicultural markets. And finally, it serves more effectively the communities in which its own employees live and work.

Community and Professional Alliances

With respect to community involvement, Aetna works diligently to build relationships with local community leaders, chambers of commerce and nonprofit organizations to gain an understanding of the health care needs in the community. It then works with those same groups to help address the identified needs. Sometimes that means reaching out to minority brokers and jointly developing community outreach strategies, as Aetna did in Chicago. Sometimes it means creating a council of business and community leaders to provide Aetna with insight and perspectives on the Hispanic community, as it did in Miami. Sometimes it means working with Chinese health care providers to ensure that Aetna’s members have access to culturally appropriate care, as Aetna did in New York. It always means working on a local level to develop an understanding of the needs of a range of communities, including African-Americans, Latinos, Asian Americans, Native Americans, the GLBT community and women-led businesses.

Incremental Costs

A question that members of Aetna’s board of directors might reasonably ask is, “What additional costs does a company incur by pursuing a diversity strategy that is as aggressive and broad as Aetna’s?” The honest answer is that Aetna’s diversity initiatives are not all free, but Raymond wants to emphasize that the additional costs are really investments in the company’s long-term sustainability. Aetna has historically adopted this perspective, but given the current economic conditions, he can certainly understand why the board might question such expenditures. Additional costs include:

» Investments in training and education, people resources, marketing and advertising.

» Funding of targeted program efforts and initiatives, such as travel budget to allow company recruiters to visit historically black colleges and universities and Hispanic- serving institutions or gay and lesbian chambers of commerce.

» Aetna knows that some members of its corporate peer group spend more than it does on diversity efforts and initiatives, so it tries to leverage its spending in this arena for maximum potential return to the organization (return on investment, or ROI), in whatever form that ROI may take—revenue growth, percentage growth in members, awards/recognition, talent acquisition, etc.

Payoffs from aetNa’s dIversIty efforts—dIrect aNd INdIrect

Aetna’s business results are impressive. Its market value has zoomed from $3.3 billion when the current CEO took over in 2001 to more than $29 billion in 2008. Aetna’s net income rose from a loss of $291.5 million in 2001 to more than $1.8 billion in 2007.8 Undoubtedly, much of the turnaround in business results can be traced to a more focused business strategy, but at the same time, the CEO made diversity a key business imperative. That aspect of Aetna’s strategy has also paid off. To begin to appreciate the broad range of recognition the company has received,

consider some of its recent awards:9

n Top 40 Companies for Diversity, Black Enterprise magazine.

n Readers’ Choice, Best Diversity Company, Engineering & Information Technology

magazine, diversity/careers category.

n Corporation of the Year Legacy Award, 100 Black Men of Greater Washington, DC.

n Top 10 Companies for Executive Women, National Association for Female

Executives.

n Chairman’s Award, National Newspaper Publishers Association (Black Press of

America), for outstanding advertising to and for African Americans. n Top 50 Companies for Black MBAs to Work, Black MBA magazine. n 25 Great Places to Work, Essence magazine.

n Top 50 Companies for Latinas, Latina Style magazine.

n Top employer for leadership and accomplishment in hiring and promoting people with disabilities, State of Connecticut Department of Social Services.

n 25 Noteworthy Companies, DiversityInc.

n 5-Star Employer Award, U.S. Department of Defense, Employer Support of the

Guard and Reserve.

n America’s Most Admired Companies, Fortune magazine, #1 in the health care insurance category.

n Hispanic Health Leadership Award, Ron Williams, Aetna chairman and CEO, National Hispanic Health Foundation.

n National Diversity Bridge Award, Ron Williams, Aetna chairman and CEO, Chicago United.

n One of the 50 best places to launch a career, Business Week.10

WHere to go from Here?

To provide a more logical and compelling case for Aetna’s diversity initiatives, Raymond wants to frame his presentation in the context of a broad organizing framework. He has read about one such framework in Investing in People (2008).11

The key point he took from that book was that metrics alone are not enough to convince skeptical decision makers about the worth of any HR initiative such as diversity. To have an effect, metrics must create a true strategic difference in the organization. They are valuable to the extent that they improve decisions about talent and how it is organized. That means it is important to embed the metrics in a broader framework for creating organizational change through enhanced decisions. Exhibit 8 describes such a framework in greater detail.

As he ponders the depth and breadth of the information he has assembled, Raymond keeps asking himself several questions: Is there other relevant information that I should collect? How do I order, prioritize and integrate the information I have collected to make the most compelling case in the 35 minutes I’ve been allotted by the board?

Appendix

exhibit 1

Financial Highlights

(millions, except per common share data)

for the year 2007 2006 % cHaNge

Revenue $27,599.6 $25,145.7 9.8

Operating Earnings1 1,837.1 1,647.9 11.5

Net Income 1,831.0 1,701.7 7.6

Operating Expense Ratio2 18.2% 18.8% (3.2) After-tax Operating Margin 6.6% 6.7% (1.5)

at year end

Assets $ 50,724.7 $47,626.4 6.5

Shareholders’ Equity 10,038.4 9,145.1 9.8

Market Capitalization 28,649.5 22,280.3 28.6

Common Shares Outstanding 496.3 516.0 (3.8)

Per common share

Operating Earnings1 $ 3.49 $2.90 20.3

Net Income 3.47 2.99 16.1

1Operating earnings excludes from the net income: net realized capital (losses) gains of $ (48) million, ($ (74) million pretax) in 2007 and $ 24 million ($ 32 million pretax) in 2006; a reduction of the reserve for anticipated future losses on discontinued products of $42 million ($ 64 million pretax) in 2007 and $75 million ($115 million pretax) in 2006; the write-off of a $72 million ($47 million after tax) insurance recoverable related to a prior-year class action settlement in 2006; a debt refinancing charge of $12 million ($ 8 million after tax) associated with our debt refinancing in 2006; and an impairment of $ 8 million ($ 6 million after tax) of previously capitalized software due to the acquisition of a more multifunctional system in our acquisition of Broadspire Disability in 2006.

2The operating expense (GA AP basis) was 18.3 % in 2007 and 19.2% in 2006. The operating expense ratio excludes net realized capital (losses) gains from total revenue as discussed in Note 1 above and also excludes the prior-year class action settlement insurance-related charge, debt refinancing charge and acquisition-related software charge from operating expenses as discussed in Note 1 above.

The foregoing financial information should be read in conjunction with the financial statements and related notes as presented in Aetna’s 2007 Annual Report, Financial Report to Shareholders.

exhibit 2: key milestones in aetna’s History

1850

n In 1850, Aetna Insurance Company organizes an annuity fund to sell life insurance. Aetna Insurance Company turns to a Hartford, Conn., judge, Eliphalet A. Bulkeley, who is a general counsel to the company and also on its board of directors. Judge Bulkeley had been the president of the Connecticut Mutual Life Insurance Company, which was, when founded in 1846, the first life insurance company in Connecticut. He is chosen to head the annuity fund operation, and in the summer of 1850, the department commences business.

1853

n The annuity department separates from Aetna Insurance and is incorporated as Aetna Life Insurance Company. The company’s first president is Eliphalet A. Bulkeley. The name “Aetna” is retained to take advantage of the good reputation of the original Aetna and because three years of life insurance policies already had been issued under that name. The name was inspired by Mt. Etna, an 11,000-foot volcano on the eastern shores of Sicily, then the most active volcano in Europe. Awed by the strength of the mountain, they named their fledgling venture Aetna Insurance Company.

1865

n Annual income tops $1 million. By 1864, Aetna has increased its business volume by 600 percent over 1861 levels and has increased annual premium income

nine times. This rapid growth gives Aetna the financial stability and resources needed to meet the stringent requirements placed on life insurance companies in Massachusetts and New York, and by 1865 the company is authorized to solicit business in both states for the first time. In the eyes of the industry, Aetna has arrived. Also in 1865, the company pays a large cash dividend—the first since

1857—and its size eclipses the combined total of all previous dividends.

1899

n Aetna enters the health insurance field. It wasn’t until the turn of the century that larger insurance companies, with the statistical bases to set adequate pricing levels and the sales forces capable of spreading risk, entered the field and health insurance became a part of the industry. In 1899, Aetna becomes one of the first stock insurance companies to enter the health insurance business. The new product is offered only to people holding or purchasing an Aetna life or accident policy and is not intended to be anything more than a spur to the sales of the other two lines.

1902

n Aetna begins offering liability coverage. As the nation’s industrial base grows more complex and the Progressive social reform movement gains political momentum, Aetna responds by organizing an accident and liability department in 1902 to handle employers’ liability and workmen’s collective insurance. This department becomes the cornerstone of the Aetna Accident and Liability Company in 1907, which in rapid order moves into more lines of property and casualty insurance, including protection against damage to horse teams, flywheel breakage, auto collision coverage, plate glass and burglary insurance, and surety bonds.

1907

n The company begins offering automobile coverage. In 1907, Aetna creates a casualty subsidiary—the forerunner of Aetna Casualty and Surety—to handle (among other things) automobile property coverage. Soon after, Aetna begins aggressively developing related lines such as collision and damage.

1913

n Aetna forms a group department to sell group life insurance, becoming one of the first insurers to write group coverages for businesses. The line became the foundation upon which Aetna built its current health care business. The 1900s bring into the public consciousness the notion that employers are responsible

for the safety of their workers. As a consequence, the emergence of a market for employer liability insurance prompts Aetna to enter the fray. Over the years, the company adds group accident (1914), group disability (1919) and group medical (1936) to its original group life portfolio.

1926

n Aetna appoints its first female officer, Dr. Marion Bills. Dr. Bills completely revamps the company’s personnel policies within two years. She also introduces the Bonus Plan, a piecework sliding-pay scale that is primarily applied to data- processing departments.

1929

n The stock market crash kicks off the Great Depression. Aetna’s fortunes are not as devastated as one might have expected from a company so heavily involved

in investments. Only about 12 percent of the company’s assets are in common stock, and almost half of that is in its own companies. The inherent strength of the Aetna companies enables them to survive the 1930s. Aetna manages the crisis by withholding dividend payments to shareholders from late 1932 to early 1934,

reducing the workforce through attrition, and cutting salaries by 10 percent. Aetna employees survive the Depression in relatively good shape; there are no layoffs, and the company-wide pay cut, already less than the national average of 25 percent, is more than offset by a deflationary cycle that increased purchasing power.

1940

n Aetna bonds the construction of seven U.S. Navy aircraft carriers—the Essex, the Yorktown, the Intrepid, the Hornet, the Franklin, the Ticonderoga and

the Randolph. More than 1,600 Aetna employees served in the military during World War II. As it did in World War I, Aetna aids the war effort by throwing its substantial resources behind bond drives, raising millions for the war chest.

1951

n The group department introduces major medical coverage as a labor shortage coupled with a wage freeze make employee benefits one way employers can attract and retain workers. As American society becomes more affluent, it insists on adequate and accessible medical care. Providing this care in the form of benefits packages becomes the focus of the department during the years after the war

as it develops plans to cover first routine medical expenses and then, in 1951, catastrophic illnesses.

1963

n Aetna insures the lives of the first seven American astronauts. An enterprising Houston agent convinces America’s original seven astronauts to purchase Aetna policies. He then convinces Aetna to write the policies, the first individual life insurance policies for spacemen. When L. Gordon Cooper caps the pioneering Mercury program with a historic 22-orbit flight, Aetna is there too.

n The company formally crafts an equal opportunity employment policy.

1968

n The company is listed on the New York Stock Exchange. Aetna appears on the Big Board for the first time on September 24, 1968, four days after the stockholders approve an increase in stock from 26 million to 40 million shares of common stock and the creation of 10 million shares of preferred stock.

n Aetna expands its international business in 1968 by acquiring a majority interest

in Producer’s and Citizen’s Cooperative Assurance Company, a Sydney, Australia- based entity, for a negotiated price of $10 million.

1981

n Aetna reorganizes along market segments. As part of a companywide reorganization, Aetna abandons its divisional arrangement in favor of a more market-focused structure. The personal financial security division is created to meet the needs of individuals; the commercial insurance division is developed to

cater to small and large businesses; and the group division is renamed the employee benefits division to better describe its function.

n Aetna acquires a 40 percent interest in two Chilean companies, a pension and a life enterprise. Soon to follow are ventures in England, Spain, Hong Kong, Taiwan, Indonesia and Korea.

1982

n Aetna introduces its “Aetna, I’m Glad I Met Ya!” advertising campaign.

n The company re-enters the managed care industry with the introduction of its first formal HMO, Choice HMO, in Chicago.

1990

n Fortune magazine lists Aetna as its fifth most-admired financial services company.

1999

n Aetna completes its acquisition of Prudential HealthCare for $1 billion, making Aetna the country’s largest provider of health benefits, with more than 21 million members.

2000

n Aetna completes the sale of its financial services and international businesses to ING for $7.7 billion and spins off the health business to its shareholders. The sale helps Aetna redefine itself as an independent health and group-benefits company, on its way to restoring industry leadership in terms of service, reputation and profitability.

2003

n Aetna celebrates its 150th anniversary. To mark the milestone, Aetna executives ring the closing bell at the New York Stock Exchange on June 16.

2004

n An award for “Best Business Turnaround—More Than 2,500 Employees” is presented to Aetna as part of the 2004 American Business Awards competition. The awards recognize outstanding leadership, innovation, perseverance, creativity, teamwork and integrity in business.

2005

n After achieving a company high of $1.1 billion in earnings during 2004 and a new high-water mark in stock price, Aetna declares a two-for-one split of the company’s common stock effective March 11, 2005.

n Aetna completes a series of strategic acquisitions that allow the company to strengthen its base of products and services while reaching new customer segments. These acquisitions include Strategic Resource Company (SRC), an administrator

of group benefit products for part-time and hourly workers; ActiveHealth

Management, a clinically focused, technology-driven health management and health care data analytics company; and HMS Healthcare, a regional health care network operating in Michigan, Colorado and other states.

2006

n Ronald A. Williams becomes chairman, chief executive officer and president of

Aetna, succeeding John W. Rowe, M.D., who retires.

exhibit 3: aetna’s third Quarter 2008 financial results

Revenues, excluding net realized capital losses,12 increased 14 percent to $8 billion for the third quarter of 2008, compared with $7 billion for the third quarter

of 2007. The growth in third-quarter revenue reflects a 16 percent increase in premiums and an 8 percent increase in fees and other revenue. This revenue growth reflects a higher level of membership and premium rate increases.

Total Operating Expenses, excluding the $42.2 million allowance recorded against the reinsurance recoverable,13 were $1.4 billion for the third quarter of 2008, $121.1 million higher than the third quarter of 2007. Operating expenses as a percentage

of revenue14 were 17.4 percent for the third quarter of 2008 and 18.2 percent for the third quarter of 2007. Including net realized capital losses and the allowance against the reinsurance recoverable, this percentage was 18.8 percent for the third quarter of

2008 and 18.3 percent for the third quarter of 2007.

Corporate Interest Expense was $39.3 million after tax for the third quarter of

2008, compared with $28.6 million for the third quarter of 2007. The increase for the third quarter 2008 was due to higher average debt levels in 2008.

Net Income was $277.3 million for the third quarter of 2008, compared with

$496.7 million for the third quarter of 2007. The decrease in net income for the third quarter 2008 was primarily due to net realized capital losses in the third quarter of 2008 of $232 million after tax. Approximately $120 million of these losses were due to other-than-temporary impairments of certain fixed income investments, which decreased in market value due to the widening of credit spreads in the marketplace in the third quarter of 2008. These losses also include approximately $70 million for the impairment of Aetna’s investments in debt securities of Lehman Brothers Holdings Inc., Washington Mutual, Inc. and other investments, as well as $42 million from sales of investment securities.

Operating Margin was 11.4 percent for the third quarter of 2008, compared with

12.1 percent for the third quarter of 2007, pre-tax.15 The after-tax net income margin, which represents net income divided by total revenue, was 3.6 percent for the third quarter of 2008, compared with 7.1 percent for the third quarter of 2007.

Share Repurchases totaled 11.1 million shares at a cost of $472.8 million in the third quarter of 2008.

exhibit 4: monthly Performance of aetna’s common stock

(december 2000–November 14, 2008)

aet monthly —

11/14/08

volume —

99 00 01 02 03 04 05 06 07 08

300

250

( m i lli o ns )200

150

100

exhibit 5: the aetna Way

Honor commitments

Lead people to success

do th thing f right r

value diversity

Behave ethically

make it easy— eliminate hassels

People who use our services

Build confidence and pride in our company

make a fair profit

make aetna

the standard by which others are judged

vate

Build trusting, value added relationships with all constituents

anticipate the future—look, listen, learn

exhibit 6: aetna’s diversity strategy and focus areas

Aetna’s Diversity Strategy

Integration

• Includes all diversity dimensions (race, sexual orientation, age, telework and caregiver status, etc.)

• Its components work together across the enterprise (Marketing, HR, Foundation, Procurement, Sales, Investments, etc.)

• Supports Aetna’s business

goals

Communication

• Disseminate information to employee and customers and other key constituents

• Communicate about diversity in internal and external forums positioning Aetna as a best-in-class company

• Share progress and

challenges

Education

• What is the strategy and its components?

• How is it manifested in the business strategy?

• Who is included?

• What tools are needed to increase competencies and meet marketplace needs?

exhibit 7: Linking aetna’s strategic Business goals to diversity outcomes

context for aetna’s diversity strategy

aetna’s strategic focus

diversity Implications

» Profitably grow market share and

earnings

» Deliver superior medical quality and total cost management

» Achieve optimal expense structure through improved productivity to support growth

» Create customer value through innovation and technology

» Apply technology to create customer value

» Deliver best-in-class customer experience

» Foster compliance as a core competency

» Enhance our diverse, high- performance culture and workforce

» Build a workforce that understands the racial/ethnic, gender, sexual orientation and generational diversity of the marketplace

» Create an inclusive work environment that maximizes each employee’s contributions and productivity

» Attract potential candidates to Aetna; choose from a broader and deeper pool of candidates

» Achieve criteria to bid on government and public-sector businesses

» Enhance workforce capabilities to address the needs of our multicultural/multilingual constituents

» Provide culturally appropriate consumer experience; design products and services to meet their needs

» Establish business relationships with organizations and local communities to support community-based marketing and sales

» Establish an infrastructure that supports sales and renewal efforts of employers

» Increase supplier diversity

spending to fully leverage business opportunities at the local levels

» Link diversity metrics directly to enterprise scorecard

exhibit 8: the “LamP” framework

The acronym “LA MP” refers to the four components of the model: logic, analytics, measures and process. Here is a brief description of each of these.

Logic provides the story behind the connections between the numbers and outcomes. Well-grounded logic helps leaders outside the HR profession understand and use measurement systems to enhance their decisions. In other words, Raymond thought, the most fundamental question is, “How does Aetna create value from

its emphasis on diversity?” He wants to develop a “logic diagram” for the effects of investments in workforce diversity—a figure that is similar to those he saw in the book Investing in People. One such diagram, shown below, illustrates the logic of employee health and wellness.

the Logic of employee Health and Wellness

Employer Investments to Improve Employee Lifestyle Health (source, develop, motivate)

Employer Investments in Employee Assistance with Specific Issues (drug or alcohol abuse)

Employees adopt healthier behaviors both at and away from work

Employees achieve greater mental and physical health

Healthier employees require less health care treatment

Healthier employees are available at work more (absent less)

Healthier employees leave less often (turn over less)

Healthier employees perform better

at work

Reduced costs of medical services or insurance premiums

Reduced absenteeism

Reduced turnover costs

Increased

performance value

Source: Adapted from Cascio, W. F., & Boudreau, J. W. (2008). Investing in people: The financial impact of human resource initiatives (p. 103). Upper Saddle R iver, NJ: Pearson Education/ Financial Times Publishing

Analytics is about drawing the right conclusions from data. It transforms logic and measures into rigorous, relevant insights. It includes statistics and research design relevant to key diversity issues that have been identified, for example, between Aetna’s diversity initiatives, metrics and business impact. The ultimate objective would be to establish cause-and-effect relationships between specific diversity initiatives and business outcomes.

Measures of the effect of diversity initiatives have received considerable attention at Aetna, as described earlier. The company pays considerable time and attention to enhancing the quality of these measures, based on criteria such as timeliness, completeness, reliability and consistency. Raymond knows that such standards are important, but lacking a context, namely the “value-creation” logic in the LA MP model, it is easy to pursue them well beyond their optimum levels.

Process is about making the insights gained from effective measurement motivating and actionable. To do that, the measures must fit within a larger change management system that includes learning, education and knowledge transfer. For example, suppose board members question the additional costs that Aetna incurs to support

its diversity initiatives. Raymond’s strategy is to discuss the various measures that Aetna uses to assess the business outcomes of such initiatives in a broader “value- creation” framework. By adopting this approach, Raymond believes that he and

other HR leaders can gain credibility and extend the discussion to include additional logical connections between diversity initiatives and other organizational outcomes, such as learning, trust, performance and profits. What began as a focus on costs can be shifted to a more nuanced discussion about the optimal investments in workforce and marketplace diversity and how those investments pay off.

endnotes

1. M. T. Bertolini, as quoted in Aetna’s 2008 Annual Diversity Report, p. 22.

2. Aetna at a glance: Aetna facts. Available online at www.aetna.com/about/aetna /aag/facts.htm.

3. See, for example, Gauthier-Villars, D., & Phillips, M. M. (2008, Nov. 15). Europe tips

into recession. The Wall Street Journal, pp. A1, A8. See also the following articles from

The Financial Times, available at www.FT.com: Global banking reshaped (2008, Oct.

13); Government interventions (2008, Oct. 17); US downturn (2008, Nov. 14).

4. Aetna. (2008). Aetna reports third quarter 2008 results [news release]. Retrieved from www.aetna.com/news/newsReleases/2008/pr_3rdquarter2008_earnings.html.

5. Ibid.

6. Society for Human Resource Management. (n.d.). How should my organization define diversity? Retrieved from www.shrm.org/diversity.

7. Aetna Corporation. (2008). Annual diversity report (p. 22). Hartford, CT: Author.

8. Aetna Corporation. (2007). Aetna Corporation annual report. Hartford, CT: Author. See also

Grossman, R. J. (2008, April). Steering a business turnaround. HR Magazine, pp. 73-80.

9. Aetna Corporation. (2008). Annual diversity report (p. 21). Hartford, CT: Author.

10. Gerdes, L. (2008, Sept. 15). The best places to launch a career. BusinessWeek, pp. 37-46.

11. Cascio, W. F., & Boudreau, J. W. (2008). Investing in people: The financial impact of human resource initiatives. Upper Saddle River, NJ: Pearson Education/Financial Times Publishing.

12. Net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of liabilities. However, these transactions do not directly relate to the underwriting or servicing of products for customers and are not directly related to the core performance of Aetna’s business operations.

13. As a result of the liquidation proceedings of Lehman Re Ltd. (“Lehman Re”), a subsidiary of Lehman Brothers Holdings Inc., Aetna recorded an allowance against its reinsurance recoverable from Lehman Re of $27.4 million ($42.2 million pretax)

in the third quarter of 2008. This reinsurance was placed in 1999 and is on a closed book of paid-up group whole life insurance business. This is an “other” item for the third quarter of 2008 because it does not reflect underlying 2008 performance.

14. Operating expenses as a percentage of revenue excludes the allowance recorded on the reinsurance recoverable (described in footnote 12 above) from operating expenses and net realized capital gains and losses from total revenue.

15. In order to provide useful information regarding Aetna’s profitability on a basis comparable to others in the industry, without regard to financing decisions, income taxes or amortization of other acquired intangible assets (each of which may vary for reasons not directly related to the performance of the underlying business), Aetna’s pretax operating margin is based on operating earnings excluding interest expense, income taxes and amortization of other acquired intangible assets. Management also uses pretax operating margin to assess Aetna’s performance, including performance versus competitors.

sHrm members can download this case study and many others free of charge at www.shrm.org/education/hreducation/pages/cases.aspx.

If you are not a sHrm member and would like to become one, please visit www.shrm.org/join.

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ARTICLE CRITIQUE 6

December 1, 2023/in Uncategorized /by Daniel Jennings

The attached article is a reflective essay that assesses the strength of comments made by Christopher L. Tomlins in his book The State and Unions (1985), which looks back over the past quarter century. Various predictions were made concerning uniondecline and failed revival efforts as well as counterfeit rights offered to the U.S. working class.

Using all of the knowledge accumulated in this unit and in previous units, write a critique of the article. You may use other academic resources to support your points as necessary. Your critique must be at least three pages in length.

Your critique should address the questions below.

What are the author’s main points?

Do the arguments presented by the author support the main point?

What evidence supports the main point? For example, if Tomlin’s thesis that the New Deal offered only a counterfeit liberty to labor is true, what effect does that have on employee morale?

Briefly describe two collective bargaining strategies companies use when dealing with unions. How can these strategies affect employee morale?

What is your opinion of the article?

What evidence, either from the textbook or from additional sources, supports your opinion?

Be sure to follow the guidelines below.

Acurately identify the premise and supporting points from the article.

Provide an insightful and thorough analysis of the information from the article, including using evidence as well as reasonable and compelling interpretations.

Link material to course content and real-world situations.

Organize the material logically by using smooth transitions and by grouping similar material together.

The critique should be at least 3 pages in APA format.

Cite all sources used; paraphrased and quoted material must have accompanying citations in APA format.

U.S. Department of Labor. (n.d.). Office of Labor-Management Standards. Retrieved from https://www.dol.gov/olms/regs/compliance/ecr_finalrule.htm

College of Business – CSU. (2016, September 1). Collective bargaining [Video file]. Retrieved from https://youtu.be/KZcuT1oM2GE

U.S. Department of Labor. (n.d.). OLMS final rule on persuader reporting increases transparency for workers. Retrieved from https://www.dol.gov/olms/regs/compliance/ecr_finalrule.htm

Queen’s IRC. (2014, February 25). What are the four phases of collective bargaining? [Video file] Retrieved from https://www.youtube.com/watch?v=F02opoWS6bU&feature=youtu.be

Cabot, S. J. (2009, November 9). Stephen Cabot’s labor strategy survival seminar – Bargaining subjects [Video file]. Retrieved from https://www.youtube.com/watch?v=ZCqP0AzAOxk&feature=youtu.be

101therealest. (2015, December 3). 7.Distributive bargaining and the dangers of being greedy [Video file]. Retrieved from https://youtu.be/b3XpVlTQ1Xo

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Empowerment Approach To Human Services Management

December 1, 2023/in Uncategorized /by Daniel Jennings

Review the 12 principles presented by Hardina et al. in the section titled “Humans Service Organizations and Empowerment” in Ch. 4 of Management of Human Service Programs. Additional resources may be used.

Write a 1,050- to 1,400-word paper that discusses the principles presented by Hardina et al. In your paper, discuss the principles that characterize an empowerment approach to social service management, and evaluate how these principles are applied to a human service organization in which you are familiar.

Specifically, address the following:

Explore what themes from classical management theories (bureaucracy, scientific management, universal management principles, etc.) are utilized with an empowerment approach.
Explain the ideological belief systems of a manager who espouses empowerment for the overall agency, staff members, and clientele.
Explain the differences between horizontal and top down organizational models.
Explain how the concepts of team building and collaboration are met through the use of contemporary management theories.
Discuss strategies for consistent evaluation of organizational efficacy that includes strategic feedback from clients, community constituency groups, and staff members within the agency.

Hardina et al. (2007) suggest that an “empowering approach” to social service management is characterized by the following basic principles: 1. Empowerment-oriented organizations create formal structures to support the participation of clients in organizational decision-making …

2. Empowerment-oriented organizations create partnerships with program beneficiaries in which all parties (clients, staff, and board members) are equal participants …

3. The purpose of client involvement in service delivery is to decrease personal feelings of powerlessness and to improve the quality of, and access to, services …

4. Empowerment-oriented organizations explicitly develop policies, programs, and procedures that can be used to bridge cultural, ethnic, gender, and other demographic barriers to effective service delivery …

5. Empowerment-oriented organizations have top managers who are ideologically committed to the empowerment of both staff members and program beneficiaries …

6. Empowerment-oriented organizations engage in specific strategies to increase the psychological empowerment and motivation of workers …

7. Empowerment-oriented organizations promote the use of team building and collaboration among staff members …

8. Empowerment-oriented organizations encourage staff to advocate for improvements in services and policies …

9. Empowerment-oriented management approaches can only produce effective outcomes when a consistent funding base is available to maintain the organization …

10. Empowerment-oriented organizations involve clients, community constituency groups, and staff members in ongoing evaluation of services and program renewal …

11. Empowerment-oriented organizations act to increase their own political power as well as the political influence of program beneficiaries …

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Assignment (Unilever)

December 1, 2023/in Uncategorized /by Daniel Jennings

You work for a HR consulting company, and an organization (the same company you have been writing about during this course, Unilever) has hired your firm to conduct an HRM analysis and make recommendations to better align HR practices with the key business initiatives of the company. In order to accomplish the goal:

Analyze the organization and develop a set of HRM practices that help align HR practices to the firm’s strategy. (Keep in mind the firm’s overall strategy in regards to Porter and Snow and White’s theories.) Develop a 3200–3500-word research paper (not including the title and reference pages). Your paper should also:
Identify the firm’s history, strategy, market position, and specific area of alignment.
Provide job pricing and a compensation package for 3–4 key positions in the organization.
Describe and analyze the current and targeted HR work processes as well as the respective knowledge, skills, and abilities (KSAs) required to achieve the organization’s objectives.
Incorporate a discussion of relevant technology considerations to achieve work output in the context of the organization’s goals.
Provide a discussion of the labor market and the appropriate labor law context. Identification of companies that are preparing to address any legal or regulatory changes
Prescribe a set of HRM recommendations, specifically tailored for the selected firm. Insert a table with deliverables, accountable people, and a timeline for the recommendations.
Describe other HRM issues as applicable.

*Final Reminder*

In the beginning of your assignment paper, include a short introduction and clearly spell out the complete name of your chosen firm or company. which you used in the Week 1 Assignment: Selection of the firm.

Copy/paste each of the Assignment question below and then followed by your in-depth and comprehensive discussions. This is to make sure, that you do not miss anything in adequately addressing all the Assignment questions.
The Assignment questions are as follows:

*Analyze the organization and develop a set of HRM practices that help align HR practices to the firm’s strategy. (Keep in mind the firm’s overall strategy in regards to Porter and Snow and White’s theories.) Develop a 3200–3500-word research paper (not including the title and reference pages). Your paper should also:

*Identify the firm’s history, strategy, market position, and specific area of alignment.

*Provide job pricing and compensation package for 3-4 key positions in the organization.

*Describe and analyze the current and targeted HR work processes as well as the respective knowledge, skills, and abilities (KSAs) required to achieve the organization’s objectives.

*Incorporate a discussion of relevant technology considerations to achieve work output in the context of the organization’s goals.

*Provide a discussion of the labor market and the appropriate labor law context. Identification of companies that are preparing to address any legal or regulatory changes..

*Prescribe a set of HRM recommendations, specifically tailored for the selected firm. Insert a table with deliverables, accountable people and a timeline for the recommendations.

*Describe other HRM issues as applicable.

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HCS 499 Importance Of Mission And Vision Statements In Strategic Planning

December 1, 2023/in Uncategorized /by Daniel Jennings

Review the mission and vision statements provided:

Mission: To improve health by providing high-quality care.
Vision: Provide the highest level of service in the county.
Mission: To improve health by providing high-quality care.
Vision: Provide the broadest range of services in the county.
Mission: To be deeply committed to the communities we serve, we enhance population health and well-being.
Vision: Deliver an exceptional experience with every encounter.

Select the most appropriate mission and vision statement for the hospital described in your Week One assignment.

Write a 700- to 1,050-word executive summary that includes the following:

Identify the mission and vision selected.
Explain the rationale for why you selected the mission and vision statements.
- Identify the specific strengths of the mission and vision statement selected.
- Identify the weaknesses of the mission and vision statements not selected.
- Explain how the mission and vision drive the strategic plan for the health care organization.

Cite 2 peer-reviewed, scholarly, or similar references to support your paper. Textbooks and websites will not meet this requirement. Please take a look at databases such as ProQuest as an example.

Format your assignment according to APA guidelines.

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REPLY TO CLASSMATE’S POST

December 1, 2023/in Uncategorized /by Daniel Jennings

Dove has continued its social media public relations (PR) campaign on beauty and self-esteem. In 2014, Meaghan Ramsey presented “Why Thinking You’re Ugly is Bad for You” at a TED Talks event.
In the TED Talk presentation, Ramsey does not mention Dove. Without focusing on the organization in the speech, why would this be a good PR event for Dove? What does it achieve for the organization? Why do you think Ramsey, who is the Global Director of the Dove Self-Esteem Project, chose this way to communicate with Dove’s customers (and potential customers)? What are the advantages? What are the disadvantages?

PLEASE EXPLAIN WHETHER YOU AGREE WITH MY CLASSMATE RESPONSE TO THE ABOVE QUESTION AND WHY? (A MININUM OF 125 WORDS)

CLASSMATE’S POST

I love watching Ted Talks and Meaghan Ramsey’s speech was very insightful. It made me happy that I grew up in the 90s and sad to think of the new challenges my daughter will face growing up in a social media-obsessed world. I appreciated the speech because it was genuine bringing an issue that affects our youth to light. If Ramsey had mentioned Dove’s campaign, personally I would have thought she was there more to promote the company, not the cause. After watching the speech and knowing Ramsey’s position with Dove it makes me think that Dove truly believes in the cause of promoting healthy self-esteem and not doing it to sell products. Like most consumers today, when I make a purchase I want to ensure I am not supporting a company that is unethical. I think this is a great campaign, and I would be more likely to purchase Dove products because they seem to truly believe what they promote.

Manage Workforce Planning

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Human Relations

Module ONE Overview

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HR Related MCQs Exam

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Agents

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Jim Claire – Week 8 HRM

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ARTICLE CRITIQUE 6

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Module ONE Overview

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