Merger of Cadburys and Kraft | HR Analysis

Merger of Cadburys and Kraft | HR Analysis Cadbury being one of the top lead and almost 200 years old confectionery company having chocolate, gum and candy brands in the portfolio , with a power of making brands like Cadbury, Trident and Halls, that people love. John Cadbury, in 1824 started cocoa and chocolate selling shop in Birmingham. Since then the business kept expanding over time around the world, and today operates in more than 60 countries, with over 35000 direct and indirect suppliers and having more than 45000 employees Cadburys HR department Cadbury operates in more than 60 countries all around the world. Each of the factories has its own HR department that deal with the demand of the workers of the region according to their local situations and demands. Like all other HR departments, it deals with the efficient and effective utilization of resources available. The HR department actively takes care of the following: Recruitment of new staff that must have good skill level or past experience of working at factories of similar kind. Provision of training to new and existing staff so that they are fully equipped with knowledge of any new equipment or procedure brought in and will be able to use it efficiently. Helping the existing workers with problems that they may have at work place. The problems that Cadburys HR department is most likely to face are: Potential employees have in adequate skill or knowledge creating a skill gap. Other factories create competition among staff and creating a deficiency of new staff. Increase in staff turnover in different situation affect production GUEST MODEL: Through statistics and evidences we can easily identify the active management at Cadbury that not only seek betterment of its business but continuously strives for development for the people it holds and for the people that looks forward in joining hands with the company. In this way the Guest model fits in the best with the companys strategies and outcomes. The Cadburys powerful organizational policies can be understood by any good marketer through the managerial decision it takes in the market all over the world. The utmost emphasis on human resource development has helped Cadbury to gain the loyalty of its employees. The employees that are working with the company have created a good will of the company in market such a way that new graduates seek opportunity to work with the company. (Cadbury) The proactive approach of providing equal opportunities to the workers for their development and encouragement packages that the existing employees are enjoying helped to maximum decrease in the turnover and absenteeism percentage. The flexibility employees get during their tenure help them enjoy their work. The organizations communication system is well operated. The management gives a platform to its employees and not only that, they assure the employees that they have a devoted audience that will welcome whatever they place upon that platform. This strategy has helped tremendously that it has not only reduced the grievance level but have also again helped in the reducing the absences. Thus, all the statistics, feedback of employees and consumers and the well known companys market reputation indicates the companys conformance best with the Guest Model. KRAFT: ABOUT KRAFT: A US manufacturer, Kraft, being the second largest food company with approximately $ 50 billions revenue, doing business in more than 160 countries. A company that grew out of cheese whole sale and delivery business started in Chicago in 1903 by James L. Kraft. It later on incorporated as Kraft Bros, Co. in 1909. It acquired Philip Morris Cos in 1988 and later on renamed it as Altira Group Inc., in 2003. THE CULTURE: At Kraft, being open and inclusive a simple concept to follow that has became a part of their core company value in action and that guides their behavior. Being open and inclusive is critical to creating a delicious work experience for our employees and business partners. And its the foundation of our strategy to build a high-performing culture. (Krafts management) Their business style: Two words open and inclusive has become the core code of all the business Kraft do everyday, from training and development programs to the accountability in leadership objectives. THE HR PERSPECTIVE: The Kraft believe in attaining heights through their diverse workforce is one of the modern day technique. Krafts Human resource approach revolves around the same perspective. The management claimed to be providing equal opportunities and rights to different races and color people working at Kraft. At Kraft, following key points are emphasized and are followed religiously: Provision of training for every employee to value the diversity creating a sustainable culture of welcoming differences and values. Their diversity-focused council aligns objectives with the business strategies in order to enhance the impact. HARVARD MODEL: Kraft Foods Company fits in with the Harvard model for HRM. The reviews, feedbacks and statistics indicated that the company emphasis on the company as a whole with respect to its employees. The Kraft management is working with the situations of the worlds market in formulation of policies and making organization wide decision. It works in interest of all the members i.e. stakeholders, of the company. Although the model is weaker than the others and has a fair vulnerability to Unitarianism but it is a much more appropriate model of reference. The decisions the company have made over time had given us the idea that the company works in between constraints and choices that made the company a successful and still growing one. The influence of company itself on the unique contribution within the environmental and organizational parameters not only depicts the management as the real actor but also confirms its conformity with the model. The hr perspective also indicates the active HRM the company has that gives the 4 C outcome that is obvious enough through the employees feedbacks that have been reviewed. In the last the model gives three types of long term consequences i.e. individual based, organization based and societal level. At individual (employee) level, the psychological rewards a worker receives in exchange for efforts. At organizational level, increased effectiveness that ensures the survival and growth of organization. These two levels in turn, enable the societal level as; these two levels make its possible for fully utilization of human resource available and thus, societal goals like employment and growth are easily attained. STRATEGIC HUMAN RESOURCE MANAGEMENT: CADBURY: Strategic human resource management aims at the improvement of the way human resources are managed strategically within organizations, with the definitive goal of improving organizational performance, as judged by its impact on the organizations declared corporate strategy, the customer or shareholders. It is a philosophy of people management based on the belief that human resources are uniquely important to sustain the success of a business. It can also be defined as the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance. Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility. Strategic HRM according to text published in 2004 has emerged as a major approach to improving the competitive advantage of the firm. The strategic management is concerned with policy decisions effecting the entire organization, overall objective being to position the organization to deal effectively with its environment. Strategic HRM aims to provide a sense of direction in an often turbulent environment so that organizational and business needs can be translated into coherent and practical policies and programs. It provides competitive advantage over the others. (Malik, 2009) The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization. The case referred presents a clear picture of an organization that works with clear business objectives i.e. to deliver shareholder performance. The company works with the aim at dividends. The company policy works with the vision that the people it holds are the most important asset that not only works for the company but also integral in achieving the desired goals. Through different papers and journals we saw that the management is managing its human resources in a contingent manner. Thus, we can say that they are following the contingency approach.ÂÂ   Many advocates of the contingency theory of SHRM a company can only be effective if its policies and strategies align with the other key factors and strategies of the firm. According to journal HR must be closely integrated into the planning process of a firm. They also believed that a firm can achieve success if it is able to develop HR policies and practices that complement and support other HR policies and practices and other elements of the organizations strategic plan. (TME) Thus it is evident enough in the case that Cadbury considers its people as a source of competitive advantage and believes that they work as the main contributors to the companys success. The company also seeks and welcomes changes. The goals and objectives are clear and in order to achieve the goals and set objectives it must be aligned with the efforts of its people. The only way to observe such a trend is through Strategic Human Resource. As the company requires active and effective communication with its human resource and it plays the most important role in the companys approach, and in conveying all the policies, plans and strategies so that people at work can synchronize their efforts. The mere fact that Cadbury Schweppes has an HR director on the main board and that HR is represented at every regional business unit make it obvious that the company recognizes the strategic importance of human resources and takes HR issues and concerns seriously. (Cadbury) Cadbury is a resource based company. The company core competencies make it a resource based company. Cadburys unique strategies and policy, the working conditions and the development opportunities it provides to its employees that in turn becomes the key asset or its edge over its competitors. (TME) KRAFT: Kraft unique style of providing training and development opportunities at all level and point of time during an employees tenure makes it a best fit, best practice based company. Through analysis we can see that all the employees from top to bottom have a particular thing to be on that position. The core strategies that are followed at Kraft begin with the aim of building a high-performing organization (Kraft Foods). The provision of best fit entitles an employee for his reward in terms of promotion or training or even other means of rewards and appraisals. It also provides the top management the opportunity of enjoying a decentralized decision making power. The best fit eventually leads to best practice where a good healthy employee who is psychologically satisfied through rewards and encouragements strives to work for better tomorrow. All these practices are observed in Krafts foods operations making it Best Fit, Best Practice based company. LITERATURE REVIEWS: Kraft wins BBC Big Challenge Award for Gloucestershire (Kraft Foods, 2006) Kraft Foods today announced that it has won the BBC Big Challenge Health Works Award for Healthiest Large Employer in the BBC Radio Gloucestershire area. This award is presented to employers who have made health in the workplace one of their top priorities in 2005 and beyond. Kraft won the award for its commitment to creating a working environment that encourages and supports employees in their efforts to lead a balanced, active and healthy lifestyle. Since its launch in July 2004, Krafts employee wellbeing programme has offered advice on living a healthy lifestyle, supported activities that promote wellbeing such as pilates and yoga, provided healthy options in its staff restaurants, and offered all employees the opportunity to obtain periodical health checks through the companys occupational health team. The programme also demonstrates Krafts commitment to being a global leader in Health and Wellness, and its vision to Help people around the world to eat and live better. Christine Harrop, Occupational Health Sister at Kraft Foods won the BBC Big Challenge Unsung Hero Award for Gloucestershire an award presented to employees who have done something to inspire and encourage their colleagues to lead healthier and fitter lives. Christine won the award for her commitment to the health and wellbeing of Kraft employees, and her role over the past 18 years in participating and encouraging Kraft employees to take part in the annual London to Brighton Bike Ride. Christine regularly manages to recruit up to 60 employees to participate in the initiative and has raised thousands of pounds for the events chosen charity, the British Heart Foundation. Commenting on the two awards, Jim Beaty, HR Director stated Its a terrific achievement and recognition for the efforts of all employees who have contributed to the success of the employee wellbeing programme. Kraft Foods Names May to Global Human Resources Post. (Busniess Wire, 2005) NORTHFIELD, Ill. Kraft Foods Inc. (NYSE:KFT), a global leader in branded foods and beverages, announced today that Karen May, 47, is joining the company in October as Executive Vice President, Global Human Resources. May will provide leadership for all of Krafts human resources disciplines, including benefits, compensation, diversity, facilities management, labor and employee relations, human resources strategy, safety and security, and talent management. She will report to Roger Deromedi, Chief Executive Officer of Kraft Foods, and join the Kraft Executive Team. May replaces Terry Faulk, who is retiring after more than 38 years with the company. She will work closely with Faulk to ensure a smooth transition, prior to his retirement at the end of the year. We will truly miss Terrys vast experience and sound judgment, said Deromedi. I want to thank him for his many significant contributions to Kraft throughout his long and distinguished career, and wish him and his family the very best in his retirement. Karens broad range of experiences and thorough understanding of the Human Resources function will serve her well in this role, Deromedi noted. Im confident that shell play a key role in driving Krafts transformation to a more consumer-focused, innovative and nimble company in the years ahead. May joins Kraft from Baxter International, Inc., where she has been Corporate Vice President of Human Resources since 2001. She joined Baxter in 1990 as Director of Corporate Audit and held several positions of increasing responsibility, including Vice President of Corporate Audit and Vice President of International Finance. In 1998, she became Vice President of Global Talent Planning and Staffing at Baxter and, prior to her most recent assignment, was named Vice President of Human Resources in 2000. May began her career in finance, with PricewaterhouseCoopers. She has a BS in accountancy from the University of Illinois at Champaign-Urbana. Kraft Foods markets many of the worlds leading food brands, including Kraft cheese, Maxwell House and Jacobs coffees, Nabisco cookies and crackers, Philadelphia cream cheese, Oscar Mayer meats, Post cereals and Milka chocolates, in more than 155 countries. CONCLUSION: After all the research it can be concluded being key players of same consumer good category companies, and apart from the merger or acquisition, both the companies have their own unique set of competitive advantage over each other. Challenges in Highway Construction | Research Proposal Challenges in Highway Construction | Research Proposal Dissertation Proposal Challenges in Highway Road Construction in Nigeria. Research Questions: Why is there a high number of highway roads in poor conditions especially in the eastern part of the country? Why is there abandoned highway roads across Nigeria despite huge investments in highway construction? Why this there a poor maintenance culture of roads across the country? Hence, this proposed dissertation would aim to address this gap in knowledge by challenges facing the highway road construction, focusing more on the supervision of highway roads of indigenous construction companies. AIM To review and identify the challenges facing the construction of highway roads in Nigeria and to provide relevant recommendations for minimising these problems. The objectives of this research proposal are: To clearly identify the challenges facing highway construction in Nigeria through literature review. To conduct a questionnaire survey and interview of professional bodies and engineers and obtain their perceptions on highway construction challenges in Nigeria (particularly professionals with 30years and over of experience). Analysis of the survey data. To recommend possible changes in the supervision of highway construction in Nigeria. Background Introduction Nigeria is the largest country in Africa in terms of size and population of 174 million with landmass of 923,768 sq. km with diverse ethnic and cultures. It has 36 states with the Federal capital at Abuja with commercial states at Kano, Lagos, and Port Harcourt representing the northern, southern and eastern parts of the country. The Construction industry contributes about 7% of the GDP (Gross Domestic Product) in Nigeria annually and the GDP per capital was about $2,800 in 2013 and is made up of small, medium and large scale companies. It is dominated by foreign companies controlling about 95% of the construction works across the country with top construction companies namely Julius Berger, Dantana Sowoe, Borini Prono, China Civil Engineering Construction Corporation, etc. OVERVIEW OF HIGHWAY CONSTRUCTION IN NIGERIA Nigeria has the largest road network in West Africa with a total of over 193,000km length which is generally funded and managed by government. Road transportation is the major means of movement in Nigeria and it accounts for about 90% of movement of goods and services (Akpogomeh, 2002). In terms of scale and value, the transport infrastructure sector is dominated by the roads and bridges which make up about 17.2% of the total construction industry in 2014. However less than 20% of the road network is paved. With the government’s commitment to development, large investments in highway roads has been awarded across the country and the sector is expected to grow. The road network in the South and eastern part of the country are denser than the other parts owing to the high population densities in the areas (Ubogu et al, 2011). For example, the population in Lagos is about 6 million which was the former capital state and is the commercial and production part of the country and hence the volume of usage of the highway roads to and fro Lagos is quite high. The total highway roads are separately owned with the responsibility for construction, maintenance, and rehabilitation.The Federal roads are about 17%, State owned roads 16%, rural and Local Government Areas (LGAs) about 67%. The funding of the construction of the highway roads comes from the allocation of budget and also revenues from excess crude oil sales. Also, some states generate funds through private partnering which is used in Lagos States. However, only about 27% of Federal roads are reported to be in good condition, of which a major cause is likely to be the instability of the country during the military regime, which later became civilian rule since 1999. Annual loss to the economy is estimated in the region of N175b (N75b due to reduction in asset value; N88b due to increased vehicle operating cost; N12b due to increased turn around and increased travel time). Due to the high cost of construction of highway roads especially in the southern part of the country characterized with poor soils, high cost of labour, the Federal government relies heavily on international aid especially from China and the World Bank. With the World Bank, funding erosion projects across the country worth over $500 million. In October 2012, in the Northern part, Kaduna State approved $176million for 31 rural and township roads, and the World Trade Organization (WTO) agreed a loan of $170million for roads as part of the Nigeria Agriculture Transformation Agenda (NATA), which targets rural development. Also, a 128km road contract in Zamafara state worth $43.47million was awarded in 2013. Over in western part of Nigeria November 2012, in one of the biggest road developments, Ogun state awarded four companies a share of $568million for road contracts. Borini Prono, China Civil Engineering Construction Corporation (CCECC), Hi Tech and PW Construction will complete eight new roads by 2014, with a second phase of construction worth over $250 million. Also, the Lagos-Ibadan Expressway is one of the major road projects under development. The Infrastructure Bank Plc. is to raise NGN117bn for the reconstruction of the 127km road. Over in the Middle part of Nigeria, Delta where the country gets its crude oil from, a road construction contract worth $1.07 billion has been awarded to China Railway Construction in Nigeria. The Ministry of Delta Affairs of Nigeria awarded the package of works for Section V of the A121 East-West highway to China Civil Engineering Construction, a division of China Railway Construction with a 5 years duration to connect the main North-South highways. ITS route runs from the A1 highway at Shagamu in Ogun State to the A2 highway at Benin City in Edo State. More recently, in 2014, the governments of the Economic Community of West African States (ECOWAS) of which Nigeria is strong member approved a $50million six dual lane road projects to link Lagos, Abidjan and Dakar together cutting across Benin, Togo and Ghana. Also, the African Development Bank is expected to provide $16million for the construction and rehabilitation of roads across Africa linking the major cities. In general, the present condition of the Nigerian roads require urgent attention, in terms of rehabilitation and had a negative effect on the cost of production, lengthy travel time and standard of living ((Ubogu et al, 2011). For example, travelling from Benin to Lagos normally should take 5hours, but due to the bad road, the journey takes 8hours. Table 1.0 showing highway construction projects, value in US dollars, capacity, contractors and status. Project Name Value(US$) Capacity/length Companies Status Benin-Sagamu Highway 156 9.93km NA Under construction from 2013 Edepie-Tombia road Reconstruction 63 13km Shell Petroleum Development Company Under construction Niger Delta East- West Highway 2,175.69 338km Setraco Limited Under construction from 2013 Akwa Ibom State roads reconstruction 726 266km NA Planning stage Six lane Rig road in Niger Delta Port Harcourt 1,000 125km Africa Finance Corporation, China Harbor Eng. Company Contract awarded in 2008 East-West Road Project 2,276.3 338km Setraco Nigeria Ltd, Reynolds Construction Company Ltd, Gitto Costruzioni General Nigeria Ltd. Under construction since 2012. 51% of work completed. Ibadan-Ilorin highway upgrade 292 52km Shikin Binui Housing and Construction Under construction awarded 2010 and includes new dual carriage with interchanging bridges. Lagos- Ibadan Expressway 1054 127.6km Julius Berger, Reynolds Construction Company Ltd. Awarded 2013. Concession awarded to Bi-Courtney Highway Services ltd and was terminated and granted to Messrs Julius Berger Plc, Reynolds Construction Company. Gbongan Akoda Omoluuabi Motorway widening 185.8 30km RATON construction Nigeria Awarded May 2013 Magami-Dangulbi Dankurmi, Sabon Birni, Bagega Anka road 94.91 128km Bonny Prono Awarded Nov. 2012 Charanchi Ganuwa-Rawayau road 8.18 17km Mothercat Under construction from Oct 2013 Kaduna roads 178.1 NA NA Project Finance Closure(Funding Approved) NA-Not Available Source- Nigeria Infrastructure Report 2014 (BMI key Projects Database) SUPERVISION IN HIGHWAY CONSTRUCTION IN NIGERIA In Nigeria, supervision of highway construction is done by consultant engineers and middle level supervisors with few highway field experience, for example in the construction of say 10km rehabilitation in rural areas. A major factor affect supervision of highway projects is low knowledge of highway design and construction, understanding and interpretation of drawings, which is impossible to supervise what ones does not have knowledge of. Some processes in highway construction requires proper supervising such as the road alignment, soil tests, laying of asphalts or macadam as the case maybe. Also, the supervision should involve checking of quality of the material used for construction such as sand, laterite in accordance with the specifications in the highway drawings. In the awarding of highway roads contracts, the construction and supervision are awarded separately with competitive biddings. For example, Julius Berger, a foreign based company which specializes in highway construction which major works in Abuja city capital. The major issue is that for some construction works supervision contracts are awarded based on connection instead of actual knowledge of the supervision and hence there are no checks. But in general, most of the construction of highway roads by the foreign companies have stood the test of time. The case is not the same for home based construction companies who have limited resources and technical knowledge are awarded huge highway road contracts, with home based consultants supervising. Another issue is that the bill of the consultants supervising the construction is often times added to the entire contract and hence responsibility rests in the hands of the contractors and hence the consultants are often times forced to cut corners and save costs such as not putting a resident engineer to supervise daily and give reports. LOW KNOWLEDGE BASE. A major problem facing the highway construction is the lack of knowledge passage from the old and experienced engineers to the young, inexperienced engineers. Often times, due to the lack of availability of supervision works, most consulting firms do not employ and train engineers, engaging them in design and interpretation of drawings on site. Often times, when consulting firms get work, they employ contract based engineers to supervision leaving a huge gap of knowledge passage to the younger engineers and hence in Nigeria, most graduate Engineers have little or no construction experience. Also there is a lack of modern method of road construction especially the home based construction companies and hence many highway projects, such as highways and bridges, do not meet cost and time performance requirements. There is a poor maintenance culture of highway roads across the country and with the huge investments in highway construction, the average Nigerian lacks maintenance culture. In some cities across the country, some of the highways are constructed without the side drains and in some other cases only one side of the drains are constructed, which later causes failure of the roads. Also, litters can be seen in some of the highway roads especially in the eastern and western parts of the country which is a very serious issue which should be addressed. In the rural areas, most of the side drains are completely blocked especially in the eastern part which is prone to erosions. Another major issue within the highway construction in Nigeria is the failure of the Federal Government in paying contractors. For example, in the reconstruction of the 125km Lagos-Ibadan Expressway which was re-awarded to Julius Berger and R.C.C in which the construction is due to start due lack of payment by the government which is one of the reasons for abandoned highway projects across the country. Nigeria still uses the traditional contracting approach in which procurement is done through advertisement and bid processes has failed in performance in both the quality of construction and the management of the highways, in many developed countries adopting performance-based contract in road construction and maintenance. The Federal Ministry of Works which has branches across the 36 states with head office in Abuja the capital is responsible for all the federal highways construction which involves planning, design, construction, and rehabilitation. It is responsible for awarding for major highway contracts across the country. It also supervises and monitors construction and maintenance of the federal roads. In terms of quality, the choice of materials used, methodology and supervision are key in improving the quality and life span roads. In this regard, (Arumala 1987; and Akpododje 1986) investigated how the design standards, poor supervision and the failure of highways and found little or no evidence supporting it. Also, studies on road failure caused by use of sub-standard materials and knowledge on the geotechnical properties of the soils in which the roads are built (Ibrahim 1980; and Ola 1978). For example, the cost of road construction in the south and eastern part of the country is higher than that in the northern part mainly on the bad conditions of the soil, high cost of labour and availability of construction materials. The British code of Highway practice (BS codes) are still used in Nigeria for both in highway construction and buildings as it was a former colony of the Britain and currently a member of the Common Wealth. The Federal ministry also supervises the activities of the Federal Roads Maintenance Agency (FERMA) which is responsible for carryout maintenance works on the federal and state highways across the country. Research Method My proposed research method would be a qualitative research (questionnaire and interview survey). Interview survey for consultant engineers who have over 30 years’ experience in highway construction and questionnaire survey for contractors in highway construction in Nigeria. The reason being that the research requires an in depth perspective and in terms of numbers there are few engineers with over 30 years’ experience I can meet. The structure of the interview would be semi structured to allow for flexibility for 3 consultant engineers home based medium scale firms. Possible Problems Potential Solutions Possible limitations to my proposed study is the firstly the time management and a timetable has been drafted as shown below. Also the responsiveness of the interview survey could be challenging finding professional engineers and consultants with over 30 years’ experience. The research limited to home based construction companies and professionals. Conclusion Hopefully, at the end of research work, solutions could be recommended in the highway construction industry in Nigeria especially in the supervision area which would help in future planning of projects. References Alaba Adetola, et.al (2011) A critical appraisal of road transport infrastructure management in Nigeria International council for research and innovation CIB, pp.77-95. Abdulkareem, Y. and Adeoti, K. (2003), Road maintenance and National Development available at unilorin.edu.ng Adams, O. (1995) Indigenous Contractors’ Perceptions of the constraints on Contractors Performance and Development Programmes required in Nigeria. Habitat International, 19(4), pp.599-613. Adetola, A. (2011) A critical appraisal of road transport infrastructure management in Nigeria. International council for research and innovation CIB, pp.77-95. Aibinu, A. and Jagboro, G. (2002) The effects of Construction Industry, international Journal of Project Management. 20(8), pp.593-599. Nigerian Infrastructure report, 2013; 2014. (2014). A.E Okezie (2013) A case for Performance based road maintenance in Nigeria available at www.nseph.org Odeh, A. and Battaineh, H. (2002) Causes of construction delays: traditional contracts. International Journals of Project Management, 20, pp.67-73. Okigbo, N. (2012) Causes of Highway failures in Nigeria. International Journal for Engineering Science and Technology, 4(11).