Case Study: Hunter Douglas Group

Case Study hunter Douglas multitudeThis is a case national report to analyse how Hunter Douglas gathering argues its man preference cookery and how the activities involved in the human resource cooking process contributes to the success, as intumesce as to ensure future success, of this large multi-national organisation in line with its corporate vision, care, core treasures, strategic prep and objectives.Human resource planning provides the means to accomplish the desired protrudecomes of the organisation and achieving objectives by ensuring that the organisation has the pay off deem of quality people available to achieve objectives by system implementation. This is based on a tight working relationship between the human resource practitioners and line managers in each company (business unit) of its decentralised organisational structure. The human resource practitioners serve as consultants to line managers concerning the people prudence implications of business objectives and strategies. song managers, in turn, have the responsibility to respond to the business implication of human resource objectives and strategies.We also see that the environmental and contextual changes present a number of competitive repugns to this organization which requires its human resource prudence to be involved in helping to render and build bare-ass capabilities. The ch completely(prenominal)enges includeGlobalisation the challenge is to move peoples ideas, products and information around the world to meet local needs. engineering science the challenge is to make technology a viable, productive part of the work linguistic contextcontention in order to remain competitive and remain as a market leader, Hunter Douglas is assured of the importance of continuous procreation of its people.political economy economic growth or lower interest rates cause the increase in spending and often increase in business opportunities. Changes in the labour market has an impact on the organisations ability to find and keep employeesWorkforce changes and ability to cope with change these include resignations, terminations, leave of absences, death, change in employment status and retirementThe success of a business is directly linked to the mathematical operation of those who work for that business and Hunter Douglas meeting is fully aw are of this as it believes in the power of learning and providing its employees growth opportunities to develop their skills. Hunter Douglas Group acknowledges that its employees commitment is the key ingredient to the Groups continued growth and success.Hunter Douglas Group prides on the diversity and strength of its corporate culture that empowers its employees to build and run the business like their own businesses. The Hunter Douglas Group acts like a conspiracy of entrepreneurial companies who think globally but act locally. The character and creativity of its 21,000 employees in 169 countries worldwide have b uilt the dynamic and entrepreneurial company that the Group is today. With numerous benefits encouraging wellness and a work-life balance, Hunter Douglas Group regards its employees as its most valuable resource which is the key to the Groups success.Background unified Mission and centre ValuesCorporate MissionHunter Douglas is the worlds market leader in manufacturing a wide range of innovative and quality architectural and window blanket products. Hunter Douglas provides on-time delivery, reliable and friendly service at a competitive price. Its aim is to offer fulfillment to its staff and to secure a reasonable recidivate to its shareholders.Core ValuesCustomer OrientedPutting clients firstProviding reliable and friendly service.Achieving on-time deliveryInnovationSeeking continuous improvement and new ideas to create value to our customersStriving for creative ways of doing our work betterTeamworkWorking together harmoniously to achieve common goals and objectivesIntegrityHon ouring commitments to customers, staff and organisation be sincere and truthful intercourseShowing respect and understanding for each otherBeing frank, open and receptiveStaff Well-BeingProviding continuous training and developmentRecognising good performanceCorporate StructureBoard of DirectorsHunter Douglas Group has a one-tier corporate structure. Under its Charter, the Board of Directors is responsible for the boilers suit management and control of the Company. The Board is appointed by the shareholders at the annual General Meeting. The Board has four regular meetings per year and additional meetings as required. Board members may not be members of to a greater extent than five boards of public companies.IndependenceThe Board has six Members, of whom four are independent. It acts collectively by majority resolution.FunctionsThe Board reviews the oerall strategy, financial objectives, budgets, acquisitions, divestments, capital expenditures, currency and aluminium hedging, por tfolio com spotlight and returns, results and risks in the Companys business.Audit and Compensation CommitteesThe Board has an Audit and a Compensation Committee, whose members are independent. The Audit Committee reviews the Companys accounts, internal controls and meets with the Companys external Auditors twice a year. The Compensation Committee reviews the Directors and Officers compensation and stock options.Chairman, death chair CEOMr. Ralph Sonnenberg is Chairman of the Board of Directors, President and Chief Executive Officer.OfficersThe Board annually appoints the Officers of the Company the President, the Co-Presidents, four portionally responsible wickedness Presidents, two Staff Vice Presidents and a Corporate Secretary. The Vice Presidents and Corporate Secretary report to the President.Financial ReportingIn accordance with the applicable reporting principles, the consolidated financial statements give a true and ordinary view of the assets, liabilities, financial p osition and profit or loss of the Group. The annual report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.Major Business ProcessesA business process is a collection of structured, related tasks or activities which produce a specific product or service which serves a particular goal for customers. The main types of business processes observed in this case study report are Management Processes, Operational Processes and Supporting Processes.Management processes processes which govern the operation of a system in an organisation. Typical management processes include Corporate Governance and Strategic Management.Corporate GovernanceThe Hunter Douglas Group is incorporated in The Netherlands Antilles and has its statutory seat in Curaao. Hunter Douglas is therefore not root word to The Netherlands Corporate G overnance Code. However, Hunter Douglas adheres to good Corporate Governance.The Group has the pursuit key internal controlsConflicts of Interest PolicyThe Conflicts of Interest Policy is applicable to all key employees covering relations with customers, suppliers and other third parties.Insider Trading PolicyThe Insider Trading Policy, as prescribed by the Authority Financial Markets (AFM), restricts trading in the Companys shares by Directors, Officers, key employees and related persons.Internal Audit FunctionHunter Douglas principal Operating Companies have an Internal Audit Program.Authority LimitsEvery Manager, including the regional Vice Presidents, has clearly defined Authority Limits.Whistleblower PolicyHunter Douglas has a Whistleblower Policy in each and every Company deep down the Group.CompensationCompensation is reviewed by the Compensation Committee of the Board. The Company also follows the best practicesStock optionsStock options are granted for five years with ve sting start after two years.StockIt is not the Companys Policy to provide stock at no cost.LoansLoans to Directors, Officers or other employees bear market interest. There is no forgiveness of principal or interest.Investor RelationsHunter Douglas has an Investor Relations Website, regularly issues press releases and holds analysts and investor meetings.Strategic ManagementStrategic management is a process through which organizations analyse and learn from their internal and external environments, establish strategic direction, create strategies which are intended to move the organisation in that direction and implement those strategies, all in an effort to satisfy stakeholders, as illustrated in the diagram belowExternal Analysis(External Environment)Strategic ControlsDirection SettingGenerate,AllocateBuild buildVisionEvaluate,andrelationshipsControlMissionandManageSystemsValuesSelect,ResourcesDesignStrategiesStructuresMeasure andEvaluateperformanceInternal Analysis(Internal Envir onment)Strategy FormulationStrategy execution and EvaluationHunter Douglas Group has been successful over the long term because the Group has effectively acquired, develop and manage resources and capabilities that provide competitive advantage. The Group has, over the years, achieved strong brand recognition such as the HunterDouglas in North America and Asia as well as for Architectural Products worldwide. Luxaflex for residential window coverings in the rest of the world.The Hunter Douglas Group, with its 21,000 employees in 169 countries worldwide, takes advantage of its organisational strengths and environmental opportunities. It continues to neutralise or overcome organisational weaknesses and environmental threats by managing its business processes well and applies best practices.Operational processes processes which correspond the organisations core business and create the primary value stream. Typical operational processes include Purchasing, Manufacturing, Marketing, and Sales.As a highly decentralised organisation, each company in each region within the Hunter Douglas Group manages autonomous operations with minimum interference and maximum accountability, growing their businesses within the groups entrepreneurial environment following the corporate governance, vision, mission and values.Supporting processes processes that agree the organisations core processes. Examples in this category include Accounting, Recruitment, Technical support.Although highly decentralised, each company in each region within the Hunter Douglas Group has to follow an Internal Audit Program when it comes to financial and accounting matters.Recruitment and Human Resource matters are set in line with the business plan and strategies of each company in each region as well as in line with the directions and corporate governance, vision, mission and values of the Group.Business StrategyPorters Generic StrategiesTarget ScopeAdvantageLow followProduct UniquenessBroadCost Leade rship preeminence(Industry Wide)StrategyStrategyNarrowFocus StrategyFocus Strategy(Market Segment)(Low Cost)(Differentiation)Hunter Douglas Groups strategy is to grow the market and the Groups market share by inveterate to introduce innovative and proprietary new products and by expanding its presence in key geographic markets.It was observed that Hunter Douglas Group has been successful in employ the Differentiation Strategy by having the following internal strengthsAccess to leading research and developmentHighly skilled and creative product development squadStrong sales teams with the ability to successfully communicate the perceived strengths and benefits of the product.Corporate reputation for quality and innovationDifferentiation StrategyA differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition. The val ue added by the uniqueness of the product may allow the firm to charge a premium price for it. The firm hopes that the higher price will more than cover the extra be incurred in offering the unique product. Because of the products unique attributes, if suppliers increase their prices the firm may be able to pass along the costs to its customers who cannot find substitute products easily.The risks associated with a differentiation strategy include imitation by competitors and changes in customers tastes.Generic Strategies and Industry ForcesIndustryGeneric StrategiesForceCost LeadershipDifferentiation StrategyFocus StrategyStrategyEntryAbility to cut price inCustomer fealty can cogitate develops coreBarriersretaliation detersdiscourage potentialcompetencies that can actpotential entrantsentrantsas an entry barrierBuyerAbility to offer lower double buyers have lessLarge buyers have less powerPowerprice to powerfulpower to negotiateto negotiate because of fewbuyersbecause of few clo sealternativesalternativesSupplierBetter insulated fromBetter able to pass onSuppliers have powerPowerpowerful supplierssupplier price increasesbecause of low volumes,to customersbut a differentiation-focusedfirm is better able to pass onsupplier price increases tocustomersThreats ofCan use low price toCustomers becomeSpecialised products coreSubstitutes present againstattached to differentiatingcompetency protectsubstitutesattributes, reducingagainst substitutesthreats of substitutesRivalryBetter able toBrand loyalty to keepRivals cannot meetcompete on pricecustomers from rivalsdifferentiation-focusedcustomer needsRelationship With External EntitiesIn order to remain successful and continue to expand its market share, Hunter Douglas Group has learned to develop and manage relationships with wide range of organisations, groups and people that have a stake in their business. The emergence of a fiercely competitive global economy means that the companies within the Hunter Douglas Gro up have to expand their networks of relationships in their region and cooperate with each other to remain competitive.EducationHunter Douglas Singapore team up with the National University of Singapores Department of architecture to organise the NUS-Hunter Douglas Award for the innovative use of technology in Architecture.Hunter Douglas Group has developed multi-level training and education programs for its fabricators, retail dealers, professional figers and installers.It holds consumer seminars to help prospective buyers understand the importance of window coverings for home fashions and for light control and energy efficiency.It provides training seminars and hands-on workshops for retailers, approach patterners and installers, which includes CD-Roms, videotapes and web-based instructions, throughout the world.It has created the industrys first and only formal Retail Alliance Program, offering its very best dealers a choice of tiered partnership options that reward their brand loyalty with lucrative business-building benefits, including financial incentives and exclusive products and programs.Through Hunter Douglas Group exclusive partnership with Archiprix International, it builds relationships with the next generation of architects as they begin their careers after college. With Hunter Douglas Groups support, Archiprix organises a biennial international competition for the best graduation projects in architecture. Finalists travel to a host city with hundreds of architects from around the world where an independent jury evaluates the learner entries and recognizes the most outstanding work with the Hunter Douglas award.Hunter Douglas Singapore was conferred the Singapore Institute of Architects Friend of Architecture Award in recognition of the companys contribution to Architecture in Singapore and its continuous support for the Singapore Institute of Architects.Its Windows of Opportunity seminar on the use of window fashions in interior figure of sp eech reaches more than 2,500 design school students and designers in major United States markets each year.At the Fashions Institute of Technology in New York and other leading design schools, Hunter Douglas provides design students with industry overviews and a business perspective through teaching opportunities.At the renowned Pratt School of Architecture, Hunter Douglas has sponsored design studio projects that challenge students to envision new and novel ways to integrate its products and materials into architectural structures.Corporate CitizenshipHunter Douglas Group actively supports the communities in which they live, work and do business. Decisions about which causes to support and the form that support takes are made locally by the management in each country.It provides window coverings to hospitals, research centres and healthcare facilities around the world.It supports educational opportunities for the families of its staff and less inner(a) members of our communities.I n the United States and Canada, Hunter Douglas sponsors Habitat for Humanity, donating custom window coverings for the homes Hunter Douglas has built for low-income families since 1993. Hunter Douglas employees have also contributed thousands of hours in sweat justice assisting with the building of these homes at the local level.Hunter Douglas stimulates students awareness of its products and encourage their creativity through competitions in which they are judged upon the innovative application of its products in their design projects.Hunter Green and Keen on Green are important new company-wide environmental initiatives being undertaken by the Hunter Douglas branded companies to reduce energy consumption, pee usage and its overall carbon-footprint. It also includes an ongoing consumer marketing effort creating increased awareness of Hunter Douglas corporate commitment to the cause as well as the superior energy-saving benefits of its products.The Process of Human Resource train ing in the OrganisationManpower PlanningManpower planning is a process of acquire the right number of qualified people into the right job at the right time. It is a system of matching the supply of people internally, who are the live employees, and externally, potential talents to be hired or searched for, with job openings which the Group expects to have over a given time frame.This planning requires the human resource departments in the Group to prepare an inventory of skills and talents already available as well as coordinating and controlling various activities in the Hunter Douglas Group. Manpower planning involves reviewing current manpower resources, forecasting future requirements and availability as well as taking steps to ensure that the supply of people and skills meets demand. It utilises the concept of planning to visualise how the Hunter Douglas Group can go through the allocation and control of its manpower resources in a better manner. It is also a utensil for hig her management to equip themselves with the necessary data on its human resources available immediately within the Group and from outside, when the need arises to meet markets demand.Manpower Planning ModelForecast DemandForecast SupplyConsiderationsInternallyProduct/ Service demandStaffing tablesEconomicsBalance Supply and DemandMarkov analysisTechnology attainments inventoriesFinancial resources/ limitationsRecruitment (Shortage)Management inventoriesAbsenteeism/ turnoverFull-timeReplacement chartsOrganisational growthPart-timeSuccession planningManagement philosophyRecalls/ transfersOvertimeExternallyTechniquesOutsourcingdemographic changesTrend analysisReductions (Surplus)Education of workforceManagerial estimateTerminationsLabour mobilityDelphi techniqueLayoffsGovernment policiesLeave without payUnemployment rateOutplacementDemotionsRetirementFactorsEconomicCompetitionGovernment challengeOrganisationalDivisionalSkills andHistorical DataObjectivesDepartmentabilitiesNature of co mpanyObjectivesrequiredSkillsInventoryNet human resourceTypes, numbers,requirementsHuman Resources prohibitLayoff, terminations,resignations, retirementManpower planning, as observed in the Hunter Douglas Group, consists of the following stepsIdentify the Groups objectives and strategies which are stipulated in the business plan and from the strategic planning processes of the companies within the Group.Determine the impact of the organisations objectives on specific organisational units. For this purpose the cascade approach can be used, whereby the organisations long term strategies are translated into the shorter term performance objectives and time schedules per division and department.Define the skills, expertise and total number of employees (demand for human resources) required to achieve the organisation and department objectives by using the different statistical methods and managerial estimates.Perform an analysis of the Groups current human resources. By doing a skills in ventory will shed light on the number of current employees in terms of their different competencies, skills, training levels, qualifications, work experience, etc.Determine the additional (net) human resource requirements in light of the Groups current human resources.Develop action plans to meet the anticipated human resource needs which may include a comprehensive succession plan for each department, resultant recruitment strategies, the design and implementation of managerial development and other training programs, making available bursary schemes for current participants who may eventually fill scarce positions, designing compensation packages to win and retain quality staff.The key activities of Human Resource Management carried out by twain line managers and the Human Resource practitioners in the Hunter Douglas Group areOrganisationOrganisation structuring developing an organisation which caters for all the activities required, groups them together in a way which encourage s integration and cooperation.Job design and role judicial admission deciding on the contents of the jobs which involve the employees duties and responsibilities and the relationships that exist between job holders and other employees within the Hunter Douglas Group.Organisational development stimulating, planning and implementing programmes designed to improve the force with which the organisation functions and adapts to change.The employment relationshipImproving the quality of the employment relationshipCreating a climate of trust and self propulsionDeveloping a more positive psychological contractAchieving a highly committed organisationResourcingHuman resource planning assessing future people requirements in terms of both numbers and all levels of skill and competence. Formulating and implementing plans to meet thoserequirements through recruitment, training, development, etc.Recruitment and selection obtaining the number and type of people the organisation needsPerformance m anagementGetting better results from the companies, teams and individuals by measuring and managing performance within agreed frameworks of objectives and competence requirements assessing and improving performance.Human resource developmentOrganisational and individual learningSkill improvement through systematic approach to trainingReward managementJob evaluation assessing the relative size of jobs as a basis of ascertain internal relativitiesPay developing and administering pay structures and systemsNon-financial rewards providing employees with non-financial rewards e.g. recognition, increased responsibility and opportunity to achieve and grow.Employee benefits providing benefits in addition to pay which cater for personnel security and face-to-face needsEmployee relationsEmployee relations involving managing and maintaining formal and informal relationships with trade unions and their membersEmployee involvement and participation which means sharing information with employee and consulting them on matters of mutual interestCommunication creating and transmitting information of interest to employees.Health, safe