Human Resources Planning and Development - Case of Nando’s
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Human Resources Planning and Development - Case of Nando’s
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Human Resources Planning and Development - Case of Nando’s
Several factors affect the organisation and its expected growth. Organisations therefore need to focus on developing strategies and explore opportunities to grow according to the demands of the business environment. Placing human resource management (HRM) at the core of organisational functions toward succeeding to this new environment is therefore critical. HRM is simply defined as the strategic and coherent approach to the management of an organisation’s most valued assets - the people. One company that understands the value of HRM is Nando’s, a Mozambiquan/Portuguese-themed restaurant chain that originated from South Africa.
Named after the son of Fernando Duarte who is a Portuguese living in South Africa and together with his friend named Robert Brozin, the first Nando’s restaurant was incorporated in Rosettenville in 1987. Duarte and Brozin bought a restaurant called Chickenland which was later changed to Nando’s to reflect the fusion of Portuguese and Mozambiquan cuisine. The first Nando’s in the UK was established in 1992 in Ealing. Nando’s now specialises in chicken dishes with either lemon and herb, medium, hot or extra hot peri-peri marinades. Nando’s is famous for its peri-peri chicken that Nandocas prepared. Nandoca refers to the person who works for Nando’s (Nando’s online, 2009)
At Nando’s, the belief is the people, that is, the Nandocas, are the ones who make the difference. HR Director of Nando’s Julia Rosamond has this to say: “people want to value the organisation they work for and be valued in return.” In this report, the HRM activities of Nando’s as well as its planning and development methods and performance will be discussed. Nandoca/nandocas will be used to pertain to the people in the entirety of the discussion.
Nando’s main objective is to fight for client ‘share of stomach’ and establish fast-food outlets with a lifestyle of their own. Nando’s is dependent on the success of national approaches and procedures (Pycraft, 2000, p. 790). Nando’s aim is not to be just another chain of restaurants. Instead, the founders aimed that each Nando’s restaurant to be individual and to reflect the characteristics of its location (Nando’s online, 2009).
At Nando’s, the conduct of the organisation is guided by its five core values such as pride, passion, courage, integrity and a sense of family. The fifth core value is especially intended for the Nandocas to facilitate the delivery of the Nando’s experience to the customers. In HR, it is the department’s responsibility to ensure that Nandocas are happy, engaged and fulfilled as they develop their careers with Nando’s (Nando’s online, 2009). Apparently, there are specific HR activities implemented which generally include recruiting, training and rewarding.
Organisations may recruit workers internally and externally, identifying a suitable pool of applicants quickly, cost-efficiently and legally. The selection processes that the organisation will employ should be technically sound and legal. Across the UK, Nando’s is opening as many as 30 restaurants each year which means ongoing recruitment of Nandocas. Striking a balance between internal and external recruitment, Nando’s HR is responsible for looking for Nandocas that is capable of becoming Patrao. Patrao is internally known as the Manager, Managing Director and/or General Manager. Putting in mind that the Nandocas’ passion fuels the growth of the brand, future management opportunities are provided. Details about Nandocas are filed for future reference (Nando’s online, 2009).
Externally, Nando’s HR encourages applicants to contact local management team. Positions become available at Central Support Level (Head Office) and in the restaurants specifically for cashier and griller positions. Further, the corporate website also serves as a recruitment tool wherein career opportunities page is one of the fundamental elements of the site. Current positions are available in different areas of the UK as well as the ‘how to apply’ procedures. A key in achieving the objectives of the company, Nando’s prioritises the local people to make up the local version of Nando’s in respective countries (Nando’s online, 2009; Taylor, 2005, p. 39).
Nando’s, further, partners with the Global Online Recruitment Resource and other online job searching companies such as Jobs.ie to fill vacant positions that are not immediately available internally. Only permanent and full-time positions are available. Once hired, they become Nandoca (Nando’s online, 2009).
When it comes to the legal aspect, Nando’s is committed to its equal opportunities policy. As such, the organisation recognises the diversity in people, beliefs and origins. Nando’s HR, in addition, ensures that information about vacant positions is circulated as widely as possible so that it can reach all sections of the community (Nando’s online, 2009). As the preference for any group of applicants is strongly refuted, recruitment and employment decisions that Nando’s HR make are made on the basis of fair and objective criteria.
Applicants of today are looking for the chance to development or simply employment progression. Employers, on the other hand, capitalise on this progression orientation of applicants by providing training and development. Nando’s understands that Nandocas must be trained to focus on their present jobs and to develop them to prepare for possible future jobs. The resource-based HRM model gives way on the possibility of work-related learning and the mobilisation of employee through learning strategies. Guest (1987) noted that the incremental function of HRM is central on the emergence of better educated workforces and higher individual expectations.
A career development programme guides Nando’s HR to allow both Nandocas and Nandoca trainees to realise their true potential. Nando’s invests heavily on people and training that is why trainings are ongoing and these are performed in-house. By working with the Learning and Development (L&D) department, learning and development of the people is tailored with each individual’s needs. The first three months of working as a Nandoca trainee is devoted to learning the necessary skills and management skills required to be successful at Nando’s. Trainees are supported and coached by Nando’s Legends as well as other Nandocas working at the L&D department.
After the three month-long training, trainees are invited to a Self Development Workshop wherein the Nandoca or the trainee will prepare a development plan for the coming years. Succeeding trainings will depend on the position that the Nandoca or Nandoca trainee is currently occupying. Nonetheless, Nando’s boasts for its awarded training programs such as Coaching Programs, Train the Trainer and Working in Management Teams.
Sustained competitive advantage model of HRM (see Appendix section) claims that the organisation shall seek the betterment of internal and definite processes, procedures and systems which aimed at consolidating competencies, continuous education, proficient performance at individual and collegial levels and balance monetary and non-monetary reward systems (Bratton, 2001). For instance, dealing with compensation issues will be unique on the basis of structural consideration (i.e. corporate, business-level and functional). Compensation aims at establishing and maintaining a competent loyal workforce at an affordable cost.
To be at Nando’s, Nandocas experience both direct and indirect compensations. Basic salary is based on the experience and quarter and annual bonus are also provided. Aside from free staff meals per shift, Nandocas are endowed with 20% staff discount card. Along with the 28-day paid holidays, there is a long service pay reward wherein a Nandoca will receive an extra four weeks which has to be taken all at once after every five years (Nando’s online, 2009).
Nandocas, moreover, also enjoy area drinks evenings quarterly that include a themed Christmas party at the last quarter. Restaurants are closed early during these days especially on Decembers for Nandocas to enjoy festivities and celebrate before the customers. Annual family fun day are also available with all the members of the family of the Nandoca are invited for a party in the par k (Nando’s online, 2009).
Nandocas who are working in management positions are given the opportunity to attend annual conference as well. Other than the opportunity to progress to Patrao, after 18 months of being successful as a Patrao they will be entitled to join partnership scheme provided that KPIs are met and Nando’s values are lived. When a Patrao becomes a partner, they are benefited to input key decisions and a financial reward for being a key stakeholder at Nando’s (Nando’s online, 2009).
Strategic management of human resources focuses on planning for the people as well as for the whole company or organization. HR plans involve the global market place and the future. Planning begins with the assurance that the right number of individuals is properly placed at the proper position (Graton, 1999, p.118). Pride, Hughes and Kapoor (p. 315) maintain that human resource planning is the development of strategies for matching the size and skills of the workforce to organisational needs.
For Nando’s, ensuring that the right people is in the right job at the right time encompasses three processes that include strategic plan-based forecasting of personnel requirements, skills inventory to analyse personnel supply and buddy system to match personnel requirements with the supply.
Strategic planning of Nando’s is often built on ongoing roll-out of stores hence rapid growth programme. Such a programme requires that there is a need for Nando’s to build leadership and delegation competencies fast. There are challenges to including the risks of losing the five core values as well as managerial issues that center on preserving the Nando’s culture. Through the HR team, human resources demand are forecasted based on the numbers of stores to be rolled-out and in what specific places of the UK. Personnel requirements are aligned with projected sales revenue of that particular Nando’s store. As such, if there is 15% increase in sales volume is projected, there will be also a 15% increase in personnel requirements.
Human resources supply, on the other hand, takes into account both the present workforce and the changes that may occur within it. There are approximately 6,000 Nandocas in the UK with its 214 restaurants as of August 2009 (Nando’s online, 2009). When it is opening at the rate of 30 restaurants annually, there is a need for at least 840 new Nandocas for operational year 2010. Nevertheless, Agran (2006) noted that 21 to 24% of managerial positions are recruited internally hence 176 to 201 Nandocas will be promoted from within. Nando’s HR planners relied on analysing the existing workforce to determine who among the Nandocas will be able to perform the required tasks at hand.
This being said, a skills inventory is often being employed at Nando’s. Nando’s relies on the GROW model, which was developed by former racing driver John Whitmore, to determine the necessary skills and competence needed to elevate a Nandoca to other positions such as MD and supervisors. GROW stands for Goal, Current Reality, Options and Will. Such a process aims at discovering the strengths and weaknesses of each Nandoca through one-on-one reviews so that trainings and courses to be taken up could fill the void. Also, Nando’s HR Director Julia Claydon despised the fact that some of their rivals are resorting to poaching or stealing Nandocas to work for them since it devalues the integrity of any organisation (Thomas, 2008).
A course of action for matching the required personnel with that of the supply, Nando’s employs the buddy system. Each restaurant has two buddies who are in charge of training at that outlet. Politt (2006) relates that the buddy system aims at learning how to run, interactive and fun training sessions for restaurant staff. This system represents a stepping stone towards supervisory and management positions. As such, 80% of supervisors in Nando’s UK are products of this buddy system as it furthers talents that do not only put in center the work in the restaurants but also being part of Nando’s growth.
By being able to train people in professional way, personnel requirements are effectively addressed and Nando’s will not experience oversupply of workers. It is in this sense that the processes are able to create a workforce that embraces and lives the values of Nando’s at each area where Nando’s is located. Development is facilitated by the people they know and trust within the environment that is familiar with them - at each store. Strategically, this is in line with the goal of Nando’s which is the individualism of each store. While buddies learn the Nando’s culture that is applied on all Nando’s worldwide, they are able to tap the diversity of their own respective workforce by bringing in knowledge and inputs unique to that store.
Virtually all organisations are allotting at least 30% of their total revenue for employee compensation. While compensation expenditures are evaluate to determine their effectiveness, performance that is the basis of compensation should be also assessed. HR performance is not an exemption and also that of Nando’s. Basically, Nando’s is using a market leader strategy when it comes to compensating workers. Such a strategy enables the organisation to attract and retain workers with the required capabilities as well as to acquire the opportunity to increase the productivity of the workers (Mathis and Jackson, 2007, p. 366)
Nando’s also recognises the strategic role of the HR people and key to Nando’s success. They are given the responsibility to develop, implement and ensure that HRM strategies achieve the business goals and delivers commercial objectives. The priority of the HR people is to successfully provide a high quality HR service to the business. People-related issues are dealt with in systematic way through the implementing group HR strategy at various levels across England as well. With all the works and responsibilities that are vested on the HR people, it would only be plausible to determine how their performance is being measured.
HR performance at Nando’s is measured by a 360-degree appraisal for the purpose of highlighting the strengths and development areas of these people. Bohlander and Snell (2009, p. 374) define 360-degree performance review as the process of gathering feedback from a review panel of eight to twelve people which include co-workers, supervisors, team members, subordinates and sometimes customers. The training intended for them is tailor made based on the results of this performance appraisal but depending on the preferred learning style of them. Aside from this, Nando’s also conduct staff survey to determine the effectiveness of the performance of the HR people. Part of the rewards of HR people is the result of these review and survey other than their basic salary.
While 360-degree feedback and staff surveying are comprehensive in that responses are gathered from multiple perspectives and provides inputs for both outcomes and behaviour, they lack objectivity as well as they conjure invalid evaluations. As Armstrong (2006) put it, performance management is also a strategy that relates organizational endeavors embedded in the context of human resource (HR) policies. It would be plausible to implement a critical incident file and behaviorally anchored rating scales (BARS) so that HR performance appraisal would be more objective and precise.
Critical incident file refers to the performance appraisal method wherein the manager jots down the positive and negative performance behaviors of employees throughout the performance period. The file is a form of documentation it contains brief commentaries regarding noteworthy events in the working life of an employee. Drawbacks are that it tends to be bias because of its individualistic nature and dependent on the competence of the appraiser. For Nando’s, this requires a position higher than the HR people to conduct the documentation. However, this person should be also working closely with the HR people, which may be a challenge.
Further, strengths of BARS are it is more accurate and objective than critical incident file. BARS has its legitimacy under scrutiny because the effectiveness of performance is being measured by several statements that describe the performance of an HR employee. It is the superior who will select one that best describes that HR employee thereby having bias while doing so. Nonetheless, this could be address by assigning a competent superior to do the job and devising HR metrics and standards wherein best statement will be chosen based on these metrics and standards.
In sum, the report discusses the various HR strategies implemented inside Nando’s particularly that complements with the basic function of the HR like recruitment, training and development, compensation and performance appraisal. As Nando’s aim for individualism of each store, the five core values are carefully integrated in their processes. The responsibility to do such is mainly vested on the HR department to put people that reflect the distinctiveness goal. Relevant to this is the spontaneity of the processes hence Nando’s aimed at cultivating a people culture through the HR department.
Having said this, it would be only right for Nando’s to devise a succession planning that aligns the people culture and the five core values with its strategic direction. Nando’s goal is to obtain and retain a quality workforce and skills audit would be a starting point of the succession planning process. Skills auditing results in the understanding of the skills required and the gaps that the organisation currently possesses; the targeted analysis of the development needs; the list of people of who need development; the data that can be utilised for internal selection and the information that can be used for dynamic succession planning.
Career pathing is another course of action necessary for an effective succession planning. Career pathing can be defined as a sequence of developmental activities involving informal and formal education, training, and job experiences that help make an individual capable of holding jobs that are more advanced. Formalised career paths lead to precise descriptions of chronological work experiences as well as how the different sequences relate to one another. The organization must use career pathing activities that will enhance skills, competencies, and knowledge of employees.
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Journal of Management Studies, vol. 24, pp. 503-505.
Mathis, R L & Jackson, J H 2007, Human Resource Management, 12th edn, Cengage Learning.
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Thomas, D 2008, ‘Nando’s HR directors slams staff poachers,’ Cater Search online, retrieved on 2 February 2010, from http://www.caterersearch.com/Articles/2008/09/18/323527/nandos-hr-directors-slams-staff-poachers.html.
Figure 1 Sustained Competitive Model of HRM (Braton, 2001)
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