HMYY
1. ASSIGNMENT
Description of the case:
In the dating industry HMYY(short for Haven’t Met You Yet) was a market leader. Their unique proposition was their invention of a online dating tool which has a pre-selection tool based on physical features, traits and other matching relevant characteristics. With this tool the speed dating was much more effective.
The invention of the mobile phone dating apps like Tinder caused HMYY to lose market share. The top management of HMYY showed their concerns about HMYY’s future. They belief that the employees of HMYY can bring this trend around, and will make HMYY successful again and that they will gain their position of market leader back.
The management voiced that HMYY’s biggest challenges are
– How to make employees learn and innovate
– How to lead them in ways that increase their effectiveness
– How to ensure diversity and put it to good use
– How to motivate employees and manage their negative emotions that arose given HMYY’s decreasing success and the much-needed change ahead
– How to ensure employee well-being despite the challenges that HMYY is facing
I will answer four of these challenges in this assignment.
There are five management practices that can help to turn this market share loss back in to their earlier position of market leader.
The possible management practices are:
– Recruitment
– Selection
– Training and development
– Performance
– Rewards
I chose the training and development practice. Because I think the development and training of their employees will help to motivate them and gain a bigger advantage on the competition.
Background of The company HMYY
‘ Size of the company: 220 employees
‘ The company was founded in 2006 (started as a student start-up; from the four founding members there are two
in top management now, two left)
‘ Divisions in the organisation (Customer service, IT, Marketing & Event
Management, R&D, Finance, Personnel Administration)
‘ The headquartered is in Amsterdam, with a few smaller offices (customer service, event
management) in major online dating hubs (e.g., Berlin, Zurich, Munich,
Brussels, Paris, Lisbon, Barcelona, London)
‘ The age of the employees: Mean = 36.8 years (SD = 4.5 years)
‘ The gender of the employees: 65% female (18% female in management)
‘ The nationality of the employees: 60% Dutch (81% Dutch in management)
2. Training and development
An Organization can grow in knowledge and skills by training their employees. There are two options to help employees to gain more knowledge and skills. Training is focused primarily teaching employees to perform better in their current job and help them to be more effective.
Development is focused more on growth of the employees. To help them take on new responsibilities and challenges. Training is more likely to be used in the lower levels of an organization. Development is more likely to be used in higher management levels of an organisation.
To be sure the employee gets the right training program meaning the training they need to work more effectively, the managers need to assess what kind of skills and knowledge they need to acquire. (Jones, sd)
2.1 Types of training.
There are two types of training: classroom instruction and on the job training.
Training is successful if it results in a change of behaviour. The trained employee must be able to use his new acquired skills and knowledge on the job, and this must lead to a better performance of the employee. If the training does not affect the performance of the employee the manager failed in assessing the training needs of the employee.
Classroom instruction.
The more theoretical type of training is Classroom instruction. This type of training is most likely given in a classroom. With this type of training the trainer most likely make use of roleplaying or videos to simulate situations that can acquire on the job. By these simulations the employees are trained to develop appropriate behaviour.
On the job training.
The more practical type of training is on the job training. This type of training is during the job and uses the principle of learning by doing. The training is mostly provided by a co-worker or supervisor.
This type of training is most likely used in lower educational jobs. In higher educational jobs on the job training is mostly used as a follow up training on the classroom training. This type of training has one big advantage on Classroom training because the trainee is directly productive and the supervisor can give directions during the job. (Jones, sd)
2.2 Types of development.
Both types of training, classroom instructions and on the job training can be used for training and also for development. Development mostly includes additional activities such as work experience and formal education. Development is more for the long term and looks further than the training principle. A development program is usually focused on a term from one to three years and is more focused on making a change than act up on. Training is more used for the short term with most likely a term with a maximum of one year. Development does not occur during class but is a long term change in the way of handling. (Fitzgerald, 1992)
Varied work experiences.
Varied work experience helps managers or prot”g”s to have a broad view of the company. By acting on different departments and levels in the company a manager can act more accurate on situations that will occur. For decision making it will help a manager to have expertise in many areas. Another development approach is mentoring. With the mentoring principle a employee will receive guidance and advice of a more experienced employee.
Also the experienced employee (mentor) benefits from the mentoring program. They will learn to help in the development of another employee. By giving feedback and motivate the prot”g” they will develop more manager skills them self.
Formal education
Many companies hire employees with a higher degree of formal education. In the training and development course, the employee will be able to follow formal education which most likely is given on a school of specialized training location. This is not only beneficial for the employer but also for the employee. The employee will carry this achieved degree for the rest of his career. It is common for managers to take classes for MBA or job related degrees.
A company can also decide to offer the employee a long distance learning track. With this long distance learning the cost of travel and other expenses for managerial training will be excluded. (Jones, sd)
Figure 1.1
2.3 Transfer of training and development
All the skills and knowledge the trainee learned during the classroom instruction or during on the job training must be brought in to practice. The training or development only pays off for a company when the employee uses the acquired competences and these are helping in a better performance and a more effective way in fulfilling their job. (Jones, sd)
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3. Theory
3.1 Mentor
Mentorship model. More experienced managers will help less experienced employees by advising, sharing knowledge and counselling them in their work field. (Cohen, 1997) (Hunt, 1983)
Mentored employees are mostly more satisfied, better educated, better motivated and better paid than not mentored employees.
A mentored employee in graduated level education most likely has an advantage with financial aid, job placement, research project training, collaboration on publications and personal and emotional support. The mentorship helps employees to
get to know the ins and outs of the company. It does not only help them on a professional way but also in their private live they experience a more secure self-image and find a better way in combining their private live with their professional career.
By mentoring a younger employee the mentor learns the newest theories and gets new insights in problems, from the prot”g”. The personal banding between the prot”g” and the mentor is extremely important for the teambuilding in the company. Mentorship helps employees to be more active and self-confident with enough knowledge and skills to become successful scholars. This enrichment maybe ongoing.
Mentorship can also have a negative outcome the mentor and the prot”g” do not have the right connection with each other. This can lead to a negative and demotivated prot”g”. It is important that the prot”g” and the mentor have a good connection with each other. Not only for the prot”g” but also for the mentor. If the prot”g” does not show its expected development the mentor has failed in the eyes of one’s peers and supervisors.
Another critical issue that can occur is a prot”g” over exceeding the mentor’s capacity. The mentor can become frustrated and resentful by losing the leading role in the mentorship programme. Relationships with the wrong mentor can cost the prot”g” valuable career time and bring him/her negative feedback by association. (Hunt, 1983)
Mentoring is an ongoing process. When a prot”g” is mentored he or she will most likely become a mentor itself. For a company it is most beneficial to have a mentor programme. Employees stimulate each other in sharing knowledge and skills. By learning from higher management the prot”g”s will fulfil their jobs to the fullest.
In an early stadium of their careers they get familiar with the preferred way of communication on management level. An estimated age difference of half a generation 8-15 years is most likely to work best. The mentor has to have enough experience to mentor the prot”g”.
3.2 Performance and development plan
To increase the effectiveness of the employees the usage of training and development is mandatory.
There are two plans to measure and plan the performance and development of an employee:
Performance plan.
The performance plan includes an measurement scale of how to measure the employees performance. It will contain objectives, tasks or projects that the employee must accomplish before the next review. There can also be learning or development objectives included in the performance plan. The performance plan is a review of the current performance of the employee. It is an short term plan often planed for a time period of 6-12 months
In the performance plan there is outlined what the company expects from the employee in terms of result and how this will be measured.
Development plan.
In a development plan the performance plan is included. The development plans goes further where the performance plan stops. The development plan is more focused on the development goals of an employee than on the current performance. A development plan most likely focusses on three measurable development objectives. A long term focus (up to three years), a focus on the employee’s present job or future opportunities and an action plan, how to achieve these objectives. An development plan is completely focused on one’s development, growth and future opportunities. For a development plan it is important to know where the company is heading to. On which department the company needs more specialized, competence employees. Whit this knowledge it is possible to plan the needed training and development objectives. Whit these two plans it is possible to measure one’s performance and to increase one’s effectiveness by helping in the development and growth of the individual. (Fitzgerald, 1992)
Managing by objectives.
Managing by objectives means that the supervisor is responsible for setting objectives. The first plan is the performance plan. The next step is the development planning that will continue on the results of the performance planning. This makes this planning process a shared responsibility. This process demands more than the most reviews plans. The employee is responsible for its own results in the development plan. Important to keep in mind are the long-term needs of the organisation and the individual. The employee and the organisation has a clear view of the development and potential of the employee. By using a development plan the employee will be more committed with the company because of the possibilities in new job positions and personal growth. The employees that will applicate for a promotion, most likely will be more qualified. With the use of a performance and development plan it will encourage the employee to over perform and work harder for a possible job opportunity that lies ahead.
To increase the efficiency of the employees the jobs have to be structured that highly skilled and motivated employees can use their skills and abilities to design new and better ways of performing their roles. HRM practices can influence firm performance through provision of organizational structures that encourage participation among employees and allow them to improve how their jobs are performed. Cross-functional teams, job rotation and quality circles are all examples of such structure.
3.3 Teamwork
A number of studies provide some support for the positive effects of teamwork. For instance, Cohen and Ledford (1994), examining more than 80 self-managing teams at an American telecommunications company, they found that self managing teams had significantly better job performance than working groups that use to work more on individual performance. Hamilton et al. (2003) found that the teamwork at the plant level stimulated the workers and their productivity even after taking into account the selection of high-ability workers into teams. Batt (2004) Self ‘managed teams were associated with higher levels of employment security, perceived discretion and satisfaction for workers, the improvement in objective performance measures were more effective
The argumentation of linking higher productivity to teamwork is that the employees experience a sense of empowerment, and increased control over their immediate work environment. It is likely that employees with a higher feel of control over their work are more satisfied with their jobs and are more committed to the company. (Cohen, 1997) (Dunphy, 1996) (Pil, 1996). This assumption also supports theories of ‘high commitment’ and ‘high performance’ management systems where teamwork is viewed as one of a set of structural features that enhances organizational effectiveness by raising employee motivation (Ramsay, 2000).
Teamwork brings a higher level of performance through the increased scope it gives employees to use their skills, knowledge and abilities. (Batt, 1995)
By teamwork the sharing of knowledge, skills and abilities brings the whole team to a higher level of performance. Sharing skills and information is one of the most important events that occur and are the most beneficial for the organisation.
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4. Challenges
4.1 Challenge 1
How to lead them in ways that increase their effectiveness
With the usage of the Performance and development plan the progress of each employee can be reviewed. Each employee has his or her own development plan and with a clear overview of objectives to be reviewed in the next appointment. This active and progressive way of adjusting and measuring the employee’s development will increase the workforce his effectiveness. The efficiency of each employee will grow to a higher level.
With the possibility for highly skilled and motivated employees to design new and better ways of working, the effectiveness of the total company will grow to a higher level. Also this will result
in more motivated employees which will result in a more active and innovative attitude. By letting the employees work in teams with a high skill, knowledge and ability diversity the les able employees will exceed personal growth by working with more experienced and skilled co-workers.
4.2 Challenge 2
How to motivate employees and manage their negative emotions that arose given HMYY’s decreasing success and the much-needed change ahead
With the possibility for highly skilled and motivated employees to design new and better ways of working the effectiveness of the total company will grow to a higher level. Also this will result in more motivated employees which will result in a more active and innovative attitude. With the higher management in the mentoring role they can actively motivate and mentor the employees. Through the performance and development plan the employees have the possibility to have influence on their own progress and possible growth or promotion. This will motivate the employees to work harder and more efficient to clime their own career ladder. The company must offer diverse training possibilities so the employees can develop them self and make a bigger contribution to the company.
4.3 Challenge 3
HMYY’s biggest challenges are how to make employees learn and innovate
Also on this challenge the usage of the performance and development plan is highly recommended. By working in teams the employees will learn from each other. The compositions of these teams have to change from review to review. The changes in the teams will encourage employees to share knowledge and learn more various tasks. This will help them to grow and achieve their objectives in their performance and development plans.
4.4 Challenge 4
How to ensure employee well-being despite the challenges that HMYY is facing
In the research that is referred to in 3.3 Teamwork is seems that employees that work in teams are significantly more likely to be satisfied with their jobs and perform better than individual working employees. By selecting teams with a diversity of employees in abilities, skills and knowledge the employees will stimulate each other to growth and this will lead in a higher performance and effectivity.
5. Critical review
By reading all the sources again I saw that I read some information and made assumptions which I could have prevented if I would have read the information more concentrated.
I think the sources I used gave me enough information to answer the challenges as required. The research about the influence of teamwork on the performance of the individual employees is very interesting. The team dynamic is an important factor which needs to take in consideration in establishing a team. The team dynamic will influence the performance and effectiveness of the team directly.
The mentorship theory gives a good insight in the dynamic between two individuals. I think this can also help to make a better and more effective performance and development plan for the prot”g”. By letting a more experienced employee mentor the prot”g” it is an recognising of the abilities, skills and knowledge of the mentor. This will lead to a higher level of self-confidence and a feeling of appreciation. So, both the prot”g” and the mentor benefits of the mentor program. This program could be an ongoing enrichment for the company.
I think all of the theories fit the challenges. I think it is difficult to answer challenge one with the training and development management practice. I think some of the challenges could have a better answer by using one of the other management practices. I see training and development possibilities at a company like a reward system. So, If you over perform this can lead to more possibilities in personal training and development opportunities in the organisation with the aim of a higher level job application. But for some a reward money wish would give a better stimulation than a training and development option. I think this also depends on the age of the employee and the ambition of one. ‘
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