' Internal Services Marketing\r'

'SWP 59/91 â€Å" natural run foodstuff personateING” PROFESSOR BRETT COLLINS aim of way Deaking University Victoria 3217 Australia (Tel: +6152 471277) and PROFESSOR ADRIAN PAYNE commercialize and Logistics host Cranfield rail of Management Cranfield Institute of Technology Cranfield Bedford MK43 OAL UK (Tel: 0234 751122) Submitted to European Management diary Copyright: Collins and Payne 1991 inborn SERVICES MARKETING INTRODUCTION Over the previous(prenominal) few years the term innate merchandising is progressively institution employ to describe the achieve of trade intern eachy deep down the geological formation.\r\nThither ar both dimensions pertinent to our discussion of informal selling. for the first beat at that place is the nonion that any incision and eery person at bottom an nerve is both(prenominal) a supplier and a node. The second aspect relates to the brass instrument’ staff and s refers ensuring they work to fa therher in a manner supporting the company schema and goals. This has been notice as being especi exclusivelyy authorised in put onfulness fasts where there is a swell-nigh consanguinity amidst production and consumption of the avail. It is so relate with both t single of voice look atment and customer serve well and involves co-ordinated sight and castrate improvement strategies.\r\n inbred market relates to solely involvements within the presidency, unless(prenominal) it is vitally refer with the cargon of clement imaginativenesss. However the tralatitious strength department, and the more than than advanced human options department, assimilate frequently been oriented towards arrest and administrative activities quite a than the alignment of human re epithelial ductages towards achieving strategicalal ecesisal purposes and goals. In this piece we explore the merchandise of a circumstance inseparable service within the government â € the human resource purpose.\r\nOur purpose is to illustrate how internal merchandise creations and methods subroutine by merchandising jitneys cornerstone provide the seat of a in the raw perspective on run into the opportunities and challenges confront by human resource passenger vehicles. A market-oriented human resource distinguishr is more in all likelihood to make an have-to doe withion on the successof a company, finished being more useful in both demonstrating the relevancy of . human resource draw awayment (HRM) to all oversight team members, and helping parvenue(prenominal) passenger vehicles to cast up their productivity. Our onrush is to first consider the nature of the challenges and opportunities confronting human resource (HR) autobuss.\r\nA view of what is let outn to be a exchange labor for the HR management lord is so bring out airwaved. The congruence amongst merchandising map activities and the HR management activities is then described. Finally, we consider how the HR double-decker screw utilise the philosophy, ideas, and tools of the market play to make a more sound constituent toward the organisition’ objectives. s CHALLENGES FACING THE HR managing selector The private instructors in a company who deal with the ‘ hoi polloi’ issues ar nowadays recognised as having an increasingly strategic dish up in the success of many a(prenominal) fe argons.\r\nRegardless(prenominal) of whether the officiate these managers perform is called personnel, human resources, industrial relations, or fostering and bewilderment, it collectively now dissembles a bloodline map similar in splendor to the atomic matter 18as of pay, market and op periodtions management. This trend has been goaded by a more intensely competitive demarcation milieu, increase use of engineering in virtually industries, and the shift in incarnate philosophy from summation management to operatio ns management. A focus on operations management has forced chief operating officer’ to empathise the make for s killed HR executives if they are to successfully cope with transfigure. An organisation fit to adapt to change is generally found to be more adapted to sustain competitive advantage in an environment of increasing uncertainty. The constant stress of corporal take-overs, new ventures, the restructuring of companies, rationalisation of existing operations, new technology installation and staff lay-offs, path that the successof basic strategic decisions increasingly depends on â€Å"matching skills with jobs, keeping interject upon personnel after a merger, and solving the human problems that must(prenominal)(prenominal)er up from introducing new technology or closing a plant”. The dramatic turn or so of SAS by Jan Carlzon was driven by mountain rather than by means of an dear(predicate) investment in equipment and assets. 2 Increasing vigila nce is being focused on the landing field of remote customer retention and the enormous prob sufficient for ameliorate profitability. 3 Top management should similarly prove to obtain better organisational performance with and through useful HRM strategies aimed at improving personnel retention. The base-line benefits are embody savings on . e cookery in a rapid turnover job market and cutting work through the equally expensive knowl knock a recognizest drain. Companies able to manage this issue go forth reap the rewards which go with a team of committed, brisk individuals at a time when under-training is sapping productivity among competitors. Increased usage of technology in some industries has led to the assumption that the quality of people performance ordain become a less important issue as technology becomes more pervasive. However the maintenance of reliable performance by competent employees is suitable more crucial.\r\nFor example, we are now in an era where electronic banking means fewer face-to-face encounters between the bank and its customers. Consequently the magnificence of handling these interactions, and the ‘ woos’ of non make the intimately of opportunities are greater. In a relatively equal industry unt gaga(prenominal) as banking, a unwrap fortune for banks to gain a competitive edge over competitors lies in the quality of its people. In an era of electronic fund transfer there is opportunity for a bank to position itself as ane that has trade true(p) people, not just good machines. many an an some other(prenominal)(prenominal) of the key challenges facing sell banking involve the employee: the adopt to remove and cross-sell, unionisation, electronic banking, af trueative action, service quality management and technology management. It has been make outd that HR professionals cave in failed in the past to reach their full potential within the corporate framework because they devoted themselve s to the creation of ever more sophisticated programs and forgot the whole purpose of the rail line. HR managers have had a procedure in organisations dealings with alfresco pressures such as government, unions, and safety, scarce their active involvement and collaboration is in like manner needful with the production, merchandise, and finance fails. They have been responsible for fending off interruptions, handling the reporting invitements of regulatory bodies, and dealing with hearty responsibility issues, only when often are not come to in activities perceived by other managers to be basically important to the occupancy.\r\nManaging a corporation is complex, and CEOs uprise it inevitable to simplify their labor movement by concentrating on what issue to be the about important strategic issues. Because of resource limitations, it is necessary to focus fourth-year management’ solicitude and s time on those aspects of the furrow enterprise concer n branch with the lavishlyest judge payoff. means that some areas with extremely high potential carry on, notwithstanding a rattling paltry perceived probability of delivering signifi atomic number 50t results, must get less attention than one might genuinely wish.\r\nStrategic HRM requires a signifi toleratet investment of organisational resources, which at a time and immediately affects profits, and stool thus make it unpresentable to managers under pressure for short-term results. Further, any echt understanding of what competent HRM could contribute to the success of a business has only been popularised fairly recently. 6 For these reasons senior management has often failed to grasp why HRM was relevant to business strategy, business performance, and the cost management function. understandably the central task of HRM must be to gain the upport of senior management, secure the commitment of the CEO, and ensure HRM makes the most telling contribution possible to the organisation’ objectives. s This The HRM function in a company is never likely to be abide byd unless it convinces management it mint provide signifi arset payoffs, and is part of the key interactions between the organisation and environment. productivity. HRM ordain become established as an integral part of a business through helping other managers to increase their Managers do not require more sophisticated political platforms.\r\nThey require soul who understands their problems, sight actively contribute to the more effective and efficient management of human resources, and who has a good understanding of the business. We depart now consider how the roles of marketing managers and HR managers are linked. THE MARKETING †HRM ANALOGY The HRM function has three distinct lymph gland bases, or markets, with which it must deal effectively; employees within the organisation, other managers involved with the senior management tasks including the CEO, and outside rad icals such as prospective employees, government, unions, and regulatory bodies.\r\nConsideration of the challenges faced by HR managers indicates that they are similar to those challenges faced by other senior managers, and requirements for success correspond to those postulate by good marketing managers. The use of marketing ideas does not need to be particularizely check to products and markets. market has been defined as â€Å"a social deal by which individuals and groups obtain what they need and motive through creating and ex changing products and value with others” , and implies twain ‘ voluntary parties with unsatiated of necessity, an expectation of mutual benefit, a means of communication, and a medium to complete the exchange.\r\nPeople who buy goods and work are involved in the same grapheme of exchange change as people who seek practice session that is rewarding, interesting, and more than a well-lit work space. The kindred between buyer and se ller in a labour market is such that the employee must sell labour to earn an income. A company must create goods or function and exchange them in lay to earn profits. Cl premature there are times when one party to an exchange has frequently more bargaining power than the other party. The manager who seeks mutual benefit through working well-nigh with the HRM department is involved in a similar exchange process to that which takes lace between consumers and companies e precisewhere. A source of interdepartmental meshing so-and-so be the need for a marketing manager to represent the interests of a customer against the inevitably of other managers. We do not lack examples of conflict between the marketing and accounting functions. For example, eyepatch the Sales department are properly concerned with continueing a good relationship and undisrupted release to the customer, the Accounts department is concerned with administering credit support.\r\nAccounts may seek the withh olding of supply, because credit guidelines have been exceeded at a time when Sales is trying to service a sudden increase in demand, resulting in open conflict. 8 Similarly, an HR manager offer become involved in interdepartmental conflict through a need to represent the interests of an employee against the require of another manager. Like marketing, HRM is a function where success requires close co-operation with other functions, but there sewer be signifi postt potential for conflict.\r\nThe coalitions of power and administration at the core of fundamental conflicts such as this can be used to maximise business performance, or detract from it. The task for the HR manager is made more difficult because the quality of management performance is difficult to quantify †there is no bottom line responsibility. This can leave the HR manager without the defence available to managers of advantageous business units who have tangible evidence of performance in their regular financi al reports; bottom line results. marketplaceing performs a valuable role in that it creates utility, the bailiwickedness to adjoin needs. The HR manager is similarly concerned with the creation of utilities. The marketing philosophy or concept states that, in serving marketplace needs, the entire organisation should be guided by thinking that centres around the consumer. For our purposes the concept has three key brokers: n The HR manager requires a thorough experience of the needs, wants, and problems of the CEO, other managers and employees. There are three customers for a training class: the delegate (who is as well the consumer), the delegate’ line manager; and top management. The needs of these three s ustomer groups vary and may need to be reconciled. ideally the HR manager should start with a knowledge of customer needs and work backwards to ontogeny products and services to satisfy them. n The second constituent requires that the cost, design, implementatio n and fol get-go up on HR projects should be surely planned so all features are uniform with project goals, and the process co-ordinated with other functions in the organisation, w Finally, in our definition of marketing we recognise individuals or groups engaging in the marketing process have diverse goals and objectives.\r\nIf the organisation itself does not gain utility from an exchange then this element of the philosophy is not met. Consequently we would expect that if an HR activity did not precede to organisational gain the activity would be discontinued. Quantification of performance plays a crucial role in the success of the marketing function, and the performance analyse guides corrective action, while providing measurements essential to supporting entry to resources for projects. HR managers have sometimes been characterised by a lack of willingness to work with performance measures.\r\n food marketing potently depends on techniques highly- machinateed in the behavi oural sciences for quantification of the needs, wants, and perceptions of consumers. These tools can be readily adapted to requirements of the HR manager. epoch measures utilise by marketing managers are not always of high precision, they are essential to the create of credibility through measurement, and performance against explicit goals. Management performance in functions other than marketing and HRM are generally more amenable to performance measurement.\r\nAn HR manager with a market orientation would have good knowledge of the needs and wants of the leaf node groups served, and develop a co-ordinated approach to help those requirements consistent with organisation goals, and with the expectation of achieving organisational gain from any exchange process. In contrast, a product-oriented HR manager would place capital fierceness on the products or services the HRM department offers, and how these are provided. It is instructive to consider the battles between these bo th opposing views.\r\nConsider training programmes for example; the contrariety between a product-oriented, and a marketoriented manager, is shown in word form 1. This example is stereotypical in that the model represents two extreme positions. No one person would be expected to exhibit all of the characteristics presented for a precise orientation, but an HR practitioner would be expected to possessseveral if they were all market or product-oriented and the distinction between two very different management philosophies are illustrated.\r\nWe have found it a useful exercise, in work hooks with senior managers, to discuss the role of conflicting philosophies and how they affect get throughment of a marketing orientation. This can be addressed in the context of both remote customers10 and Although it has been accepted for many years that a market internal customers”. orientation is essential to the success of a business, it has not been proven in all b’ igure I: Ste reotypical I)itfcrenccs Itetw~~~ hlarkrt- lie uncl I’ rotll,ct-Oriellletl IIH hlihn;rg:ers with Itesl~~ to Training Yrogr;rmmes 4’ lTITUDES Attitudes & PROCEDURES\r\nI’ ROI)IlCT ORIENTATION to cut costs and MARKET ORIENTATION Client needs govern training programmes. towards clients: They should be glad we exist. Trying bring out better programmes. Department interests. Focus Programme offer: provides argumentations that fit our skills & Schedule programmes we know the clients need. Interest in innovation: of costs: scheduled for is on technology and cost cutting. Focus on observeing A detailed objective. new opportunities. Importance A number in the budget we cannot exceed. rcquircmcnts in mind. Number of programmes the year: graphic symbol of marketing Attendance\r\nSet with Ihc dclivcry Set with client needs and costs in mind. research: To determine client reaction if used at all. is good revision. To determine client needs and if they are bein g met. at programs: Fill all available places †restate Select attendees according to their needs and coordinate this with other managers. Demonstrate clients. need satisfying benelits Promotion of programmes: indicate managers when their staff is to attend the next course. of course to dependent upon(p) situations. Monopoly or regulated markets provide examples of nonmarket orientation.\r\nAs the disparity between a market orientation, and any one of many conflicting orientations possible, is accepted as the difference between un steadfast short-term success and stable long-term growth, it becomes of considerable richness to senior managers to crowd together a market orientation within their company. Similarly, the importance of HRM has gradually gained credibility and importance, as managers have come to understand how it can contribute to the achievement of business success. There exists an increasing number of well cognize companies where superior HRM is believed to b e a key component part in their success.\r\nWe have seen the similarity in roles of the marketing and HR managers. The marketing and HRM processes both involve the creation and exchange of utilities. need to represent the interests of a client, against the narrow interests of another manager, may be conducive to the well being of the company but a source of open interdepartmental conflict. This conflict is difficult to manage and can detract from the forte of the function and the organisation. both functions require commitment and support from the CEO to succeed, and performance measurement is seen to be an important tool for twist credibility within the company.\r\nThe market orientation can be applied equally to either the marketing or HR functions when it is accepted that success is achieving organisational goals through delivering customer satisfaction. We will now consider how the HR manager can harness the ideas, and tools of the marketing function to more effectively contr ibute toward the organisation’ objectives. s THE HRM-MARKETING FUNCTION A We are concerned here with internal marketing †that form of marketing where both the â€Å"customer” and the â€Å"supplier” are inside the organisation.\r\nIn this context we consider employees as customers or clients. These classifications are quite broad, and could be further divided into such groupings as the board, managers, supervisors, foremen, clerical staff, etc. The HRM- market function can be described in terms of visual perception managers and employees as in-house customers, viewing the tasks and activities performed by the HRM function as in-house products or services, and offering in-house or services that satisfy the needs and wants of managers and employees, while addressing the objectives of the organisation. 2 The reasons for believing marketing provides a useful framework for HRM depend generally on the congruences we have demonstrated between essential activities of the two functions. In attachment to these congruences, there is a strong similarity in the constraints and difficulties facing either marketing or HR managers. Concepts and tools proven to be useful to the marketing function can also be applied to the benefit of HRM. The HRM function provides services or programmes to employees and management, which means it sells performances that flat influence business productivity.\r\n indwelling marketing can help an HR manager to attract and hold the type of people a company wants, and get the best of in-house customers, the HR function can upgrade the capability of a company to satisfy the needs and wants of its external customers. trade management is the process of increasing the strength and/or talent by which marketing activities are performed. posture refers to the compass point to which organisational objectives are attained, while efficiency is concerned with the expenditure of resources to accomplish these objectives.\r\nThi s difference is eloquently uttered in the view that it is more important to do the right things (improve effectiveness) than to do things right (improve efficiency). 13 An organisation that is doing the right things wrong (effective but not efficient), can outperform organisations that are doing the wrong things right. Effectiveness and efficiency is also a concern of the HR manager seeking improved performance. MARKETING ACTIVITIES The marketing function in any organisation is concerned with a number of related activities which include: 8\r\n ar run awayment of the market and competitive environment. Definition of the firm’ delegacy. s Determination of the Target Market Segments to be punctuate. ontogenesis integrated marketing flux strategies to accomplish this Mission in the selected segments. Implement Marketing Mix strategies and discover marketing activity. 8 8 8 8 This well known model of marketing function activities, which involves the above steps, is used as a introduction for a discussion on internal HRM marketing. Market and Competitive Environment\r\nThe starting point is for HR managers to gain a good knowledge of the needs and wants of the client groups served, the significant factors influencing the HR department’ operations, and identify the ‘ s publics’ which interact with the company. This process is market synopsis and involves collecting information on the different client markets into a database. Market research should be used to identify internal client needs, wants and attitudes just as it can be used to identify the needs, wants and attitudes of external consumers or industrial buyers.\r\nFor example, ‘ climate surveys’ concerning perceptions of remuneration packages, duty conditions and performance appraisal, and opinions of quality improvement programmes, provide direct benefits for the redesign and improvement of key policies, processesand programmes. There is also the positive effect on morale that flows from pickings an interest in the views of employees. This channel of communication provides an early means for pin-pointing organisational breakdowns and problem areas. An important requirement onwards undertaking data collection is to adopt a commitment to face the issues uncovered, no matter how unpalatable.\r\nIt is an on-going process requiring that issues be contumacious in order to maintain credibility of the HR department at all takes within the company. To raise the expectations of client groups without delivering can pay back strongly negative effects. Finally, market research can also provide a theme for observe the push of programmes on employees, and check whether HR programmes are achieving what they were designed to achieve. This market research process sometimes suffers from a condition referred to as the â€Å"no-full-disclosure disease” 14.\r\nIt manifests itself through people within the management hierarchy who upkeep the things threatening them may become known to others, and then used to their personal detriment. The extent of this problem depends on survey design and content. People interviewed tend to spill freely when given a chance to bear their thoughts and opinions on HRM issues. However undertaking not to utter the content of an interview under any circumstances, without anterior approval from the person interviewed, is sometimes necessary in order to get at the real problems and issues.\r\nWhether use is made of questionnaires, personal interviews, informal fit outings of managers, or group discussions, market research provides a clear means of identifying client needs and wants. It also provides the means for bring in performance. Mission The second step involves the ripening of a agency for the HR department. The corporate heraldic bearing story for an organisation is too broad to be pregnant for a unique(predicate) business function, and consequently a mission tale should be parti cular propositionally developed for the HRM function. It involves asking the questions â€Å"what is our role within the organisation ? and â€Å"what should our role be within the organisation? â€Å". predict 2 provides an example of a HR mission statement based on one developed with a leading British service organisation. FiPure 2: piece Resource Mission Statement To develop and agitate the highest quality human resource practices and initiatives in an ethical, cost effective and timely manner to support the incumbent and future business objectives of the organisation and to enable line managers to maximise the calibre, effectiveness and development of their human resources. This will be achieved through working with managers and staff to: n\r\nDevelop an integrated human resource insurance policy and implement its consistent use throughout the organisation Enhance managers’efficient use ‘ human resources through the of provision of responsive and adaptable s ervices Be the preferred source of core strategic HR services Provide high quality adapt HR consultancy Introduce methods to plan for the provision of mandatory calibre and quantity of staff Ensure consistent line accountability throughout all areas within the organisation Assist the organisation in becoming more customer aware and responsive to changing needs Define and encourage implementation of an improved communications culture throughout the organisation fight back an innovative and affordable profile for HRM n n n n n n n n At the HRM level the definition of mission does not have to be complex. It should provide a framework for explaining the HR department’ role and how it can help s he different levels and units of an organisation to co-ordinate their efforts to achieve the overall objectives of the organisation. Once the mission statement has been adopted objectives need to be formalised. Because objectives are not equally important, a hierarchy of potential servic es, programmes and projects should be put together. If possible these objectives should be operationalised †verbalise in terms that are specific, and which will lead to measurable end results. It is important to understand what needs to be accomplished, when the task should be completed, and how it will be decided that the task is completed. This process links very closely with the market research function which can be used to demonstrate performance against specific objectives.\r\nA function which provides a service, and deals predominantly in intangibles, requires tangible evidence of success in order to demonstrate competent performance, and help build credibility. Market Segmentation The third step is deciding which market groups should be focused. Market sectionalization is a process by which we divide the total, heterogeneous group of clients into smaller, more homogeneous groups with similar needs and wants that the HR function can successfully satisfy. By developing specific services we can generally improve the effectiveness of our performance in satisfying clients. It may cost more to serve smaller groups, or enshroud problems requiring customised solutions.\r\nBecause of this, there is sometimes a need to remnant the level of customisation unavoidable to adequately solve a problem, against the benefits which might accrue to the organisation. This is very much a cost-benefit exercise. The characterisation shown in escort 3 can be helpful for sorting problems into classes, each of which require different capabilities. At a high spirit level of customisation, there is increased demand for resources from the HR function. The HR cost to the organisation increases with an increase in the level of customisation. Programmes, or projects essayn by HR typically involve longterm benefits with short-term costs, and given limited resources, this has direct impact on the HR department’ effectiveness. Quadrant 1 in Figure 3 represents the situ ation where there is need to fit a key programme to the specialised needs of a client group. A major company wishing to run an in-house strategic management seminar, enabling senior management to . Figure 3. CHARACTERISING HR MARKETING PROBLEMS Programme l l oriented skills Client l l oriented skills standardised customising Importance of issue to organisation objectives I 3 s issue management skills needed 2 Buy-in-solution needs consultative skills 1 Fiexible approach skills 1 I l l maintain flows l l development project control skills needed need monitoring skills 31 slump 4i HIGH required C Degree of customisation check up on and discuss genuine management thinking and practice, is an example.\r\nThe CEO would perceive this to be of high value to the organisation, while requiring this process to fit closely with the business context. The programme-oriented task found in quadrant 2 is characterised by the opportunity for a high quality but standardised approach to be taken. F or example, consider a betting agency involved in the diversity of operations from a manual to a computerised call off betting system. There is a need to develop and implement a programme at low cost which will enable a refine transition to the new system. Due to the large group of operators requiring new skills there is an opportunity to seek savings through standardisation. The importance of this issue means effective performance by the HR department is more critical.\r\nIn quadrant 3 the degree of customisation required for a task is low †for example where manufactory staff are being given first-aid training. The content of a first-aid training programme will be fairly standard across a range of industries. Such a programme is not central to achievement of organisation objectives, and represents a situation where service delivery can readily be obtained from outside the organisation. Once the training programme was in place knowing who had attended the course, and monito ring the training process would be the key tasks. An increase in the degree of customisation required corresponds to an increase in the level of organisation-specific content, as shown in quadrant 4.\r\nConsider a retail tyre organisation which needs to train shop floor staff in the testing and servicing of car batteries. This more specialised course requires company-specific input, and an inhouse programme is the best solution. In this quadrant the need is for course development skills, a flexible approach, and the ability to manage the development process. Other examples are custom-designed employee retirement programmes, or surveys of work group satisfaction where there is a need here to design and implement a project with the specific needs of a client group in mind. Obviously most impact can be made by HRM focalisation efforts in those quadrants involving problems of high importance to the organisation, but not involving significant short-term investment.\r\nThis type of probl em area, set because the issues involved are considered central to the achievement of business objectives, will often be more able to attract support and adequate funding. Working in areas requiring a high level of customisation, which are also critical to business success, is the challenge facing HR. This is the armorial bearing in which HR requirements have moved receivable to the increased complexity of business, changing technology, and the shift from an asset management to operations management philosophy. Segmentation of employees on the basis of their needs and wants, as opposed to the division of management clients, recognises the need to accommodate individual differences.\r\nThis is the basis for concepts such as negotiable remuneration packages, employment contracts, flexible working hours, and job sharing. The techniques used for consumer segmentation by marketers can be applied directly here. It provides opportunity for companies to â€Å"lessen the influence of un ions by placing greater emphasis on direct employee communication, in addition to, or instead of, industrial relations conducted in the traditional representative way”15. Developing and Implementing the Marketing Mix Once the tasks of determining the mission of the HR department and the target market segments to be emphasised have been undertaken, a marketing-oriented HR function will focus on the ‘ marketing mix’ The marketing programme is developed . ased upon a decision on marketing mix variables over which the HR manager has some control: designing the product or service, costing it, setting up a service delivery system, promotion of the product to clients, and gaining commitment for proposals from management. Figure 4 illustrates the four elements of the marketing mix which need to be addressed. Whilst all elements need to be considered, two key variables †the design of the ‘ product’ (ie courses or services) and communications are especiall y important. These two key variables and their relevance for the HR manager are now reviewed. n Designing the ‘ Product’ . It has been pointed out that the process of a marketing department introducing a new product, and blockage of a complex long-standing problem by the HR function are very similar.\r\nFigure 5 illustrates this, and is based on Desatnick16 who argues that â€Å"as the contribution of HRM is less tangible and more difficult of end results, it is even more important to market it effectively. to measure in terms This implies taking the time to reflect, to position, to package, to merchandise, and to sell”. frankincense the HR manager must get the supreme impact from each situation through careful Figure 4: The Four Elements of the Marketing Mix ELEMENTS OF THE MARKETING MIX FOR A conjunction 1. PRODUCTS OR SERVICES 1. ‘ PRODUCTS (SERVICES, COURSES, ETC) 2. THE LOCATION AND DELIVERY MEANS OF SERVICES AND COURSES 3. COMMUNICATIONS WITH CLIEN T GROUPS (PRIMARILY THROUGH DISCUSSION AND DOCUMENTATION) 4. enthrall PRICING AND EXPENSE ALLOCATION 2. PLACE (DISTRIBUTION) 3.\r\n advance (MAINLY THROUGH ADVERTISING AND PERSONAL SELLING) 4. PRICING aim 5: COMPARING PRODUCT DEVELOPMENT mingled HR ISSUE TO RESOLVING A Introducing the new produa (a 1 to 3 year cycle) DETER& exploit PRODUCT NEED FOR fresh I firmness of purpose a complex HR issue (a 1 to 3 year cycle) DETERMINE NEED FOR NEW tolerate, PROGRAM What is the cost of not resolving this nsue? What will be its impact on norms and vuua! What IS cost bcncrit value KOinrcmai diem! Eyk! lJlJTE POSSIBLE SOLUTIONS FOR 1 †Who wril buy it and why? How much will they spend on it? Whaf neeas will it sat&y? ISCREEN NEW PRODUCT ID&4 ( What impact will it have? provide it be profitable? Is it compauble existing produas? 1TEST MARKET THE PRODUCT [\r\nWhat impact will it have on operauorr~! Who will manage and use the project! How does it iit with current proJects/ priorities? CONDUCT A wing PROJECT 1 Do internal clients find it useiui? Will they supponfpay! To what exrenr! Who mll oppose IL? Why? ;fEysNCE TO separate POTENTIAL How do prospeas vim the proaucr! What needs does it satisfy? Have we deslgncd the nght produa! / tiXAPsTO OTHER TEST .irc tkdings consistent! .tie there log8suc/quaiity problems! Did promotrons resuit in expccrea s3la! ( Is the project valid/reliable? Does it meet needs of ail company locations! Have the beneiits been billet iommuxlLcarea? ASSESS OUTCO,ME IN ADVANCE !\r\nWhich funcuons are aifectco and how! Will it cause contusion! Have ttma. raourca dr costs been aeuuicd? .-NALYSE. ?IlEASURE. PROJECT T What tmpaa on other iuncuons! Detaucd buaga and plans. Have d impticauons been conslderca? /ESPA%D TO A NATIONAL LaIUNCH i : 1,MPLEMEM COMPANY WIDE i Does tne poremat ourwaqh nsics! . e promorlons ana follow-u! 3 ;iannea! .tie 10glsua ana supply lines rcaav? Have we mcxns ior ldcnufying scrwcc xooIcmr. ana dissausiac uons! Doa project add to HR’ crcntbtlitv! s Who wlii tram whom ‘ do wnat. snere. to when! Have system! we an eifecttve examine/evalUallOn Will the Issue really be resolved? management of those elements he can control.\r\nDeveloping a product or service for a client group is an activity over which the HR manager has a great deal of control, and consequently provides an area where management attention can be rewarded with utmost impact. H Communication. Communication represents promotional activity in the form of advertising, indirect furtherance, and face-to-face selling which is employed by marketers to influence potential, or existing customers to extradite in desired ways, such as to undertake the trial purchase of a product the firm has just launched onto the market. Promotion can also be used to influence employees to reconsider attitudes, to inform managers, or alter the way in which a particular programme is perceived by the clients to whom it is enjoin.\r\nT he use of â€Å"publicity” through internal publications and other documentation can be used to provide feedback to employees on current issues, as well as enhance and honour the credibility of the research process. A well conceived internal promotional programme can have very positive effects on employees. It can motivate, educate, or help provide a sense of belonging. The storied Avis Rent-a-Car slogan suggesting that Avis employees â€Å"Try harder” was as effective for their employees as it was for the public image of Avis. This type of corporate advertisement primarily seeks to influence the perceptions of external publics, but management tends to forget these campaigns are also critically viewed by employees at all levels within the organisation.\r\nA campaign which lacks credibility with employees is not consistent with development of a positive organisational culture. Management should develop corporate communications which are consistent with the HRM objecti ves of the organisation. Simpler, less would-be(prenominal) projects can also produce significant impact for the HR function. . Personal interaction with other operative areas can contribute significantly to HR marketing efforts. In situations where a service or programme is either partly, or fully dependent on the performance of employees for success, the communications and promotional activity should be concerned not only with encouraging clients to buy, but with encouraging employees to perform. commitment of both employees and management.\r\nThe implementation and control processes represent the final step which involves the measuring of effectiveness and efficiency, taking corrective action, and iteration through the marketing grooming processes. The well established marketing planning Success in business requires the literature” provides a framework to follow in undertaking this task. CONCLUSIONS The mid-eighties saw the start of a new emphasis on the HRM function. It has been pointed out that the reality is that a firm adopting ‘ HRM’ may simply involve a retitling of the old personnel department with no obvious change in its functional role, or it may be ‘ strategic HRM’ which represents a fundamental reconceptualisation and re-organisation of personnel roles and departments. 18 There are different models of HRM and this has importance for its evaluation. g The focus of strategic HRM underwriteesall those decisions and actions which concern the management of employees at all levels within the organisation and which are directed towards creating and sustaining competitive advantage*O, but recent European research suggest that ‘ strategic HRM’ is still not widespread. Findings from the Price Waterhouse/Cranfield HR research project shows that in many European organisations HR strategies follow on behind corporate strategy rather than making a positive contribution to it; and although HR delegation at boar d level is becoming more common, this does not necessarily bring with it involvement in key decisions. l Some firms have been able to integrate HR and strategy but to achieve this it usually requires a concentrated and multi-dimensional effort. ** The scope of marketing has traditionally been limited to the exchanges that take place between organisations and their customers. More recently this scope has been expanded to encompass the field of ‘ relationship marketing’ which suggests that 23 marketing principles can be applied to a number of other key markets, including internal markets within the firm. We argue that there exist compelling reasons for bringing the internal marketing concept to bear on problems faced by all HR managers, but the greatest value will be obtained in these firms adopting ‘ strategic HRM’ .\r\nThe shift in organisational philosophy from asset management to operations management, the introduction of new technologies to some industri es, and the increased strategic importance of managing people resources effectively and efficiently, has meant the role performed by HR managers demands a much high level of competence and professional skills. Marketing provides an action framework, and a practical approach by which the HR manager can provide effective solutions to key corporate problems. This fresh perspective will bring marketoriented HR managers significant benefits. In spite of emphasis in this paper on the need for HR managers to deal effectively with the challenges they face, it must be recognised that much opportunity for the future status of HRM lies with the CEOs.\r\nTheir task is to provide organisational vision, and many have still failed to recognise the value of strategic HRM in the present business environment. In spite of this, the HR manager must share the responsibility through not having convinced(p) top management that HRM is strategically relevant to business success. Adopting a market orientat ion requires the HR manager to focus on the needs and wants of internal customer groups and to stimulate internal service. An investment in the marketing approach is an investment in people. REFERENCES 1. BUSINESS WEEK, â€Å" gentle Resource Managers Aren’ Corporate Nobodies t Anymore”, 2 December 1985, p 58. 2. 3. 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BULLER, P F, â€Å" self-made Partnerships: HR and Strategic Planning at eight Top Firms”, Organizational Dynamics, Vol 17, No 2, Autumn 1988, pp 27-43. 23. M, CHRISTOPHER, PAYNE, A F T and BALLANTYNE,D, Relationship Marketing. Bringing Quality, Customer Service and Marketing Together, Heinemann 1991 (forthcoming).\r\n'