Organizational and Human Resource Strategy – Kuwait Finance House
Every organization works toward as achieving certain goals. Kuwait Finance House intends to offer a variety of service and products which are Islamic Sharia compliant in the areas of banking, trade finance investment portfolio, real estate, among other services and products (‘Kuwait Finance House K.S.C’, 2014, 5). The organization intends to offer best banking services across the globe, with high quality of products and services in order to maintain customers’ loyalty. However, significant improvement is needed in order to ensure professionalism and efficiency in service delivery. In order to achieve the competence level expected in the organization, it is important enforce strategic human resource plans. The human resource plans will focus on three main categories which include: job analysis and design, recruitment and strategy and employee selection.
A well structured recruitment plans that clearly captures the strategy for hiring and attracting the best qualified candidate will enable Kuwait Finance House attain strong workforce. . Job analysis and design will facilitate determination of the actual level of need, the worth, and the qualities desired when a new type of work need to be performed. In order to attain better service delivery, the institution will be compelled to restructure its operations and create room for better performance. The restructuring will focus on creating a strong and better team that is compliant to technological changes and trends.
Organizational and Human Resource Strategy
Human resource is a crucial department that sustains all other functions in an organization through building a motivated team of employees. The main roles of Human resource management (HRM) include employee recruitment, training employees, performance appraisals, coordinating workplace communication, employee motivation, and employee safety among others (Harpe & Méndez, 2011, 47).
In order for the organization to succeed, it needs to be resilient, customer-centered, adaptive and quick in responding to necessary changes.HRM strategies establishes systems for career succession, performance development, and employee development. Essentially, the Human Resource helps in the development organization culture and creates conducive climate in which employees are motivated, happy and personally engaged in their job.
In other terms human resource can be termed as the pivot that balances employees’ productivity and satisfaction. The two aspects work together in such a manner that one cannot do without the other. For an organization to realize high productivity, employees’ satisfaction must be considered. Critical strategies should be employed to ensure employees’ satisfaction is achieved in an organization, failure to which, the organization should be prepared to fact critical challenges such as employees’ strikes, low productivity, internal conflicts, insurgency of unethical conduct, and unexpected delays among other challenges.
Kuwait Finance House (KFH) presents a unique case that requires deployment of HRM strategies in order to meet its strategic goals. KFH is a banking institution situated in Kuwait City with 56 branches in Kuwait (‘Kuwait Finance House K.S.C’, 2014, 3). Though the organization has featured as one of the best Islamic banks on several occasions, there are internal issues that significantly affect its performance. Majority of the employees working in different departments perform their duties across different sections without the relevant skills required. Majority of these employees lack vital knowledge and skill required to handle critical assignment. Some of the employees who do not meet the required specification in their job category found their way in through questionable means such as nepotism. Shortage of key skilled individual has resulted to significant inefficiencies that contribute to increased losses.
Strategic Human Resource Plan
In order to tackle this problem, it is important to engage mechanism that will create the necessary paradigm in the institution. Therefore, a fundamental job role analysis must be conducted in order to be able to design the job description and specification. A design for suitable recruitment and selection strategy is also vital in this aspect.
Job Analysis and Design
The key departments that should be focused includes: treasury and operations department. KFH’s treasury segment is the core department in the institution that works on liquidity management, trade with markup investments, exchange of deposits with financial institutions and banks, and international banking relationship activities (‘Kuwait Finance House K.S.C’, 2014, 6). This is the most crucial segment in the banking industry which requires high level of competence and professionalism.
Therefore in order to ensure high level of competence and professionalism, human resource recruitment strategies must present the required threshold. Job analysis and design is a process that determines the actual level of need, the worth, and the qualities required when a new kind of job need to be done (Hall & Heras, 2010, 450). The description of the duties must be made for the purposes of hiring.
Based on the institutions goals, and its new 5-year strategy aiming to lead international development of Islamic Financial services, as the most trusted and sustainably the most profitable Sharia compliant bank in the world and in terms of customer service, and the necessary fruitful international presence, the institution must reconsider its strategies in job analysis, job design and job specification.
Job analysis is a vital HR process of describing what work needs to be done including working relationships and specific responsibilities (Westphal, 2010, 320). Traditionally, it was the duty of the manager to design work structures and job specifications. However, a current study advocates the need to include the employees in designing jobs (Grant et al, 2010, 152). In most cases, the employees have significant ideas as a result of their day to day interaction with the realities of work in their area of specifications. Also, the retiring staff and those leaving the institution harbor vital information that can significantly help in creating appropriate job design and job specifications is also important to consult the employees affected as a result of new structuring.
Work design is a vital process that is intended to ensure effectiveness and compliance to vital change. There are many opportunities presented by organizational change which should be considered and carefully utilized in order to ensure vital sustainability. For instance, there are many opportunities emerging from the new technology which require new job structures.
Good job design should always aim to strike balance between functional effectiveness and human values (Hall & Heras, 2010, 449). Work design should enhance efficiency and at the same time increase productivity. On the other hand, work design should consider health and safety measures and enhance job satisfaction.
Vital questions should be asked when creating a job design:
- What activities are to be undertaken? Why are they vital?
- How do these contribute to the aim and overall objective of the organization?
- How do these functions relate to the workforce plan?
- Is the job being designed along organization’s need?
- What interactions are needed between different organization units, between roles and across different functions?
- Which is the task being done?
- Do the roles overlap?
- Can some workflows be simplified, eliminated or streamlined?
- Is there role clarity?
- How can task grouping provide a cost-efficient process?
- Are there accountabilities, responsibilities and delegations allocate optimally?
In the past four decades, studies on job design played a critical role in building necessary bridge between practice and theory (Grant et al, 2010, 152). Prominent theories such as interdisciplinary work design framework, action regulation theory, and socio-technical system theory were key theories that were considered by different organizations to achieve desirable level of professionalism in the workforce. Job analysis enables proper judgment to be made based on data gathered on a job.
Job analysis data collected through internal interview in the institution will facilitate job description or specification process. The main function of job analysis is to establish vital employment procedure such as training, assortment, performance appraisal and reimbursement. Therefore, job analysis will help KFH achieve the following:
Determine training needs
Job analysis can be employed in training to develop the following:
- training content
- assessment tests to measure validity of the training
- appropriate equipments that should be used in delivering effective training
- appropriate methods of training
Job analysis in vital in compensation to determine:
- skill level
- compensation job factor
- work environment
- required level of education
Job analysis is employed in selection procedures to develop or identify:
- Job duties which should be included in advertisements of vacant positions
- Appropriate salary level for the specific position to help in determination of what salary should be offered to the individual who takes the position
- Minimum requirements which includes: experience a education level
- Interview questions
- Selection test/instruments (e.g., oral test, written test, job simulation)
- application evaluation/appraisal forms
- orientation materials for new hires/applicants
Job analysis can be utilized in performance review to develop/identify:
- objectives and goals
- performance standards
- evaluation criteria
- length of probationary periods
- duties to be subjected to evaluation
The aspect of job that shall be analyzed includes:
- Duties and Tasks
Task and duties are fundamental units of job designing. The data to be collected about these items includes: effort, skills, duration, equipment, complexity, and frequency.
This may have significant impact on performance due to physical environmental factors. The physical environment may project undesirable conditions such as extreme temperature, poor ventilation, poor lighting and offensive sanitary conditions. There may be other definite risks that may pose health risks to an individual such anxious fumes, dangerous explosives and people’s hostility.
- Tools and Equipment
Some tasks and duties are generally done using specific tools and equipment. The equipments may include protective clothing that is necessary when conducting duties that demand protection.
Relationships are fundamental in an organizational set up. This includes relationship with external and internal people.
The knowledge, abilities, and skills needed to perform job must be analyzed. In this section, the analysis states the minimum requirement to perform a specific job
Kuwait Finance House goal is to build the best financial institution in the world (Kuwait Finance House (KFH) Group of Companies, 2010, 6), and in order to achieve this goal, the institution must employ best talents. Business, math and accounting skills, interpersonal skills, customer consciousness and professional ability and reliability are the basic standard of KFH. Currently, KFH is taking significant steps in exploring its alignment with vital sustainable principles in the bid to maintain its “first Islamic Bank” status in the global arena. Therefore, considering this object, a better approach is needed in order to recruit a strong, vibrant and technology oriented team players.
There are important aspects that compel an organization to conduct recruitment. It may either come from employees perspective (workers retirement, move, transfer, quit, or retrenchment), or from the organization perspective (organization restructuring, growth or new direction) (Westphal, 2010, 323). Organizational restructuring is necessary in KFH to create new opportunities and different approach. Restructuring process will require significant investment in time and finances in order to facilitate the process.
Currently, the banking industry is working in a volatile, uncertain, complex and ambiguous environment. These conditions have emerged as a result of fluctuating economic trends coupled with increased competition from new and nontraditional players (Kuwait Finance House (KFH) Group of Companies, 2010, 6). Changes in technology poses a great threat to the banking sector. There are increased digital age customers who compel organizations to be at par with technological trends in order to serve them appropriately. Disconnect between the organization and the current trend can have colossal effect on an organization.
As much as it is important to hire and employ experience individuals, it is also important to consider fresh college recruit who come with fresh ideas that can significant improve the organizations performance. Creating positions for management trainees is essential to help the organization tap young and ambitious personalities and incorporate them in their sustainability approach. The young generation is more conversant with current technological trends which present great challenge to major organization (Hall & Heras, 2010, 460). With the increased use of technology in the banking sector, many recruiters are looking for different set of skills that can help them scale their businesses higher and at the same time keep the cost low. Apart from the required functional competences that are expected from every employee, banking professional are required to possess a wide range of knowledge that can enable them work comfortably with the current technology.
In order to get best talents from institutions of high learning, it is important to establish cooperation relationship with institutions of high learning. This may include putting special consideration of best talents from departments of finance, business, mathematic, and information technology. In doing so, KFH will have an upper hand in tapping the best talents from those institutions. This will lessen the need of finding fresh employees from large public applications which are more expensive and time consuming. However, there is need to evaluate the best talents obtained from those institutions in order to sieve out incompliant personalities. Though individuals educational qualification is a vital factor to measure professionalism, interpersonal skill are equally important (Hall & Heras, 2010, 449). A person may have good academic qualifications but convey poor interpersonal skills. This is sufficient basis for cutting out such individual through recruitment strategy.
There is need to match organizational requirements with the essential skills and qualification. Strategies to attract talent should also consider appropriate measures to sustain best talent within the organization (Grant et al, 2010, 146). As a result of increased competition, sustaining talents has become a greatest challenge. Companies have considered spending significant amount in order to create an attractive and conducive environment which can attract and retain talented individuals.
Developing a recruitment plan
In order for the institution to be able to conduct recruitment appropriately, it is vital to develop a recruitment plan. A well structured recruitment plans clearly captures the strategy for hiring and attracting the best qualified candidate (Harpe& Méndez, 2011, 47). In addition to the vacancy placement goals, the plan should include advertising channels that will be used in order to achieve the desired objectives. There are five vital elements that must be capture in the recruitment plan. These includes: (1) posting period, (2) Placement Goals, (3) Additional advertising resources, (4) Diversity agency, (5) Resume bank
Minimum posting period should be as follows:
- Professional support staff (PSS) – Ten business days from posted date beginning the next business day.
- Senior Professionals/Management- Fifteen business days from posted date beginning the next business day.
Each recruitment process requires placement goals (Harpe & Méndez, 2011, 49). In order to ensure most current placement goals are identified, it is vital to establish office of staff affirmative action within the human resource department. Placement goals should factor all categories of people including the gender rule and individuals with disability.
Additional advertising Resources
A wide variety of recruitment sources, both externally and internally should be utilized to attract candidates who reflect the necessary diversity value in the workforce (Harpe & Méndez, 2011, 48). In order to capture best talents and skills, a thorough search through wide advertising should be conducted before filling any position. Advertisement sources should include:
- Internet job Boards
- Print advertisement
- Social media
- Job fairs
- Professional conference and campus Recruiting
Agencies which offer assistance to women and under-represented groups are great sources of talents. It is important for the organization to develop a significant relationship with these agencies in order to be able to tap talented individual from them.
Resume bank is where candidates seeking jobs send their resumes for consideration. These banks are significant sources for identifying qualified candidates. College and university resume banks can also be utilized to get talented candidates.
Employee selection is one of the most critical processes that engage human resource managers in critical decision making. Employee selection is the process of approving and ascertaining the qualifications, skills, experiences and knowledge skills of applicants with the view of connecting them to the right job. When making choices based on several options, the probability of choosing the wrong or the best option exist at the same time. In extreme case, applicants can have almost similar qualities, qualifications and somehow similar personalities. In such a case, it is quite difficult to know the best among them unless they are given an opportunity to serve. However, selection process is vital in identification of the best person when there are several applicants. Making the wrong choice can be dangerous and costly to the organization (Harpe & Méndez, 2011, 48). The process of employee selection usually passes through several steps which include notification, reviewing, screening, interviewing, testing then selection of the right person.
Human resource management plays significant role in conducting employee selection (Harpe & Méndez, 2011, 47). The process of employee selection begins with the manager requesting the human resource management to fill a new or vacant position in the organization. At this stage, the desired qualifications should be available after critical job analysis. It is the role of human resource management to create vital notification to public or particular group of people. This can be achieved through advertisement in a local newspaper, television, radio or online platforms.
The next step in critical evaluation of resumes and academic certificates of the applicants in order to get a group whose qualifications matches with the job requirements. The human resource department must determine the number of candidate they can interview at a given time span. In order to narrow down the number of applicants to a manageable number, it is important to conduct screening interviews. Screening interview can be done over the phone to help the company determine candidates with basic qualifications.
Face-to-face interview is a traditional method that cannot be replaced (Harpe & Méndez, 2011, 50). This method is offer necessary interaction between the human resource and the applicants. It is possible to determine individual’s reactions on certain issues from face-to-face interview. This method presents the opportunity to observe applicants reaction and general habits.
Evaluation and Summary
It is evident that Human Resource plays a critical role in an organization. Staffing is one of the vital organizational processes that are undertaken by the human resource department. In order to achieve high productivity and maintain quality services, it is vital to match organizational requirements with the essential skills and qualification. This involves obtaining suitable working force, and matching individual qualities with appropriate duties. Also, preparation of job description and employees specification is part of the human resource functions. This enables the HR to be able to provide necessary guidance, plans and basis for staffing in an organization.
Job analysis and design, recruitment and employee selection are vital processes that creates significant basis for better performance. Job analysis involves collection and study of information linking to responsibilities and duties of a specific job. Job description provides on what is required for a certain, while job specification describes the general requirements that an individual need to do. Human resource management plays significant role in conducting employee selection. This process involves careful evaluation of a vast number of applications to get the most suitable for a certain job specification. As discussed above, the implementation of these strategies will enable Kuwait Finance House to have a strong workforce that will be able to deliver the organization’s expectations and achieve the desired objectives and goals.
Grant, A, Fried, Y, Parker, S, & Frese, M 2010, ‘Putting job design in context: Introduction to the special issue’, Journal Of Organizational Behavior, 31, 2/3, pp. 145-157, Business Source Complete, EBSCOhost, viewed 23 November 2015.
Hall, D, & Heras, M 2010, ‘Reintegrating job design and career theory: Creating not just good jobs but smart jobs’, Journal Of Organizational Behavior, 31, 2/3, pp. 448-462, Business Source Complete, EBSCOhost, viewed 23 November 2015.
Harpe, L, & Méndez, J 2011, ‘Developing effective and legally compliant recruiting strategies to meet company goals’, Employment Relations Today (Wiley), 38, 3, pp. 47-52, Business Source Complete, EBSCOhost, viewed 25 November 2015.
Kuwait Finance House (KFH) Group of Companies, 2010. Corporate Sustainability Report. Retrieved from: http://www.its.ws/upload/KFH_Sustainability_Report___2010_1512.pdf
‘Kuwait Finance House K.S.C’ 2014, Kuwait Finance House K.S.C. Marketline Company Profile, pp. 1-23, Business Source Complete, EBSCOhost, viewed 23 November 2015.
Westphal, JD 2010, ‘An impression management perspective on job design: The case of corporate directors’, Journal Of Organizational Behavior, 31, 2/3, pp. 319-327, Business Source Complete, EBSCOhost, viewed 23 November 2015.