Discuss about the Report for Succession Planning in National Company.
This is the report that discusses on the succession planning of CHEP service centers in New Zealand. This report aims to identify the best business practice or model for CHEP New Zealand. In order to achieve the aim, the report progresses in a systematic manner. In the beginning, the report states about the background or history of CHEP’s business. After that the report discusses about the business practices related to the human resource of CHEP in New Zealand and Australia respectively. Next, the report makes a comparison between the human resource progression of CHEP in these two countries and from that comparison, the report finds out the best business practice or model in respect to the succession planning for CHEP New Zealand. At the end of all discussion, a conclusion is made by summarizing the key findings of the report.
CHEP is one of the leading pallet as well as container pooling service providers in the international market. The company started its business in the year of 1945. Presently, the company provides the pooling services for different industries like automotive, fresh food, consumer goods, manufacturing and aerospace. The company launched its business in Australia for the first time. After that it spread its business in different areas in the world. Presently, the company is having an employee base of more than 12500 people and a customer base of 500000 (Chep.com 2016).
The recent reports on this company disclosed that the customers of the company belong from total 50 countries in this globe. The company has taken different strategies in order to attract the customers in different countries and in order to increase the sustainability. As per the recent data, the company has made $US3.7 billion by selling only the Pallets, $US0.3 billion by selling the containers and $US0.8 billion by selling the RPCs. In the recent past, the company has launched itself in the New Zealand market also (Chep.com 2016).
CHEP is operating its business in New Zealand for more than 30 years. In New Zealand, the company is providing its services to the retail, manufacturing, food and beverage industries. The business of the company is mainly at Dunedin and Otago region in New Zealand. However, in the recent past, the company has started its business and established its new service centres in Sturdee Street, New Zealand. For this new service centres, the company has made a total investment of $4 million. At the same time, the management of the company also recruited best possible human resource in order to develop or improve the business performance than the past days (Yellow.co.nz. 2016).
In the new project of CHEP, the company is trying to achieve a greater efficiency in customer services and due to that, it has built a warehouse of 1152 Sq. Mt. an office of 200 Sq. Mt and a canopy of 384 Sq. Mt (Chep.com 2016). In order to operate the business successfully, the management of the company has arranged for the employee or staff training programs. This type of staff training program helps the management to build a strong human resource team within the company. As the main aim of the business that is CHEP New Zealand is to bring more innovation and improvements in their business operations or services, the higher authority of the company has emphasized on the quality of staff members so that they can deal with the advanced business technology and they can handle the customers in best possible way.
Veleva et al. (2015) stated that the business model of CHEP is based on providing the reusable packaging service solution to the customers. This type of business model is very much focused on the theme of business sustainability. According to Slawinski and Bansal (2015), the sustainability of the business is possible to achieve only when the company has a good human resource team those can operate and provide the best possible solution to the customers’ need. The main idea of the business of the company does not differ from country to country. Therefore, the business model of CHEP in New Zealand is also based on fulfilling the commitments towards the investors or business partner by being a supply chain partner that meets its responsibilities properly.
Witjes et al. (2016) believed that in order to fulfill the commitments towards the investors and other stakeholders, the company has also focused in the top management team of it. The top management of the company is consists of the experienced people those can take right decision at the right time. On the other side, the new management team of the company has also planned for new way of selecting and recruiting people or employees. If the management style of the company is noticed then it can be identified that the management of CHEP New Zealand has focused on the participative management style. This style is one of the best management styles in today’s business context (Network, S 2016).
Innovation and sustainability is the primary theme of the business of CHEP New Zealand and in order to maintain its business model properly, the company is trying to invent a service that can achieve zero harm. In the words of Slawinski and Bansal (2015), in order to fulfill this mission or goal of the company, the company has emphasized on enhancing the ability of its human resource. It has been mentioned before in the study that the company or the management of the company has already started to provide the training to its employee regarding the use of new technologies. As per the 2012’s business plan of CHEP, the company had a target of achieving 70% of Covenant signatories those considers the procedures and policies in order to procure the packaging by the use of SPGs or something equivalent to that.
On the other side, the company also arranged for some employee recruitment programs or vacancy fulfillment programs like, recruiting fresher for the ground level works and the experienced people for the higher posts. In the higher posts, the management mainly emphasized on the existing people or old people of the company. The management has adopted the strategy of recruiting in the higher level people by taking the internal tests from the allegeable existing employees of the company (Chep.com. 2016).
In case of the employees or people of CHEP in New Zealand, the company is strictly on the safety issue at the workplace. The company has taken the “Helping Hand” strategy or program in order to provide more facilities to its employees as well as to the people in the communities. As per the information available in the journals, the company invests total $100000 in each year to this “Helping Hand” project. However, the company makes this investment along with Brambles group (Network, S 2016).
Therefore, from the above discussion, it can be said that company that is CHEP New Zealand is having an effective succession plan for the future growth of the business. However, the effectiveness of the new strategies applied by the company for succession planning will be identified in future.
It has been stated above that CHEP started its business in Australia for the first time and so it is Australia based company that is operating its business for more than 50 years. The business model that the company follows in Australia is more developed than the business models of the company in the other countries. In Australia, the company has taken different succession strategies in order to develop and improve the quality of the human resource department of it (Chep.com. 2016). The strategies taken by the company in order to recruit and motivate the human resource are stated as under:
The first strategy that the company or the management of the company has taken is proper training session in every three months or in quarterly basis. These training sessions are mainly arranged in order to influence the people of the organization towards achieving the overall goal of the company (Slawinski and Bansal 2015). After the completion of each training session, the management of the company arranges for some written tests, which indicates the success of training.
The next step or strategy taken by the company is related to the recruitment of the people or employees. In case of CHEP Australia, the management of the company has emphasized on the new people or the fresher along with the experienced and own people for the higher position within the company. The main reason behind this type of strategy is that the management believes the new people can bring new ideas within the business (Solutions.chep.com 2016).
On the other side, the management of the company that is CHEP Australia has recruited the new or fresher people because they believe that the new people will have more physical strengths to work for the company. At the same time, the CHEP Australia has focused on the external fresher recruitment because if they recruit the fresher from the external sources for any higher post then the company has to pay less. However, on the other side, if they recruit internally that is from the internal employees, then the company needs to promote the people, which will cause in salary increment to the employees, which will increase the overall cost of the company (Solutions.chep.com 2016).
Apart from these, the succession planning of CHEP Australia also focused on the recruitment of the specialized people only. According to the higher management of the company, though the company needs to pay more to the specialized people, the benefits that the company gets from them are much higher. On the other side, the company has to expend less money or cost in order to train the people those are already trained or experienced. The experienced people at the same time need less guidance and time to solve an issue or to complete a task (Chep.com 2016).
As per the report available regarding the succession planning of CHEP Australia, it can be said that the company has emphasized on the group work. The management of the company believed that the talent of the individual employee can be developed by the working within the group. At the time of working in a group, the employees get the chance to adopt the talent of the other people and in that way they can improve their knowledge and skills also. The management of the company has also focused on providing extra facilities to the employees (Chep.com 2016).
Lastly, the management of CHEP Australia has also taken different policies or strategies for the succession planning of the company. The higher authority of the company has emphasized on the communication factor between the employees. According to the management of the company that is CHEP Australia, better communication between the employees helps to solve the problems in better or effective manner (Chep.com 2016).
Therefore, from the above discussion, it can be said that the succession planning of the company both in Australia and New Zealand has some unique features and ability to improve the performance of the company in a better manner. However, as the company is operating its business in Australia for many years, the succession planning is also much developed in Australia than that of New Zealand. The comparison between the succession planning of CHEP Australia and CHEP New Zealand is shown below:
In the above, it has been identified that the succession planning of CHEP both in Australia and New Zealand are focused mainly on the sustainability and future development of the business. However, if the comparison of these two is made, then it can be easily said that the succession planning that the company is following in Australia is much developed than that of the business practices of the company in New Zealand. The succession planning or succession strategies that CHEP has adopted in Australia are much specific and effective than that of in New Zealand. In Australia, the company has taken several strategies for the better recruitment and to develop better human resource team for the company.
In Australia, the company that is CHEP has focused on both the recruitment of the fresher or new people as well as the experienced people. However, in case of CHEP New Zealand, the management of the company mainly focused on the recruitment of the experienced people. Though this strategy is also good because the experienced people can handle the business operations or situation in better manner, the recruitment of fresher can provide unique ideas to the company (Witjes et al. 2016). The company has made a huge investment in New Zealand in order to recruit better people in the company. In this context, it can be said that if the company increases the investment in Australia also, then it can achieve more success in Australia.
However, on the other side, in case of CHEP Australia, the management of the company has focused more on the group activities in order to develop the talent of the employees. However, in case of CHEP New Zealand no such strategy has been taken. There the management still believes in the training of the people. In this context it can be said that there is a common point between the succession planning of Australia and New Zealand and that is the training programs in order to improve the quality of the human resource of the company (Solutions.chep.com 2016). Apart from these, the management of both that are CHEP Australia and CHEP New Zealand both have focused on providing special facilities to the employees. This is another good part of the company (Solutions.chep.com 2016).
On the other side, if the comparison is made in respect to the succession planning of the company in the two countries, then it can be identified that CHEP Australia has focused on the communication between the employees, which is not that much focused in New Zealand. However, it has to be said that in both the countries the managements are trying their best to develop better succession planning. Though some improvements are needed in CHEP New Zealand’s succession planning.
After discussing about the Succession planning of CHEP in the countries like New Zealand and Australia, it can be said that the company needs to improve its succession planning in New Zealand. The strategies that the company can take for improving the succession planning are as under:
Therefore, with the help of the above steps, the CHEP New Zealand can implement the best possible business model for the future success of the company.
Conclusion
In this assignment, it has been identified that CHEP is one of the leading pallet and container pooling service provider in the international market. The business along with the succession planning of the company is much developed in Australia than New Zealand. One of the big reasons of this is that the business of the company in Australia is much older than that is in New Zealand. The company has taken some new strategies in order to develop better succession planning for the future. However, the company can improve its succession planning by following the ideas that are followed by the management in Australia.
Reference List:
Chep.com. 2016. CHEP – Pallets | Containers | Crates. [online] Available at: https://www.chep.com/ [Accessed 17 May 2016].
Khoja, F., Adams, J. and Kauffman, R.G., 2016. SUPPLY CHAIN SUSTAINABILITY DEVELOPMENT IN SMALL BUSINESS: MYTH OR REALITY. 2015-2016 OFFICERS President President-Elect Program Chair Program Chair-Elect, p.474.
Network, S. 2016. Reshaping profit – Sustainable Business Network. [online] Sustainable.org.nz. Available at: https://sustainable.org.nz/ [Accessed 17 May 2016].
Slawinski, N. and Bansal, P., 2015. Short on time: intertemporal tensions in business sustainability. Organization Science, 26(2), pp.531-549.
Solutions.chep.com. 2016. CHEP Supply Chain Solutions & Platforms | Pallet Rental & Pooling, Recycled Pallets. [online] Available at: https://solutions.chep.com [Accessed 17 May 2016].
Veleva, V., Todorova, S., Lowitt, P., Angus, N. and Neely, D., 2015. Understanding and addressing business needs and sustainability challenges: lessons from Devens eco-industrial park. Journal of Cleaner Production, 87, pp.375-384.
Witjes, S., Vermeulen, W.J. and Cramer, J.M., 2016. Exploring corporate sustainability integration into business activities. Experiences from 18 small and medium sized enterprises in the Netherlands. Journal of Cleaner Production.
Yellow.co.nz. 2016. Yellow pages® – NZ Local Business Directory – Yellow New Zealand. [online] Available at: https://yellow.co.nz [Accessed 17 May 2016].
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