Internal Services Marketing

SWP 59/91 INTERNAL SERVICES trade PROFESSOR BRETT COLLINS School of counselling Deaking University Victoria 3217 Australia (Tel +6152 471277) and PROFESSOR ADRIAN PAYNE trade and Logistics Group Cranfield School of oversight Cranfield Institute of Technology Cranfield Bedford MK43 OAL UK (Tel 0234 751122) Submitted to European Management Journal Copyright Collins and Payne 1991 INTERNAL SERVICES MARKETING existence Over the past few historic period the term versed foodstuff place is change magnitudely being utilise to describe the application of merchandise intern on the wholey within the physical composition.T here(predicate) ar both dimensions pertinent to our discussion of indispensable trade. Firstly thither is the notion that e real segment and every psyche within an make-up is both a supplier and a node. The assist aspect relates to the presidential term go out and s enquires ensuring they nominate together in a manner sustentationing the come wi th schema and goals. This has been shell outd as being especi onlyy primal in service households where in that location is a close race among yieldion and consumption of the service. It is thus touch on with both quality parcel outment and customer service and involves orchestrated people and military op epochtion feeler strategies.Internal trade relates to all courses within the shaping, further at present it is vitally implicated with the forethought of gentle preferences. However the traditional personnel department, and the to a greater extent than(prenominal) advanced human resources department, micturate frequently been oriented towards control and administrative activities rather than the alignment of human resources towards achieving strategical physical compositional solves and goals. In this paper we search the selling of a particular internal service within the boldness the human resource scat.Our purpose is to illustrate how internal merchandise concepts and methods utilize by marketing directors nominate provide the priming coat of a forward-looking perspective on meeting the opportunities and challenges face by human resource film directors. A market-oriented human resource maker is more likely to reserve an rival on the successof a guild, by being more in force(p) in both demonstrating the relevance of . human resource vigilance (HRM) to all worry team members, and helping separate managers to subjoin their productivity. Our get is to graduation consider the nature of the challenges and opportunities confronting human resource (HR) managers.A sop up of what is seen to be a central task for the HR management professional is hence outlined. The congruence surrounded by marketing process activities and the HR management activities is thus describe. Finally, we consider how the HR manager merchantman utilise the philosophy, ideas, and pawns of the marketing die hard to make a more ro ugh-and-ready contri exclusivelyion toward the organisation objectives. s CHALLENGES FACING THE HR MANAGER The managers in a company who get it on with the people nationals be now recognised as having an progressively strategic theatrical role in the success of umteen craftes.Regardless(prenominal) of whether the expire these managers suffice is called personnel, human resources, industrial relations, or training and maturation, it collectively now represents a melody role similar in immenseness to the aras of finance, marketing and operations management. This trend has been driven by a more intensely agonistical moving in environment, ontogenyd use of engineering in some industries, and the lurch in incorporate philosophy from plus management to operations management. A centering on operations management has forced CEO to ensure the admit for s killed HR executives if they argon to successfully cope with change. An organisation able to adapt to change is gene rally put to be more able to sustain competitive improvement in an environment of increasing uncertainty. The constant stress of corporate take-overs, immature ventures, the restructuring of companies, rationalisation of existing operations, raw technology groundwork and lag lay-offs, promoter that the successof basic strategic decisions increasingly depends on matching skills with jobs, keeping appoint personnel after a merger, and solving the human troubles that arise from introducing new technology or ratiocination a externalizet. The dramatic turnaround of SAS by Jan Carlzon was driven by agent of people rather than with an expensive investing in equipment and assets. 2 Increasing caution is being focused on the area of outdoor(a) customer retention and the enormous likely for improved profitability. 3 blow over management should as salutary as seek to obtain improved organisational exercise through effective HRM strategies aimed at improving personnel rete ntion. The base-line benefits are price nest egg on . etraining in a rapid turnover job market and cutting down the equally expensive knowl limit drain. Companies able to manage this issue will reap the rewards which go with a team of committed, active voice exclusives at a time when under(a)-training is sapping productivity among competitors. Increased usage of technology in some industries has led to the assumption that the quality of people per wreakance will become a less important issue as technology becomes more pervasive. However the maintenance of reliable performance by fitting employees is becoming more pivotal.For physical exercise, we are now in an era where electronic banking means fewer opposite encounters between the bank and its customers. thus the importance of handling these interactions, and the comprise of not making the close to of opportunities are greater. In a relatively homogeneous industry often(prenominal) as banking, a underlying opportunity for banks to murder a competitive edge over competitors lies in the quality of its people. In an era of electronic gunstock transfer there is opportunity for a bank to position itself as bingle that has honourable people, not just good machines. Many of the come across challenges facing retail banking involve the employee the see to sell and cross-sell, unionisation, electronic banking, favourable action, service quality management and technology management. It has been argued that HR professionals look at failed in the past to reach their full potential within the corporate simulation because they devoted themselves to the creation of ever more sophisticated computer programs and forgot the whole purpose of the business. HR managers provoke had a role in organisations dealing with outdoor(a) pressures such as government, unions, and safety, but their active involvement and collaboration is excessively guideed with the production, marketing, and finance functions. Th ey take in been responsible for fending off interruptions, handling the describe emergencys of regulative bodies, and dealing with fond certificate of indebtedness issues, but frequently are not complicated in activities perceived by separate managers to be of importly important to the business.Managing a corporation is complex, and CEOs get hold it necessary to change their task by concentrating on what appear to be the most important strategic issues. Because of resource limitations, it is necessary to focus major(postnominal) management attention and s time on those aspects of the business work at with the lastest anticipate payoff. means that some areas with extremely noble potential impact, but a very low perceived probability of delivering pregnant results, must(prenominal) get less attention than unmatchable might really wish.Strategic HRM requires a signifi tidy sumt investment of organisational resources, which like a shot and immediately affects profi ts, and raft thus make it plain to managers under pressure for short-term results. Further, any real run acrossing of what competent HRM could tot up to the success of a business has only been popularised fairly recently. 6 For these reasons elderly management has often failed to grasp why HRM was relevant to business strategy, business performance, and the cost management function. Clearly the central task of HRM must be to gain the upport of senior management, secure the dedication of the CEO, and ensure HRM makes the most effective contribution possible to the organisation objectives. s This The HRM function in a company is never likely to be honourd unless it convinces management it can provide important payoffs, and is part of the rudimentary interactions between the organisation and environment. productivity. HRM will become established as an integral part of a business through helping other managers to increase their Managers do not require more sophisticated program mes.They require someone who understands their problems, can actively contribute to the more effective and streamlined management of human resources, and who has a good understanding of the business. We will now consider how the roles of marketing managers and HR managers are linked. THE MARKETING HRM ANALOGY The HRM function has tether distinct invitee groups, or markets, with which it must deal efficaciously employees within the organisation, other managers relate with the senior management tasks including the CEO, and external groups such as prospective employees, government, unions, and regulatory bodies.Consideration 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 bespeaked by good marketing managers. The use of marketing ideas does not need to be narrowly confined to products and markets. trade has been defined as a social process by which indivi duals and groups obtain what they need and want through creating and exchanging products and nurse with others , and implies dickens voluntary parties with unsatisfied ineluctably, an expectation of mutual benefit, a means of communication, and a medium to complete the exchange.People who buy goods and operate are involved in the same type of exchange process as people who seek employment that is satisfying, interesting, and more than a strong-lit work space. The relationship between buyer and seller 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 pose to earn profits. Clearly there are times when one company to an exchange has more than more bargaining power than the other party. The manager who seeks mutual benefit through works closely with the HRM department is involved in a similar exchange process to that which takes lace between consumers and companies everywhere. A source o f interdepartmental conflict can 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, while the Sales department are properly link up with maintaining a good relationship and undisrupted supply to the customer, the Accounts department is concern with administering credit rating control.Accounts may seek the withholding of supply, because credit guidelines scram 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 can become involved in interdepartmental conflict through a need to represent the interests of an employee against the needfully of other manager. Like marketing, HRM is a function where success requires close co-operation with other functions, but there can be significant potential for conflict.The coalitions of power and politics at the core of fundamental conflicts such as this can be used to maximize 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 profitable business units who have tangible curtilage of performance in their regular financial reports bottom line results. marketing performs a valuable role in that it creates utility, the capacity to satisfy ineluctably. 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 components n The HR manager requires a thorough intimacy of the needs, wants, and problems of the CEO, other managers an d employees. There are three customers for a training programme the portion (who is in addition 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 client needs and work backwards to developing products and services to satisfy them. n The second ingredient requires that the cost, design, implementation and follow up on HR projects should be cautiously planned so all features are unvarying 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.If 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 practise did not lead 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 audit guides strict action, while providing noticements intrinsic to supporting access to resources for projects. HR managers have sometimes been characterised by a lack of willingness to work with performance measures. grocerying powerfully depends on techniques developed in the behavioural sciences for quantification of the needs, wants, and perceptions of consumers. These tools can be promptly adapted to requirements of the HR manager. While measures employed by marketing managers are not always of high precision, they are essential to the embodimenting of believability through measurement, and performance against explicit goals. Management performance in functions other than marketing and HRM are generally more amenable to performance measurement.An HR manager with a market orientation would have good knowledge of the needs and wants of the clie nt groups served, and develop a co-ordinated approach to servicing those requirements un divers(prenominal)iated with organisation goals, and with the expectation of achieving organisational gain from any exchange process. In contrast, a product-oriented HR manager would place primary focus on the products or services the HRM department offers, and how these are provided. It is instructive to consider the differences between these two opposing views.Consider training programmes for example the difference between a product-oriented, and a marketoriented manager, is shown in strain 1. This example is stereotypical in that the simulation represents two extreme positions. No one person would be expected to exhibit all of the characteristics presented for a particularised orientation, but an HR practitioner would be expected to possessseveral if they were either market or product-oriented and the distinction between two very different management philosophies are illustrated.We hav e raise it a useful exercise, in workshops with senior managers, to discuss the role of opposed philosophies and how they affect achievement of a marketing orientation. This can be turn to in the context of both external customers10 and Although it has been trustworthy for many years that a market internal customers. orientation is essential to the success of a business, it has not been proved in all b igure I uninventive I)itfcrenccs Itetw hlarkrt-Oriented uncl I rotll,ct-Oriellletl IIH hlihnrgers with Itesl to Training Yrogrrmmes 4 lTITUDES Attitudes & PROCEDURESI ROI)IlCT ORIENTATION to cut costs and MARKET ORIENTATION Client needs determine training programmes. towards clients They should be glad we exist. Trying bring out better programmes. Department interests. steering Programme offering provides courses that fit our skills & Schedule programmes we know the clients need. Interest in innovation of costs scheduled for is on technology and cost cutting. focalization on i dentifying A slender objective. new opportunities. magnificence A act in the budget we cannot exceed. rcquircmcnts in mind. Number of programmes the year Role of marketing At ladderanceSet with Ihc dclivcry Set with client needs and costs in mind. query To determine client reaction if used at all. is good revision. To determine client needs and if they are being met. at programs foregather all available places repeating Select attendees according to their needs and aline this with other managers. Demonstrate clients. need satisfying benelits Promotion of programmes Advise managers when their staff is to attend the next course. of course to contingent state of affairss. Monopoly or regulated markets provide examples of nonmarket orientation.As the difference between a market orientation, and any one of many conflicting orientations possible, is accepted as the difference between smooth short-term success and stable long-term growth, it becomes of considerable importance to s enior managers to push a market orientation within their company. Similarly, the importance of HRM has bit by bit 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 cognise companies where superior HRM is believed to be a key factor in their success.We have seen the semblance 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 effectiveness of the function and the organisation. Both functions require committedness and support from the CEO to succeed, and performance measurement is seen to be an important tool for building credibilit y within the company.The 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 contribute toward the organisation objectives. s THE HRM-MARKETING FUNCTION A We are concerned here with internal marketing that form of marketing where both the customer and the supplier are inside the organisation.In 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 price of seeing 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 poser for HRM depend largely on the congruences we have demonstrated between essential activities of the two functions. In addition 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 excessively be applied to the benefit of HRM. The HRM function provides services or programmes to employees and management, which means it sells performances that directly influence business productivity.Internal marketing can help an HR manager to attract and hold the type of people a company wants, and get the better(p) of in-house customers, the HR function can upgrade the competency of a company to satisfy the needs and wants of its external customers. Marketing management is the process of increasing the effectiveness and/or efficiency by which marketing activities are performed. Effectiveness refers to the storey to which organisational objectives are attained, while efficiency is concerned with the expenditure of resources to accomplish these objectives.This difference is eloquently expressed 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 beat 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 to activities which include 8Understanding of the market and competitive environment. Definition of the firm burster. s Determination of the Target Market Segments to be emphasised. evolut ion coordinated Marketing admixture strategies to accomplish this Mission in the selected segments. Implement Marketing Mix strategies and Control marketing activity. 8 8 8 8 This well known model of marketing function activities, which involves the above steps, is used as a basis for a discussion on internal HRM marketing. Market and Competitive EnvironmentThe 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 abbreviation 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.For example, climate surveys concerning perceptions of remuneration package s, employment 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 appointed effect on morale that flows from taking 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 before undertaking data collection is to adopt a commitment to face the issues uncovered, no matter how unpalatable.It is an on-going process requiring that issues be resolved in order to maintain credibility of the HR department at all aims within the company. To raise the expectations of client groups without delivering can generate strongly proscribe effects. Finally, market research can also provide a basis for monitoring the impact of programmes on employees, and check whether HR programmes are achieving what they were conditioned to achieve. This market research process sometimes suffers from a condition referred to as the no-full-disclosure disease 14.It manifests itself through people within the management hierarchy who headache the things threatening them may become known to others, and then used to their person-to-person detriment. The extent of this problem depends on survey design and content. People interviewed tend to speak freely when given a chance to express their thoughts and opinions on HRM issues. However undertaking not to reveal the content of an interview under any circumstances, without prior approval from the person interviewed, is sometimes necessary in order to get at the real problems and issues.Whether use is made of questionnaires, private interviews, informal meetings of managers, or group discussions, market research provides a hap means of identifying client needs and wants. It also provides the means for tracking performance. Mission The second step involves the development of a mission for the HR department. The corporate mission debate for an organisation is too broad to be pregnant for a specific business function, and whence a mission statement should be specifically developed for the HRM function. It involves asking the questions what is our role within the organisation ? and what should our role be within the organisation? . Figure 2 provides an example of a HR mission statement based on one developed with a leading British service organisation. FiPure 2 compassionate election Mission Statement To develop and promote the highest quality human resource practices and initiatives in an ethical, cost effective and timely manner to support the modern 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 nDevelop an integrated human resource constitution and implement its consisten t use throughout the organisation Enhance managersefficient use human resources through the of provision of antiphonary and adaptable services Be the preferred source of core strategic HR services Provide high quality tailored HR consultancy Introduce methods to plan for the provision of required calibre and quantity of staff Ensure consistent line accountability throughout all areas within the organisation care the organisation in becoming more customer aware and responsive to changing needs Define and encourage implementation of an improved communications culture throughout the organisation Maintain an innovative and affordable visibility 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 services, programmes and projects should be put together. If possible these objectives should be operationalised stated 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 unconquerable 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.A function which provides a service, and deals predominantly in intangibles, requires tangible consequence of success in order to demonstrate competent performance, and help build credibility. Market Segmentation The third step is deciding which market groups should be emphasised. Market segmentation is a process by which we divide the total, miscellaneous 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 handle problems requiring customised solutions.Because of this, there is sometimes a need to balance the level of customisation required 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 Figure 3 can be accommodative for sorting problems into classes, each of which require different capabilities. At a high degree 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 undertaken by HR typically involve longterm benefits with short-term costs, and given limited resour ces, this has direct impact on the HR department effectiveness. Quadrant 1 in Figure 3 represents the situation 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 control flows l l development project control skills needed need monitoring skills 31 downcast 4i HIGH required C Degree of customisation review and discuss current management thinking and practice, is an example.The 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. For example, consider a betting agency involved in the conversion of operations from a manual to a computerised telephone betting system. There is a need to develop and implement a programme at low cost which will enable a smooth transition to the new system. collect 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.In quadrant 3 the degree of customisation required for a task is low for example where factory staff are being given first-aid training. The content of a first-aid training programme will be fairly standard across a lay out of industries. Such a programme is not central to achievement of organisation objectives, and represents a situation where service spoken communication can readily be obtained from outside the organisation. Once the training programme was in place knowing who had attended the course, and monitoring 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.Consider a retail tyre organisation which needs to train shop floor staff in the interrogatory 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 ductile 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 focusing efforts in those quadrants involving problems of high import ance to the organisation, but not involving significant short-term investment.This type of problem area, identify because the issues involved are considered central to the achievement of business objectives, will often be more able to attract support and adequate funding. operative in areas requiring a high level of customisation, which are also critical to business success, is the challenge facing HR. This is the direction in which HR requirements have moved due 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 segmentation of management clients, recognises the need to accommodate individual differences.This is the basis for concepts such as negotiable remuneration packages, employment contracts, supple working hours, and job sharing. The techniques used for consumer segmentation by marketers can be applied dire ctly here. It provides opportunity for companies to lessen the influence of unions by placing greater emphasis on direct employee communication, in addition to, or quite of, industrial relations conducted in the traditional representative way15. 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 motley 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 serv ices) and communications are peculiarly 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 resolution of a complex long-standing problem by the HR function are very similar.Figure 5 illustrates this, and is based on Desatnick16 who argues that 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. Thus the HR manager must get the maximum impact from each situation through careful Figure 4 The Four Elements of the Marketing Mix ELEMENTS OF THE MARKETING MIX FOR A COMPANY 1. resultS OR SERVICES 1. PRODUCTS (SERVICES, COURSES, ETC) 2. THE stance AND DELIVERY MEANS OF SERVICES AND COURSES 3. COMMUNICATIONS WITH CLIENT GROUPS (PRIMAR ILY done tidings AND DOCUMENTATION) 4. TRANSFER PRICING AND EXPENSE ALLOCATION 2. PLACE (DISTRIBUTION) 3.PROMOTION (MAINLY THROUGH ADVERTISING AND PERSONAL SELLING) 4. PRICING FIGURE 5 COMPARING PRODUCT DEVELOPMENT COMPLEX HR ISSUE TO RESOLVING A Introducing the new produa (a 1 to 3 year cycle) DETER&MINE PRODUCT regard FOR cutting I Resolving a complex HR issue (a 1 to 3 year cycle) DETERMINE NEED FOR NEW cypher, political platform 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? Will it be profitable? Is it compauble existing produas? 1TEST MARKET THE PRODUCT What impact will it have on operauorr Who will manage and use the project How does it iit with current proJects/ priorities? get hold of A PILOT PROJECT 1 Do internal cl ients find it useiui? Will they supponfpay To what exrenr Who mll oppose IL? Why? fEysNCE TO OTHER 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 property iommuxlLcarea? ASSESS OUTCO,ME IN chuck out Which 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 dissausiacuons Doa project add to HR crcntbtlitv s Who wlii travel whom do wnat. sn ere. to when Have system we an eifecttve audit/evalUallOn Will the Issue really be resolved? management of those elements he can control.Developing 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 maximum impact. H Communication. Communication represents promotional activity in the form of advertising, indirect publicity, and face-to-face selling which is employed by marketers to influence potential, or existing customers to cause in desired ways, such as to undertake the trial leveraging 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 directed.The use of publicity through internal publications and other documentation can be used to provide feedback to employees on current issues, as well as enhance and reinforce 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 famous Avis Rent-a-Car slogan suggesting that Avis employees Try harder was as effective for their employees as it was for the public image of Avis. This type of corporate advertisement in the first place seeks to influence the perceptions of external publics, but management tends to forget these reasons are also critically viewed by employees at all levels within the organisation.A 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 objectives of the organisation. Simpler, less challenging projects can also produce significant impact for the HR function. . ad homin em interaction with other functional 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.The implementation and control processes represent the last-place step which involves the measuring of effectiveness and efficiency, taking corrective action, and iteration through the marketing planning processes. The well established marketing planning achiever in business requires the literature provides a framework to follow in undertaking this task. CONCLUSIONS The 1980s 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 patently involve a retitling of the old personnel department with no wri t large 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 perceiveesall 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 shut away 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 facsimile at board 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 normally 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 .The shift in organisational philosophy from asset management to operations management, the introduction of new technologies to some industries, and the increased strategic importance of managing people resources effectively and efficiently, has meant the role performed by HR managers demands a much higher level of competence and professional skills. Mark eting 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.Their 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 top management that HRM is strategically relevant to business success. Adopting a market orientation 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, pi ece Resource Managers Aren corporate Nobodies t Anymore, 2 celestial latitude 1985, p 58. 2. 3. 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