vital role of personnel
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by John Darker, AMBIM THE recent RTITB seminar on "Managing during inflation" included a wide-ranging contribution by Mr Peter Walker, of the Board's management advisms, under the heading 'Inflation and personnel." The road haulage industry is often accused of being backward in its labour relations procedures and it was not altogether surprising, though disappointing, to hear Mr N.Valker confirm this.
"On the personnel side, our industry has a deplorable record. Very few companies take the trouble even to nominate a person to be responsible for this function and we are still suffering the consequences of this in many ways," he said.
I doubt if 50 per cent of arms have given out contracts of employment to workers; probably 30 per cent of firms would not know what a contract of employment means."
in an era of rapid Change employees can make or break any company. The personnel function is primarily concerned with the management of change, whether this involves new systems of staff motivation, more dynamic relationships with customers, or a more co-operative working spirit within the firm.
Mr Walker gave two instances from his experience reflecting faulty personnel relations. Warehousing, he said, was often an ill-defined subsidiary of the traffic department and it was not unusual for a traffic department to be dilatory should a customer contact the warehouse staff direct.
In the almost-new—for road haulage—function of marketing " how often do we come across a situation where the boss nurses a potential customer, perhaps for years, who eventually offers work, only to be turned down outright or priced out, by someone in the traffic department, who knew nothing of the boss's endeavours."
Share information
A clear definition of mana gerial and departmental functions and a readiness by all managers to share all their information encourages a team spirit. Road hauliers undertake much day to day work on the telephone but significant decisions affecting a number of people in the firm should be set down in writing, preferably, or at least communicated verbally.
Mr Walker drew attention to the age-old conflict between traffic and engineering departments. Friction, in his view, could be avoided by better communications "upwards, downwards and sideways." The aim was to create an outwardlooking management team motivated to seize every opportunity. " Isolationists " who could not or would not adjust had to be rooted out.
To define business objectives clearly in the present business climate is difficult, but well worth attempting. Mr Walker praised the concept of corporate planning, often based on a fiveyear time scale. Road hauliers, he urged, should ask themselves : What business am I now in? What business do I want to be in, five years hence?
Where is my market?
What customers am I serving? What is my greatest strength and am I using it well?
What is my greatest problem and how can I solve it?
Are my personnel policies acceptable to my employees?
How can I finance growth? How can I finance the cost of replacing my assets?
From the answers to these and similar questions a plan can be worked out and specific objectives defined.
Mr Walker thought overemphasis on the significance of profitability was wrong. He preferred a more systematic and comprehensive view of objectives in the spheres of profit ability, market standing, innovation, productiVity, resources, manpower development and social responsibility. (This wider view shows that large-scale business objectives are seeping down to smalland medium-sized companies, rightly in my view.) Illustrating his thesis, Mr Walker gave the following examples: 1. Profitability objectives: (a) by 1977 profits must be adequate to finance at least 80 per cent of company growth ; (b) by 1978 profits must be adequate to provide dividends to stockholders of not less than 121 per
c€112.t. Market standing objectIves: (a) by 1975 a market survey into distribution of electric lamps must have been carried out and a report submitted to the board of directors :
(b) by 1979 the company's share of the electric lamp distribution market must be not less than 25 per cont.
3. Innovation objectives: (a) to diversify into the carriage of bulk powder and liquids by 1978; (b) to have the company's accounts computerised by 1977.
4. Productivity objectives : (a) by the end of 1975, to increase fleet utilisation to not less than SO per cent ; (b) by the end of 1975 to increase fleet capacity utilisation to not less than 80 per cent.
5. Resources objectives: (a) by the end of 1975, to have drawn up a policy for fleet vehicle replacement ; (b) by the end of 1975, to have reviewed the company's orgoinisation structure, implementing any necessary changes during the first quarter of 1976.
6. Manpower development objectives : (a) to establish a formal programme for management development by 1976; (b) to introduce a regular safety training programme by 1976 for all drivers.
7. Social responsibility objectives: (a) to provide a noncontributory sick-pay scheme for all employees by 1977; (b) to provide a fund (not exceeding £1,000 in the first year) to support organised local functions and charities.
A clear statement of objectives provides clear goals for each manager to strive to achieve. Formal performance reviews enable success or failure to be identified. The particular " goals " in view can be improved. Where necessary, additional training must be provided for responsible managers and others concerned.
Job descriptions
To supplement a company's corporate plan management job descriptions need to be worked out. A manager could ask the boss—and an employee could ask the manager—such questions as : (a) Tell me what you expect of me.
(b) Give me an opportunity to carry it out.
(c) Let me know how I am getting on.
(d) Give me guidance when I need it.
(e) Pay and promote me according to my results.
How can these five requirements be met ?
(i) Some form of description of duties, targets, responsibil ities.
(ii) A statement of resources and authority in this description.
(iii) Appraise the results against this description.
(iv) Counsel after the appraisal.
(v) Award merit, based on appraisal.
Another speaker at the seminar, Mr H. Pregle, another of the RT1TB's advisers, was concerned to tell hauliers about the contribution marketing could make to current business difficulties. He quoted Professor Theodore Levitt, of Harvard Business School : "In selling, you try to get people to buy what you have; in marketing,