The multinational companies are characterized by having the best practices in their processes due to implementation the operational excellence aligned with corporate strategy, creating high standards as corporate philosophy and generating new processes every day in order to increase their productivity. But those processes would have not been created if they had not had the best people into organization. This is the case of Smurfit Kappa, multinational company, manufacturer of paper boxes from Ireland and Netherlands.
ItÂ´s very important to understand and to get know how this company has their processes about human resources currently, therefore we chosen Smurfit Kappa, located in Colombia because we have enough information to carry out the research and could make benchmarking of the best processes that we have been able to see.
In addition, Smurfit Kappa has been leader in pakaging in whole the world. The success in this company has been the work of the people. Getting the right human resource for them is a task that gives it the importance it deserves. Nonetheless, they perform enough tasks to maintain them for many years as a result, the turnover rate of staff is very low. For them, the capital human is very important because they contribute the development and growth.
That is why the process of recruiting and selecting personnel, design processes with the objective to achieve high performance and affective commitment from the new employees and in addition, working very hard in organizational culture is important for any company that is looking growth in any sector of economy.
This project will focus on these process of this company in order to develop the research and benchmarking of the best processes.
Recruitment is the process of attracting people who might make an organizational contribution to fill a particular role or job. (Bach 2009)
It is clear that this type of company has got the specialized human resource for doing this kind of tasks important for any organization. It has a huge department with a person to charged in every plant in order to guarantee the implementation of the corporate guidelines and procedures.
As a first step it is very important for them having procedures, instructions and standard formats in order to guarantee that all processes are always running in the right way and the same way in any process that you want to do.
So Smurfit Kappa has a corporate procedure called “Human Resource Procedure” which indicates the methodology that is followed in the Bogotá Corrugated Plant for the selection, contracting, induction, training, qualification, evaluation and improvement of the human group of the plant to guarantee its suitability and capacity for the development of its work taking into account some aspects such as:
- Safety and Philosophy “ZERO ACCIDENTS”.
- Productivity in the different jobs.
- Environmental management (zero dumping) in each of the plant processes.
- Occupational health and medicine (annual occupational health program) to measure, control and improve workers’ health.
- Motivation and teamwork.
- Participation through the Participation Plan.
- Training and training to improve the performance of each of its workers.
And the second step, in order to recruit any candidate, the company have to generate the needs, in others words , the vacancy must be generated or the company must create a new job..
Once the company has got the needs, the person in charge has to make a requestment to look for the candidate to human resources department.
The paths to find the candidate for any job are interesting. We can see clearly that they try to select suitable staff having into account experience into organization, good results and fulfillment of requirements.
Smurfit Kappa has established the following instructions for getting the candidate:
- Looking for the candidate into the organization in order to be promoted by merits.
- if it is not possible to find the candidate with the previous point, looking for the candidate in Universities, Institutes or Entities that Smurfit has agreements.
- The Universities,, Institutes or Entities are well recognized in the country for academic performance.
- if it is not possible to find the candidate with the previous point, looking for the candidate on the database of Smurfit KappaÂ´s website.
- These CVs (Curriculum Vitae) are analyzed by the Chief Director.
The candidate must meet requirements about competence, skills, etc, for the job having into account the profile designed for the charge required.
The candidate pre selected must be interviewed by the Chief Director, Manager and Comptroller of the Plant in the case of Administrative área.
In the operation area, there are machines which are being operated by operators with high experience and skills.
They are classified hierarchical level as following:
Table 1. Operators – Hierarchical level in a machine.
For the Assistant 3 case, he does not need to high knowledge in the operation or specific skills because the activities are generals, so Smurfit Kappa has established in order to get candidate for this case:
- It is possible to find recommended people by operators or administrative personnel.
- if it is not possible to find the candidate with the previous point, looking for the candidate in Institutes or Entities that Smurfit has agreements.
For the cases of Operator 1, Assistant 1 and 2, whose category is superior to Assistant 3 has established:
- A circular is published into organization, by means of which, the personnel with an indefinite term contract are invited to register in superintendency to apply to the theoretical – practical examination.
- Assessments that scored at least 60% on both exams are scored and are set out in document F32-01 “Exam Qualification Register” and the results are announced in a circular and the worker who is awarded the vacancy is informed
For the selection process, Smurfit Kappa has a document which indicates the instructions in order to recruit new staff. The name of this document is “News from staff”. In this document has to register the person selected.
In this process the boss in charge of the department which needs of personal has to fill on the format called “F31-01 News from Staff” and send it to department.
For the recruitment of staff, Smurfit Kappa has a document that indicates the instructions in order to recruit new staff, “I31-02 Recruitment of Staff”. There specifies the activities that are carried out to ensure compliance with the laws and labor and social security decrees in force for any person who is to be linked to the company.
Any new person who has been linked participates in an induction process according to document I31-04 “Induction of Personnel”, which aims to give the person linked a general knowledge of the company and facilitate its adaptation to the position for which was selected. The person must go to every area into organization getting know them.
Through this general induction the person is:
- Motivated to work productively
- Is programmed for his specific training in the position to be filled.
The immediate head and / or member of the management committee (general manager, plant superintendent, sales manager and / or comptroller) chooses or preselects all or some of the general topics appearing in the format F31-04-EB “Register Induction of personnel “, on which the induction must be made for the person who is joining the position. Staff Training.
Once the required workforce is in place, human resource managers seek to ensure that the people are well motivated and committed to maximize their performance in their different roles. (Torrington et al. 2008)
It is the case that the approaches of Smurfit Kappa in order to achieve high performance from the new employees are:
Firstly, the new employee must receive the general induction that includes going to all areas of the company and knows his processes so that he knows that any decision that the person can take, they could affect others.
- This process is very important because the company gives to the new employee the importance that they deserve. This could have the following impact:
- Generate a challenge for the employee to develop their work better way.
- It could generate challenges for the employee since they would know the people who carry out the processes, the employees could be devised that one of them could play.
- Could generate that the employee makes feel comfortable.
The constant monitoring of the boss direct to the employee in the time that the employee is learning how they could do their job and implement news ideas. But this monitoring is not under pressure but an accompaniment to the tasks that it may be executing in order to minimize the errors that may have and improve its performance.
The philosophy in Smurfit Kappa is that the employees are able to carry out projects into the organization. The managers always said, “dare, is the only way we can know if it was the right way”. This step is very imporntant because the employe makes feel comfortable and confident.
Work in gruop is one of the philosophies into Smurfit Kappa which has generated a great impact in the sucessful that has today. In colombian culture is stronger. This synergy has results surprisely. Employees share learning with each other and use a job as a basis for applying and creating knowledge (Kumpikaite 2008).
Organizations need to respond to a rapidly changing global environment. Continued success is, thus, dependen ton attracting and retaining high-quiality individuals. (Bach 2009)
Also, it is important, reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their vale to the organization. it deals with the design, implementation and maintenance of reward processes and practices that are geared to the improvement of organizational, team and individual performance. (Armstrong et al. 2007)
Smurfit Kappa has implemented many factors in order to generate affective commitment from the new employees in order to retaining them:
There is many ways to make recognition by Smurfit Kappa:
- In Meetings : Managers shows the best projects in front the most important people of the company. Sometimes, the employees can expose their project in front of this people.
- Recognition Monetary : Any improvement proposal can be registered in a program called “Participation plan” in which the boss rates these proposals it having into account some variables ( one of the most important variables is that the improvement proposal must have been implemented and had generated any impact in the process). At the end of the year, the company give they this recognition monetary due to the effort and participation in the program continuosly improvement.
The filosophy into Smurfit Kappa is you can grow there. For example, there are cases about some student that they did their internship, today they are managers in some plant of the world, because Smurfit Kappa has many factories in the world. The possibility of growth is high.
Smurfit Kappa is making a positive contribution towards the economic and social development of the communities where they have the possibility of operating. (Smurfit Kappa 2017a). This approach in Colombia is taking a lot of strength in which there are many workers and people who want to do it or is in the same line of their values.
Smurfit Kappa has high salaries compared to the current labor market in Colombia, which makes it attractive for people to want to go to work or stay in it.
It is clear that Smurfit Kappa works in several elements in order to Create an acceptable organizational culture, from inculcating the mission of the company to creating the identity of the company by means of the use of a uniform where the workers feel comfortable with it. That is why we must talk about some relevant issues about elements of Culture:
- Entrepreneurship: we cherish entrepreneurial spirit and a decentralised management style with staff functions challenging and supporting the operations, with speed, innovation and contrarian thinking. (Smurfit Kappa 2017b)
- People: our goal is to recruit, develop, motivate, keep safe and retain our employees. (Smurfit Kappa 2017b)
- Environment: our objective is to protect the environment and progressively improve our performance on emissions to air, and discharges to water and soil. (Smurfit Kappa 2017b)
- Customers: we see ourselves as a service business with packaging products. (Smurfit Kappa 2017b)
- Shareholder returns: we aim to give the best shareholder returns relative to our peer group. (Smurfit Kappa 2017b)
- Meet stakeholder commitments: we are determined to meet our commitments and will put in place the necessary resources to support their achievement. (Smurfit Kappa 2017b)
Smurfit Kappa Works very hard with objective to generate identity among your employees so they designed and implemented this kind of uniform:
Picture 1: Uniform – Smurfit Kappa Colombia. (Smurfit Kappa 2012)
The employees are identified with the mission of the company which is the following: “Smurfit Kappa strives to be a customer-oriented, market-led company where the satisfaction of customers, the personal development of employees and respect for local communities and the environment are seen as being inseparable from the aim of creating value for the shareholders.” (Smurfit Kappa 2017c)
Smurfit must be prepared for the continuous changes that can occur, as the world is continuously changing and can generate significant impacts on the organization.
On the other hand, it is amazing the model that has to maintain the staff, the rotation is too low, the incentives are quite large that make the average age in the company is greater. But nowadays, the young work force, which are currently entering, are people who in their lives have goals such as knowing the world, traveling, studying among others, that Smurfit must create a strategy to be able to maintain this staff since the Indicator has been affected by particular range of age that has entered the company.
- Armstrong, M., Murlis, H. & Group, H., 2007. Reward Management: A Handbook of Remuneration Strategy and Practice, Kogan Page Publishers.
- Bach, S., 2009. Managing Human Resources: Personnel Management in Transition, John Wiley & Sons.
- Kumpikaite, V., 2008. Human resource development in learning organization. Journal of Business Economics and Management, 9(1), pp.25-31.
- Smurfit Kappa, 2017a. Smurfit Kappa Website. Smurfit Kappa – People And Communities. Available at: http://www.smurfitkappa.com/vHome/com/AboutUs.
- Smurfit Kappa, 2017b. Smurfit Kappa Website. Smurfit Kappa – Values. Available at: http://www.smurfitkappa.com/vHome/com/AboutUs/VissionMissionAndValues.
- Smurfit Kappa, 2017c. Smurfit Kappa Website. Smurfit Kappa – Mision. Available at: http://www.smurfitkappa.com/vHome/com/AboutUs/VissionMissionAndValues.
- Smurfit Kappa, 2012. Smurfit Kappa Website – Sustainable_Development_Report_2012.
- Sustainable_Development_Report_2012. Available at: http://resources.smurfitkappa.com/Resources/Documents/Smurfit%20Kappa_Sustainable_Development_Report_2012.pdf.
- Torrington, D., Hall, L. & Taylor, S., 2008. Human Resource Management, Pearson Education.
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