HR practices at DB Schenker
Discuss About The Employee Engagement Effective Performance.
DB Schenker is one of the major providers of multimodal and Road transportation all over the world. In the year 1872, Gottfried Schenker started his business with a single truck. Now with more than 140 years of offering logistics solutions, this company leads in providing trustworthy transportation services. Since its establishment, the organization has experienced significant growth in logistics industry (DB Schenker, 2018). The major reason behind its growth and success is the use of effective human resource management practices and strategies. In order to manage its staff, DB Schenker has implemented effective HR practices which led them towards employee management and satisfaction. In turn, it helps the organization to attain its predetermined goals and increase the overall performance of organization. There is a strong link between HR practices, employee performance and organizational performance (Bratton and Gold, 2017). The HR practices of DB Schenker Logistics Company and performance of employees and organization are linked with each other.
To manage and retain its human resources, DB Schenker is using different HR practices like employee engagement, work–life balance and employee feedback system and performance management. Employee engagement is one of the major HR practice which the enable the DB’s team to improve the performance of employees and company. Under this, the company considers its employees as their greatest asset. That’s why it involves them in its decision making process. It believes that engaged team is the significant factor for enticing and retaining the best talent in intense competitive environment (Forslund, 2012). In order to engage its human resources, it has taken many initiatives like best benefits to employees, competitive salaries, paid leave policies, health care offerings etc. These initiatives assist the organization to make the employees engaged in their jobs and responsibilities. With the engagement and trust, human resources are more likely to drive better level of productivity and success to business.
Moreover, DB Schenker is providing work-life balance arrangements to its employees that force to work harder towards organizational objectives. The vacation and leave policies of this company demonstrate its belief in work-life balance. It helps the employees to maintain their personal relationships and health and it also enhances the work performance of the employees (Isaacs, 2016). It reflects from the performance and development of company in global logistics industry. Along with the above HR practices, DB Schenker has adopted performance management and employee feedback system. With the annual performance review, this organization provides a frequent feedback to its employees. This feedback will provide them with the information and they will always know about what their objectives are and how they are enhancing in their role. In order to give feedback to the staff, the top management of DB Schenker asks its middle level managers to sit with the employees once a quarter to discuss about their performance (DB Schenker, 2018). It not only enables the managers to become connected to the employees, but it also makes the employees feel engaged in their tasks and responsibilities. Ultimately, it has a significant and positive impact on the performance of organization. It indicates that there is a strong connection between HR practices, employee performance and DB Schenker’s performance.
Benefits of employee engagement
Performance targets are the desired level of performance the company wants to see, as measured by indicators which show the growth and success at attaining its outcome. At DB Schenker, there are inventory levels, gross profit, cost of goods sold, stock losses/damages, total logistics costs, perfect order, percentage of order accuracy etc. The company is aimed to attain its performance targets by adopting effective HR practices (DB Schenker, 2018). There are various barriers which are faced by DB Schenker to approach its performance targets like:
Employee change resistance is the biggest barrier to attain the performance target of a company. Resistance is very normal reaction from the employees towards change in the processes, system and activities of company. At DB Schenker, it is the biggest barrier which can resist the company to attain set and perform targets. When company implements changes in its supply chain and logistics operations, the employees start to oppose the change and work with lower morale. In turn, it affects the company’s overall performance and its targets (Shaukat, Ashraf and Ghafoor, 2015).
At DB Schenker, poor leadership is another barrier that can have adverse impact on company’s performance targets. The company has poor culture and leadership styles which demoralizes the employees from their jobs that can influence offering the logistics services to their clients. Top management is not able to understand what exactly they are doing. It can stop the firm to achieve its objectives.
In the logistics industry, there is an increase in the competition as new players are emerging with advanced technologies and techniques. There is change from the cross border operations to local services of internet (Sikora and Ferris, 2014). Considering the prices of competing brands, DB Schenker is lowering its prices that can affect company’s performance target like sales, gross profits etc.
In the logistics business of DB Schenker, cultural diversity is one of the major barriers that can stop the company to reach its performance objectives and targets. The workforce at DB is very diverse so it is very difficult to manage the cultural diversity in the workplace. Additionally, this company is offering its logistics services across the international borders so its client is also diverse. The people are not able to communicate with them properly that can affect the company’s target (Banks, 2015).
In order to overcome the above barriers, DB Schenker can adopt some effective strategies. To overcome the barrier of change resistance, the organization can involve the employees in the making decisions regarding changes in systems and processes. It needs to engage the employees who are opposing the change in organization. Additionally, to overcome the issue of cultural diversity, the company can conduct training and development program so that they can be aware about the language and culture of different backgrounds (Mone and London, 2018). The leaders can adopt more effective leadership and management styles so they can manage the workforce of DB Schenker. These strategies will help the organization to overcome the above mentioned barriers which have adverse impact on performance targets and objectives of DB Schenker.
Barriers to achieving performance targets
For effective management of human resources and attainment of company’s objectives, DB Schenker Organization has implemented some major HR and performance management practices.
(Source: By Author)
These practices are discussed below:
DB Schenker believes that a motivated and engaged employee is the one who demonstrates willingness and commitment to assist beyond their normal work that leads them to effective and better business performance. Considering this fact, the company uses this HR practice by involving the employees in decision making process of the company. When it implements any change management program in practice, it takes the opinion and ideas of employees. This assists the organization to avoid the situation of change resistance. Additionally, it motivates them by providing both monetary and non-monetary benefits (DB Schenker, 2018).
Work-life balance is a term that is used to define the balance which an employee needs between time assigned for work and other aspects of personal life. It is the most effective HR practice that forces the employees to work with DB Schenker Company for a longer time. In order to retain employees, this company is focusing on balancing the employees’ workplace and personal life. For this, DB Schenker is committed to providing the best benefits to the employees like optimal health care offerings, vacations, paid leaves and care services (Deery and Jago, 2015).
Performance appraisal is the best way to motivate the employees towards their roles and responsibilities in the organization (Bailey, et al, 2018). With an annual performance appraisal program, this company provides frequent feedback on the quarter basis. In this, managers talk with the employees and give feedback on their performance. It can have positive impact on the employees’ performance that in turn improves the organization’s performance.
In addition to above HR practices, corporate volunteering is a unique practice that DB Schenker uses to facilitate its human resources and their performance. The company is totally convinced that social responsibility is a major factor for the long term growth and success of its business. Therefore, it is focused on investing in the employees and offers them opportunities to learn, grow and have a positive effective through corporate volunteering. It encourages its employees to communicate with the local communities and assist them (DB Schenker, 2018).
The above HR and performance management practices assist DB Schenker to manage its staff and improve their skills and performance for the benefits of company.
However, DB Shenkar has adopted effective practices and strategies, but still there is a scope of improvement. The organization needs to focus on its HR leadership strategies so that they can develop their operations effectively. At DB Schenker, it is very important to develop the responsiveness and flexibility in its operations so that they can meet the needs of clients efficiently. It should increase the usage of staff and other resources. The company should provide training and development sessions for the employees. It will enable them to work according to the employee laws and standards applied in logistics industry. There should be continuous training and development program for the employees (Gerrish, 2016). In this way, DB Schenker can enhance its overall performance in competitive logistics industry.
Strategies to overcome barriers
Human Resource Development (HRD) plays an important role in overall growth of organization. The role of HRD keeps changing on the basis of changing patterns of company’s processes to handle and manage the workforce. Different practices and strategies keep coming towards HRD for managing the employees who have different exposures, different styles, changing background and determined approach for company’s productivity. HRD has a significant role at DB Schenker in terms of training and development. This company believes that by hiring, selecting and training the right candidates for right jobs, the HRD of DB Schenker is able to enhance their performance as per the requirements of their jobs (Kolachi and Akan, 2014). Therefore, the role of DB’s HRD becomes more critical in terms of training and development of employees and in searching the ways in which it can sharpen their skills and knowledge.
At DB Schenker, HRD is the framework that has an obvious vision about the skills and abilities of the people who are working in the interest of organization. It contributes in taking the long term and broad view about how the practices and policies can assist the attaining of its strategies and goals. It works with the objective to enhance the abilities and skills of employees and align them with the company’s goals. The management of company states that human resource is a key source of competitive advantage at DB Schenker so it is very important to conduct continuous training and development program for them (Saks, 2015). The HRD strategy of DB Schenker comprises striving for perfection and excellence. It is not possible without continuous development of the capabilities of employees. Considering this, DB Schenker provides its people with both different internal and external training courses. Specifically, it offers two periodical training programs i.e. School of Young Leaders and School of Leaders (DB Schenker, 2013). Both of these courses are proposed to enhance the qualifications of employees. They associate the training and development sessions with the project execution and significant cooperation with the senior managers and supervisors.
Apart from above training course, HRD provides different opportunities to DB Shcenker’s employees in order to gain new skills and experiences through:
- Involvement in project groups
- Internship in other teams
- Managerial coaching and mentoring
- Participation in employee volunteering
- Different certification courses
- Partaking in conferences
- Financial assistance for higher education
- Training for learning about foreign language and culture
- Involvement in EFQM group
- Study about lean culture
(Source: DB Schenker, 2013)
At DB Schenker Logistics, HRD work as a team and think that a major part of enhancing competencies and skills make learning from other employees (DB Schenker, 2013). It can be stated that feedback from superiors and colleagues is the most precious source of knowledge and it is the foundation for both personal and professional development of employees. In this way, HRD at DB Schenker is making a significant contribution to the training and development of employees of the company. It enables the organization to get a valuable outcome from the employees’ performance that in turn enhances the overall performance and position of organization in competitive logistics industry.
References
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., (2018) Strategic human resource management. Oxford University Press.
Banks, J.A. (2015) Cultural diversity and education. UK: Routledge.
Bratton, J. and Gold, J., (2017) Human resource management” href=”https://#”>Human resource management: theory and practice. UK: Palgrave.
DB Schenker. (2013) Training and Development, Available from https://2013.dbschenker-csr.pl/en/social-report-areas/employees/training-and-development [Accessed on 21 July 21, 2018].
DB Schenker. (2018) Career, Available from https://www.dbschenker.com/usa/careers [Accessed on 21 July 21, 2018].
DB Schenker. (2018) Corporate Volunteering, Available from https://www.dbschenker.com/usa/about-us/corporate-volunteering [Accessed on 21 July 21, 2018].
DB Schenker. (2018) DB Schenker | Global Logistics Solutions & Supply Chain Management, Available from https://www.dbschenker.com/global [Accessed on 21 July 21, 2018].
Deery, M. and Jago, L., (2015) Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-472.
Forslund, H. (2012) Performance management in supply chains: logistics service providers’ perspective”, International Journal of Physical Distribution & Logistics Management, 42 (3), 296-311.
Gerrish, E., (2016) The impact of performance management on performance in public organizations: A meta?analysis. Public Administration Review, 76(1), pp.48-66.
Isaacs, D. (2016) Work?life balance. Journal of paediatrics and child health, 52(1), pp.5-6.
Kolachi, N. and Akan, O. (2014) HRD Role in Organizational Development (A Case of Corporate Thinking at ETISALAT, UAE), International Business Research, 7 (9), 160-167.
Mone, E.M. and London, M., (2018) Employee engagement through effective performance management: A practical guide for managers. UK: Routledge.
Saks, H., (2015) Managing Performance Through Training & Development, Canada:Nelson Education.
Shaukat, H. Ashraf, N. and Ghafoor, S. (2015) Impact of Human Resource Management Practices on Employees Performance, Middle-East Journal of Scientific Research 23 (2): 329-338.
Sikora, D.M. and Ferris, G.R., (2014) Strategic human resource practice implementation: The critical role of line management. Human Resource Management Review, 24(3), pp.271-281.
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