Institute of Business Management

MBA (Executive)

Assignment 3 KRAFT FOODS

Name: Subject: Reg. No.: Instructor: Date of Submission:

Asad Ali Khan Human Resource Management 2009-3-43-9664 Prof. Mr. Shah Saad Husain 5th November, 2011

Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

Q.1 Select an organization and determine its future business strategy and plan. Then suggest a corresponding workforce plan?

Kraft's Strategic Planning in lieu with its Business Planning Process:

The business planning process adopted by KRAFT is actually a hybrid of two planning approaches. Similar to strategic planning, business planning in Kraft included identifying the organization's vision of the future and its core businesses. This required management to think strategically about the fundamental activities which define the organization's reason for existence. The business planning elements provided details on what the management would do over the next three years, focusing on the strategies and operational activities it would implement to achieve its vision. The business plans also included measures of progress towards the goals, and identified the resources allocated in pursuit of the desired future.

Why Did the KRAFT Foods Turn to Strategic Planning?

To move away from crisis driven decision making by establishing direction in key policy or functional areas To provide a basis for aligning resources in a rational manner to address the critical issues facing now and in the future; To make responsive to the needs by placing greater emphasis on benefits and results rather than just service efforts and workload; To bring focused issues for review and debate; To provide a context to link the budget process and other processes with priority issues, and to improve accountability for the use of resources; To establish a means of co-ordinating the policy concerns with implementation efforts and to build interagency and partnerships With these targets in mind, the management at Kraft had to identify core objectives for such long term planning in order to make sure that the planning process is in accordance with its business planning processes. The Leadership team clearly identified the following objectives to be strictly adhered to when strategic planning process was initiated.

Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

Goals, Objectives & Performance Measures as elements of Strategic Planning at Kraft

Where are we now? Kraft uses SPENT analysis to i.e. Socio Demographic, political, Economic, Natural Environment, Technological methods at a Macroeconomic level. Customer Analysis Quality Assessment and benchmarks

What do we want to be?

Mission & Principles

Mission Statement "Anywhere, anytime, everyday. No matter what the occasion, we take food to heart. Our higher purpose, make today delicious, is about much more than the products we make. It defines us, unites us, and inspires us to make a delicious difference in our company, in our communities, and in our world. "Helping People around the world Eat and Live Better"

Vision

Internal / E
Monitoring & Tracking
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Goals and Objectives

How do we measure progress?

Performance Measures

Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

To emphasize strategic thinking and acting, not the production of a planning document. To focuses on the future. To prepare Kraft envision a desirable and attainable future. To take a proactive approach to management i.e. more than simply anticipating changes and reacting to them. The management at Kraft saw it deemed pertinent to manage to strategically seek to interact with and shape their environment so that they can successfully attain their goals and realize their vision. To be action-oriented and focused on achieving results. To draws attention and resources to the most critical issues facing Kraft rather than trying to address all issues at once. Places greater emphasis on the formation, maintenance and alignment of broad-based coalitions of individuals and Kraft to work towards common goals.

Steps of Strategic Planning followed at Kraft:

1. Planning to Plan: a. Kraft's readiness, in terms of staff and financial resources, culture and commitment b. Purpose of and need for the effort 2. Gaining and Sustaining Commitment: a. Identifying and involving key stakeholders and employees in the planning process. b. Surveys, media announcements, descriptive brochures and meetings at the launching of the strategic planning process c. Continually and visibly demonstrate the commitment of the organization and key players to the process 3. Analyzing Customer and Stakeholder Needs and Desires: a. Kraft believes that customer and stakeholder input is particularly important in defining the organization's vision, mission values and also can help identify gaps between expectations and current performance. 4. Analysis of Organizational Strengths, Weaknesses, Opportunities and Threats 5. Setting a Strategic Direction.
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Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

Workforce Planning at Kraft:

At Kraft the management ensures that, "The right people with the right skills are in the right place at the right time." This covers a methodical process that provides managers at Kraft with a framework for making human resource decisions based on the organizations mission, strategic plan, budgetary resources, and a set of desired workforce competencies. Planning for human resource needs is one of the greatest challenges facing managers and leaders. In order to meet this challenge, a uniform process that provides a disciplined approach for matching human resources with the anticipated needs of Kraft's operational requirements is essential. By workforce planning the HR dept. at Kraft is able to maintain quality performance that will contribute to the achievement of organization's objectives by providing a basis for justifying budget allocation and workload staffing levels. As Kraft develops strategies to support the achievement of both long-term and annual performance goals in the strategic plans, workforce planning is included as a key management activity. It is also directly linked to broad-based management strategies that encompass several processes.

It is a dynamic process that facilitates planning at Kraft for different scenarios. Kraft mainly chooses to conduct workforce planning in an office versus a functional area or a division versus the entire organization. Similarly, the management at Kraft thinks it is critical to conduct workforce planning during times of budget reduction as well as budget increases. Staff reductions and increases without any planning in conjunction with the organizations mission will only lead to the inability to fulfill staffing goals.

DRIVERS FOR WORKFORCE PLANNING AT KRAFT:

Over the last several years, Kraft has increased its focus on workforce planning across the organization, as evidenced by adoption of new planning processes and tools, revised policies, and greater participation in decision-making by employees and management representatives.
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Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

The main drivers behind this increased focus include the following:

Major Mergers has defined major new missions for Kraft and marked the beginning of a multimillion dollars worth of development. As a result, the management recognized the need to assess and manage risks associated with workforce transitions, particularly in light of the lead time required to shape workforce composition in the organization.

Ongoing volatility in funding and budgeting in the wake of various macroeconomic factors continue to alter workforce requirements. I

Implementation of full cost management that is based on measures of workforce utilization required Kraft to match its workforce to requirements because programs, rather than a separate fund source, pay for service labour.

Wide emphasis on a. Improving efficiency and effectiveness,

b. Controlling growth of the workforce, and c.

Measuring operational effectiveness in all areas, including workforce (e.g., Kraft 's CEO's Management Agenda),

General concern about aging of the workforce commands that Kraft addresses its risk of losing large numbers of proven talent due to retirement eligibility.

Geographic distribution and decentralization of existing workforce planning activities within the organization.

Institute of Business Management Human Resource Management

Kraft Foods Assignment 3

Kraft is currently engaged in a multiyear effort to strengthen its workforce planning in response to these drivers. Kraft began by establishing an Organization-specific definition and key principles of workforce planning, and from these elements developed a framework to direct the range of workforce planning activities.

Critique to the above Workforce Planning:

Kraft has no doubt addressed most of the basic workforce planning tools and strategies that are in consortium with most of its business planning model and overall long term strategy of the organization, however, the budget allocations and constraints regarding the workforce planning was missing in this. Not much importance is being given to the available and projected resources and whether or not if there is any planning process in place to evaluate and consider the budget constraints that might come into play once the requirements of the workforce exceed the present net funds and resources.

References:

1. http://manonamission.blogspot.com/2005/07/kraft-foods-kft-missionstatement.html 2. http://www.google.com.pk/url?sa=t&rct=j&q=operational%20planning %20ppt&source=web&cd=1&sqi=2&ved=0CBsQFjAA&url=http%3A%2F %2Fwww.cdu.edu.au%2Fvc%2Fdocs %2Fspwshop.ppt&ei=1MS0ToXDHYLrrQfM48TbAw&usg=AFQjCNFh7KH4m7v7IQT 4qxirOZis9XND-A

Institute of Business Management Kraft Foods Human Resource Management Assignment 3 3. http://www.docstoc.com/docs/2358784/Analysis-of-theCompetitive-Environment 4. http://en.wikipedia.org/wiki/Kraft_Foods