Aes Shrm
Human Resources at the AES Corporation: The Case of the Missing Department
discuss the effectiveness of AES’ approach to HRM, and make recommendations for the future.
Table of Contents
INTRODUCTION 4
ADVANTAGES OF AES’ APPROACH 5
CONCERNS 6
RISKS GOING FORWARD 7
RECOMMENDATIONS 8
CONCLUSION 9
APPENDIX 10
BIBLIOGRAPHY 11
INTRODUCTION
AES’ annual results speak for themselves, financial data available, from 1991 to 1996 shows that revenue and net income have more than doubled: this “corporation” is extremely successful and still growing.
With relatively little top down communication, the C level manager delegating practices, business and operational responsibility given to plants managers and team, and employees share ownership, AES exhibits “phase three” characteristics of Greiner’s growth model (Greiner, 2001, pp. 6-7).
AES lives and breathe by its core values; AES has a clear vision and mission (Figure 1) to which it strictly adheres: this is fully understood and accepted by key stakeholders, such as employees and shareholders.
[pic]
Figure 1: AES’ Values, Vision and Mission
ADVANTAGES OF AES’ APPROACH
“Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity” (Patton, 2005, p. 257), this is how General Patton describes empowerment.
As a fully decentralized organisation, with only 5 hierarchical levels, operational, business and financial decisions are made at plant level, even though the staff may not be familiar or highly proficient within the area of decision, employees are encouraged to participate in multi-skilled teams to develop those projects, thus promoting “continuous learning” and giving AES a clear competitive advantage.
AES’ approach is supported by Dreher and Dougherty who believe that “a firm talent’s pool, and the system used to develop and motivate this resource, can serve as a source
discuss the effectiveness of AES’ approach to HRM, and make recommendations for the future.
Table of Contents
INTRODUCTION 4
ADVANTAGES OF AES’ APPROACH 5
CONCERNS 6
RISKS GOING FORWARD 7
RECOMMENDATIONS 8
CONCLUSION 9
APPENDIX 10
BIBLIOGRAPHY 11
INTRODUCTION
AES’ annual results speak for themselves, financial data available, from 1991 to 1996 shows that revenue and net income have more than doubled: this “corporation” is extremely successful and still growing.
With relatively little top down communication, the C level manager delegating practices, business and operational responsibility given to plants managers and team, and employees share ownership, AES exhibits “phase three” characteristics of Greiner’s growth model (Greiner, 2001, pp. 6-7).
AES lives and breathe by its core values; AES has a clear vision and mission (Figure 1) to which it strictly adheres: this is fully understood and accepted by key stakeholders, such as employees and shareholders.
[pic]
Figure 1: AES’ Values, Vision and Mission
ADVANTAGES OF AES’ APPROACH
“Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity” (Patton, 2005, p. 257), this is how General Patton describes empowerment.
As a fully decentralized organisation, with only 5 hierarchical levels, operational, business and financial decisions are made at plant level, even though the staff may not be familiar or highly proficient within the area of decision, employees are encouraged to participate in multi-skilled teams to develop those projects, thus promoting “continuous learning” and giving AES a clear competitive advantage.
AES’ approach is supported by Dreher and Dougherty who believe that “a firm talent’s pool, and the system used to develop and motivate this resource, can serve as a source
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