This paper is intended for all organizations that desire to be financially successful. It is also directed at Jim Rohr, CEO of PNC. PNC has fought through possibly the worst financial situation the banking industry has ever faced and not only survived, but flourished. PNC has done so because Jim Rohr and his executives have put the spotlight on its most important “asset,” “its people.” PNC acknowledges that it must keep the “right people” for the job and it does so by selective hiring and striving to be the employer of choice. Unlike many companies who focus on its financials first, PNC will never be faced with a choice of downsizing, if it continues to focus on its people first. Company Background
PNC as a company has recognized the importance of its people. PNC is currently working on developing its people through a large initiative which focuses on employee engagement. This initiative measures its success on Gallup scores derived from its employees’ opinions. Within the company there are many different departments, all which score differently on the Gallup survey. Being such a large organization creates challenges it must overcome if it is going to continue to be an industry leader. Some of these challenges result from not hiring the “right people” to do the job. As a result, these decisions negatively affect others within the department which can also affect the company as a whole. Each department must work with Human Resources to perfect its hiring processes, in order to deliver the culture that PNC desires. Hiring the right people can improve productivity, which stems from having motivated employees that are dedicated to their company. If PNC executives continue to push their department managers to improve employee dedication, it will lead to continued financial success for the company. Conceptual Background
A rising trend in many unsuccessful companies has been to outsource jobs, cut employee benefits, eliminate traditional career paths, reduce training costs, and ease employee wages. Shockingly, these are the same companies that state in their annual reports and speeches that the success of their businesses relies on the efforts, initiatives, commitments, and motivation of “our people, our most important asset.” When faced with tough financial decisions, executives often do not live up to the mission of their companies. When asked the reason behind the decisions to reduce wages and cut jobs, the answer from executives often is “we had no choice.”1 The reality of downsizing often is that the companies did have a choice, although through a series of bad decision making and pour planning; companies have backed themselves into a corner. Studies have shown that companies do not have to pay low wages in order to be an effective competitor. By adopting a people-based business strategy, companies can have significantly higher labor productivity and differentiate themselves from their competitors by building employees into assets.1 Rather than relying on technology, patents, or strategic position, companies who focus on how they manage their workforce tend to have a sustained advantage over other competitors. Putting emphasis on employees and how they work, provide many cost advantages. These cost advantages are created through the increased productivity of its workers. Before productivity can be increased, employees must become motivated and dedicated to the mission the mission of the organization.2 There are many factors that facilitate employees to become motivated. Motivation have be improved through job security, high wages, incentive pay, employee ownership, information sharing, participation and empowerment, self-managed teams, cross-training, skill development, and promotion from within. Before companies start embracing these practices, they first need to be very selective in recruiting good people for the job.2 Companies have the “choice” of who they hire. If a lot of resources and...
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