Report on Adf's Collaboration with Manpower

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Executive Summary

This report provides a review and analysis of the collaboration between a change management consultancy firm DFR (a business unit of Manpower) and the Australian Defence Force (ADF). Through examination of the factors that led to the collaboration, the goals of the collaboration and how the practices internally aligned to the goals, to the change in organisational culture and the HR system that supported this, it is apparent that the collaboration, though challenging and the first of it’s kind helped bring about an improvement in the recruitment of candidates to the ADF.

Introduction
Facing increasing scrutiny over costs the ADF undertook a review of the recruitment functions in the army, navy and airforce resulting in the outsourcing of the recruitment function. This collaboration was undertaken with a civilian recruitment and change management consultancy, called Defence Force Recruiting (DFR). The purpose of this report is to outline the driving factors behind the collaboration and will cover * Environmental factors driving the change

* The goals and practice of ADF outsourced recruitment function * How the existing culture was defined and how the new culture was identified and change implemented * HR’s role in initiating the cultural change

Analysis of environmental factors driving change at the ADF. The ADF as described by Thomas and Bell (2007, p 97) is a people intensive organisation and as such needs to attract and retain an adequate talent pool whilst developing their workforce “through effective HRM practices.”Realising this, the ADF implemented a review of current practice and through examination of key internal and external environmental factors, (See Appendice A) set about a process of change. Australia’s contemporary Labour market is shaped by issues such as Globalisation, ever changing socio demographic trends and social/ethnic diversity which in turn effect the “personnel dimension of the ADF’s organisational capability” Thomas and Bell (2007, p102). Globalisation has a big part to play in the need for organisations to adapt and change, as Beregszaszi and Hack-Polay (12, p.61) observed, in order for business players, no matter what their size, sector and level of internationalising, to survive they must continue to innovate if they are to grow and remain competitive. Putting globalisation and socio demographic trends into context we can see that in the 20th and 21st Centuries, more emphasis than ever before is placed on cost and profitability. Business models that were successful in previous centuries are no longer applicable, in response to this organisations look to outside ventures for support, mainly in the form of partnerships, mergers, alliances and joint ventures (Kakabadse and Kakabadse, 2002 ,cited in Beregszaszi and Hack-Polay 2012, p.47), indeed as Greer, Youngblood and Gray (1999, cited in Beregszaszi and Hack-Polay 2012, p.128) observe, outsourcing decisions are frequently response to an overwhelming demand for reduced costs for HR services. Williamson’s cited in (1975, cited Beregszaszi and Hack-Polay 2012, p.48) transaction Cost economy theory is often associated with outsourcing as is Porter’s Value chain (1985, cited Beregszaszi and Hack-Polay 2012, p.48), whereby competitive advantage comes from an organisations processes and ability to contribute to an organisations cost advantage, creating a differentiation basis, Porter (1985, cited Beregszaszi and Hack-Polay 2012, p.48) if a function can be delivered externally by experts in a field for less cost, then it makes business sense to outsource. The ADF recognised that the Australian labour market was becoming increasingly competitive, Kleinman (2007, cited in Thomas, K & Bell, S 2007, pp.97) noted that in order to secure a competitive advantage the ADF needed to adopt policies and procedures aligned with ever changing nature of the current workplace. Failure to secure a competitive advantage...
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