HNC Business: Analyzing HRM Practices at Diageo (2019-2020)

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Diageo, a British multinational alcoholic beverages company. It explores the purpose and scope of HRM within the organization, emphasizing talent management, recruitment, and employee relati...Read More

Running Head: HRM 0
Human Resources Management
(HRM)
Student Details:

HRM 1
Activity-1
Purpose and Scope of HRM
Overview of the company
Diageo is one of the largest distiller British multinational companies headquartered in
London, England providing alcoholic beverages such as beer, spirits and wine (BBC, 2019).
The company works with over 28,420 employees while operating and selling its products in
across 180 countries; the CEO of the company is Ivan Menezes (FP, 2014).
Purpose and functions of HRM
HRM functions are integrated to help the company with its core activities to achieve the goals
where Diageo has a strong HRM which shows the accomplishment of meeting its corporate
objectives. The aim of the company is moving its HR function from central control to
maintain the HR culture and global policy that allows Diageo to make divisions locally as per
its responsibility towards the local market needs. HRM practices involved such as rewards
and recognition, capability development is managed by the company with effective
distribution of employees’ knowledge (Sparrow, 2012). The company plans successful
learning process where Diageo focuses on people development globally. Diageo has its way
of building talent by specifying the behaviours showing commitment of “winning through
people” (Alves, 2019). The performance of the company’s employees is managed by
designing to support creating common processes and systems across initial merging of
Diageo’s businesses. Also, the company focuses on global networks establishment with
workforce diversity and shift in perspective of its management. Diageo looks out for the best
HR practices in the UK and across the globe while designing overall global processes. The
workforce of the company goes through capability development programmes positioning
employees around its “drumbeat” of performance and “calibrating” them by making efforts
through “Plan W” programmers facing externally as well to eliminate gaps and carrying out a
broad HR network globally with coordination (Diageo, 2020). Thus, Diageo consists of
planning, job analysis, recruitment, and training as its HR functions which helps in employee
management, equality promotion within the team, and providing reasonable support to
employees.

HRM 2
Recruitment and Selection
Diageo is globally driven towards talent management and resourcing considering employee
value proposition and maintaining relationship between employer and employee through
branding linked to the website. The company’s recruitment policy is based on operational
integration where it is important to have consistency in deliverables rather than prioritising
cost. There are standard requirements set globally with presence of autonomy in the markets;
also Diageo attracts and retain employees through its reward and recognition policy while
managing paradoxes and develop career opportunities for employees to move across markets
globally (Kashyap, 2019). Thus, in terms of HRM, Diageo consistently aims at talent
management, recognition and reward, and organisational effectiveness for employees and the
company. Diageo delivers organisational strategy with strongest HR capabilities globally
consists of organisational change and capability, strategic HR, development and retention,
talent recruitment, developing value proposition of an employee, and performance and
reward. The company uses technology for enhancing performance of employees committed
to building and motivating strong teams with clear vision and other corporate goals as well
(Lieto, 2016). Diageo takes initiatives for embedding talent management coaching model
while focusing on reward and performance of employees within an organisation. The
company provides online questionnaires for candidates to get a job, video call of candidates
based on selection, and lastly, the day assessment process for them to analyse every aspect
such as their skills and talents, communication, and leadership quality (Crofoot, 2018).
Also, Diageo took an initiative of “Building Diageo Talent Workshops” driving through the
market rather than using it as a central HR function for making employees understanding
about supporting strategy through their capability (Diageo, 2018). HR function in relation to
social integration shows the collective development performance bonds helps in building
clear sense for the company to what to achieve the goal and the way it is to be done through
global networks development at Diageo.

HRM 3
Activity-2
Effectiveness of the Key Element of HRM
Benefits of HRM practices
HR activities performed by Diageo are based on improving consistency and eliminating
costly duplication along with effectiveness and quality. This is why, the company e-enabled
service delivery model globally by incorporating sophisticated HR processes with the help of
skilled and talented workforce (Davies, 2016). Diageo’s brand teams require training
centralised on strategic imperative delivery such as innovation, customer service or quality
through employees performing HR practices by its key elements. Diageo introduced “The
Diageo Way of Building Talent” structure majorly for “winning through people” with the
help of building capability and behaviours while taking initiatives consisting talent
benchmarking, external resourcing, high potential review processes, deployment decision
forums, focusing on reward and recognition in order to link individual performance, and
lastly, reward and development along with partnering or coaching, and organisational
performance (Creelman & Lambert, 2012). Also, the company puts strong focus on
leadership competencies and capabilities influencing the way of employees interacting and
working at Diageo. This will help the company to generate competitive edge, people
performance, emotional energy, living values and ideas for better outcomes. Diageo works
with diverse employees globally centralising its core HR processes with the potential of
making transformations.
Effectiveness of HRM practices
HRM at Diageo has been best in its talent management with the company’s global network
along with capability development of employees. The broad range of initiatives works on
employer branding which consist of embedding and designing effective HR operating model
globally along with deployment of reward and recognition and processes of performance
management in relation with explicitly towards it (Goodwin, 2017). There was opportunities
for internal and external talent incorporating reward and recognition systems and
communication programs overall to ensure success through talented and skilled employees
inspired with implement practices and managing change in the UK and across the globe.
Thus, key elements Diageo include in its HRM are adding value in each and every employee,
recruitment, development, retention, hiring graduates, and internal appointments while

HRM 4
recruiting and selecting candidates and attracting and retaining existing ones by integrating
efforts. Diageo conducts most of its job relating recruitment interviews outside the companies
such as agencies or recruiting companies where the company sets standards globally (Oster,
2019). Also, the company has adopted the use of balanced scorecards for high-level
performance of employees to achieve corporate goals. Thus, Diageo’s HR guards the
company’s purpose, values and culture which are helping in finding exception people that can
help them to lead, excel, and grow with its inclusive business. The company has an efficient
HRM to achieve its corporate objectives along with performing HR functions at its best.
There is a presence of telephonic interview for candidates in their recruitment process along
with aptitude test and face-to-face interview as well having interactive selection seeing
effectiveness and capability for the vacant role and position within the company (Diageo,
2015). Lastly, Diageo’s HRM practices effectively invest in empowering employees to reach
their full potential along with aiming of creating a welcoming and diverse culture, and safe
working environment.

HRM 5
Activity-3
Factors affecting the decision-making process of HRM
Significance of employee relations
Diageo makes a clear commitment towards its shareholders where the company focuses on
creating organic growth, global consistency and long-term sustainability by looking potential
in its employers and employees. The company desires to have iconic and authentic senior
management for managing and nurturing corporate reputation with right decision-making
process to provide consistency in its service delivery (McKillop, 2014). Diageo realised that
even employees had to be decision-making bodies while having right authority level
considering worked out development priorities, developing internal and world-class
benchmarks as per the initiative, and forming own network of decision-implementers and
expertise within the company (Smith, 2012). The company is requires to maintain optimum
workforce level for running smooth operations along with talented employees acquirement
and making changes in technology. The company maintains the employee relations very well
with strict compliance of human rights where Diageo never tolerates harassment,
discrimination, abuse or bullying. Also, the company never forces its employees to do
compulsory labour while taking care of their safety, health and well-being as well (Jernigan,
2012). Diageo works with a diverse workforce being a multinational company for achieving
success of its business considering employees’ opinions as well along with fostering culture
maximising opportunities for them (Kmec & Skaggs, 2014).
Key elements of employment legislation
Diageo follows the laws and regulations introduced by the UK government for providing
advantage to its employers and employees which helps in maintaining operations smoothly
within the beverages industry (McLaughlin, 2014). The regulations which Diageo needs to
follow in the UK include Race Relations Act 1992, Data Protection Act 1998, Sex
Discrimination Act 1995, Employment Act 2008, and Equal Pay Act 1970 (Conley, 2014).
The company use approach to follow guidelines and policies including Diageo’s Modern
Slavery Statement and Human Rights Policy for demonstrating commitment through their
actions against employees. Diageo established “HRIA (Human Rights Impact Assessment)”
comprehensively aims at conducing the assessment of value chain elements including
manufacturing, operations, raw materials sourcing, sales and marketing, contractors, and

HRM 6
third-party operations (Diageo, 2020). The company also developed child protection
programme aiming at prevention of sexual harassment as an initiatives for people working as
smallholder farmers through action plan addressing specific risks within the industry. Diageo
is also complied with hour and wage laws along with respecting decisions of employees at
the time of joining or not joining a trade union.

HRM 7
Activity-4
Portfolio on HRM Practices Application
Job Specification design
Job Specification: Commercial Business Analyst (CBA), London, England
Job Description: Diageo requires comprising wide portfolio of initiatives using “DBS
(Diageo Business Services)” strategy delivery for business transformation program
profoundly to move towards attaining a competitive advantage while making change. This
strategy helps in driving service, value and business performance along with making
contribution in significant and leading transformation and calling for action. Thus, this role of
Commercial Business Analyst requires a financial responsibility degree for identifying DBS
overall spend in association with analysing or requiring within data areas and processes and
provide profit in driving specific change within transformation.
The role of CBA is accountable for Commercial solution products across the Europe and GT
markets ensuring maximum amount of knowledge of the company providing flexibility in
working based on specific combination or product. CBA is required to find solutions,
maintain authenticity, and be consistent in delivering great performance (Diageo, 2020).
Interviewee suitable CV
 Interviewee need to have a trade experience of 5 to 10 years approximately
 He/she need to be prior in managing teams while achieving targets
 Candidate requires mindset of commercial essentially
 He/she should have skills of advanced excel, systems aptitude, and analytical
 He/she should have existing network based on trade preference within the company
 He/she is required to demonstrate excellent building of relationships and influencing
skills while functioning
 While, the leadership in the same field requires the capability of winning through
execution and able to shape the future
Critical Evaluation
The behaviour and values of employee matter to the company while working under the
company’s policies, code and standards. While evaluating HR practices rationally, Diageo

HRM 8
requires the candidate hired should be good in driving improvement process, maintaining
consistency and transformational change, and able to unlock business value and improve
financial control for the markets in the UK or across the globe. Hence, based on the
company’s HR practices such as allowance of maternity and paternity leaves, vacations and
paid time off and whole healthcare and insurance, the role describes he/she to be
collaborative, inspired and aligned with functional leadership within Diageo for delivering
quality services to its customers and keeping them satisfied.

HRM 9
References
Alves, G., 2019. With 44% women in the boardroom, Diageo tops gender equality list.
[Online]
Available at: https://economictimes.indiatimes.com/magazines/panache/with-44-women-in-
the-boardroom-diageo-tops-gender-equality-list/articleshow/71393003.cms?from=mdr
[Accessed 5 April 2020].
BBC, 2019. Diageo: Unite workers accept pay deal. [Online]
Available at: https://www.bbc.com/news/uk-scotland-scotland-business-49932821
[Accessed 5 April 2020].
Conley, H., 2014. Trade unions, equal pay and the law in the UK. Economic and Industrial
Democracy, 35(2), pp. 309-323.
Creelman, D. & Lambert, A., 2012. The board and HR. People and Strategy, 36(3), p. 52.
Crofoot, K., 2018. Diageo Announces Changes to North America Leadership. [Online]
Available at: https://www.prnewswire.com/news-releases/diageo-announces-changes-to-
north-america-leadership-300640900.html
[Accessed 5 April 2020].
Davies, A., 2016. Best Practice in Corporate Governance: Building Reputation and
Sustainable Success. Boca Raton: CRC Press.
Diageo, 2015. Our new creative campaign aims to attract the best new talent. [Online]
Available at: https://www.diageo.com/en/news-and-media/features/our-new-creative-
campaign-aims-to-attract-the-best-new-talent/
[Accessed 5 April 2020].
Diageo, 2018. Diageo channels inclusion and diversity in its global HQ with INC Week 2.0.
[Online]
Available at: https://www.diageo.com/en/news-and-media/features/diageo-channels-
inclusion-and-diversity-in-its-global-hq-with-inc-week-2-0/
[Accessed 5 April 2020].

HRM 10
Diageo, 2020. Commercial Business Analyst. [Online]
Available at: https://diageo.wd3.myworkdayjobs.com/en-US/Diageo_Careers/job/London-
England/Commercial-Business-Analyst_JR1034132-1
[Accessed 5 April 2020].
Diageo, 2020. Investing in our people. [Online]
Available at: https://www.diageo.com/en/in-society/building-thriving-communities/investing-
in-our-people/
[Accessed 5 April 2020].
FP, 2014. Diageo's new Indian CEO: 5 things you should know about Ivan Menezes. [Online]
Available at: https://www.firstpost.com/business/who-is-diageos-new-indian-ceo-ivan-
menezes-759899.html
[Accessed 5 April 2020].
Goodwin, C., 2017. Diageo recognised as world’s 11th best workplace by Great Place to
Work®. [Online]
Available at: https://www.diageo.com/en/news-and-media/press-releases/diageo-recognised-
as-world-s-11th-best-workplace-by-great-place-to-work/
[Accessed 5 April 2020].
Jernigan, D. H., 2012. Global alcohol producers, science, and policy: the case of the
International Center for Alcohol Policies. American journal of public health, 102(1), pp. 80-
89.
Kashyap, K., 2019. Diageo introduces new global maternity and paternity leave policies.
[Online]
Available at: https://www.hrkatha.com/news/compensation-benefits/diageo-introduces-new-
global-maternity-and-paternity-leave-policies-for-its-employees/
[Accessed 5 April 2020].
Kmec, J. A. & Skaggs, S. L., 2014. The “state” of equal employment opportunity law and
managerial gender diversity. Social Problems, 61(4), pp. 530-558.
Lieto, C. D., 2016. Diageo's Head of Talent Engagement: 3 ways HR can stay ahead.
[Online]

HRM 11
Available at: https://www.hrgrapevine.com/content/article/2016-12-16-diageos-head-of-
talent-engagement-3-ways-hr-can-stay-ahead
[Accessed 5 April 2020].
McKillop, S., 2014. Digital asset management at Diageo plc. Journal of Digital Media
Management, 3(2), pp. 171-174.
McLaughlin, C., 2014. Equal pay, litigation and reflexive regulation: the case of the UK local
authority sector. Industrial Law Journal, 43(1), pp. 1-28.
Oster, E., 2019. Diageo Is Reviewing Its $320 Million Global Media Account. [Online]
Available at: https://www.adweek.com/agencies/diageo-is-reviewing-its-320-million-global-
media-account/
[Accessed 5 April 2020].
Smith, G. L., 2012. Regarding Joe Camel in a bottle. American journal of public health,
102(5), pp. 777-778.
Sparrow, P., 2012. Globalising the international mobility function: The role of emerging
markets, flexibility and strategic delivery models. The International Journal of Human
Resource Management, 23(12), pp. 2404-2427.