Evaluation of the adjustments made

Over the past decade, both Hydroline and Junttan have made significant changes in their HRM.

They have inter alia developed their recruiting methods, skills and training possibilities of their personnel, their rewarding systems and the ways they manage information, each in their own way.

But most of all, they have changed the way they think. Both companies stated that their managerial approach has changed from hierarchical management towards modern leadership and more innovation-friendly discussion culture.

All interviewed managers believe that developing their HRM has far-reaching effects on their company. The HR manager Korhonen from Hydroline summarizes the effects of cautious reorganization and training projects: “Well, we also want to see this as an image thing, that the right decisions will also serve in the future: Hydroline is considered to be a good employer – that’s a very important thing.” Nurminen concurred with the statement on Junttan’s part almost literally.

The CEO Laakkonen agrees and adds that the benefit perceived by their staff is one of the most important objects of influence besides the external image: “Company management has made a decision to invest in this training and education with the entire staff in mind - although it costs something and other jobs need to be adjusted every day during this kind of teaching – because it’s a thing that motivates and increases the feeling of cohesion. For us the staff is the most important thing that brings the profit under the line for our house and without personnel we can’t make do. If you follow the front of competitors and many of our main suppliers you notice, that their strategy is

‘instant freeze’. When the situation looks like it; out with the people, and if the growth starts again, the folks are sought after with bells and whistles. We have started our thinking with the vision, that this education package and time will repair the situation and that we will have a competent team ready when the need comes. And some day the need will come – this is not the end of the world. And when you think about it – we have got to take almost 50 guys back to work since the first smash – I think that is one of the only ways of telling the guy that the employer cares about him and believes in future.”

The attitude towards education has presented itself in two different ways. Satu Nurminen states that Junttan seems to have people who are enthusiastic about training, where as there are people who would prefer to concentrate exclusively on their job: “A part of the people like to be trained, and the others don’t. We have had good feedback from the training programs, although some people feel that they are busy enough as it is – and they would prefer to get their job done.” Jukka Laakkonen tells that he participated in the first training session at Hydroline and was very curious to see the reactions and willingness to participate among the workers. “I think it was exiting to realize the situation where the younger crowd, the around 30yrs guys were talking to the teacher seriously and with enthusiasm about the subject. Then when you go around the slightly older bunch over 45yrs – the comments were different. They seemed to embrace the situation in that it was

‘pointless drivel arranged by the employer’. Those guys, shall we say +40 to +50 years of age seem to be more used to that old kingpin -style leadership. Like in army terms ‘do what you are told to’.

That kind of own thinking, personal development in their own workstation is left out. They wont bother when they don’t get any thanks. Today it’s visible, that there has been a change in the

younger generation. That when you give a guy some steam, a little bit responsibility to develop their own workstation or assignment, give a permission to open up both in good and bad things, open up yourself as a manager, give thanks, give feedback, then there is an enormous possibility to develop that thing.”

In spite of coincidental resistance to change both managers relate to the offering of the educational package with profound confidence. They believe that especially the skills of the middle managers and the over-all efficiency of the organization have enhanced by the training and will eventually bring long-term benefits for their companies.

Changes in the management of human resources have also had a pivotal impact on the culture of Hydroline. Jukka Laakkonen has had the unique opportunity to work in every level of the company from production worker to engineer before becoming the company CEO. That has opened multiple different chances to view the organization from different perspectives. In his experience lowering unnecessarily high hierarchy and building conversational team culture are in a very important role in order to foster motivating, commitment and creation of innovation. He describes some of the problems of the old culture: “If you think the old days, for example the lunch and coffee breaks: we had divided the officials and employees. Now we have common facilities with this new diner entrepreneur where people get to mix and create team spirit in a whole another level. Before we used to be like two different departments and cliques.

According to the HR manager the way of the new CEO is communicating personally with every single person of the organization is apt to create positive spirit and intrapreneurship throughout the company. He states that the CEO often sits at the same table with e.g. the guys from the storage to catch up and change opinions and argues that being an easy way to show everyone’s importance to the organization concretely. Staff manager notes that trough his actions, the CEO is creating “a face” to the company that he believes to be a very important factor for motivating and committing the staff.

The managers of both companies are very pleased about the effects created by the open communication and lowering of their discussion hierarchy. The communication has improved throughout the companies helping to bring more innovations forward as the employees feel their ideas are welcome. The managers also state that the improved communication has been able to reduce rumors and raise team spirit as people feel they are being trusted with the company’s information and are considered to be a part of the team.

At the end of the interview the CEO Jukka Laakkonen summarizes his thoughts on the changing process of the Hydroline’s HRM: “I have to say I’m genuinely proud of this group and foremost the effort of our executive team. On everyone’s part there is a little filing, polishing and learning to do.

Sometimes we have also made wrong decisions – but from that you have to learn. I will continue to lead this house towards that culture that we have open and collective spirit with every guy in every department, and that everybody knows roughly about the same amount of the matters of the company as I do: what I can assume and what has been accomplished.”