HR InsiderHR InsiderHR Insider 30 NOVEMBER, 2012

ISSUE 75,

Do you recall the paracetamol extortion threat in 2000? Herron Pharmaceuti-cals, along with other global players, lost millions of dollars after having to remove their product from the shelves. Herron, as a result, needed to retrench a num-ber of employees. I was proud to tell family and friends that we provided Out-placement Support for the affected peo-ple at no cost until the business was in a financial state to pay us, which occurred 4 months later. So what does all this mean? I would like to know what is happening to our Aus-tralian FMCG manufacturers. None of the Companies I mentioned now exist as Australian owned. Sure the brands are still there on our super-market shelf but where do the profits go? The answer is simple - offshore. This feeling of discontent was further exacerbated when I read Paddy Man-ning’s article in the Sydney Morning Herald last month with the headline; “US Giant has eyes on Graincorp”. It turns out that our most valuable listed agribusiness, GrainCorp, could fall into foreign hands after US company Archer Daniels Midland (ADM) snapped up a reported 10 per cent stake at a 33 per cent premium.

The article went on to say: “Australia's agribusinesses sector has succumbed to a wave of foreign buyouts, including that of ABB Grain in 2009, and AWB Ltd in 2010. According to the Rural Indus-tries Research and Development Corpo-ration, foreign investors now own half the country's 23 licensed wheat export-ers (counting both Viterra, now subject of a takeover by Glencore, and Cargill); half the country's milk production (via Fonterra, Lion, Parmalat); 60 percent of raw sugar production (via Finasucre, Wilmar, COFCO); and 40 per cent of

I have been reflecting in recent months about the huge changes we have seen within the FMCG landscape over recent years. Whilst I appreciate that changes occur across all industries this one is my bread and butter (well at least provides for me to purchase these items). I freely admit to having no idea what FMCG stood for when I attended my interview in 1994, but I have developed a significant soft spot for the industry over the years. I was honoured to call some of Australia’s largest manufactur-ers our clients; among them were Dairy Farmers, Berri, Mayne Consumer Prod-ucts, Capilano, SPC Ardmona, Golden Circle and the list goes on.

Kerrie McDonell

Is there a Future for Australian Owned FMCG Businesses?

Australian red meat production (via JBS, Cargill and Nippon Meat Packers)”. I find these percentages quite confronting.

When I was discussing writing this arti-cle with my family (a lawyer, a law stu-dent and a journalist) I was met with a negative response suggesting that the article would sound more like a ‘they took our jobs’ whinge. That most defi-nitely is not the case. I have also been fortunate to call many of these Global companies my clients and have seen the wonderful career opportunities pro-vided to high performers. Generally manufacturing is not moved offshore and there is often reinvestment into state of the art equipment, but it is still sort of sad that the Australian owned FMCG space is shrinking at such a rapid pace.

What will be left in another 10 years? Whilst the ACCC continue to sign off on the acquisitions, there may be very little. Perhaps this is a whinge after all, but If I could have one wish for 2012 - just to placate me - it would be that Ingham’s remains an Aussie owned icon. Let’s wait and see.

Open Book Management Page 2

8 Steps to Being a Better Supervisor

Page 3

Psych Tests and What They’re For Page 5

Company News

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Restaurant Review Page 9

INSIDE THIS ISSUE

Have any suggestions or feedback for HR Insider? Contact us on 02 9956

7655 or email flora@newtonconsulting.com.au

NEW HR Benchmarking Module

Talent Attraction and Retention Strategies

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David Carter

Open Book Management

In a recent article on the smh.com.au site by Tony Featherstone, on Novem-ber 6th headed “Should bosses bare all to staff?” he discusses the merits and otherwise of this management approach citing a number of his personal experi-ences to argue his point. In a snapshot Open Book Management proposes that organisations that fully disclose their financials to employees including all aspects of sales perform-ance, costs and here’s the interesting one, all wages and salaries for those in the business. The theory is the more people know about the true status of how a business is performing including the relationship of business performance to salaries and wages, the more likely people will be to trust in management and understanding of their decisions prompting greater in-volvement and connection to the organi-sation.

To find out more about how we can assist you, contact Eva McArdle on (02) 9956 7655 or visit

www.newtonconsulting.com.au/Outplacement_Transition.htm

Having trouble finding the right candidate?

David is our National Recruitment Executive of 12 years. Call David today on 02 9956 7655, for all your

recruitment needs.

In other publications Jack Welch, former CEO of General Electric, is quoted as a believer in Open Book Management as a tool for increasing innovation and pro-ductivity. It also appears that to what extent pro-ponents use Open Book Management does vary significantly, some arguing that individual wages should not be shown only the total wage pool for sec-tions or divisions. Featherstone also raises some interest-ing points regarding how full financial disclosure can be a major problem if it fell into competitors’ hands (and what about suppliers if things are not going well?). Further he concludes that a middle road would be the sensible approach and definitely supports the view for greater information sharing to help “the best staff feel more engaged motivated and

part of the place and that guarding infor-mation in that old fashioned command –and- control management style is simply misinformation at its worst”. If the concept is of interest I recommend reading Tony Featherstone’s full article at the link below: http://www.smh.com.au/small-business/managing/blogs/the-venture/should-bosses-bare-all-to-staff-20121106-28uxt.html

Poor supervision is often a factor in high turnover, and employers should hold supervisors accountable for turnover amongst their direct reports. Supervision is about nurturing employ-ees and being committed to making them successful rather than waiting for them to make a mistake. Often supervisors are better at dealing with technical skills than they are with behaviour on the job; however, em-ployee behaviour on the job is the more frequent reason for terminations than technical skills of the job. Below are eight simple steps to become a more effective supervisor. 1. Be organised. When you meet with your direct reports, expect the employee to have an agenda, to have done some preparation for the meeting, but you should prepare as well. 2. Adapt your Style. You have to begin by understanding your personality and when to adapt it. If you are not approach-able, you will need to work on building bridges and increasing your communica-tion with your direct reports. If you are perceived as being indecisive, your team members may be tempted to bypass you rather than seek out your opinion. Adapt

your style to become a thoughtful, con-siderate leader who knows where you are going and is able to communicate that properly to the team. 3. Document your discussions. Describe the behaviour you want from the em-ployee both verbally and in writing. Track progress and make note of it. This will save you a lot of time and eliminates surprises for the employee when it comes to doing their annual review. 4. Have a respectful environment for meetings with employees. Don’t check email or pick up your mobile if it rings and ensure your conversations are held in private. When you speak to employ-ees, ensure that you demonstrate re-spect for the other person, ensure your responses are objective and non-judgmental. 5. Bring the conversation back to the goals and the objectives of your depart-ments and organisation. Make sure that the employee knows exactly what to do in his/her own work situation to contrib-ute to those goals. 6. Be fair, but honest. Be prepared to speak clearly about areas of the em-ployee's performance that must improve; don't use vague language. Be behaviour-ally specific in terms of the problem and

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the solution as well as the time frame for expected improvement. 7. Be trustworthy – People won’t follow you if they don’t trust you. You must be ethical and honest at all times. People trust people who are clear about what they are doing. People don’t trust people who say one thing at a meeting, and then say or do something different out-side of the meeting. 8. Get to know your employees, what motivates them, what their personal in-terests are, what their goals are for their personal and professional future. Be prepared to share some of your own as well. This develops a bond between you and your employee and enables better planning for the future and adds some substance to your work together. As a supervisor, you must recognise that your job now requires that you help the company achieve their goals through the cooperation of the people you supervise.

Eva McArdle

8 Steps to Being a Better Supervisor

Eva specialises in Training and Outplacement.

Call Eva today on

02 9956 7655, for tailored and affordable business solutions.

Recruitment and Selection Skills Interview Techniques EEO Compliance

New Manager Training Giving Effective Performance Feedback

Coaching for Results

Customer Service Communication Skills

Handling Customer Complaints

Performance Management Set and Agree on Performance Objectives

Effective Performance/Development Planning & Review

Performance Appraisals Giving Performance Feedback Writing Performance Goals

INTEGRATED AND INTERACTIVE

Contact Newton Consulting on (02) 9956 7655 and speak to one of our consultants today

Training and Development

Reduce OH&S Exposure/Risk

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reduce the occurrence of Health and Safety incidents in the workplace.

The HSI is a well researched and valid global tool that can be completed online by existing or potential staff

members to provide you with invaluable data to assist in assessing their on-the-job risk. A high score on the

HSI, which incorporates a range of personality and intellect measures, correlates with:

• Fewer accidents

• Lower mortality rates

• Fewer deliberate safety violations

• An overall lower accident risk

• Lower incidence of workers compensation claims

If you would like more information on the HSI please give Flora Nguyen or myself a call on

02 9956 7655.

Kerrie McDonell Kerrie McDonell MA; MAPS

Registered Psychologist

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Access FMCG industry-specific remuneration data to determine your market competitiveness from a veritable ‘who’s who’ of Australia’s FMCG companies. - Quarterly Updates - Position descriptions, organisational charts and

detailed remuneration data covering around 160 key positions

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In the end, psychometric assessment is used in the workplace because it pro-vides an objective and cost-effective way (since it can save a lot of time and effort) to help employers make decisions about their staff. And for individuals, it can help us understand more about our-selves, and the way we work. Work is essential to adult life, and the more fulfilling it is, the more balanced and satisfying our lives can be. In Hu-man Resources and the world of work, psychometric assessments can have an important role in achieving good job fit and ultimately that means work-life bal-ance.

the answers can then be put together statistically to give a result. This result then provides a picture for the candi-date and the employer. Psychometric assessment should never be used in isolation, but always as part of a recruitment or selection process, or for staff development down the track. Psychometric assessment provides an objective measure that fits into and integrates with a wider Human Re-sources process that includes inter-views, resume and reference checks. Some psych tests are better and more credible than others, just as some psy-chometric providers are more expert, knowledgeable and helpful than others, but what all psych tests have in com-mon is that they statistically use an-swers to questions given by a respon-dent to provide an overview or picture.

The main reason we write this blog is to help bridge the gap between the general world of work, and the more technical subject of psychometric as-sessment for the workplace. While our psychology practice specialises in pro-viding psychometric testing, our under-lying commitment is to helping every-one achieve career and life satisfaction through good job fit. For individuals, if you do what you like to do and what you are good at, then you can live a happier and more ful-filled life. For organisations and em-ployers, if you find the right staff, you can maximize efficiency, engagement, culture fit and teamwork. Psychometric assessment used well is a very useful tool to help achieve this. Everyone understands the general concepts of work and what it’s for: we go to work to earn income, to provide product and services to the general community and we keep the economy turning over. But psychometrics, on the other hand, can seem more mysteri-ous. Despite a growing use of psycho-metric assessment in the workplace, to the extent that these days most people will have been psych tested for an em-ployment role at some time in their career, how psych testing works is not so generally well understood. Essentially, there are two kinds of psych tests for the workplace: Ability (or Aptitude) and Personality assess-ments. In simple terms, Ability assess-ments tell us if a person can do a given job, and Personality assessments tell us how a person will do the job. Even though there seem to be hun-dreds of psych tests for the workplace available (and of various usefulness and validity), which all make different claims for our attention, in the end, the important thing to know is that they assess personality and ability. And that makes things more straightforward to understand. The other thing to understand is that psychometric assessments are simply a statistical analysis of data that is pro-vided by the person who attempts the assessment. They are not magic, they can’t read minds, and they are not de-signed to trick you (although they do have measures built in to tell if some-one is cheating). By asking a respon-dent to answer a number of questions,

We are honoured to include this contribution from our affiliate Lynette Jensen

Psych Tests & What They’re For

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To find out how you can incorporate psychometric assessments into your

Recruitment or Training processes, call Flora today on 02 9956 7655, or email

flora@newtonconsulting.com.au.

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Psychometric Services Offered by

PH: 02 9956 7655

Call Kerrie or Flora if you would like any further information.

www.newtonconsulting.com.au

eq+ delivers leading edge services for organisations across Australia and New Zealand. Our ser-

vices, delivered by our team include:

Psychometric Screening – on-line or supervised – as part of the recruitment process or internal

selection. eq+ can assist you in assessing and selecting the right candidates for your organisation.

We have a range of measures available to you which can measure verbal, numerical and abstract rea-

soning, personality, leadership, subordinate style, and emotional intelligence, amongst others. Our re-

ports are concise, yet provide a highly in-depth analysis of your candidates with insight into their

strengths and weakness, as well as suggestions on how to manage the candidate.

Career Counselling

We can provide one-on-one career advice and assistance. Career counseling can address an individual’s

strengths, interests and values, within the labour market and look at the pros and cons of moving for-

ward within the same industry or potentially moving into a different role or department. Career counsel-

ling may also include setting short term and long term goals both for career and other aspects of ones

life.

Personal Counselling

Our Registered Psychologists can provide solution focused counseling using evidence based treatment

such as Cognitive Behaviour Therapy and other focused psychological strategies.

Management Coaching

Management coaching can extend to a range of areas including; leadership enhancement, executive

team building, communication, presentation styles and skills development. This focus on particular ar-

eas of an employee can lead to empowering each employee and aligning each more closely to the

business requirements.

financial year, down from $4.47 million in the corresponding period. Business Spectator 23 November The ACCC has approved Nestlé's $11.4 billion buyout of Pfizer Nutrition, giving the company majority control of Australia's $200 million infant formula market. The ACCC imposed strict con-ditions on the acquisition, requiring Nestlé to enter an exclusive 10-year licence for Pfizer's S-26 brand to a third party for approval. The licence would be followed by a 10 year period during which Nestlé would be blocked from returning to the market. Business Spectator 23 November Goodman Fielder says it’s on course to make $100 million in yearly savings by 2015. The announcement follows the company posting a $150 million net loss in the last financial year, a 12% improvement on last year’s loss. Managing director Chris Delaney said the company’s priority for the next 12 months was on cutting costs and im-proving reliability and quality. He said the company was also looking for revenue outside supermarkets, explor-ing opportunities in artisan bread and alternative outlets like restaurants and hot bread shops. Food Magazine 22 November The Tasmanian government and Cad-bury are in talks to help boost visitor attractions at the chocolate company's Claremont plant. Tours of the 1920s factory were once a popular activity for people in the area, but were stopped in 2008 amid health and safety concerns. Food Magazine 22 November Heinz Watties has reported a 5% drop in net profit for the year to April 29, with significant costs centred around the relocation of sauce and beetroot processing back to New Zealand. Heinz spent $7.5 million plus upgrad-ing its beetroot facilities since mid-last year, eating into profit results. Business Day 21 November CABKA and Innova Packaging Sys-tems are to merge under the umbrella of the newly founded CABKA Group. The new group will become a broad-

Dairy Australia’s 2013 Australian Grand Dairy Awards has crowned Lion Dairy and Drinks' Tasmanian Heritage St Claire as Grand Champion for the cheese category. Meanwhile, Bulla Dairy Foods' Bulla Premium Sour Cream trumped all other competitors in the dairy category. All winners are able to display the AGDA medal on their product, providing consumers with a tangible, readily-recognised symbol of the product’s quality and excellence, as well as confirming that they are buying Australian-made. Food Magazine 28 November A new soft drink branded on the popu-lar ‘Angry Birds’ mobile game has out-sold Coke and Pepsi in some markets of Finland, and will soon be available in Australia and New Zealand. Food Magazine 27 November Kellogg's, Hungry Jack's and Chupa Chups have had their digital advertis-ing slammed by advocacy group, The Parents' Jury, with each taking out a title at the recent Fame and Shame Awards. The Awards draws attention to brands which use digital media in the most obvious way to target chil-dren and drive active participation in the brand. Food Magazine 27 November Holsten 0.0 percent is the new alcohol-free beer by Coopers, aimed at Austra-lians who love the taste of beer but must comply with a zero alcohol policy. The product is being distributed in su-permarkets with more than 15,500 cases sold by the end of September this year and further expansion plans in the hospitality and accommodation industries. Food Magazine 26 November Capilano Honey is actively seeking acquisition opportunities after an-nouncing its offer to merge with West Australian honey distributor Wesco-bee. Chief executive Ben McKee said that Capilano did not have any opera-tional presence in Western Australia, and argued a merger with Wescobee would help increase revenue and earn-ings before interest and taxes by com-bining honey packing and distribution operations. Capilano's net profits fell by 43%to $2.55 million in the 2011/12

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based provider of plastic pallets, boxes and pallet boxes, with each company entering the new group with their own niche market; CABKA focuses on inex-pensive one-way pallets for export and IPS concentrates on higher-priced multi-way pallets. Food Magazine 21 November Confectioner Robern Menz will be up-grading its chocolate making produc-tion facility in Glynde, Adelaide, when it rolls out a $1.1m upgrade, part of which is thanks to a $499,770 grant awarded by the AusIndustry - Clean Technology Food and Foundries In-vestment program. The upgrade will increase chocolate-making capacity by 56% and reduce carbon emissions by 2,275 tonnes over the next 5 years. Food Magazine 20 November Continuing its consolidation strategy Pro-Pac Packaging acquired the busi-ness and assets of Source and Sell and Stronghold wholesale. To date, Source and Sell have supplied packag-ing products to the food industry while Stronghold Wholesale is a niche dis-tributor of industrial strapping, stretch wrap and tape products. The combined revenue of the two acquisitions is esti-mated to be $10 million per annum. Food Magazine 19 November A first for the Australian wine sector, Trebuchet Logistics will use a fourth party logistics model to manage the warehousing and distribution require-ments of Treasury Wine Estates (TWE), as part of a joint venture. A National Distribution Centre will be built in Penfield, Adelaide, and a series of satellite state warehouses will be es-tablished. Trebuchet Logistics will con-tract third party service providers to manage all elements of the supply chain including the handling, storage, transport and IT requirements to de-liver TWE' products both within Austra-lia and to export markets. Food Magazine 19 November 2012

Q continued on next page

Company News

Don't miss out on joining us for delicious drinks and nibbles – a great way to spend a working afternoon! We would love to see you all for a not only informative but also interesting chat, so if you want to know more then please give Kerrie a call on (02) 9956 7655 or email kerrie@newtonconsulting.com.au

Ridley Corporation has acquired Victo-ria's largest red meat and poultry ren-derer for $77 million. BPL processes around 240kt of poultry and red meat offal through separate manufacturing lines, and was previously owned by Baiada. Food Magazine 9 November Domino's Pizza has confirmed its full year guidance of net profit growth in the region of 15 per cent and new store openings of between 70 and 80. Chief executive Don Meij said same-store sales growth for the first quarter of this financial year was 1.3%. "Domino's has already opened 18 new stores this year, the strongest-ever start to a year for the company, and our new store pipeline is the strongest we've had since acquiring the European territo-ries. These openings include 6 in Aus-tralia and New Zealand and 12 in Europe, with the company hoping to open its 1,000th store by December 2013." Business Spectator 7 November Plans by supermarket giant Wool-worths to develop a 121-seat centre food court for fast food chains in the new Woolworths complex in Western Australia’s Margaret River is facing

Warrnambool Cheese & Butter have signed an agreement to supply pre-mium milk powder to Mitsubishi for the next three years. The milk powder will be used in the manufacture of high quality milk based beverages and other dairy products for the Japanese market. Food Magazine 19 November McDonald's is replacing the head of its US operations after it reported its first monthly sales decline since 2003. Af-ter years of outperforming its rivals, McDonald's has struggled recently amid intensifying competition at home and a persistently weak economy abroad. Business Spectator 16 November London-listed Diageo has announced a $A1.93 billion deal to buy up to 53.4% of India's leading spirits maker, United Spirits, giving it a commanding presence in the world's biggest whisky market. Diageo, which is expanding aggressively in emerging markets, is to initially buy a 27.4% stake for $A1.02 billion, which will trigger a public offer to other shareholders. Business Spectator 10 November

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The Newton Consulting Group HR Executive Group network was established in Sydney in April 1994. Today, there are two groups with over 150 members.

The intent of the Group is to provide a confidential forum wherein senior human resource practitioners can share and debate issues, ideas and concerns of relevance to them, and establish a network of valuable HR contacts.

Last Sydney Meeting for

2012

Cabana Bar, St Leonards

5 December

Not a member of the HR

Executive Groups?

opposition from local residents and the Heart Foundation. 350 submissions have already been received arguing against the proposal. Food Magazine 2 November Harvest FreshCuts, a Queensland-based manufacturer of packaged sal-ads, was fined $40,000 after a worker had 2 fingers removed by a vegetable slicer. Food Magazine 2 November Kellogg’s net income edged up in the third quarter, as the breakfast giant benefitted from its acquisition of Prin-gles chips earlier this year. The deal instantly made Kellogg the world's sec-ond biggest salty snack food company, behind PepsiCo Inc's Frito-Lay. Since Pringles gets two-thirds of its revenue from overseas, Kellogg is also hoping the deal gives it inroads into the inter-national markets, where the ranks of people with more disposable income are growing. Total revenue rose 12 per cent to $US3.72 billion, above the $US3.7 billion analysts expected. Business Spectator 2 November

Company News

2012 HR Executive Groups

Page 9

REMINDERS FOR YOUR DIARY

December

5 Sydney HR Executive Group

Level 1, 33 Herbert Street

St Leonards NSW 2065

Postal Address

PO BOX 309

St Leonards NSW 1590

www.newtonconsulting.com.au

2012 Newton Consulting Group ©

All rights reserved. No part of this publication may be reproduced or utilised in any form or by any means,

electronic or mechanical, including photocopying, recording, or by information storage or retrieval system,

without prior consent by the Author. Whilst Newton Consulting Group has made every effort to verify the

accuracy of the enclosed information, we will not accept liability for any inaccuracies.

be added—if you are a fan of udon, you will surely be able to taste the freshness of Kansai’s udon. Drinks aren’t included in these prices, but they offer a great selection of both Japa-nese and Western alcoholic beverages—go for the au-thentic experience and order a Sapporo Draft Beer ($8) or the Goshu Sake ($7.50). Food aside, the service is extremely fast and though English may not be their first language, we’ve never had any issues. The only down side to fast service is that, because the restaurant is somewhat cramped, you have to eat really fast so that you have enough table room for all those dishes you just ordered. The staff are gener-ally helpful though and they will make room for you! Of note, don’t over order, as with every buffet, they will charge you for left-overs. Also, dessert is limited so go elsewhere for your sugar-fix.

Kansai Japanese

Restaurant

Mon-Fri: 10am-10pm

Sat & Sun: 5pm-10pm

Basement 1/7-13

Hunter St, Sydney

Tel: 02 9231 5544

http://kansai.com.au/

sago and teriyaki sauce), usually $18.50 per roll, and the Volcano (crabmeat, cu-cumber and avocado filling topped with baked salmon, tobiko, spicy sauce and may-onnaise), usually $16.50 per roll. Lastly, an honourable mention to the Crunch, a DEEP FRIED sushi (prawn tempura, avocado, cucumber and carrot filling), usually $13.50 per roll, for the deep-fried-food lovers. And of course what Japanese feast would be complete with-out sashimi? Go with the $39.50 per person all-you-can-eat option and you can also eat unlimited Sashimi Boats, usually $58 for a large boat (yes it’s literally served in a wooden boat). Just one of these boats, and you would’ve made your money’s worth. Don’t disregard the Hot Pots either, which are great for a cold day. Have the food bub-bling right in front of you, cooked in a tasty broth, and try asking for udon noodles to

Flora Nguyen

Restaurant Review

While the Japanese sushi train is an Aussie favourite offering healthy, portioned, and varied dishes, many would agree that the bill at the end of such a meal is usually far from portioned. If you share the same senti-ment then come on down to Kansai—a Japanese restau-rant in the heart of the city, but without the city price tag. Regulars will tell you to go for the all-you-can-eat dinner option, which includes every item on their menu excluding sashimi, hot pot, drinks and dessert. Prices are $29.50 per person and $19.50 per child. For entrees, try the Gyoza (deep fried vegetable dump-lings), usually $7.50 per plate, the Yakitori Chicken (grilled chicken skewers with yakitori sauce), usually $4 per skewer, the Karage Chicken (deep fried mari-nated chicken with ginger sauce), usually $9.80 per plate, and—not or, but and—the Prawn & Vegetable Tem-pura, usually $9.80 per plate. For sushi lovers, order the freshly made Dragon (deep fried prawn and avocado filling topped with eel, ma-