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Meeting business needs through training and development
Curriculum Topics • Training & development • Identifying training/ development needs • Costs and benefits • Career progression
Introduction ASDA’s mission is ‘to be Britain’s best value retailer exceeding customer needs, everyday’. This is backed by its purpose - ‘to save everyone money, everyday’. ASDA recognises that these depend on a commitment always to put customers first in everything ASDA does, which is achieved through dedicated teams of ASDA colleagues. ASDA is a private limited company, with its Home Office (Head Office) in Leeds. ASDA shares a common culture with its parent company, the US retailer Walmart and puts value for money at the heart of its operations. ASDA’s beliefs (also known as values) are lived and communicated to all colleagues and reflected in everything the business does.
ASDA is always at the heart of the community, often with many generations of a family working at the same store. ASDA also supports a strong corporate social responsibility (CSR) ethos. This is shown through its employment and career opportunities in communities, its support for customers through low prices, as well as charity activities and health initiatives. ASDA is recognised nationally for its low prices and warm and friendly service. The business has over 500 stores across the UK and Northern Ireland, including large Supercentres and Superstores as well as smaller supermarkets found in towns and suburbs. ASDA has seen significant expansion over the last few years. As well as offering food and general merchandise, ASDA has diversified into optical and pharmaceutical services, as well as mobile phone and financial services, with more categories launched each year. There are 25 ASDA Living stores for non-food merchandise, two Home Shopping stores supporting the online shopping service and 27 Distribution centres. The George brand overtook Marks and Spencer in 2009 to become the UK’s leading fashion retailer by volume. ASDA’s customer base has increased through its online services, www.asda.com and ASDA Direct. ASDA’s training and development programmes help its colleagues and managers to grow to meet these challenges. ASDA is an equal opportunities employer. It supports young people with careers in retail, for example, its ‘Flying the Flag’ programme offers work experience at ASDA for young people for one or two weeks each year.
Mission: Overall purpose and direction for an organisation.
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Culture: Set of assumptions, beliefs and patterns of behaviour characteristic of an organisation or group of people.
Corporate social responsibility: Responsibility of a company to be a fair and positive force for good in the local community.
GLOSSARY
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Diversified: Widening a firm's scope across different products and market sectors to spread business risk.
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GSMs are like managing directors – many have responsibility for 500+ colleagues and sales turnover of over £1 million a week. They need to be able to demonstrate a wide range of behaviours and technical skills. They are responsible for: • leadership – leading their store teams • celebrating achievement and managing under-performance, supporting improvement where needed • coaching and developing colleagues and managers • setting goals and agreeing priorities by responding to change and spotting opportunities • being a role model for the ASDA Way of Working - an approach whereby all colleagues are engaged and involved in improving the business – through inspiring and coaching others. ASDA uses both on-the-job and off-the-job training to develop colleagues at all levels. As a GSM begins their transition to a ROM role, they need to complete several different types of activities.
Each store ‘adopts’ two local secondary schools to encourage young people to consider a career in retail. Each store has a Community Colleague that works in the local community. He or she regularly visits schools to talk about the retail sector and their own experiences of working at ASDA, as well as the varied and numerous career options available. The company provides development opportunities to enable ASDA colleagues to reach their potential, whether as a manager in store or taking a place in the boardroom, regardless of their starting point. ASDA employs over 170,000 colleagues and rewards long service. It focuses on developing an accessible ‘family’ atmosphere in the stores. This provides a platform for long-term careers as colleagues develop within the business. Around 80% of ASDA managers began their careers in its stores.
On-the-job, GSMs begin to experience the ROM role in order to put their skills into practice. On-the-job activities account for 80% of their development and it is up to the individual to drive their own development opportunities. Examples include: • covering their ROM’s duties when they are on holiday • receiving guidance from a mentor on the Retail Board (a senior manager) • attending meetings on behalf of the ROM • owning regional projects. Off-the-job, GSMs develop the skills needed to be a ROM through modules and a series of external coaching. These account for around 20% of the overall development: • ‘Being at my Best’ – this programme focuses on emotional intelligence and supports GSMs to understand their strengths and areas for development.
This case study focuses on how ASDA’s training and development programmes enable its General Store Managers (GSMs) to develop the skills and experience they need to become the Regional Operations Managers (ROMs) and senior leaders of the future.
Training and development Training involves acquiring new skills and knowledge in relation to a current role. Development relates to a person’s potential to acquire wider capabilities. ASDA uses both to support its mission and to benefit the business and colleagues. The retail sector offers a long-term career path. By developing colleagues with the potential to be GSMs, ASDA has put in place a robust long-term succession plan to develop the ROMs of the future.
GLOSSARY
Succession plan: Training and developing individuals to take over leadership roles when existing senior managers retire or leave.
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Coaching: A colleague or external person provides advice and shares experience. On-the-job training: Training undertaken within the organisation whilst in the course of doing the job.
Off-the-job training: Training undertaken away from the workplace, e.g. block release at college.
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Mentor: An experienced and trusted colleague gives advice and encouragement to another colleague.
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• ‘Multi-site coaching’ – improves an individual’s capability to coach across the range of GSMs using different coaching conversations and styles. • ‘Influencing across the business’ – provides an opportunity to learn how to communicate in a compelling way. • ‘Thought Leadership’ – develops the capability to lead a team through innovation, creative thinking and leading with courage. • GSMs also receive telephone coaching to support them and address development needs.
Costs and benefits of training and development
Of course, we have a framework that we all work to, but it is very flexible, so I never feel constrained at all. In fact, this is one of the reasons I joined ASDA in the first place. My first role was as GSM for a failing store in Kent. I devised a three-month plan - ‘Project Phoenix’ - to turn the whole store around. When I started, we achieved a score of just 56% at our audit; three months later and we were at 95% - a brilliant example of success when everyone pulls together. I am now a Regional Operations Manager for Kent. At ASDA, if you put in the work, the reward and progression is definitely available.’
Progression routes
Even in tough economic times, ASDA takes the long-term view that investment in training and development is the right thing to do both for the business and its people. ASDA has dedicated Stores of Learning (SOLs) across the company. These are stores which serve as centres of excellence for technical and behavioural training. Appropriate investment in training and development increases retention of colleagues and leads to higher performing and productive teams, which in turn support ASDA's growth and expansion plans. The key benefits of ASDA’s training are seen in: • increased colleague productivity - where customers are served and satisfied more quickly. This improves colleague efficiency, reduces costs and leads to higher profitability. • the quality of ASDA’s well trained colleagues. A pleasurable shopping experience means customers are more likely to return to the store to shop. This gives ASDA a competitive advantage. • high morale which leads to a more motivated team. If colleagues are motivated to develop there are many opportunities open to them. The resulting sense of achievement that colleagues convey in their work contributes to a positive corporate image. • ASDA aims to fill 80% of appointments through internal promotion. Wendy is an ASDA colleague who developed from a GSM to ROM role. This is her view of what working at ASDA is like. ‘It’s dynamic, fast-paced and challenging. I’m given all the space I need to do things my way, which I find really inspiring.
There are many different roles within ASDA, from shop floor colleagues and specialist roles like bakery, to fashion buyers and lawyers. The career path shown is for a GSM who wants to develop to a ROM. Working in several different stores provides GSMs with the experience and background to operate effectively in a ROM role.
Stepping up to ROM Further development role e.g. a project role up Third appointment e.g. GSM of complex store or supercentre re Second appointment e.g. GSM of new store First appointment to GSM role
Mark, a GSM who has recently opened a new ASDA store in Cumbria, says: ‘I joined ASDA as a shop floor colleague in 1990. I knew nothing about retail but my Careers Advisor suggested I apply to ASDA as it looked an exciting place to work. I believe that the development programmes here have been a key part of my career progression. I have been a Grocery colleague, a Night Manager, a Training Manager and a Project Manager at our Home Office in Leeds. I became a GSM about three years ago. Since then I have developed personally and professionally through working as a store manager in three different stores.’ Prior to becoming a GSM, all managers will usually work as an Ambient Trading Manager or Fresh Trading Manager. These roles are responsible for the whole range of food trading, home shopping and warehousing within a store. This on-the-job experience gives colleagues a better insight into the complexities of the business. They become aware of all aspects of the store, not just the management issues. For example, the warehousing experience is very important in order to learn first-hand the practicalities of effective stock control. This enables prospective GSMs to understand the implications of efficiently managing costs and minimising wastage.
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Another ASDA colleague, Kieran, started as a Retail Graduate with ASDA and has now progressed to a ROM role. He says: ‘I was working at ASDA whilst studying for a degree in Law so I applied to the ASDA graduate scheme. After my initial training, I started as a Home & Leisure Manager. I then moved around different roles before becoming a Senior Manager. A year later I moved into ASDA House (Home Office) to work as Project Manager to the Chief Executive. A year after moving back into retail and running my own store, I became Regional Availability Manager. ASDA lets managers take risks on people and gives them a chance – with the right support you can go very far, very fast. Retail is open to all, and if you have the right attitude, work hard and deliver, you will get on. How quickly or how far is up to you.’ ASDA offers a personalised approach to developing skills and leadership behaviours. Colleagues have the chance to experience different business environments, perhaps in a Supercentre, Distribution Centre or in a role in Home Office (Head Office). At all levels, including moving from a GSM to a ROM role, development must be driven by the colleague and relies on individual activity and personal motivation. ASDA colleagues must take responsibility for their personal development.
Identifying training and development needs Identifying skills and development opportunities for senior roles is essential to maintain leadership succession. ASDA’s aim is ‘to ensure we identify and create a robust internal succession plan to develop our internal talent’. It therefore provides a visible and structured career path for its GSMs, backed up by technical and behavioural training.
These tools help ensure that the investment ASDA makes in training and development helps the business achieve its objectives. All training and development should contribute to improving ASDA's overall business performance. The GSM-ROM programme is designed to provide a structured yet flexible approach to developing a career path. The programme fits around a GSM's own personal experiences and current technical and behavioural skills. This aligns his or her career development path to meet and overcome the challenges of their store. A GSM’s performance is measured equally on both outcomes (the ‘what’) and behaviours (the ‘how’). One of the ways these are assessed is through feedback from other colleagues. This process focuses on Likes, Concerns and Suggestions (LCS) and ensures that feedback is always constructive. Once training needs are identified these are managed through various programmes, such as store visits, Line Manager coaching, off-the-job modules, coaching calls and mentoring.
Conclusion ASDA’s tailored and personalised approach to training and development provides a strong foundation to meet its current and future leadership needs. The company plays to individuals’ strengths and offers various channels through which they can develop. This produces ASDA colleagues who are committed to the success and expansion of the business. By promoting and supporting progression at all levels, ASDA enables its colleagues to focus on ‘being at their best’ and growing within the company. The results are increased morale, quality of work, higher productivity, and in the long-term, increased colleague retention and profitability. In this way, everyone in the company delivers the highest standards of service to meet ASDA’s objectives and help the business to reach its goals.
1. Describe the difference between training and
GLOSSARY
Motivation: Attracting a person to do something because he or she wants to do it.
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development. Why might both be needed? 2. Explain why colleague retention is important to ASDA. 3. Use the ASDA colleagues’ profiles to analyse why training and development adds value to the business. 4. Evaluate the various methods that ASDA uses in its training and development programme. Judge why it uses so many, giving reasons for your answer.
Psychometric tests: A set of questions which, when analysed, suggest an outline of a job applicant's personality or ability.
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QUESTIONS
ASDA runs Development Days with its senior managers to identify where their development opportunities are. These consist of many different activities such as business simulations, presentations and in depth interviews. ASDA also uses psychometric tests, 360-degree Leadership Surveys, 1-1 diagnosis with line managers and annual appraisals to help identify development needs. It is essential that each person's development plan is 'fit for purpose' and tailored to individual requirements.
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Building a better workplace through motivation
Curriculum Topics • Taylor • Maslow • Mayo • Herzberg
Introduction
resources. Keeping everybody motivated no matter what their role is not easy. Kellogg’s was recently placed in the top 100 of the Best
People spend a considerable part of their lives at work, so it is not
Companies to Work For list in The Sunday Times. Kellogg’s values
surprising that they expect to be rewarded and satisfied with the
and culture support its role as a good employer. Encouraging
job that they do. Motivation is concerned with why people do
everyone to live by the K-Values throughout the whole business
things as well as what drives them to behave in a particular way.
creates a culture of people that have ownership over their own projects
Understanding what motivates individuals is important in the
and strive for continuous improvement and industry-leading results.
workplace. Research suggests that motivated employees are
These values influence the behaviour of individuals within the
happier at work. They get more satisfaction from their work, are
workplace, making Kellogg’s a positive place to work. Employees are
absent less often, tend to be more loyal and work with more
encouraged to speak positively about each other when apart, focusing
enthusiasm. This in turn encourages them to contribute more to
on their strengths. This involves listening to others and accepting their
the development of an organisation.
right to their own views regarding the workplace.
This case study focuses on how Kellogg’s motivates its people. It
The benefits of Kellogg’s investing in people can best be illustrated
illustrates how the use of motivational techniques helps to develop
by looking at the work of some of the theorists who have worked
the business as a ‘great place to work’.
on motivation. The remainder of the case study shows how Kellogg’s commitment to creating a ‘great place to work’ is
The Kellogg Company is the world’s leading producer of breakfast
supported by these theories.
cereals. Its products are manufactured in 18 countries and sold in more than 180 countries. For more than 100 years, Kellogg’s has been a leader in health and nutrition. It has done this by providing
Frederick Taylor
Abraham Maslow
consumers with a wide variety of food products.
Theories of motivation Within Kellogg’s, there is a variety of functions and work roles. These include engineering operatives in the manufacturing section. Others
Elton Mayo
Frederick Herzberg
Motivation: Attracting a person to do something because he or she wants to do it.
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Values: Set of ethical or operating principles that guide decision making.
GLOSSARY
work in finance, marketing, sales, information technology or human
Culture: Set of assumptions, beliefs and patterns of behaviour that are characteristic of an organisation or group of people.
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Taylor
Maslow
Frederick Taylor was associated with what has become known as
Maslow’s theory relates motivation to a hierarchy of needs. At the
‘scientific management’. Taylor believed that monetary reward
bottom are essential physiological needs such as air, food, shelter
was an important motivating factor. Pay could simply be used to
and clothing. As individuals satisfy one level of need, their
increase rates of output. Taylor’s view of motivation applies to
motivations change as they aspire to reach the higher order
people who tend to work within narrow job confines such as on a
needs. Therefore, to motivate an individual Maslow suggests that
production line. These are people who can be paid according to
it is necessary to know where within the hierarchy each employee
the amount of work that they do or units they produce. This is
is placed so that these factors can be taken into account.
known as ‘piece work’. Maslow’s hierarchy of needs
For many people pay is still a prime motivator. For example, within
Self Actualisation
Kellogg’s many employees are motivated by cash alternatives
Esteem Needs
which include the opportunity to buy and sell their holiday days. Taylor’s theory breaks down jobs into components or specialist
Social Needs
tasks through the division of labour. This especially applies to
Safety Needs
production processes within large companies like Kellogg's. These
Physiological Needs
rewards can help to increase productivity and profitability. The danger with this is that individuals are simply focused on output to get rewards so quality might suffer as a result of employees
Within Kellogg’s every employee is motivated to work through
rushing to do the job.
each of these levels. As they do so, this provides positive effects for each employee and the organisation. For example
Scientific management is not a process that allows development
• Physiological needs – Kellogg’s offers competitive salaries. This
of people. It limits their ability to take ownership of what they do.
gives people the means to acquire the basic needs for living.
Kellogg’s staff are encouraged to be creative and use their
The Kellogg’s Cornflex flexible benefits programme allows
imagination to contribute towards change. Consequently, Taylor’s
employees to choose those benefits that suit them. This
view of monetary reward for output is not appropriate for the
includes childcare vouchers, cash alternatives to company cars
motivation required for this type of workplace.
and discounted life assurance schemes. These savings and competitive salaries help workers pay go further and so motivates them to be loyal to the company. • Safety needs – Kellogg’s values the safety of all employees. The company is committed to providing a safe and healthy work environment to prevent accidents. Employees are however accountable - that means they have to take responsibility for observing the health and safety rules and practices. Kellogg’s also offers employees a range of working patterns. Some may want to work part-time, others may want career breaks or undertake homeworking. This helps employees to choose the best option for a healthy work-life balance. • Social needs – These are associated with a feeling of belonging. Kellogg’s operates weekly group ‘huddles’. These provide informal opportunities for employees to receive and request information on any part of the business, including sales data and company products. This helps strengthen teams and enhances workers’ sense of belonging.
GLOSSARY
Scientific management: Using logical methods to achieve objectives at the lowest cost. Monetary reward: Monetary payments and benefits received by employees.
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Piece work: A payment system where payment is made according, to output i.e. for every 'piece' produced. Division of labour: Breaking down a production process or job into a number of specialised tasks.
Kellogg’s | Building a better workplace through motivation
Homeworking: Working from home rather than in a traditional work environment such as an office.
Work-life balance: Creating conditions for staff that allow work and home commitments to be balanced against each other.
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Having an open approach to communication keeps everybody
Kellogg’s keeps a two-way dialogue with employees through its
focused on the company’s aims and objectives. Kellogg’s
communication programmes. This helps to empower the
breakfast clubs and support for swimming promote a healthy
workforce. For example, its open-plan lobby area with coffee bar
life-style and keep the business active in the community.
accommodates as many as 200 people. It provides an informal
• Esteem needs – Kellogg’s recognises that all employees
venue for briefings and presentations. The WK Kellogg Values
should feel that they contribute to the achievements of the
Awards programme provides special recognition for what
business. Feedback from appraisals helps to assess how far
employees do and rewards them for how they perform.
individuals contribute to the company’s K-Values. They include values such as being positive, seeing the best in people and
‘Here at Kellogg’s listening is a central premise of the way we work.
recognising diversity. Kellogg’s positively recognises and
We believe that our employees have some of the best ideas and that
rewards staff achievements.
a successful company is one that listens to the grass roots feedback
• Self-actualisation – Kellogg’s provides employees with the opportunity to take on challenging and stimulating
and acts on it. Any employee can raise an issue or a suggestion via their rep who will raise it at one of their monthly meetings.’ (Sue Platt, HR Director)
responsibilities. For example, the business provides the opportunity for individuals to take ownership of projects. This enables them to develop and improve.
The Kellogg’s suggestion box scheme helps to generate ideas and improve productivity. Kellogg’s has an initiative called ‘Snap, Crackle and Save’ - an employee suggestion scheme to save
Laura Bryant joined Kellogg’s straight after university in 2002. She joined the Field Sales team initially. This involved visiting five to ten supermarkets a day to develop relationships at a local level. After two years her hard work was rewarded and she was promoted to Customer Marketing Manager at Head Office. This helped to raise her profile as she wanted to move into marketing. With support from her manager, Laura made the transition from Sales to Marketing as Assistant Brand Manager on Rice Krispies and Frosties. In 2009 she was promoted again to
costs within the supply chain. Hundreds of ideas have been put forward over the last couple of years. One idea suggested that the same thickness of cardboard could be used for packaging in all manufacturing plants in Europe. This saved around £250,000 per year. Kellogg’s also shows its commitment to making its business a great place to work. It provides personal development planning for employees which includes provisions such as secondments and study leave as part of staff development. This reinforces staff commitment and their sense of being treated well.
manage the marketing plan for Special K and she is now Brand Manager for Kellogg’s Cornflakes. The company has helped motivate her to climb the hierarchy of needs and achieve her career ambitions.
Mayo Elton Mayo was the founder of the Human Relations Movement. His experiments were conducted at the Hawthorne plant in the USA during the 1930s. His work showed that taking an interest in and caring for employees can have a positive effect on employee motivation and productivity. He showed that employees were best motivated if they worked in teams. They were also motivated if managers communicated and consulted with them more and
Appraisals: A process to assess the performance of an employee, often based upon comparing outcomes with targets.
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Empower: To give formal and informal authority to employees so that they feel in control of their own work.
GLOSSARY
took a greater interest in their views and wellbeing.
Supply chain: Sequence of linked transactions that carries a product from its origins as raw materials or components to its receipt by the final consumer.
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Herzberg Claire Duckworth works in the Consumer Insight team at Herzberg felt that satisfied employees would be productive
Kellogg’s. She takes part in Latin American ballroom
employees. Herzberg’s theory is sometimes called the two-factor
dancing competitively with her partner. They are ranked
theory. These factors are hygiene factors and motivators. Hygiene
7th in England in the over-35 category. Flexible working at
factors are often referred to as ‘dissatisfiers’. These are
Kellogg’s enables her to travel to events and provides her
elements in the workplace that could make employees unhappy,
with the opportunity to pursue her hobby at a serious
such as excessive company bureaucracy or an autocratic
level. This opportunity to adjust her working life to
working environment.
accommodate her personal ambitions makes Claire feel respected and supported.
Herzberg motivators (sometimes called ‘satisfiers’) are aspects of for example, the level of responsibility of the job, promotion or
Motivators within the Kellogg’s company reflect the different
recognition for effort and performance. Herzberg believed that
personal aspirations of staff. The working environment provides
businesses needed to ensure hygiene factors were minimised in
the opportunity to move forward and take on responsibilities.
order to enable motivators to have their full effect.
There is clear recognition and reward for performance. For example, the Kellogg’s sales team meets every Friday morning to
Kellogg’s has developed a number of motivating factors. These are
share success stories of the week. Once a month it recognises
designed to ensure that Kellogg’s is perceived as a good place to
individuals that have worked above and beyond the K-Values.
work and a desirable employer of choice. For example, Kellogg’s has
Winners receive a range of awards ranging from cash prizes,
a ‘Fit for Life’ programme offering employees access to fitness
vouchers or holiday entitlements.
centres, free health checks and annual fitness assessments by healthcare specialists every spring. It also provides a ‘summer hours’
Conclusion
programme from May to September so if employees have worked a full week's hours by noon on a Friday, they can finish work at that
This case study illustrates the range of different motivation
point. This means employees can adjust their working hours to
measures in practice at Kellogg’s. It demonstrates that highly
balance their work against family or lifestyle commitments.
motivated employees can improve efficiency, output and quality for a business.
Awareness of motivating factors helps Kellogg’s to build a business that delivers consistently strong results. Other initiatives
Motivating staff helps to make them more committed to the
within the organisation include:
workplace. By understanding the effects of different motivation
• flexitime, home working, part-time working and job sharing
techniques, Kellogg’s is able to make work a more exciting and
• career breaks, parental leave, time off for dependents and
interesting experience for employees whilst creating a more
maternity and paternity leave
productive, profitable and competitive business.
• on-site gyms or subsidised access to local facilities. 1. Using two motivation theories of your choice, explain a) the similarities and b) the differences between the
motivated workforce. 3. Analyse the difference between hygiene factors and motivators. 4. Evaluate the benefits to organisations of using different motivation approaches.
GLOSSARY
Dissatisfiers: Activities within the workplace, outside the control of employees that cause them dissatisfaction.
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Autocratic: Taking decisions without consultation or discussion.
Kellogg’s | Building a better workplace through motivation
Flexitime: A variable work schedule where employees must be at work for a defined part of the day but the remaining hours are flexible subject to them achieving the total daily, weekly or monthly hours that the employer expects.
Job share: Where the hours and duties of a job are divided between two staff.
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QUESTIONS
two theories. 2. Describe the benefits to an organisation of having a
©The Times 100 and Wilson and Wilson Publishing Ltd 2011. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission.
any workplace that give individuals job satisfaction. These include,