London Taverns Ltd is currently the largest independent public house operator in the UK with some 50 pubs, hotels and branded restaurants located within the radius of the M25. The last two years have seen a period of rapid expansion for the company and this is set to continue as the company plans to acquire at least a further 20 outlets either by one-off purchase or by small takeovers. London Taverns Ltd was originally a family business; the founder's son is currently chairman and managing director. A self-confessed 'maverick', he has an inherent suspicion of bureaucracy or any system which he feels will stifle initiative or the entrepreneurial culture of the company. This even extends as far as a reluctance to standardise a company staff application form.
At present the day-to-day operations of the company are overseen by a finance director and two area managers, with a further director handling development and acquisitions. The managing director's secretary is responsible for the majority of matters concerning recruitment and staff administration.
Monthly and weekly wages are the province of the finance staff.
On-the-job training of trainees is the responsibility of each unit with some general training courses provided by an outside consultant. Since the demise of the Industrial Training Board, and the requirement to provide adequate training to qualify for levy exemption, even this minimal level of training has been reduced.
There exist no defined policies or procedures relating to personnel or training. Only a very few members of staff belong to a trade union. The finance director has frequently commented critically about the lack of a developed personnel function and on the need for standard systems, clear policymaking and longer-term strategic planning. In the past the managing director has not appeared very interested and has not been persuaded to take any positive action.
Recently, however, the company has experienced difficulties in recruiting and retaining both management couples and trainees of a suitable calibre. This has led to problems with some units which have had to rely on temporary managers. In addition, the company has been involved in two much publicised industrial tribunal hearings which they lost largely because of the handling of disciplinary matters relating to allegations of sex discrimination.
These problems, coupled with the continued plans for further expansion, have reluctantly persuaded the managing director to agree to the appointment of a full-time member of staff responsible for personnel matters. The managing director has resisted the designation of human resource manager as 'too grand and likely to give the person ideas above their station' but rather grudgingly accepts the title of personnel manager.
The finance director feels strongly that it is important to have a clear picture about the new personnel manager's first priorities, the systems and policies for the company and the longer-term objectives for the appointment. The managing director, however, seems less concerned about these aspects and is more worried about the personality of the person to be appointed, and their position within the structure of the company.

Questions

The managing director has now engaged you, as an outside consultant, to advise on the appointment of the personnel manager. He also expects you to provide him with a clear idea of the duties and responsibilities attached to the position, the first priorities, and the extent to which the person appointed should be involved in longer-term strategic policies and procedures.