Strategic Human Resource Management

Requirement

Based on the Article:  Managing human resources remains challenge to growth (thenational.ae, 2015)
the following questions and prepare a Report.
1.    Explain the importance of SHRM in any organisation by justifying with an example. (AC: 1.1 Explain the importance of strategic human resource management in organizations). 
2.    Based on the Article given above, it states explicitly that “There is widespread acknowledgement that finding the right framework to recruit, retain and manage human capital resources remains one of the toughest challenges to growth and continuity for organisations and governments in the GCC”. 
(a)    Choose an organization of your choice, preferably the organization where you are working (or) worked (or) familiar with in the GCC region.  Understand the chosen organization’s objectives and understand the working procedures of the organizations related to the HR management.  Give out clearly the chosen organisation’s goals and objectives. 
(b)    State the SHRM activities pertaining to recruitment, retention and management of important human capital resources in the chosen organisation and assess the purpose of such SHRM activities in the organisation. 
(c) Finally, evaluate the contribution of SHRM of the organisation, towards      achieving and meeting the chosen organisational objectives and goals. (AC 1.2: Assess the purpose of strategic human resource management activities in an organization) and (AC: 1.3 Evaluate the contribution of strategic human resource management to the achievement of an organization’s objectives).
    
Assessment Task 2 (Scenario) 
Answer the following questions given below relating to your chosen organisation in the Task 1. 
1. Analyse the business factors that underpin human resource planning in terms of recruitment, retention, training and development in your chosen organisation. 
Assess the human resource requirements in a given situation (recession or expansion or diversification or divestment or downsizing or layoff or retrenchment, or any other situation) in the chosen organization. (AC: 2.1Analyse the business factors that underpin human resource planning in an organization and AC: 2.2 Assess the human resource requirements in a given situation).  
2. Based on the objectives of the chosen organisation, develop a human resource plan for recruitment, retention, training and development in your chosen organisation. 
Critically evaluate the HR Plan, to identify its contribution towards meeting the chosen organisational objectives. (AC: 2.3Develop a human resources plan for an organization and AC: 2.4Critically evaluate how a human resources plan can contribute to meeting an organisation’s objectives). 
3. Explain the purpose of having human resource management policies in your chosen organisation (you can concentrate on recruitment policy, selection policy, retention policy, training and development policy, leave policy, career growth and promotion policy, compensation and benefits policy).  (A.C 3.1 Explain the purpose of human resource management policies in organizations). 
4. Choose a minimum of three or more major regulatory requirements which are influencing your chosen organisation’s HR policies, and analyse the impact of these regulatory requirements on your organisation’s human resource policies. (A.C 3.2 Analyse the impact of regulatory requirements on human resource policies in an organization). 
5. Organisational culture has a major impact on management of human resources in an organisation. 
Choose a minimum of three or more major cultural factors which are prevalent in your chosen organisation and analyse their impact on the management of human resources in any of the three following functional areas: - Team Work, Employee Engagement, Adaptability, Responsibility/Accountability, Decision Making, Productivity, Transparency). (A.C. 4.2 Analyse the impact of an organizational culture on the management of human resources). 
6. How would you like to improve the effectiveness of human resources management in your chosen organisation? Make few recommendations with justification.   (A.C. 4.4 Make justified recommendations to improve the effectiveness of human resources management in an organization)

Solution

Assessment Task 1:

1.    Importance of SHRM

Strategic human resource management is defined as the management plan which is having a strategic approach in which the policies and procedures are linked to the strategic objectives of the company. The strategic management helps to take the managerial decision which determines the performance of the company in the long run. The strategic human resource management harnesses the potential of human resource which leads to organizational success (Mello et al., 2014). It is the key to organization success through channeling the human resource in the right direction towards the achievement of organizational goals. It enables the employees for completing the objectives of the company through empowering and engaging the employees. For example, the training and development provided to the employees help to solve the organizational problem regarding the quality of work and it helps to achieve the objectives of an organization in a most efficient and effective manner. The performance of the employee is accelerated through a proactive approach of strategic human resource management. The human resource manager has two functions, namely, managerial functions and operational functions. The managerial functions include planning, directing, controlling, coordinating and others. The operational functions include welfare to employees, compensation, and others.

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2.    JulpharCompany

qThe Julphar is a public shareholding company which is based in the United Arab Emirates. It is related to Gulf pharmaceutical industries. The total employees of the company are 2,900 (Julphar et al., 2016). The company is managing its human capital adequately through a strategic approach which helps to achieve the goals of the company. 

a.    Organization objectives towards HR management
The objective of the organization is to manage the human resources in an efficient and effective manner which helps to contribute towards the achievement of official goals. The other objective is to provide the healthy and friendly environment to the employees which motivate them to improve the productivity of the company. The working procedure of an organization towards the management of human resource includes training and development, teamwork, employee engagement and retention which help to manage the human resource of an organization (Buller et al., 2012).

b.    SHRM related to recruitment
The aim of recruitment is to attract right candidate for the right job. The activities related to recruitment include campus hiring, internal hiring, portals and others. The strategic human resource management helps to identify the right employee required for the particular position to achieve the objectives of the company. 

  • SHRM related to retention
    The strategic human resource management helps to retain the employee through building the strategies such as increasing the job enrichment, and job enlargement which retains the employee through motivates them and provides benefits to both the employer and employees.

  • SHRM related to importance of HRM
    The strategic human resource management helps to develop the plan related to recruitment, compensation, and training which helps manage the human resource in a most efficient and effective manner. The human resource management has been developed into strategic human resource management which emphasizes the effective functionality of organization (Zikic et al., 2013). The policies of human resource management are linked to the strategies of the company, and strategic human resource management is directly related to the performance of an organization.

  • SHRM Purpose assessment
    The purpose of strategic human resource management is to improve the performance of employee, high quality of service, improvement in organizational performance, training and development which are directed towards the achievement of organizational goals. The strategic human resource management acts as a success key for the company through managing the employee by a strategic approach in applying the human resource techniques to achieve the goals and objectives of the company.

3.    Evaluation of SHRM towards organizational goals

The strategic human resource management helps to provide high skills employees, high service quality to the customers, revision of the performance of the employee which leads to enable the new innovative and reliable performance of an organization. The organizational goals of the company can be achieved through high-skilled performance of the employee which can deliver the high quality of service that leads to improving the brand image in the eyes of the consumers. The improvement of brand image is the objective of an organization which is achieved through strategic human resource management by increasing the performance of the employee. The strategic human resource management improves the performance of an organization, create a .organizational culture, and provide the competitive advantage which helps to attain the organizational goals (Armstrong et al., 2014). 

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Assessment Task 2:

1.    Analysis of business factors contribution

The strategic human resource management helps to recruit right employee for the right position. The strategic human resource management focuses on the activities of human resource management which develop the company. The strategic human resource management is applied to the company for getting the satisfactory outcome. Following are the business factors:

  • 1. Business growth The growth of the business is based on the performance of human resource, and strategic human resource management helps to improve the performance of the employee. The growth of the company depends on the brand image which is improved by providing high-quality services, and strategic human resource management helps to improve the services through providing training to the employees (Ahlvik et al., 2015). 

  • 2.    Location of operation The company operates inthe United Arab Emirates with the network of eleven plants. The total employees are twenty-nine hundred who contributes to the growth of the company.

  • 3. Change in business
    The company has gone through a radical change by implementing the web-based system in an organization. It helps the consumers to purchase online with twenty-four hours service. The easy payment service can be accessed by the consumers which help to improve the quality of services. 

2.    Human resource plan

The company has rich human resource management which operated eleven plants in a most efficient and effective manner.  The company has created human resource plan for the performance of human resource. The plan is developed by the human resource manager.

  • Organizational objectives: The objectives of an organization are based on SMART approach in order to provide best services to the consumers.

  • Employee development: The training program is developed for the employees who helps to improve the performance of the employee and enables them to achieve the objectives of the company.  

  • Selection and recruitment: The selection is the initial stage of the process in which right employee is selected for the right job according to the organizational structure of the company. Then the recruitment process started accordingly which helps to avoid the unwanted position in an organization.

  • Retention: The planning of retention provides the opportunity to keep the skilled personnel in the company for the long duration of time. The development of career planning and promotion helps to avoid potential recruitment of the company. 

The development of human resource plan includes following stages:

  • 1.    Data collection:
    The data of human resource is collected for the assessment purpose. The planning process evaluates the issues on the implementation of strategic plan, an internal supply of the human resource and others. The data and the information are collected from the internal and external environment of the company (Mathis et al., 2016).

  • 2.    Forecasting:
    The forecasting includes identifying the future human resource requirement according to the strategic planning of an organization. The human resource planning helps to meet the demand of human resource with the supply. 

  • 3.    Reconciliation:
    The reconciliation helps to determine the gap between the supply of human resource and demand of human resource. It helps to grow organization with its operational plans. 

  • 4.    Action plans:
    The gaps determine in the reconciliation plans need to be addressed at this stage. The requirements of resources are identified to address the gap.

  • 5.    Feedback:
    The human resource plan is evaluated on the basis of its effectivenessand feedback is provided if the implementation of the plan is not successful. 

Evaluation of HR Plan

The strategic human resource management helps to increase the performance of human resource in an organization. The performance of the company is improved by the effectiveness of human resource plan. Following are the stages in which human resource plan contributes:

  • 1.    Business cost
    The human resource plan contributes to the optimization of cost by eliminating the unwanted expenses in human resource practices. The cost minimization is the element of human resource activities.

  • 2.    Improve performance
    The human resource management helps to improve the performance of employees which is required to attain the objectives of the company. 

  • 3.    Succession planning
    It is the key objective of the company is managing growth which can be achieved through strategic planning. It helps to understand the need of skillful and perspective employees in an organization. 

3.    Purpose of HRM Policies

The main purpose of human resource management is to manage the employees within the company such as recruitment, evaluation, selection and others. It is very important in managing the human resource in the most efficient and effective manner. The human resource management is closely linked with the very department. It helps to prepare for the difficult circumstances such as increment of workload, redundancies and others. Following are the characteristics of human resource management:

  • Flexibility
    The policies of human resource management are subjected to change such as the change in business fields which is anticipated in the human resource policies.

  • High commitment
    The human resource policy ensures the management of human resource towards the organizational goals.  

  • Strategic integration
    The policies of human resource management are integrated with the strategic plans of an organization. 

The human resource policy ensures results of high quality by improving the potential of human resource.Following are the policies of human resource management:

  • Health and safety policy
    The company emphasizes on the health and safety of an employee in an organization. The measure of risk arises from natural disaster, accidents, terrorist attacks and others. The company encourages the employees for considering the health and safety measures as the responsibility of job (Armstrong et al., 2014). 

  • Working durations policy
    The company has fixed forty-eight working hours for the employees in a week. The company has statutory requirements for the leave and working hours. The total leaves for the employee in a year is twenty which includes sick leave, and others. The maximum paid leave to the employee is 5.6 weeks. 

  • Bullying and harassment policy
    The company has put the specific employee policy to every employee in an organization which is imposed by the legislation and the regional cultural norms. There is no discrimination among the employees on the basis of caste, color, and creed. All personnelis accountable for behaving respectively with their peers who develops the environment free from harassments and discrimination.  

  • Equity and diversity policy
    The practice of equity and dignity is done in an organization with lots of integrity. The company has adopted various strategies to develop diversity practices in an organization. 

4.    Regulatory policies

The impact of regulatory policies is very important for the proper practices of human resource policies.  The regulatory policies emphasize on the discrimination, pay scale, equality employment rights and others. Following are the impacts of regulatory policies:

  • Race relation act: According to the Race relation act 1992, the discrimination on the basis of caste, color, religion, race, nationality and others is illegal. The discrimination practiced by anyone leads to terminate the employment (Enders et al., 2013). 

  • Sex discrimination act: According to the sex discrimination act 1995, the discrimination on the basis of sex is illegal or on the grounds of perceives sexual orientation. There should be no discrimination at the workplace.

  • Employment act: According to the employment act 2008, all employees have equal rights regarding the wage and other rights. There should be no discrimination at the time of recruitment on the basis of caste, color, creed and others. 

Following are the roles of human resource management in the company which is impacted by regulatory:

  • Advisory role: It includes the offering services which are provided to the employer and employees. It includes the offerings to line managers regarding the amendments in legislations. 

  • Service role: It includes administrative activities such as payroll, delivery of human resource programs and others. 

  • Guidance role: It is directly involved in the building of human resource policy of an organization and implements these policies.

5.    Organizational culture

The key element of management practice is organization culture. The culture provides the dimensional and central location in the company. The explicit attention is perceived by the organizational culture by the thinking of people regarding the values of the company. The strategy is influenced by the organizational culture which impacts the doing of business and responds to change. There are benefits of strong culture when the company is focused on a need to change. The operating activities of the company are influenced by the culture of an organization. Thus the understanding of organizational culture is very important for directing the employees towards the success of the company. The company has task culture in which the team members work together to deliver the project. The teamwork plays an important role in attaining the goals of an organization. The company is using the team-based approach to complete any task. It helps to motivate and empower the employee towards the accomplishment of a task. The team members are open to discussing the ideas towards the development of decision (Alvesson et al., 2012). The team members are having a different ethical background and situated from different countries, but the objectives are common to achieve the organizational goals of the company. All the team members are working hard towards the achievement of organizational goals.

6.    Recommendations to improve effectiveness of HRM

The role of the human resource manager is to ensure that the organizational goals and objectives are achieved. The regular communication with the employees helps to improve the performance of employees. It is recommended that human resource should be utilized in a most efficient and effective manner through regular performance evaluation. The human resource manager works at strategic and business level. As a strategic partner, the manager must design appropriate framework of human resource management which includes reward system, recognition, appraisal, recruitment, selection, retention and others. As a business partner, it is recommended that the human resource manager must think critically for taking decisions such as cost allocation and others. It is recommended that the human resource manager must be considered as employee sponsor because it works both at strategic and business level. The motivating working environment must be created which helps to increase the potential of employees that directly contributes towards the attainment of organizational goals. The human resource works effectively by continued performance assessment which helps to improve the effective of human resource management.

Assessment Task 3:  
1.    Analysis of organizational structure impacts on HRM

The organizational culture focuses on optimizing the organizational culture. The organizational culture is classified into four categories, namely, hierarchies, committees, matrix, and ecologies. The hierarchal structure contributes towards the attainment of the common organizational goal. The structure of the organization is set in different structures which are depending on the organizational goals. The allocation of roles and responsibilities is expressed in the organizational structure. The description of such structure is commonly named by the department, brand, and others. The company has eleven plants which are working on the different sites, but the company is having one branch in the United Arab Emirates, so the decision making of the company is done in a shorter period which is a good nature of the company. The company has the flat structure. There are four duty managers who provide the ideas regarding the managing of workload from the site manager. The managers run different shifts, and they have team leaders who took participation in the decision making of the company (Minbaeva et al., 2014). The stock controller plays a vital role in controlling the inventory of the company and apart from their roles and responsibilities they also help other peers. On the bottom level of the company, there are customer service assistants who assist the customers, and they also do shelf filing work. The lower level is also the major contributor to the management team.

2.    Monitoring of HRM effectiveness

The human resource is the most important asset of the company because all the business functions are incomplete without human resource. Thus it is important to maximize the potential of human resource capabilities and managed them in a most efficient and effective manner. The management of human resource ensures that the employees are working towards the achievement of organizational goals. The organizational change impacts on the human resource and other factors which are managed by the human resource management. The human resource acts as a bridge between the organization and employee which helps to understand each other which is very necessary for the productivity of the company. The retention of employee is necessary for the company which is done through financial and non-financial factors. The financial factors include the incentive, bonus, and others and non-financials includes job satisfaction, job enrichment and enlargement (Hoffmann et al., 2014). It helps to motivate the employees who improve the performance of the employee, and it enables to achieve the organizational goals. The retention of good level leads to low cost of human capital. 

References

  • Mello, J. A. (2014). Strategic human resource management. Nelson Education.

  • Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management, and performance: Sharpening line of sight. Human resource management review, 22(1), 43-56.

  • Zikic, J. (2013). Immigrant Professionals’ Career Capital as a Source of Competitive Advantage: Implications for Strategic HRM. Available at SSRN 2418457.

  • Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

  • Ahlvik, C., & Björkman, I. (2015). Towards explaining subsidiary implementation, integration, and internalization of MNC headquarters HRM practices. International Business Review, 24(3), 497-505.

  • Mathis, R. L., Jackson, J. H., Valentine, S. R., & Meglich, P. (2016). Human resource management. Nelson Education.

  • Enders, J., De Boer, H., & Weyer, E. (2013). Regulatory autonomy and performance: The reform of higher education re-visited. Higher Education, 65(1), 5-23.

  • Alvesson, M. (2012). Understanding organizational culture. Sage.

  • Minbaeva, D., Pedersen, T., Björkman, I., Fey, C. F., & Park, H. J. (2014). MNC knowledge transfer, subsidiary absorptive capacity and HRM. Journal of International Business Studies, 45(1), 38-51.

  • Hoffmann, K. (2014). Measuring HRM Effectiveness as a Challenge to Contemporary HRM Scientists (HRM Context). Education of Economists & Managers/Edukacja Ekonomistow i Menedzerow, 33(3).

  • Julphar. (2016). Julphar.net. Retrieved 12 October 2016, from http://www.julphar.net/

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