Strategic Human Resource Management
The purpose of Strategic human resource is to improve the ways of human resources is managed within organizations, keeping in view the goals and objectives of the organization. Strategic human resource management is based on a belief that HR are important for an organization to sustain the successful of business. The definition of SHRM as a process of linking the HR functions with the strategic missions of the organization. It involves the linking of human resource with the organizational goals and objectives in order to achieve a continuous business performance and to achieve the organizational structure that promotes the flexibility as well as innovation. Strategic human resource management has emerged as a major tool to gain competitive advantages over the competitor. The goals of human resource management are aligned with the goals, objectives and plans of an organization. The main role of human resource management is to determine the HR required to support the strategic objective in order to ensure that the employees are selected, proper training given to them, their evaluation, and proper rewards must be given in ways that further the achievement of the organizational objectives.
The strategic management process begins with the identification of the goals that will help the HR practices. The integration of the human resources with the organizational goals will raise its value. The human resource design and manage the recruitment, performance appraisal training, compensation and other functions, so that it will help the organization to achieve its strategic goals. The objective of the human resource management is to improve the ways through which HR are managed within the organization. The main objective of SHRM is to improve the organization performance.
For an organization to achieve competitive advantage the company has to attract, train, develop and retain the employees having high qualities. With the passage of time and throughout rapidly changing conditions, company would be able to gain competitive advantage that the skills and knowledge of the employees provide. In the past the, competitive advantage could be achieved by finding cheap access to resources like capital, or marketing the new product, or through inventing new technology. Now in today's world, while ready access to capital, cheap high quality products, innovation remains important component for achieving competitive advantage, but the organizational environment requires focus on the HR element to gain competitive advantage.
Contributions of the HR Department in Organization
There are some of the main function that human resource department provides
- The HRD provides the right kind of talent to the company at the right time. t is the duty of the human resource department to assure that the supply of labor is qualified.
- The human resource department assures that the people working within the organization are enough to carry out the work. In case of open position it also provides a flow of qualified people trough the process of staffing, selection and recruitment process.
- The human resources by using appraisals the workers are assessed and evaluated.
- Its is also a duty of HRD by using effective pay system, the company management can pay more attention on employees efforts toward desired company goals.
- The HR also ensure that the workers doing jobs are properly skilled to perform the task and duties and are in a position to help the organization to grow. In case, if the employee is not trained it is the duty of the HRD to provide him a proper training.
Tarmac Human Resource as planning staff
Tarmac is dealing in asphalt and concrete for the contraction of roads and for building products it provides cement and mortar. The company is operating in ten countries and employs 12,500 workers. In the organization human resource is having a key importance. The main function of the human resource is to ensure that the right skills people are hired. The human resource team ensures that the managers apply the human resource policies and procedures across the business. The company has trained its management like couch rather than acting as boss. In order to maintain a competitive advantage Tarmac employed people having high level of skills. To support this, the company also provides career management program that ensures that managers are working hard to develop their staff.
British Gas Human Resource Provides Training
British Gas is the country's best recognized energy brand is a part of Centrica Group. The com[any was formed in 1997 and in currently operating in different countries. The company deals with the supply of gas as well as provides central heating and appliances. With the Dyon brand the company is also providing drain cleaning plumbing and house security.
In order to deliver such services, the company required high caliber staff and the company employed more than nine thousand trained gas engineers for the purpose of installation and maintenance.
The company is expanding its business and it needs more workforce to meet customer demand. The company has establish a training Academy in 2002. The academy provides different course that help the employees to develop skills and attitude that help the employee as well as the organization to achieve its objectives.
British Gas Human resource provides development opportunities
British Gas Company provides the training facilities and educates the individuals to improve skills, knowledge that helps employees to achieve personal objectives. Development required analysis - an analysis of the experience and opportunities required by the employees to achieve his personal objectives and it also helps the organization to achieve its objectives.
British Gas Recruitment
The British Gas human resource as a part of workforce planning the company actively seeks for new recruits from a wide range of background. The company plans recruitment to make sure that the company has socially inclusive workforce. For the British company it is important as it reflect the diversity of the company customer base. In may 2008, the company recruitment team won the award for 'inspiring the workforce of the future'
British Gas Human Resource Selection
The human resource management at British Gas Company emphasis on core competencies and life skills. Life skills include personal skills that affect the customer experience when someone is working. The human resource also tries and make sure that the engineers needs to show politeness, and curtsey. It is because these qualities directly impact on the customer's perception. The other thing that human resource seeks is the core competencies that include team working, motivation, interpersonal skills and responding to changes. The human resource searches for these skills that affect the way an individual fits in and can work within the organization.
Employee Motivation RBS
The Royal Bank of Scotland is a very famous financial services company. The company is providing a range of corporate, retail, consumer, financial markets, wealth management, and insurance services. The company is serving 36 million customers and employed 140,000 employees.
In order to motivate people the human resource management followed the Maslow hierarchy of needs. Royal banks knows that the melting higher need is necessary for motivating and engaging employee's, and the company has place a number of measures to meet these needs. The company also follows Taylor and scientific management theory. The job performance is measure by he level of work performed by the employee and reward is given according to the performance. The company follow this rule and pay more to the employee who performed better.
RBS Human Resource establish Total Reward system
In order to achieve the organization goals, the HRM has designed special benefits package that is called total reward system. This system provides some flexible benefit in the area of health, childcare, pension etc. in order to gain the total reward system an employee has to achieve the target and the company pays 10 % bonus. Through this the human resource management motivates employees so that they not only contributes toward achieving the organizational goals as well as help themselves to achieve its objectives.
RBS HRM Helps in Work-Life Balance
Work life balance means the tradeoff between time spent at work and time spent outside of work. RBS human resource management helps to improve the work-life balance. The human resource has provided the opportunities to work more flexible i.e. part time, or from house. The RBS introduce Your Time program that helps by recognizing that employees required time off for some reason like sickness, or taking a career break to go travelling or need more tie to spent time with the family.
Rent-A-Car Enterprise Human Resource as Workplace planning
Enterprise Rent-A-Car enterprise was found in 1957 by jack Taylor in St. Louis in USA. The company started business with just seven cars. Now today's, the company owns 728,000 cars and employees working are over 65,000 and the annual turnover of over 4.5 billion. The company is having four operating units: rent-a-car, Fleet management, rent-a-truck, and car sales.
In the company the purpose of the HRM is to hire, train, and develop staff. The human resource function is not only to manage the staff it also plan for changes that affect its future staffing requirements. It is called workforce planning. For instant: The company business moves to new markets, like moving into truck rental. There may be external changes in the supply of labor like in some places there may be shortage of labor. Human resource management monitors these things and adopt necessary action to overcome these issue. The company recruits about 1000 staffs each year from UK and Ireland. The company hire those people who are motivated so that they could help the organization to achieve its objectives.
Concept of Culture
It is better to understand culture for its importance within the organization. We can define it as the significance of culture is understanding commonly held by a group of people; a particular configuration of assumptions are distinctive to the group of people, and these understanding or assumption provides a guideline to unacceptable or acceptable thoughts, perceptions behaviors or feelings. And these are passed to the new members of the group of people by social interaction. Management communicates organizational work culture through staff appraisals, recruitment, remunerations and work arrangements. These are the aspacts of the social interactions.
Role of Culture within SHRM
The most potential factor that affect the strategic human resource management is the national culture. It is because the value underlying HRM are not based on the individual country's values. For an organization to survive and to thrive within today's business environment culture knowledge and global focus is crucial.
Culture is an important element of many facts of organizational behavior. It also provides a wake-up-call to the human resource management to pay attention to the cross-culture issues.
Case Study Cadbury
Cadbury is one of the larges business engaged in the chocolate business and also having a greater number of market share. The most popular product of Cadbury includes dairy milk, Crme Egg, Flake, and Green & Blacks, and many other famous products that are selling in the market. The company has many suppliers that supply their on-going operations. The company had establish a good relationship with its suppliers to take it as an advantage for the company. The demand for the product is not high because of the health conscious. The major threat for the company is the increasing number of competitions that are offering the same product at a lower price to the customers that might take the customer loyalty alteration.
The company alongside with the integration of the human resource policies with the overall organizational goal was a restructuring of the company, and this restructuring also include the organizational culture. For this purpose the company have introduce many human resource programs. The company changes its culture so that it could accommodate the changes to achieve success. the human resource department makes sure that the people in the organization understand the context of the organization for this purpose human resource conduct a five-days seminar and every employees have to attend it. The other major change in the culture of the business was made in year 2003, when the organization decided to go for more decentralized way of operating business. For the purpose of creating a winning organizational culture, both the management collaborated, as the result the people start thing as they own the organization. This also helped the employees to be more focus towards the organizational goals.
Functions of HRM to Gain Competitive Advantage at Cadbury
At the Cadbury due to changes and challenges caused by a dramatic shift in the functions of the human resource management, the HRM performance functions like recruitment, HR planning, job analysis, salary, selection, reward management, training and development, labor relation, and legislative compliance. Human resource also performs other functions like creating competitive advantage and tries to ensure organization success. These function that are performed by the human resource management at Cadbury are as follow
Cadbury's HRM as Human Capital Steward
At Cadbury Human resource contributes by developing, renewing, leveraging and nurturing the organizational stock of skills, knowledge, abilities, talent and interests. Human resource management also check that every individual working in the organization is able to make contribution by identifying as well as cultivating individual's capabilities and competencies. Human resource management develops a strategy to ensure that rejuvenation and renewal are ongoing activities within the organization. The human resource contributes to the organizational success by initiating development and training and by creating culture of continuous learning. Human resource also shapes the values and helps the people to take initiative and enable them to use their judgment abilities in fluid and flexible business settings.
Then role of human resource is to create a partnership between the employees and human resource that could lead to increasing greater awareness, increased intellectual capital, and adaptability and enhance commitment.
Cadbury HRM as Relationship Builder
The human resource management performed as relationship builder and provides programs and practices that could help the employees to facilitates, encourages, sustain and nourish among the other employees, supplies, customers, human resource also helps the employees through contributing to firms ability to leverage its resources and help in developing strategic capabilities and help the people to establish a strong web of relationship.
Cadbury's HRM as Knowledge Management Facilitator
The human management at Cadbury knows that it is not enough to hire people and gave them work. It is necessary to create and disseminate knowledge amonge the people working at Cadbury.HR plays its role in organizational learning and knowledge among the workers, or departments. It is also important for HRM to know identify the people who want to learn as well. The Cadbury management tap into the employees knowledge as a source of innovation. The HR manager play its role in identification of source of employees knowledge and eliciting the knowledge from employees. knowledge management facilitation includes the development organizational capabilities that helps the employees to apply knowledge more skillfully, creatively and quickly.
Cadbury HR as Rapid Deployment Specialist
The rapidly changing environment that the organizations and industries are facing creates another challenge and function for HRM: Rapid development specialist.
Strategic ability demands for competence in fast assembling, concentrating and implementing specific configurations of Human capital to achieve mission-specific strategic objectives.
The fast development of human capabilities demands for adaptable employees. Workers should be adaptable, versatile and have tolerance of uncertainty to work effectively in rapid changing global environment
1. Influence of Culture on Strategic Human Resource Management (SHRM) Practices in Multinational Companies (MNC) in Kenya: A Critical Literature Review Presented By Professor Peter K'obonyo
2. Strategic human resource management: a guide to action by Michael Armstrong
3. Strategic human resource management by Randall S. Schuler, Susan E. Jackson
4. Strategic human resource management: theory and practice by Graeme Salaman, John Storey, Jon Billsberry
5. Strategic human resource management: contemporary issues by Mike Millmore, Mark Saunders, Philip Lewis, Adrian Thornhill, Trevor Morrow