Strategic HR Management

Strategic Human Resource Management (SHRM) is a management approach that mainly focuses on aligning company human resource (HR) activities with corporate objectives (Snell, Morris and Bohlander, 2015). Generally, the approach entails the formulation of both the short-term and the long-term HR goals to ensure that the practices have a contribution towards the achievement of company goals (Bratton and Gold, 2017). Therefore, through the approach, the HR section of a company develops and implements the plans for compensation, recruitment and training among many other activities. The performance of these activities is driven by the aim of making the HR department give a contribution towards the success of the overall corporate goals. Thus, with the method, the mission, vision, goals and values of the business are integrated into the HR activities (Bratton and Gold, 2017).

This paper focusses on the application of the strategic HR, making reference to IBM as a case study company. The report applies the concepts in three scenarios with the first one exposing the factors of the strategy in the position of the HR manager who has been appointed recently. The second part makes the application of strategic HR planning activities, in the capacity of an established human resource manager. The last part makes a review of the strategic human resource activities that can be applied by the HR consultant who makes the reviews and recommendations to the organisation’s HR activities. Therefore, the paper is essential in unveiling the key practices of strategic human resource.

1.1. Explain the Importance of Strategic Human Resource Management in Organisations

SHRM is important in ensuring that the business achieves alignment of the HR activities with the company goals. According to the approach, both the long-term and short-term goals of HR are implemented in the plan to the vision of the company by attaining the objectives (Bratton and Gold, 2017). SHRM helps the company to match the strategy with its structure, through the provision of the leadership and monitoring of the practices to achieve the goals. Typically, the main SHRM activities cover the aspects of the formulation, implementation and evaluation of the HR plans that merges with company strategy (Nankervis, Baird, Coffey and Shields, 2016). In the process, the policies and procedures are defined and adhered upon by all the individuals involved in the process. The responsibilities in SHRM are designed and distributed among the key personnel involved, with each making a significant contribution to towards attaining the company objectives. Thus, the SHRM is an important framework that allows the company to achieve an interrelationship between the organisation’s human resource and the general company strategy that works together for the betterment of the business (Bratton and Gold, 2017).

1.2. Access the Purpose of Strategic Human Resource Management Activities in an Organisation

The role of SHRM is vivid in helping the business stand out in the market by providing a competitive advantage over other players in the sector. When the HR activities are working in line with the company goals, the value is created and transmitted throughout all the entire company. Therefore, with the maximum benefits from the HR section, the company gains the capabilities of surviving and growing within the competitive environment (Zhang and Bramwell, 2016). The SHRM approach has the capabilities of helping the company to identify and prioritise the existing opportunities in the market, hence, contributing to its productivity. The approach provides a framework that guides businesses towards achieving coordination and control of their human resource activities. Thus, as a framework, it offers leadership on how the company can manage time and other HR resources effectively with minimal wastage and errors for the better results in the operation of the business. SHRM also defines the methods that can be used to enhance appropriate communication between the individual and departments in the company. Therefore, the SHRM works wholesomely to deliver value to the business, that in turn is converted into a competitive advantage in the entire sector (Snell, Morris and Bohlander, 2015).

As a newly appointed HR manager for IBM, SHRM has been considered as the key driver towards achieving effectiveness in the HR activities of the company. Unlike the traditional HR management approach that mainly focused on personal activities such as administration, relations and welfare, the present activities of HR are closely tied to the organisation’s strategy. The areas that have been considered include the recruitment of the best skills and training. At the moment, IBM has focused upon ensuring that there is a priority in the skills of the workers, hence, making a positive contribution towards both the short-term and long-term goals of the business (Brad Power, 2012). Many works related development opportunities have been created, while mentoring activities increased, as the HR activities to support the company strategy. Besides, the IBM’s HR has worked to enhance the unification of the of the HR practices in all its subsidiaries. Typically, the uniformity in the HR practices across all branches of a given company helps to increase to increase the work productivity and the organisational general well-being. Additionally, as an SHRM practice, IBM has shown efforts to create and support the results-oriented culture Brad Power, 2012. Culture has the power to enhance the development of a robust company HR system due to its power to influence people. Therefore, IBM has demonstrated the adoption of the SHRM system in its practices.

1.3. Evaluate the Contribution of Strategic Human Resource Management to the Achievement of the Organisation’s Objectives

SHRM is one of the major contributors to the achievement of the objectives of the company. The approach acts as a model that guides the companies towards adopting the best practices which work towards supporting the company goals (Baron, 2016). Some of the specific aspects of SHRM that contributes towards the support of the company objectives include the workforce planning, whereby the business makes efforts to lead the employees towards productivity that in turn contributes to the achievement of the corporate goals. SHRM also has the power of making an assessment of the capabilities of the business towards attaining the objectives of the company (Nankervis, Baird, Coffey and Shields, 2016). The aspect is important in helping the business make appropriate resource planning and allocation that is important in supporting the objectives. SHRM also offers a method to guide on the development and structure, a factor that is essential towards the support of the company objectives. Additionally, the SHRM contributes to the achievement of goals by the offering of the framework that makes the business to embrace and diversity and inclusion factors that are necessary for supporting the change process in the company, as efforts to attain the corporate objectives (Baron, 2016).

Figure 1.0. Relationship Between the Business Goals and the HR planning in SHRM (source: author)

Every HR goal is formulated and implemented according to the company strategy, hence, delivering value between the department and the whole organisation as illustrated in figure 1.0 above, hence, creating an inseparable interlink between the two aspects. Generally, the company goals are broken down and cascaded into the implementation at the HR level (Baron, 2016). In the case, any efforts made by the HR of the company will always have a direct impact on the corporate goals. Some of these SHRM exertions that supports the business objectives include the employee recruitment and retention that aims at ensuring that the business has the rightful skills to support the corporate goals all the time as required. SHRM also incorporates the aspects of training, whereby the HR comes up with training programs that have impacts to the performance of the workers and their support towards the achievement of the business goals (Taylor, Doherty and McGraw, 2015). Training programs aligned with the corporate goals are achieved by a series of activities that includes the training needs assessment, material support and facilitation. Additionally, SHRM helps the business to achieve its goals by quality and cost control and compliance among many other factors.

As an illustration of the role of the SHRM towards achieving the corporate goals in IBM that I have been newly appointed as the HR manager, there are various ways that this practice will help create a positive impact towards achieving the positive impacts to the company goals. For example, IBM’s corporate objectives of being innovative will be supported by its SHRM activities of training and skill development. In the case, the HR provides the required human power with the necessary skills that work sufficiently to support the company goals. Besides, the SHRM efforts of IBM to create the results-oriented culture supports the business goals of being the market leader by encouraging internal productivity which cascades into the general wellbeing of the company. Therefore, when these activities are put together, the business is capable of achieving the corporate goals for its betterment.

2.1. Analyse the Business Factors that Underpin Human Resource Planning in an Organisation

Some of the business factors that underpin the activities of HR planning in a company first include the growth and expansion (Wagner and Compton, 2012). The aspect necessitates the need to embrace new HR approaches to accommodate the change. Secondly, competition impacts the strategies embraced by the business, because, all the HR activities undertaken must deliver competitiveness to the company. The force of competition influences the specific approaches that are embraced towards driving the company to stay ahead of the competitors. Thirdly, HR planning is affected by the impacts of technology on the business environment. At the moment, businesses are utilising technology and its advancement for the management of the HR activities, hence, the HR plans of every company are forced to consider the use of technology in their activities.

Fourthly, the business change also dictates how the organisational HR practices are planned, since, when the business functions, roles and responsibilities of the employees change, planning at the HR is also affected (Farnham, 2015). Additionally, the aspects of the business decline and the competition for the labour market has a significant impact on the normal operation of the business. In the example of IBM company that seeks to expand its business to another country, the HR planning activities will be affected. In the case, new workers will be employed, with some taking up new roles that did not previously exist in the company. Therefore, the HR planning at the company must consider the headcount increment of the workers in the company, with the intention of meeting the specific requirements of the high-investment project (Farnham, 2015).

2.2 Access the Human Resource Requirements in a Given Situation

Some of the HR requirements for the high-level project mentioned above whereby IBM is expanding its business to other nations first include the definition of the roles and responsibilities of the workers. The HR must clearly outline the specific job positions that will take up various roles in the plan. As one of the HR needs, the job descriptions need to be outlined, that also contributes to the formation of the organisational chart of the new subsidiary. In the chart, the company structure should be outlined, stating the reporting framework of the business (Jeston, 2014). The hiring schedule is also an HR need that must be considered at this level, which specifies the growth milestones and durations when new hires will take place. Besides, IBM’s expansion of the business will call for the creation of the HR plan to guide in all the activities to support the company growth. Some of these aspects in the plan include the ways that will be utilised in recruitment, work training and retention practices (Lo, Macky and Pio, 2015). The consideration of these factors helps the new business subsidiary not only to get the best talent but also retain it. Other aspects in the plan include the specification of the pay scale, insurance, vacation time and other benefits.

2.3. Develop a Human Resource Plan for an Organisation

Roles and Responsibilities of the business expansion

Role

Responsibility

Report to

Total Positions

Pay Scale

Vice President Finance and HR

- Performs managerial roles of the finances and the human resource of the subsidiary

- Assign duties to the junior staff

- Monitor performance of the individual junior staff and the general department

Company President

1

MG2

Vice President Sales and marketing

- Assign duties to the junior staff

- Monitor performance of the individual junior staff and the general department

- Perform managerial roles that regards the sales and marketing of the company

Company President

1

MG2

Vice President technology

- Monitor performance of the individual junior staff and the general department

- Perform managerial roles that regards the sales and marketing of the company

- Performs managerial roles of the company technology

Company President

1

MG2

Junior Staff

- - Perform the specific job duties in their respective department within their specific job descriptions

- - Work according to the instructions given by the head of the department

- Comply with the HR policy

Departmental Vice President

9

MG4

Subordinate Staff

- Work according to the instructions given by the junior staff

- Carry out the duties in their specific job descriptions

- Comply with the HR policy

Respective Junior Staff in the Department

2

MG7

Figure 2.0: Roles and responsibilities for the business expansion (source: author)

The Organisational Chart

Figure 3.0: Organisational Chart for the business expansion (source: author)

2.4. Critically Evaluate How a Human Resource Plan can Contribute to Meeting an Organisation’s Objectives

The HR plan has a significant contribution to the achievement of the company goals. The plan acts as a framework that guides the company to attain better results in its HR activities. Through the plan, the company will be capable of managing the labour to deliver value to the company and also eliminate the risks associated with the process (Bailey, Mankin, Kelliher and Garavan, 2018). The plan outlines all the roles and responsibilities that will be handled by respective staff members (figure 2.0), hence, making it easy for the workers to contribute to support the corporate objectives. Besides, through the organisational chart (see figure 3.0), the HR plan serves the role of offering specifying the reporting structure, hence, the aspects of supervision and performance measurement can be easily performed as efforts towards achieving the company goals. For example, in the new business expansion at IBM, through the HR plan, different job positions will be created and lines drawn on the specific tasks that each employee will handle.

3.1. Explain the Purpose of Human Resource management Policies in an organisation

Management Aspect

Purpose

Explanation and Scope

Staff Acquisition

Guide the HR in the recruitment process

After initial recruitment, subsequent staff acquisition activities shall be performed during replacement and as the need arises

Employee Classifications

Guide the HR to group workers, and also the finance section in compensating them

The employees shall be classified as MG1, MG2, MG3, MG4, MG5, MG6 and MG7

Holidays and Leave

Help the employees to know the work days and holidays

Every employee shall be entitled to a leave day of 21 working days every year, and shall not work on national holidays

Training

Guide on the training schedule

Continuously as the need arises and as required by the company strategy

Performance Reviews

Methods to review the performance of the employees

The review shall be performed using balanced scorecards

Insurance

Insurance eligibility

All employees shall be entitled to a medical cover

Termination

Specify the conditions for termination

An employee shall be terminated by the company when they fail to comply with the company policy

Health and Safety

Specifies the health and safety of the workers

The company shall provide the protective gear, and workers who get injured during the duty shall be compensated

Promotions and rewards

Offer procedures for the recognition and rewards for the employees

The employee performance shall be measured using the balanced scorecards, that will form the basis for rewards and promotions

Figure 4.0 The Human Resource Policy (source: author)

The human resource policy refers to the set guideline on the key HR aspects developed through an agreement of the workers and the HR department, hence, supporting the organisation in the decision-making process (Wright and McMahan, 2011). Through the policy, the HR department finds leadership in their activities in managing the workers in the company. The key aspects defined in the policy include the recruitment processes, performance and rewards, training, holidays and leave, training, promotions, termination and employee classification among many others. Therefore, the policy offers a consensus platform between the workers, the HR department and the company in general (Wright and McMahan, 2011). Most of the HR aspects are defined within the policy and offers, specifying the scope and the purpose that they serve. Lack of the HR policy makes it difficult for the HR department to manage the workers because there is no consensus or agreed actions laid in place. The draft of the human resource policy is presented in figure 4.0 above.

3.2. Analyse the Impact of Regulatory Requirements on Human Resource Policies in an Organisation

Both the prevailing national and regional HR regulatory requirements have a significant impact on the organisational policy. Any HR policy formed must comply with the prevailing regulatory requirements, hence, it dictates the direction taken by the policy. Usually, failure to comply with the regulatory needs makes increases the risks of legal issues to the business (Marchington, Wilkinson, Donnelly and Kynighou, 2016). In the case company, the regulatory requirements dictated the policy formation in various ways such as the leave days and training offered to the worker among many other aspects. The legal requirements have a significant impact on the general wellbeing of the workers. They provide standards that must be considered in the worker management processes, hence, protecting them from the exploitation by the employers. Besides, through the observation of the legal requirements, human rights of the employees are protected (Bratton and Gold, 2017). In the case example of IBM, the regulatory requirements demand the company’s provision of the protective gears to the workers and compensations of injuries that may occur during duty. The aspect of safety differs from other companies such as those offering counselling services.

4.1. Analyse the Impact of an Organisational Structure on the Management of Human Resources

Organisational Structures

Divisional structure. The divisional structure a kind of structure whereby the organisation is divided into different departments and each department has its particular function. Each division operates on its own (Lee, Kozlenkova and Palmatier, 2015), as shown in figure 5.0 below, whereby the company chief executive officer oversees different sections that are managed on their own. For example, IBM deals with hardware, software, and also provides consulting services. Therefore, it can be divided into various sections and each section specialising on different products or projects. The departments operate on their own but they have one goal to attain. Divisional structure increases production since every department has its purpose that it is supposed to accomplish and therefore every employee will be working hard to ensure they achieve their goal. When carrying out recruitment, it will be easy for the resource people because everyone goes to their area of specialisation. The undesirable issue about this structure is that there will be a lot of competition hence employees lacking a good relationship among themselves (Lee, Kozlenkova and Palmatier, 2015).

Figure 5.0. A sample of Divisional Structure (Dimotakis, Davison and Hollenbeck, 2012)

Matrix structure. The matrix structure mostly focuses on projects. It is intended to achieve specific objectives, and employees do not report to one boss but they have different people whom they report to (Harper, 2015). For example, the case with IBM, when more changes are supposed to be done on ATMs, then this structure can be of value. A team of experts can be chosen and lead by one person to come up with new innovations. The team, therefore, will report to the project manager and other bosses. The impact of matrix structure on the management of human resources will be that it will help the human resource in decentralising decision making in the case on an idea or an issue in the company. Maintaining good relations among the employees will be easy since there is a strong product or project coordination. There is also flexible use of resources hence easy to respond to employees’ needs. The negative impact of matrix structure is that there is an overemphasis on internal relations neglecting the external relations (Harper, 2015). There will be prospects of conflict due to confusion over authority and responsibility.

Staff and line structure. The line structure has managers that are directly responsible in ensuring that the objectives of IBM are met. The employees are the staff members who directly report to managers can help them in achieving the company’s goals (Lee, Kozlenkova and Palmatier, 2015). The managers of different departments have to work together in ensuring they achieve the same goal. The staff members are placed at different lines serving different roles within a given level (See figure 6.0 below). For example, the IBM Company has a Sales manager and production managers, and the two work together to ensure the goal is achieved. The staff also gives advice and comes up with ideas for the production of new materials and services. For example, the staff can advise the line people on how to come up with new methods that can produce micro hard disk drive. Staff and line structure have some positive impact on the management of human resources. It helps in increasing performance among employees, for example when the staff advised managers on new ideas and how it can lead to more productivity. Easy coordination among employees leading good internal relationships (Harper, 2015). There are high flexibility and specialisation that helps in achievement of goals. The negative impact may be that the managers might not like being advised by the staff and therefore the staff might have difficulty in adjusting to roles.

Figure 6.0. Staff and Line Structure (Harper, 2015)

Culture Models

Hofstede’s Cultural Dimension. Hofstede identified for dimensions that distinguish different cultures. Power Distance Index (PDI) is the inequality that is there between people with and without power and its accepted. Individualism versus collectivism is the bond that exists among people in a community (Matsumoto and Juang, 2016). One’s interests are protected by the group they are loyal to. Masculinity versus femininity deals with the distribution of roles among different genders in a community. Uncertainty Avoidance Index is how well people can deal with anxiety (Matsumoto and Juang, 2016).

Lewis model. The model is based more on the behaviour of individuals that bring out the different cultures. According to Lewis, human beings can be divided into three categories, (Reactive, Linear-active and Multi-active) according to behaviour. People behave differently according to different categories (Matsumoto and Juang, 2016). For example, Linear-active talks half the time plans step by the stem and polite but direct, Multi-active talks most of the time, plans grand outline only and emotional, reactive listens most of the time, looks at general principles, polite and indirect.

4.2 Analyse the Impact of organisational culture on the Management of Human Resources

Using Hofstede’s model, culture can impact the management of human resources in different ways (Harper, 2015). For example, with power index, there are those people who will understand their place according to the distribution of power, therefore, making it easy for HRM to allocate duties. According to Individualism versus collectivism, people can tend to be mean and avoid working with others just because of trying to be loyal (Harper, 2015). When masculinity versus femininity comes in, the HR might assign male duties that are considered to be those of women like sweeping, women being superior to men and this may bring a conflict hence not enhancing employee performance. Therefore, culture is a vital aspect for the sake of human resource management.

4.3. Examine How the Effectiveness of Human Resources Management is Monitored in ana Organisation

Average time and costs to recruit. Vacant positions in the company should not take too long to be filled. Lack of employees can lead to low production costs, therefore, impacting the company negatively. It is, therefore, the work of the HRM to ensure that any vacancies are filled, at the same time a lot of money should not be spent to advertise for the vacancies (Mayo, 2016). For example, the money used in the advertisement should not exceed the amount one is supposed to be paid or even the skills one has for the job. Therefore, IBM can use this as a tool to measure the effectiveness of Human resource management.

New hire retention rate. Suitable working conditions should be created for those employees who are new to the company. They get motivated if they find that the organisation is friendly and welcoming (Mayo, 2016). For example, if someone has come to IBM for the purposes of giving repair services of ATM’s, then they can be taught on how the machines are produced, hence they will be more motivated to work since they have been given a new experience.

Absence, lateness rate and percentage of high and low performing employees. The personal discipline of employees is determined by human resource management, therefore, how people report to work shows how determined they are. An employee should only be late or absent with a valid reason. A review of performance level should also be carried out frequently so that the employees get motivated to work. If a review shows more of low performing employees, then there is a problem with the Human resource management system.

4.4. Make Justified Recommendations to Improve the Effectiveness of Humana Resources Management in an Organisation

Mentoring. The organisation can organise for the people working in the Human Resource department to be mentored (Klinge, 2015). They deal with different kinds of people and withstanding them sometimes needs proper guidance in both personal and professional level to achieve the goal of the organisation. Mentoring can make the employees of the department get more committed to their work. Therefore, IBM should encourage this strategy in order to improve the effectiveness of its HRM.

Education and incentive systems. Educating the HRM employees on new ways of handling other employees and recruitment might motivate them to be more effective in their work (Klinge, 2015). Giving out incentives like for example shopping for all the people in the department gives them the motivation to continue working and ensuring IBM achieves its goals. Incentives should come after a certain target has been met. For example, production of more hard disks with the available employees.

Conclusion

In conclusion, the SHRM is essential in helping the companies to attain the alignment of their goals with the HR practices. The aspect is critical in helping the companies gain a competitive advantage over other players in the sector, by effectively utilising the human power and getting the value to drive their objectives. Different business factors such as business expansion and competition underpin the performance of the HR activities. The business expansion activities in every company affect its normal HR performance, the need for the development of a suitable plan to handle the change. Usually, the company policies guide the business in managing its human power, and they are formed based on the regulatory requirements. The effective measurement of the HR activities is important in the well-being of the company.

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