Human Resources Strategies Practiced in Procter & Gamble in Australia - Case Study Example

? Strategic Human Resource Assessment 2 Introduction Strategic Human Resource management (SHRM) is an additional step which provides new dimensions to the processes of HRM being practiced within organizations in the consumer goods industry. Many organizations in this particular sector emphasize on aligning the goals and outcomes with the sole intention to develop as an ‘employer of choice’ owing to the scarcity of talented workforce and increasing bargaining power of the employees. SHRM delivers the practitioners a renewed level of confidence to perform the activities efficiently which ultimately results in organizational success by satisfying the needs as well as expectations of the workforce. It is in this context that SHRM views at the administration of human resources or workforce from a broader perspective, rather than applying a narrow perspective to enhance the effectiveness of the employees in accordance to the organizational goals (Boxall, Purcell & Wright, 2007). It is in this context that attracting the appropriate talent pool is often observed as a major challenge in the consumer goods industry, majorly due to the requirement of vast workforce and the persisting divergences in the targeted labor market. Correspondingly, organizations implementing SHRM policies and strategies realized the importance and need of flexibility with respect to change, anticipation, innovation and adaptation. In the consumer goods industry, SHRM strategies and policies differ from organization to organization in accordance to the external factors influencing the business such as the political environment, economic hazards, community culture and the socio-environmental structure of the market. Additionally, the organizational structure, its internal culture along with the SHRM policies applied within the company also imposes significant influence on its attractiveness as an ‘employer of choice’ (Boxall, Purcell & Wright, 2007). Based upon this preliminary understanding, the study will intend to identify and assess the various elements inculcated in the HR strategies by consumer goods companies in the Context of Australian labor market to develop as an ‘employer of choice’. The main intention of the study will be to suggest the HR strategies which the organizations must coordinate and recognize the most potential challenges that the organizations shall have to witness in growing as an attractive employer in the selected market. Furthermore, in order to obtain a critical view regarding the issue, this study will also take into account the example of a world renowned consumer goods brand, i.e. Procter & Gamble Australia & New Zealand (P&G). Elements of HR strategies that must be coordinated by consumer goods companies and the consequent challenges The need to bring about transformational modification in Australian job market is continuing to be determined by an economic plan that aims at improving the productivity as well as the flexibility within its labor force. This plan helps the organization to sustain in the middle of international competitiveness as an attractive employer. The rules and regulations of the Australian job market in accordance to the industrial relations have also expressively affected the HR strategies being employed in various industries including the consumer goods industry as such elements attempts to bring about vital changes in the framework of employment relationship (Johnson, 2009). As stated by Pettigrew (1985), a planned procedure provides an organization an agenda through which it selects a sequence of action or optimal strategy to accelerate enhancement in accordance to its objective of competitive advantage as an ‘employer of choice’. Therefore, organizational vision and strategic aims can also be regarded as an influencing factor to create an affect over its development as an attractive employer. Based on this context, Glueck (1980) stated that strategy is a combined, inclusive and cohesive plan which is designed to confirm the achievement of the basic objectives of the enterprises Where the consumer goods industry in Australia aims at inculcating HR strategies with the approaches of problem solving and decision making when observed as a ‘rational thought processes’. In accordance to this, the power with respect to the implementation and introduction of the strategic plans remains with the senior management executives (Worland, & Manning, 2005; Porter, 1985) It has been further revealed by Pettigrew (1985) that the development in the strategic policies and practices is regularly disorganized and political in comparison to the inference of the decision–making model which can also be observed in the consumer goods industry in Australia. For instance, the consumer goods companies in the Australian industry context which is currently undergoing changes and disorganization due to the rapid inclusion of technology incorporated strategic vision (Chen, 2011). Apparently, in the modern context it is becoming difficult for the mangers to control the business environment as it is getting complex as well as chaotic which can certainly recognized as a major challenge to be faced by the consumer goods companies in Australia. In accordance to this context it has been revealed that strategic policies with regards to HR develop from the intimacy and awareness of an inner focus as applied within the organization. SHRM helps the management in inculcating rules and regulations by providing guidelines and directions to the productive employees inculcating a culture of coordination, training, enthusiasm and growth (Nankervis, Compton, Baird & Coffey, 2011). According to Walker (1992) SHRM combines the benefits of the recognized planning approach in accordance to apprehension of communicative realities in organizations that encourages the strategic learning as well as basic management framework within the organization that in turn plays a pivotal role in attracting talented manpower. As stated by Storey (1995), the model of SHRM accentuates the quantifiable, calculative as well as strategic aspects of managing the effectiveness of the management processes with respect to organizational goals which can thus turn beneficial for consumer goods companies in the Australian context. According to Legge (1995), the on-going pressure for survival and gaining competitive advantage as an ‘employer of choice’ in the market scenario might encourage the organization to treat labor as a flexible input for minimization of the cost and thus act as both element and a challenge to the companies. Hence, it can be argued that building long-term engagement with productive employees, based upon the determined organizational goals and expectations is a part of SHRM in the consumer goods industry (Chen, 2011; Legge, 1995). Observing the current performances of the consumer goods industry in the Australian context, it can further be observed that employees actively participate in the attainment of organizational goals with respect to the implementation of effective SHRM, inculcating both the internal and external business environmental factors, which ultimately results in the development and enhancement of the employee’s skills. An organizational philosophy that gives track, sense of determination and involvement builds a long-term relationship with employees and thus, has acted as a vital component in the HR strategies of the companies aimed towards their attainment of their position as an ‘employer of choice’. Contextually, the HR strategies implemented within the consumer goods organizations to enhance the competencies of the employees to meet up the business goals such as continuous training and performance appraisal systems have been quite beneficial to develop attractiveness in the prospective job market (Kaye, 1999). Stating precisely, the HR strategies currently being practiced in the consumer goods industry involves an appraisal of the probable impacts of the external as well as the internal organizational atmosphere with respect to the long-term goals of the organization and the ways by which the strategy enables the adaptation of human resource towards these goals offering high remuneration packages and diversity in job profiles (Kaye, 1999). According to Nankervis, Compton and Baird (2005), it has been the communication strategies, work cultures, transparency in the performance appraisal system and diversity are the main elements to assist organizations in developi9ng itself as an ‘employer of choice’. However, this raises a significant challenge of aligning the business environment components with the intentions of the organization that can be effectively mitigated with the application of SHRM in the modern day context. . Case example of HR strategies practiced in Procter & Gamble as a consumer goods company in Australia Undoubtedly, HRM is a multidimensional approach towards organizational management which can be better observed and assessed at the organizational level. To be precise, HRM is a vibrant aspect for any business determined to be successful in the competitive environment which acts as a key to the success for many organizations including P&G in the Australian market to develop as an ‘employer of choice’. Notably, there are various elements which are taken into account by the company to obtain such a reputation mitigating the challenges to be witnessed during the course of creating a profitable employee relation. The recruitment process that works within P&G involves various elements or components and thus can be regarded as multidimensional. P&G mainly focuses on the development and enhancement of the talents from within the company itself. The succession planning being an important facet of the HR policies and procedures of P&G, has acted as highly advantageous towards its reputation as an ‘employer of choice’. Additionally, P&G’s recruitment process includes the standardized assessments and interviewing frameworks which have been designed in accordance to identifying the strengths and competencies of the talents present in the job market, thereby ensuring proper significance towards the external business environment. In accordance to the hiring process of P&G, the company mainly complies with the concept and reliability with accordance to the power of minds, the power people and the power of agility and therefore aims at inculcating the cultural prospects observable within the Australian context (P&G, 2012). Through its career management strategies, P&G provides better opportunities to the graduates. They aim at enhancing the skills and competencies of the talents at an early stage in accordance to which they can meet up the requirements of the organization. The company also focuses on filling up the top position from within the company itself rather than recruiting from the external source which renders a sense of achievement and satisfaction among the workforce adding on to its reputation as an ‘employer of choice’. In accordance to the opportunities for the graduates, the company focuses on ‘build from within’ philosophy where the responsibilities are handed over to the selected employees from day one to ensure their morale and larger contribution towards organizational commitments (P&G, 2012). Through its HR strategies, P&G desires its employees to develop strong leadership skills, to work in cohesion with others and to be innovative and analytical which apparently satisfies the thirst of Generation Y employees (P&G, 2012; Hewlett, Sherbin, & Sumberg, 2009). P&G’s HR policies, procedures and strategies can also be observed as framed with the effective inclusion of training assistances to the employees at almost every level in the lower management hierarchy aligned with the organizational vision and mission, which reflects the application of SHRM. Accumulatively, these HR strategies can be observed to help the organization to improve its working culture and to retain the employees for a longer period which further contributes to its recognition as an ‘employer of choice’. P&G has emerged as an intensively diversified workplace by holding the rank of fifth position globally which tends to attract huge proportion of manpower belonging to generation Y. The company also has been recognized as one of the leading companies which satisfy the attributes of an ‘employer of choice’ for the talent pool in Australia and other nations (P&G, 2012). Conclusion It can be apparently observed with reference to the above study that consumer goods industry within Australia and in the global periphery have to face significant challenges in complying with the employment standards to grow as an ‘employer of choice’. However, companies such as P&G can be observed to implement particular HR strategies which are quite effective to imbibe the elements in the internal as well as in the external business environment of the industry which are likely to create significant challenges in the attainment of such a position. From an overall perspective, it includes the strategic policies, procedures and the frameworks which ensure the competencies of the employees within the organization along with their satisfaction for a long term period. For example, P&G has implemented certain policies with regards to recruitment of graduates and interns in accordance to which the company has been awarded as one of the leading employers in the consumer goods industry. In accordance, it can be justifiably stated that the key to obtain success as an ‘employer of choice’ lies in the efficiency of the organization to inculcate the elements presented in its overall business environment to impose significant impacts in its HR practices. References Boxall, P., Purcell, J., & Wright, P. (2007). Human resource management. New York: Oxford University Press. Chen, T. F. (2011). Implementing New Business Models in For-Profit and Non-Profit Organizations: Technologies and Applications. United States: Idea Group Inc (IGI). Hewlett, S. A., Sherbin, L. & Sumberg, K. (2009). How Gen Y & Boomers Will Reshape Your Agenda. Harvard Business Review. Johnson, R. (2009). Strategic international human resource management towards achieving sustained competitive advantage. Otago Management Graduate Review 7, pp. 1-79. Kaye, L. (1999). Strategic Human Resources Management in Australia: The Human Cost. International Journal of Manpower 20(8), pp. 577-587. Nankervis, A., Compton, R., Baird, M., & Coffey, J. (2011). Human resource management: strategy and practice. Australia: Cengage Learning. P&G. (2012). Our purpose & people. Retrieved from http://www.pg.com/en_ANZ/company.shtml P&G. (2012). Internship opportunities. Retrieved from http://australia.experiencepg.com/home/interns.html P&G. (2012). Hiring process. Retrieved from http://australia.experiencepg.com/files/pdf/PGHiringProcess.pdf P&G. (2012). Employee engagement. Retrieved from http://www.pg.com/en_ANZ/sustainability/employee-engagement.shtml Worland, D. & Manning, K. (2005). Strategic human resource management and performance. Retrieved from http://vuir.vu.edu.au/121/1/(121)Strategic_Human_Resource_Management_and_Performance.pf Read More