Ambitious Strategic Human Resource Management Scheme - Case Study Example

Acme Engineering is a plant specializing in manufacturing and sales operations. The plant has initiated an ambitious strategic human resource management scheme aimed at revamping the plant into profitability. Strategic human resource management has been defined as 'the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility '(Armstrong, 2000). It therefore refers to the integration of human resource initiatives like recruitment, retention, employee engagement, leadership development, and succession planning in order to achieve a "comprehensive and effective talent management"(Armstrong, 2003). The strategy adopted by the plant has greatly enhanced its workers out put, it radically creates space for innovation, it turns the factory into a productivity zone where ideas are born and nurtured the end result is magnanimous, top class employees are easily retained, succession is no longer a hassle, and overall the public trust and confidence is guaranteed. It is the human capital that drives the organizations' performance, hence playing a key role in all transformation efforts. In ACME Engineering knowledge management is managed by ensuring that people are left to enjoy what they do this is demonstrated the value attached to the people and the underlying principle of treating workers as a critical part of the organization. ACME Engineering embraces a multicultural approach, which easily deals with any emerging cross-cultural barriers. As long as workers are assigned the duties which allow them to practice their skills they will feel utilized well and do not stand a chance of moving out of the organization, say, in search of greener pastures. The fact that ACME encourages a relaxed work pace with the training which goes on in ACME, workers add to their existing knowledge, it leaves in them a sense of development and growth. Research and development is a vital strategy in human resource management for it makes the worker want to hang on for more and more growth. Learning and development. In ACME a culture of belongingness has been uncalculated deep in families. In strategic human resource management you want to make decisions aimed at maintaining and managing the best talent at all costs for an organization can not afford the costs which come with high job turn over. Therefore strategic human resource management maximizes an organizations performance through the following: Strategic Planning. This involves implementation processes, which link the long-term goals of the organization with practical action plans. This results into activities and initiatives which aim at guiding the organization's growth. ACME as a company has gone out of the way in linking long-term goals through recruiting the majority of its workforce within the age group of 25-30 years. ACME encourages workers to see the opportunities ahead for such exist in the organization and they are made aware that they are the beneficiaries. These have a positive strategic role to play in the organization. When other organizations who recruited at the same time as ACME will be sending workers home through retirement, ACME will still be enjoying the fruits of its strategic planning because it may keep it's most experienced workforce say for as many as six or so extra years due to the age of its initial batch of recruits. Workforce Planning. Human resource managers must address the ever-changing workforce requirements. To achieve this goal, models should be developed bearing in mind the unique needs of each organization. As an organization, ACME has its own unique challenges but its version of strategic human resource management seems to be working well for it. How else do you explain its unique grading and appraising system whereby employees can raise even in the same job group to an extent of getting an extra 40% pay rise The fact that the organization encourages an open communication policy is a further pointer to exemplary workforce planning. Succession Planning. This involves recruiting and developing employees while at the same time minimizing employee turnover since a high turnover would mean the loss of organization's investment incurred during training. It also involves filling of vacancies with the best and most suitable candidates as spelled out in the organizations charter. According to the ACME charter one gets almost certainly promoted for their good job as spelled out this organization promotes from within whenever vacancies arise. Strategically speaking, this ensures that those in lower ranks can work hard almost certain that their hard work will bear fruits in form of a promotion for the chances belong to them when they arise. Compensation System Design & Support. Strategic human resource management aims at coming up with a performance and contribution-based compensation systems that can not only attract but motivate, and retain high quality employees. This must also be linked to the organization's mission and vision. When employees perceive that they are being rewarded on the basis of their input they are likely to remain focused in their job. In spite of the fact that there are no trade unions the management still lives up to its challenge of offering competitive salaries. It has a unique grading system which is not an imitation of any other organization. Its performance pay policy meets the workers needs and they are happy and motivated. Does not this sound exactly as a fit to ACME pay policy whereby there are no upper limits to salaries, one can earn since the compensation system is such that, for ones extra efforts, there is a pay. Even for extra time there is a highly motivating scheme this has made the organization afford to retain a relatively young, stable work background, stable domestic background. Business Process Improvement. Human resource managers achieve change management through correct use of methodologies, tools, and techniques of business process redesign. This leads to improved performance, cost effectiveness, quality, and client satisfaction and performance. In a world were competition is very stiff, organisations must reposition themselves strategically by improving their business processes this is evident in ACME. Performance Measurement & Accountability. ACME has incorporated an integrated performance management model that changes strategic goals into annual performance targets. In ACME teams have been modeled into effective source of synergy. The workforce has been made to understand and appreciate integration of efforts for maximum productivity. Workers at ACME appreciate that one person mistakes can cost a colleague of his/her good appraisal. A spirit of inter-dependendness has been accepted as part of the system. Change Management. An organization's goals must be specific, measurable, achievable, relevant, timely, and targeting the desired outcome. The organization accepts change as a natural process hence it saves lots of money which would be directed to constructive work. Therefore, ACME has developed a customized change strategy that addresses the specific needs of the organization. According to (Fombron, 2000) "People are assets whose value can be enhanced through investment." The goal is to maximize value while managing risk. The investment ACME has made in its workers is evident in the way it has encouraged and sustained a paternalistic culture intervening in workers problems, recruiting relatives of its employees and the fat compensation it offers. Whichever angle one looks at it, all efforts in the organization is directed to amassing the human capital towards the achievement of the organizations goals. By managing the workforce strategically and focusing on results, ACME has remained a market leader in its own right. The strategic human resource management helps the organizations to maximize performance and ensure internal accountability as well as posterity. To achieve results for all investment towards change, the following must be considered; there is a need for human resource managers to compile a needs assessment survey which helps in understanding employees better. Annual surveys should be carried out in order to identify the areas in which improvement is needed and finally, a knowledge and skills inventory for all employees must be devised this is useful during appraisals. Strategic human resource implies the acceptance the human resource function as a strategic partner in the redesigning of an organization's strategies through the process of recruiting, training and the rewarding of employees. Whereas strategic human resource recognizes partnership role in the strategizing process, strategy is about taking specific courses of action the organization plans to pursue to achieve its aims (Armstrong 2003). The actions of a human resource manager should translate business strategies into HR priorities. Fombron argues that, in any business setting, whether corporate, functional, business unit or product line, a strategy exists either explicitly in the formal process or document or implicitly through a shared agenda on priorities. Therefore, as strategic partners, HR professionals should be able to identify the human resource practices that make the strategy happen. Another area in which ACME has excelled in, is the process of identifying priorities also referred to as organizational diagnosis, a process through which an organization is audited to determine its strengths and weaknesses. It is through the diagnosis process that ACME has continued to attract and retain top quality workers. Strategic human resource management helps an organization in that, it shortens the time taken to execute plans as well as enabling the organization to meet customer demands better hence achieving financial performance through its more effective execution of strategy. To achieve the above, resources must be set aside to support the business strategies. Conclusion. While other organizations are thinking of steps to take in improving their performance, ACME is living the talk. The value of the culture, knowledge management, has been applied and phenomenal transformation realized further reaffirming that, strategic human resource management is core in improving performance and ensuring success. Without a strategic human resource plan, talent would not be attracted leave alone being retained in ACME. Thanks to the unique approach to strategic human resource management, ACME today boasts of one of the best human resource models in the world. Bibliography. Armstrong. M. Strategic Human resource management. Kogen Page. 2000. Armstrong. M. Strategic Human resource management. Kogen Page. 2003 Finding the Civil Service's Hidden Sex Appeal: Why The Brightest Young People Shy Away From Government," Nicholas Thompson, The Washington Monthly, November 2000. Flexible Work Arrangements: The Demand Will Only Strengthen," Donna J. Bear, Human Resource Institute, September 2004. Fombron.J. Strategic human resource management. John Wiley and Sons.1984. Leadership: The Key Factor in HR Strategic Management, Nancy R. Lockwood, SPHR, GPHR, HR Content Expert, Society for Human Resource Management, December 2004. Read More