Issues to Be Addressed in Strategic HRM Plans and Policies - Assignment Example

Student Name Student No. Subject Table of Contents 1.0 Introduction 1 2.0 Issues to be addressed in Strategic HRM plans and policies 3 2.1Recruitment and the number required 3 2.2 Retention of highly skilled staff 4 2.3 Downsizing workforce 4 2.4 Future recruitment needs 5 2.5 Compensation and benefits 6 2.6 Labour relations and employee relations. 6 2.7 Training and Development 7 2.8 Employee performance 7 2.9 Employee assistance 8 2.10 Working hours and leave 8 2.11Termination and dismissal 9 2.12 Change management 9 3.0 Conclusion 10 4.0 Recommendations 10 4.1 Talent Development 11 4.2 Effective communication 11 4.3 Involvement of people in the change 12 Reference List 13 1.0 Introduction Organizational innovation is a concept where an organization works in new ways to encourage and promote competitive advantage. It involves ways in which management of work processes in knowledge management, customer performance, customer relationships and customer retention, is done by organizations and individuals. The core purpose of innovation in an organization is to improve or change a service, process or a product. Individuals are encouraged to think creatively and independently in applying their personal knowledge to the challenges of the organization. Organization innovation needs an innovation culture that support new ways of doing business, new processes and ideas (Mayle, 2006). In a rapid technological development, innovation and change in organization, human resources importance is still the key to the progress and development of an organization. Strategic human resource management involves the relationship between human resource management and strategic management in an organization. Strategic HRM aligns the function of human resource to the objectives of the organization. It helps in the alignment of skills possessed by employees with the goals to be achieved by the organization. It therefore deals with equipping oneself with the skills and knowledge to bring out the best out of the organization’s employees. Strategic HRM also deals with utilizing human resources in a way that enables an organization harvest long term benefits like core competence, profits and achieving other goals (Armstrong, 2000). Strategic HRM helps the organization analyze its opportunities and threats and be able to develop strategies to achieve its vision in future. The organization will also have competitive intelligence due to strategic HRM and have a way of motivating employees. Strategic HRM also provides development and maintenance of employee competence. An organization is also able to determine its weaknesses and strengths in order to take appropriate measures. It is also able to check whether employees’ expectations are properly addressed. Armstrong (2000) also explains that for an organization to cope with innovation and change taking place, strategic HRM policies and plans must be put in place to help cope with the changing conditions and comprehend the business mechanism better by recruiting and maintaining professional employees. Effective HRM policy deployed will enable an organization undergoing change and innovation run effectively. This report will discuss the key issues to be addressed in developing strategic HRM plans and policies. However key issues in the organization need to be addressed when developing strategic HRM plans and policies. 2.0 Issues to be addressed in Strategic HRM plans and policies 2.1Recruitment and the number required Procedures of hiring employees should be defined by the policy. The strategic HRM policy should also define the time frame in which the increase of workforce is expected to be done and the job performance of employees checked. The number of employees hired should be enough to meet the organization objectives. According to Bert (2010), an overdone size of organization workforce will lead to a surplus or underutilized staff. On the other hand if less number of people are employed the staff available will be overstretched and make it hard to meet service and production deadline, thereby lowering the quality level. The organization output can be improved by understanding the relationship between work organization, productivity and technological development. This means a lot in terms of the number of staff needed (McKimmie, 2010). To improve output, the organization needs a large number of staff in the production department. However if there is improvement of production process during the innovation of the organization then the organization may need only a few staff members. Where staff members are overstretched due to the fact that they are few, productivity may be low. To some extent workforce requirements can be established by use of necessary techniques. 2.2 Retention of highly skilled staff It is important for an organization to retain its skilled staff to cut on hiring and training cost and gain a competitive advantage. The organization thus should monitor the extent of an employee resignation, and find out the reasons for it. It can then establish the cost it will incur for losing the employee. The rates of loss can then be compared with other organization in the similar position. Strategic HRM enables the organization gain this understanding for its management to be aware of how it loses its high quality staff. The organization can rectify the situation through understanding the steps of nature and resignation extent, which is done once the reasons of employee departure are identified. 2.3 Downsizing workforce Organization innovation and change may involve downsizing the workforce, something that is challenging to many organizations. The major issue arises where an organization would like to cut workforce in the most painless way while protective the long-term organization interests at the same time. This causes management pressures and employee anxieties in the organization. It is thus important to understand the benefits and limitations of downsizing workforce when developing strategic HRM policies and plans. 2.4 Future recruitment needs Management is more often troubled by the question of where their next generation of managers will come from for longer term supply management staff. This involves the kind of staff needed, the number and where they will come from. The policies thus should portray the career system to be put in place which includes promotion and movement patterns. The characteristics of those who occupy the current senior positions should be used in gauging future managers. This can be compared with future requirements in terms of type and number of managers needed, though it will be affected by external changes and internal structural changes. By comparing the supply available currently to the forecasted demand, the organization will be able to identify areas of surpluses and shortages and be able to take corrective actions (Armstrong, 2000). The policies to be developed thus may involve recruitment in meeting a shortage of those with a potential of senior management, allow faster promotion in order to fill gaps immediately, fixed-term contracts hiring to meet deficits of short term experiences and skills, removing blockages or surpluses forthcoming by reducing the staff numbers. These policies will therefore meet the organization needs. In also meeting the needs of organization innovation and change the organization needs to be concerned about the competencies of the staff they have and if they can meet its strategic objectives. It also needs to identify the new competencies that are required in the organization. If the competency is lacking then plans for new staff with the required skills should be put in place or develop training programmes to develop the current staff in order to instill the needed skills in them. 2.5 Compensation and benefits As change and innovation takes place, issues of compensation and benefits arise. In strategic HRM planning and policy development compensation plans and benefits need to be conducted, and forecast of compensation trends done as changes in the economy takes place. These activities provide a strategic outlook on benefits and compensation in the future and provide awareness on how future trends can be affected by or affect the overall organization. In coming up with a policy, salaries of employees should be allocated according to their job offering and qualification. Bonus packages and compensation for employees and salary increments yearly should be also be defined. As this is done the HR should make sure that employees are treated fairly and rewarded according to their performance in the organization. 2.6 Labour relations and employee relations. All the organization plans and policies need to align with the rules and regulations of labour law otherwise the organization will face the law. Labour laws involve recruitment, training of employees, employee benefits and compensation, promotion, fair treatment, employment termination, among others. The organization’s HR should therefore be aware of legislative and political matters that have potential to change of rules of workforce. Labour and employee relations sometimes define the salary and wages to be paid to employees and through planning and developing of policies, organization must consider these legislations, otherwise it may become difficult for an organization undergoing change and innovation, to do it successfully. 2.7 Training and Development This is included in planning of workforce. According to Waldersee & Griffiths (2004), the organization through HR prepares the current workers of the organization to the future staffing needs. Leadership training needs to be provided in preparing staff for possible management and supervisory roles. A succession plan of the organization should available and be depended potential leaders availability in its current workforce in order to replace supervisors and managers who are retiring, resigning and being dismissed. The organization needs to identify the needs of each staff in order to develop them to meet the future challenges of the organization. Improvements can be done through training. 2.8 Employee performance Appraisal of employee performance is very important especially in an organization undergoing change or innovation. Performance systems put in place differentiate superior from average performers. An organization is able to establish how staff performing below standard can be developed or guided to upgrade their performance. On the other hand, an organization downsizing its workforce may dismiss the low performing employees and promote the high performing ones to managerial positions instead of hiring new ones. A strategic HRM policy thus needs to provide procedures on how employee performance should be appraised as well as the time frame of appraisal and who to appraise. It should also define the performance rate including the acceptable and unacceptable performance rate. 2.9 Employee assistance Employees have different needs that should be met by the organization through assistance. When developing strategic HRM employees, the policy should address the needs of the employees in order to establish the mechanism and devise plans the will guide the employee properly in the issues they face in the organization. Employees may have difficulties in certain areas of their work thereby need training to assist them to work effectively. Provision of consultancy to employees is also a way of supporting them in their work in order to be productive. 2.10 Working hours and leave In order for an organization to achieve its output objective, its employees should be productive. An employees’ productivity will reduce if he or she works without taking a rest as this will lead to fatigue and absenteeism. Organizations therefore should define the working hours of their employees through the policy. According to Gilley, Gilley & McMillian (2009), flexible working hours can also be provided so that they can work in shift or depending on the situation of the employee. Each employee should be entitled to an annual leave as well as sick leave. This allows employees to take enough rest and recoup energy and morale to be able to work again. The policy should therefore define the number of annual and sick leave to be taken and the nature of working hours. By the consent of the employee an organization can be able to divide the annual leave into different parts to be taken in intervals. Maternity leave days should follow the labour laws where a female employee shall be entitled to a certain number of months with full pay. All this will show the caring the organization has for the employees which will in turn yield productivity results. 2.11Termination and dismissal This is an important issue in the organization as it will determine the level of attracting and maintaining employees. A notice should be provided to an employee whose contract is coming to an end. In case the employee cannot understand the notice, the organization HR should explain orally in a language the employee understands. The termination and dismissal should be fair and dismissal and not because of discrimination and harassment. The employee on termination should be paid any outstanding money by the organization. The policy should provide procedures in termination and dismissal of an employee which involve provision of notice from the employee unless it is abruptly done by the employer due to an employee breaking crucial organization rules. 2.12 Change management As innovation takes place in an organization, change occurs. How change is handled will determine its success or failure, and thus due to its importance policies and plans of Strategic HRM should address them. Without change management the organization will face resistance from both the employees and managers. Strategic HRM should forecast the change that is to occur in the organization in order to establish change management programs. This includes creating awareness to the employees as well as training them on the change and supporting them all through during the change situation. When employees lack information about why the changes occur, anxiety and suspicion will fill their vacuum of information. A policy regarding this should define procedures of ensuring that change management is carried out effectively in terms of communication to employees and involving them in the planning and implementation of the change (Harigopal, 2000). 3.0 Conclusion Continuous innovation provides growth, competitive advantage and survival to an organization. The driving forces towards innovation in an organization are reduced labour costs, reduced material cost, reduced energy consumption, improved quality, product range extension, new markets creation, regulations conformance, product/services replacement, improved processes of production and reduced environmental damage. All these form goals any organization would like to achieve. Strategic human resource management ensures that all strategic activities applied by human resource are aligned to the objectives of the organization. Strategic HRM plans and policies enable an organization undergoing through change and innovation achieve its goals. However there are key issues that Human Resources department needs to address when developing plans and policies for such kind of an organization; recruitment and the number of employees required, retention of highly skilled staff, downsizing workforce, future recruitment needs, compensation and benefits, labour and employee relations, training and development, employee performance, employee assistance, working hours and leave, and termination and dismissal. 4.0 Recommendations For an organization to facilitate its change and innovation process successful, it needs some HRM plans and policies that it can use. The following are the key strategic recommendations to achieve this. 4.1 Talent Development This is an important factor in facilitating change and innovation process in an organization. It is concerned with changing the organization itself, its employees and other involved people. Planned or unplanned learning is used with the aim of maintaining a competitive advantage for the organization. This also refers to activities involved in employee development and retention. This process is to be taken up by the top management in support with the human resource. One of the basic components of talent development is career development necessary for retaining an employee without consideration his job description. An organization undergoing change and innovation process should plan for this as well as develop policies to define procedures on how to achieve this. Talent development thus will enable an organization beat the challenges involved in change and innovation, thereby staying ahead of competitors. 4.2 Effective communication For an organization to have effective innovation and change process, it should communicate uncompromisingly throughout the organization. The importance of communication with employees in the course of the process and implementation of a change program cannot be ignored. The organization should plan for this and a policy regarding it developed as well as the procedures to ensure that it is done effectively. A thorough development plan and change strategy should be put in place first, and must align to the organization culture before communicating the change. Effective change communication should define the type of message to be passed to customers, the medium and channel of communication and the best approach to give it. The best communication approach depends on the context of the organization, characteristics of the change programmer, communication purpose and response of employees. The timing of change messages, communication strategies that match profiles of employees, minimization of uncertainty, flexibility, appropriate media use in giving a clear understanding on how change would affect them, and importance of employee feedback will determine the success of the change and innovation process in the organization. When communication is effective employees get influence to feel positive towards the change and they get motivated to highly commit themselves and get involved in the change. 4.3 Involvement of people in the change An organization should always ensure that changing employees’ mindset or trying to change their attitudes during change is imposing change on them. This may imply that the employees have a wrong perception or mindset towards the innovation process, which in many cases isn’t true. The organization and not the employees have the wrong mindset if the employees aren’t approaching their duties effectively. New policies, disposals, targets, structures, re-location, and so on are part of change that creates new environments and systems in the organization. The HRM plans and policies need to address so that employees are explained as early as possible. This will enable them take part in change validation and refining the changes themselves. The most important factors are early and full communication, involvement and participation. The human resource can plan for workshops to develop employee understand, policies, systems, methods, ideas and approaches. In case of mistrust among staff and damage, staff surveys can be used to gather information, publish and find solutions to the problems. Reference List Armstrong, M. (2000). Strategic human resource management: a guide to action, Kogan Page Publishers Bert, S 2010. Implementing Organizational Change: Theory into Practice, 2nd edn, Pearson. Gilley, A., Gilley, J. W & McMillian, H. S 2009. Organizational change: motivation, communication, and leadership effectiveness. Performance Improvement Quarterly, vol 21, no. 4, pp. 75-95. Harigopal, K 2006. Management of organizational change: leveraging transformation, 2nd edn, SAGE. Mayle, D 2006. Managing Innovation and Change, 3rd edn, SAGE. McKimmie, R 2010. Innovation & change: study guide, CQUniversity, Rockhampton. Waldersee, R & Griffiths, A 2004, Implementing change: matching implementation methods and change type, Leadership and Organization Development Journal, vol. 25, no. 5, pp. 424-434. Read More