Strategic Human Resource Management - Assignment Example

Strategic Human Resource Management Part A 1 Organizational Vision ment For the company the support is a priority. The use of any appropriate technology tool for the improvement of this support has been set as an emergent element of the corporate strategy which is going to be followed the next years. The expansion in the area of online activities will offer the company the chance to come closer to the customers and understand better their needs. The role of employees is also considered as crucial. The development of communication in the firm’s internal environment is considered as a necessary element of the firm’s positive performance. 1.2 Core business strategy The main aim of the organization is the development of cooperation and communication among the employees in order to achieve a high level of customer service and respond to the increased needs of modern market. The entrance in markets that were previously considered as inappropriate for the firm’s profile has been also decided. The firm will expand its activities in the area of e-commerce trying to come closer to the customer and meet the requirements set for all modern retail stores around the world. The innovation and the expansion will be the main focus of the corporate strategy for the next years. 1.3 Human resource management strategy In order for the firm to be adapted to the increased needs for communication and support imposed by modern market, a series of advanced human resource policies has been designed and is going to be implemented gradually in the next 2 months. More specifically, a series of training programs will take place in the workplace in order for the employees to be trained on current communication strategies and the use of technology (specially customized software will be implemented in the company in the next 2 months). On the other hand, weekly reports are going to be used in order to measure the productivity of employees who will be also given the chance to exchange their views on the corporate strategy with the firm through a relevant division created within the HR department. Part B Justification of human resource policies In order for the above proposed strategies to be implemented successfully it is necessary that an appropriate preparation is made in advance. Such a policy would be in accordance with the views of Schuler et al. (1998, p.159) who supported that business strategies have to be based on the following criteria: “a) the business structure, b) the legislative and employment relationship context, c) the patterns of HRM competence and decision-making and d) the national culture”. On the other hand, specifically regarding the evaluation of employees productivity, the study of Gelade et al. (2003, 383) showed that “few organizations can evaluate their performance accurately by averaging the performance of their employees; in most cases, the performance of an organization is determined by the productivity and efficiency of such higher-level organizational entities as departments, retail outlets, plants, or teams”. In other words, before the implementation of any business strategy, the whole business entity needs to be examined thoroughly as of its performance under its current structure. In this way any possible negative elements are going to be identified and removed. As for the human resources strategies proposed above, these have to be based on the new (after the business restructuring) business culture in order to achieve the targets required. The fact that these human resources strategies have been carefully reviewed cannot guarantee their success. It is necessary that after a specific period of time these strategies are examined in order to identify any possible weakness. Regarding this issue it has been supported by Ramlall (2003, 60) that “it is only through performance measuring that one can really articulate the benefits of HR strategies in achieving the organizations business strategy and in the process enhance the credibility of the HR profession”. In any case the proposed human resource policies have to be implemented in accordance with the firm’s capabilities to respond. The benefits that are expected by the application of these policies are significant. However, it is necessary that all the appropriate measures are taken in advance in order to avoid any negative outcome (to the extension that such a target is feasible). As Lawler et al. (2003, 12) accepted “the greatest benefits occur when HR is a strategic business partner that fully participates in both the development and implementation of strategy”. The greatest advantage of the proposed human resource management policies is the promotion of diversity in the enterprise, an issue that has not been taken into consideration previously, when designing the human resources strategies applied. Regarding the significance of this type of human resource strategy, Mathews (1998, 175) noticed that “before diversity strategies are implemented, the organizations cultural environment, management and evaluation systems should be examined to ascertain if existing personnel/human resources processes will support or hinder diversity in the organization”. In the particular organization although diversity strategies had not been implemented in the past, there are all the appropriate elements for their success mostly because the company has traditionally applied a human resource strategy that was based on the existence of a friendly environment in all entrepreneurial sectors. In this context, the application of an extended series of training programs will help the employees to develop themselves in accordance with current market’s demands. The specific strategy is supported by the literature where it is stated that “organizations can buy skills through hiring, or they can develop skills through training and development (T&D) activities” (Brown, 1997, 15). However, in order for the specific human resource strategy to be successful it is necessary that the appropriate preparation is previously made. The detailed examination of the organizational context (in its internal and external aspects) is a necessary part of the above preparation. Towards this direction, it is supported by Brown (1997, 21) that “Choice of T&D (training and development) delivery methods depends on the organizational culture and values, T&D objectives and content, the profiles of trainees and trainers, financial and technological resource availability, time, location, and political constraints”. A significant issue in the whole procedure of human resource restructuring is the evaluation of ‘fit’ as used in the area of human resources. Regarding the specific issue Wright (1998, 56) found that “the basic theory behind "fit" is that the effectiveness of any HR practice or set of practices for impacting firm performance depends upon the firms strategy”. In other words, it is in accordance with the organization’s existing strategies as they are going to be alternated through the strategies proposed in the first part of current report, that the type of human resource policies will be finally decided. The application of the method of strategic skills analysis of existed employees is also going to help to the success of the recently formulated human resource policies. Regarding the particular human resource management tool it has been stated by Summers et al. (1997, 18) that “for those organizations seeking a competitive advantage through innovative human resource activity, strategic skills analysis (SSA) represents a means to link business strategy with human resource strategy”. Towards a similar direction, Kesler (1997, 28) has proposed a series of ‘tools of trade’ suitable for the human resource management department, the following ones: “a. strategic staffing and selection b. learning and education, c. performance management, d. rewards and recognition, e. organization design and f. communications”. The application of these ‘measures’ can also help towards the successful implementation of human resource policies proposed. As already stated above, in order for the proposed HR policies to be successful, it is necessary that the plans implemented are in accordance with the employees’ competencies as they can be observed in the workplace. The use of appropriate HR models for the evaluation of the proposed HR strategies could be really valuable. In the area of literature there are many schemes/ models proposed by the relevant researchers. According to the view of Korman et al. (1999, 221) “rather than relying on traditional past-experience models, a more effective approach would be to apply the best principles of future-oriented competency development with the best principles of behavioural identification to develop a behaviour matching profile which however requires a comprehensive analysis of both situations and individuals”. The most known models of HR belong in two major categories: the soft models and the hard models. At a next level a series of particular theories/ models have been developed that belong to the above two major categories. In this context, it has been found by Gratton et al. (1999, 41) that “soft HRM is associated with the human relations movement, the utilization of individual talents, and McGregors (1960) Theory Y perspective on individuals (developmental humanism); soft HRM is also associated with the goals of flexibility and adaptability”. The soft HRM as described above is compared at a next level with the hard HRM which refers mainly on “the quantitative, calculative and business-strategic aspects of managing the "headcount resource" in as "rational" a way as for any other factor of production” (Gratton et al., 1999, 41). In the case of the particular organization, the strategies chosen can be considered as included in the second category (hard HRM) which “focuses on the importance of strategic fit, where human resource policies and practices are closely linked to the strategic objectives of the organization (external fit), and are coherent among themselves (internal fit)” (Gratton et al., 1999, 41). The issue of strategic fit as developed in the context of hard HRM represents the main point of current HR reform as designed and implemented in the particular organization. However, it should be noticed that although all the above theoretical models are going to be used in the implementation process of the proposed HR plans, the success of the relevant effort cannot be considered as absolute. There are always risks related with any corporate activity, however because of the preparation made the expected results are considered as positive regardless the obstacles that may appear during the implementation of the relevant strategies. Current effort can hide many risks for the organization. Any possible failure will lead to severe damages for the firm particularly because of the cost involved in the completion of the relevant project. We could refer here to Theory Y of McGregor (1960, 326, in Gratton et al., 1999, 42) who noticed that “man will exercise self-direction and self-control in the service of objectives to which he is committed; if people are assumed to be in pursuit of self fulfilment through work, then managements aim should be to foster individual growth and development in order to realize the potential of its human resources”. In other words, it is expected that the company’s employees will react positively to the effort made by the management team in order to improve the organizational performance. The cooperation of the company’s employees is considered in any case as absolutely necessary for the success of the relevant effort. Part C Barriers in implementation of human resource policies The above proposed human resource policies are not going to be easily accepted by the firm’s employees. The main reason is that the measures included may seem to be hard for some of these employees. However, it should be taken into account that “leaders may persuade with logic, but they motivate through emotion; leaders must come to grips with the challenges of emotion, a key driver of productivity, quality and other factors that lead to business success” (Ashforth, 1995, 97). In other words, it is the manager’s responsibility to adapt gradually any proposed reform within a particular organization. Generally, it has to be taken into account that in order for the company to survive in the future there are specific qualities that need to be acquired by its employees. The persons that are going to be involved in the implementation process (staff of the human resources department) will also have to show specific skills and attitudes. In this context the view of Jamrog (2004) can be valuable. In accordance with the above researcher “HR professionals need competencies that fall within a three-domain framework: 1) knowledge of business (which includes financial, strategic, and technological capability), 2) knowledge of HR practices (which includes staffing, development appraisal, rewards, organizational planning, and communication) and 3) management of change (creating meaning, problem-solving, innovation and transformation, relationship influence, and role influence)” (2004, p.60). The main criterion for the evaluation of the success of the attempted reform will be the performance of the firm’s employees after a specific period of time – a period of 6 months is considered as sufficient if taking into account the current position of the company and the emergent need for restructuring. As for the behaviour of employees towards the HR policies proposed, this will be evaluated on the long term mainly through their performance in the proposed training programs. It is considered that if the issue of ‘fit’ has been sufficiently examined, no severe opposition by the employees’ side will take place. An issue that should need careful consideration is whether ‘best practices’ as decided in the context of current business activities are combined with ‘fit’. If there is any opposition between these two strategic methods, it is very likely that adverse reactions will be developed by the employees. In this case the study of Chandler et al. (2000, 43) proved that “"Best practices" and "fit" notions need not necessarily be in conflict; however such practices may be viewed at the level of systems architecture (guiding principles), policy, or practice but they may also exist at the upper level (e.g., employees are treated as valued members of the organization) while still allowing for differential policies and practices that support the overarching principle”. The importance of ‘fit’ when planning and applying a particular HR policy has been highlighted by Harris et al. (2004, 156) who explained the above importance using the contingency approach which states that “the particular set of HR practices that an organization adopts must fit with other organizational factors in order for it to be effective”. Towards the same direction, Korman et al. (1999, 221) supported that “of critical importance is the nature of fit; organizations need more versatile managers and are finding fewer candidates available with the skills they need; in turn, talented executives in high demand are increasingly restricting the conditions under which they will take an assignment, specifically defining the terms of authority, decision-making latitude, and fiscal freedom that must be present to ensure the success of their own careers”. The issue of ‘fit’ has been examined in the above study in accordance with the employees’ competencies and their ability to be adapted in the HR policies implemented within a particular organization. The issue of ‘fit’ as presented above is of significant importance because in case of failure of employees to respond to the needs of the proposed reforms in the firm’s HR sector, it is necessary for the company to proceed to recruitment of persons that will have the competencies required. In the particular organization, the restructuring of the HR policies will be radical and it has to be expanded at all entrepreneurial levels in order to be effective. Such an initiative may include the risk of severe damage for the company in case of a failure however because a long term preparation has been made by the firm’s managers, the success of the specific effort is considered as sure. In any case it should be taken into account that the whole effort will be costly for the company but because of the low levels of firm’s performance the implementation of the strategies proposed has been considered as an emergent measure and a priority at least for a specific period of time (an initial period of 6 months as stated above). Regarding this issue it has been stated by Walker (1998, 9) that “costs of human resource processes and initiatives (investment of money, time, and other resources) are best measured in relation to their outcomes while unusually high recruiting and training costs may be justified by the resulting business results achieved; However, such recruiting and training costs should also be evaluated in terms of productivity measures and results achieved”. In other words, the development of the performance of the firm’s employees (as it is estimated to take place after the implementation of the above proposed HR strategies) will be the main ‘profit’ for the company for the months to come. The increase of the company’s profitability (which is expected to follow) will be the final target of the proposed HR plans. References Ashforth B. E. (1995). Emotion in the workplace: A reappraisal. Human Relations 48(2): 97 Brown, K.G., Durham, C.C., Kristoff, A.L., Kunder, L., Olian, J.D., Pierce, R.M. (1998). Designing Management Training and Development for Competitive Advantage: Lessons from the Best. Human Resource Planning, 21(1): 20-32 Chandler, G., Mcevoy, G. (2000) Human Resource Management, TQM and Firm Performance in Small and Medium-Size Enterprises. Entrepreneurship: Theory and Practice, 25(1): 43-48 Gelade, G.A., Ivery, M. (2003). The Impact of Human Resource Management and Work Climate on Organizational Performance. Personnel Psychology, 56(2): 383-398 Gratton, L., Hailey, V., Stiles, P., Truss, C. (1999). Strategic Human Resource Management: Corporate Rhetoric and Human Reality. Oxford: Oxford University Press Harris, H., Sparrow, P. (2004) Globalizing Human Resource Management. New York: Routledge Kesler, G.C., Law, J.A. (1997). Implementing Major Change in the HR Organization: The Lessons of Five Companies. Human Resource Planning, 20(4):26-37 Korman, A., Kraut, A., London, M. (1999). Evolving Practices in Human Resource Management: Responses to a Changing World of Work. San Francisco: Jossey-Bass Lawler, E.E., Mohrman, S.A. (2003). HR as a Strategic Partner: What Does It Take to Make It Happen? Human Resource Planning, 26(3): 15-31 Mathews, A. (1998). Diversity: A Principle of Human Resource Management. Public Personnel Management, 27(2): 175-183 Ramlall, S.J. (2003). Measuring Human Resource Managements Effectiveness in Improving Performance. Human Resource Planning, 26(1):51-64 Summers, S.B., Summers, T.P. (1997). Strategic Skills Analysis for Selection and Development. Human Resource Planning, 20(3): 14-19 Walker, J.W. (1998). Are We Using the Right Human Resource Measures? Human Resource Planning, 21(2): 7-10 Wright, P.M., (1998). Strategy - HR Fit: Does It Really Matter? Human Resource Planning, 21(4): 56-59 Read More