Human Resource Management

Unit 6.1

Portsmouth International College

ATHE
Diploma in Business

Unit No
6.1

Unit Title
Human resource management

Student Name
xxx

Due Date
09/05/2014
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Unit 6.1

Table of Contents

S.N

Topic

Page No

1.1

What is strategic human resource management

1.2

The importance of HRM in an organization

1.3

1Analyze of the framework of strategic human resource management.

5-6

1.4

Analyze the strategic human resource process

1.5

Access the role in strategic human resource management

1.6

Analyze the development and implementation of human resource

2.1

strategy.
Identification and analysis of the contemporary issues affecting

8-9

strategic human resource management.

3.1

An identification of a range of HR strategies for an organization

10

3.2

An assessment of HR strategies and their application in an

11

organization.
Reference

12

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Activity 1
1.1 Strategic human resource management:
Strategic human resource management is the approach by which company define the number os
staffs to be recruited, give circular, recruit, select, train and retain them with the organization for
long-term purpose to build a competitive talent position in the market to achieve the long term
goal of the organization. So this approach is connected to the long term people issue and macro
concern about culture, value, quality, commitment and matching resource to the future needs of
the organization (Dessler, 2004). This is a ongoing process that require the organization to have
continuous consultant from HR manager. Its definition in terms with other business planning and
strategy is not absolute; rather it is an option value between different parties of the organization.
Thus the HRM process a) affects the behavior of the decision maker in building the strategy of
the organization and b) the pattern of this HRM
1.2 The importance of HRM in an organization
The success of an organization comes from the skilled man power in the organization. Again the
tough competition that a company faces from its competitors, does not come from the
organization, rather it comes from the skilled manpower of that organization actually the
successful organization in the market has a put the most priority on the human assets. Figures are
yet the cognitive factor that is the employees are the most important contributor to the success.
The first task that HRM does is to understand its employees needs, then evaluate and do
necessary things. This makes the employees to take the task as their personal life not as routine.
Aiming to do it, the HRM attracts, retains and develops employees to attain the organizations
goals (Dessler, 2004). Organization has machine, material market and to operate them man
power is needed. HRM ensure that perfect man is placed on right place to operate these
resources. So HRM is very important foe these followings reason
It recruits and trains human resource

It appraises performance to motivate the employees.

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It maintain good work environment to ensure better performance from the employees
It manages disputes between and among differ4nt parties in the organization.
It develops and maintains public relation for maintaining competitive position in the
market.

1.3 Framework of strategic human resource management.

Framework for HRM is the overall outline of the strategy followed by a organization in its HR
management. Both external and internal environment is taken into consideration. Change in the

Mission
Vision

Strategy

Context

Process

Environment

Objective

Barrier

Goals

Team Process
Source; drawn, Framework of HRM

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Technology is also considered. Performance management, career management, appraisal and

benefits and compensation and training and development are the steps in building the HR
framework.
Development of the HR framework requires the organization to go through three steps. They are

Analysis the present strategies in the organization

Analysis the alternative strategies that fit the organization
Implement the best alternative strategy in terms of the organization overall strategy and
position in the market.

1.4 Strategic human resource process

HR process is the combination of the steps followed in managing the human resource in an
organization which involves recruitment, selection, training, legitimate, discipline, trader union,
productivity and motivation. Recruitment of the employees require the organization identify the
vacant post in the organization, go through a legal process give add in the media; newspapers,
online, TV or another electronic media. This also requires the firm to give a short description of
the job, necessary skill and knowledge of the potential employees and other condition if
necessary (Dessler, 2004).

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HRM process, Soucre; Drawn

Selection of the employees is the process of selecting the right person for the post from the
applicants. Short listed candidate are called for interview. Psychometric, aptitude test, in-tray
exercise and communication as well as presentation skill are common in this stage. Establishing
discipline through formal and informal meeting, verbal and written warning, governance
procedure and working with outside agencies are followed in this process.
Training and development helps the firm to keep the employees up to date with the new work
and environment, raise their skill or maintain the current skill, this help the organization to bring
out the potential from the employees and works as motivation (Dessler, 2004).
Survey shows that money is not the only factor that motivates the employees in workplace. Good
behavior from the senior manager, good environment, holidays, and bonuscan be used in this
case.
1.5 Roles in strategic human resource management
The role of the strategic human resource manager in an organization is very important in
implementing the organizations strategy to achieve the goals. In a large organization, there is a
separate HRM department. In small organizations, manages do all the job of HRM department.
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The importance of HRM is comparative, the larger the organization, the more important the task
is to the organization. HRM makes the people in the organization as assets not as the cost for the
organization. As the workplace is becoming a combination of diversified work force from
different countries and nations with different cultures and values, the importance of HRM is
becoming more and more important (Gowan, 2005). The main importanceof HR manager are
described below
1. Building comparative advantage for the organization is helped by HRM. HR managers
help the firm to retain the skilled personnel with the firm through proper motivation and
rewards. Talent war is the result of skilled labour with the organization. Company gain
more market share with the help of skilled personnel.
2. HR manager suggests thee manager about different aspects of the HR of the organization.
This helps the organization manager to make decision about the organization and staff.
3. HR manager develop the HE policy, ensure the compliance and contribute to the
development of corporate HR strategy.
4. Ensure the proper recruitment process to recruit the right person for the right post. He
ensures corporate branding in recruitment and webs advertisements.
5. Management of conflict in the workplace is an important task of the HR manager. People
come to work from different places with different values, cultures and views and beliefs.
HR managers is to minimize these diffe3rent in the workplace
6. HR manager helps to implement the organization strategy through the proper
implementation of HR strategy.
1.6 Development and implementation of human resource strategy.
The development and implement of HR strategy requires the firm to go through a number of
steps. In order to formulate the HR strategy, organization needs to go through the followings
steps

Build the guiding coalition

Image the future
Understand current capacity and identify thee gap
Create a map of the system
Plan to enact the action (Gratton, 20`10)

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In order to implement this action, manager needs to go through the following methodology in
building the HR strategy
1

Assess the feasibility to ensure that the reasonable number of employees will be available to

2
3

the company at reasonable cost. Expected behavior from them is also to be ensured.
Examine the desirability of the organizations HE policy in terms of vulnerability.
Determine the future goal of the organization based on which other policy will be developed

in latter.
Determine the factor that can help the organization in achieving the goals. Resources like
cost, manpower, materials, time and efforts are also to be determined in term as specific
concrete figure if possible.

And to implement the strategy developed in earlier, manager need to follow the following steps

Human Resource implementation process

Activity 2
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2.1 Contemporary issues affecting strategic human resource management.

As the working environment is changing very rapidly in recent years, the HRM faces a new
series of issue to handle that bring both opportunities and challenges for the organization. Large
organization faces ore tough situation in this case than a small organization (Dessler, 2004). To
prove an effective organization, each firm must keep up with these issues and turn these
challenges as opportunities for the organization. The main issues in HR in today are
a) Managing a diverse workforce. Now people from different region and country come to work
in the same organization. They have different cultures, beliefs, needs, values and
commitments. More over people have different expectations at different work level and age.
HR managers must try to minimize these different in workplace.
b) Globalization has brought immense opportunity for capitalist countries and business. At the
same time, it is threat for the less developed countries. HR manager must be aware to exploit
the opportunities arising from globalization.
c) New law regarding environment, workplace safety, insurance and many such are new
concern for business organization. Organization now needs to fulfill many more need for
their employees than any other time.
d) New technology brings the production process much more complex while the production cost
is decreasing rapidly. However, the privacy of the IT management of the organization is a
new and very sensitive topic. Theft of valuable information, destroy of IT infrastructure are
all now new to manage for HRM
e) Managing conflict of interest of different parties to the organization is an important task for
every manager. However, the recent change in the business environment and cultural change
are not so easy to mitigate the intense of conflict.
f) Balancing work and family at the same time create new problem. Now most of the spouses in
the western countries are jobholder. For them the time to the family is critical.
g) Technology gives the opportunity to work at home. People by the time, need not to go work
place for work, or they need not belong to the specific employer. Even the employer does not
have any contract with the employees or they don not know each other at all. Managing
distance employees need new and innovative technique.
h) Political threat in the developing country brings new issue for HRM. Less developed or LCD
country face this problem too tough to solve.

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Activity 3
3.1 Identification of a range of HR strategies for an organization
As the economy is changing more rapidly than before, business firms need more updated
strategy for the HR strategy. So the HR strategy has changed over the time. No longer have the
business firms focused only on salary as a strategy for motivating the employees. Top priority
has shifted to flexibility, mobility. People policy is the latest addition to this list (Gowan, 2005).
However the nature of these factors changed across the countries in the world. For example, in
Japan, security in the workplace is on the top of motivation. But consider Bangladesh, where in
the last year 1135 employees were died in Rana Plaza claps. So it is tough to give the best HRM
strategy for all organization. Here the most common factors are given.

Source; HRM factors and its importance

3.2 Assessment of HR strategies and their application in an organization.

Assessment to the organization strategy needs to have a clear idea about the key strategy of the
organization. One must understand the challenge of the organization. For this purpose one can
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done SWOT analysis of the organization. By conducting this one will get the strength that the
company has from its internal factor. It is unique to that organization. It contributes to the
comparative advantage to the company. Weakness of the company can also be determined from
this. Inadequate investment in working capital, inappropriate inventory management, lack of
proper knowledge regarding the job, poor management are some examples of weakness that a
company can have for its internal reason. Opportunity for a organization comes from the outside
environment (Gowan, 2005). New technology, better infrastructure, good stock market, money
market along with sound capital market, availability of other materials easily is some examples
of opportunity of an organization. Threat comes from substitute product, similar new firm in the
industry, new law by the government, political and legal environment are the threat for an
organization. For the application one has to first understand the HR strategy and the organization
strategy. Organization strategy is converted to work through the HR strategy. For having a better
result of the implementation, flexibility in the implementation is necessary. That is, there must
exist the opportunity to adjust the strategy if the environment change.

References:
Dessler, G. (2004). A framework for human resource management. 1st ed. Upper Saddle River,
NJ: Pearson Prentice Hall.

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Gilmore, S. and Williams, S. (2009). Human resource management. 1st ed. Oxford: Oxford
University Press.
Hill, C. and Jones, G. (1998).Strategic management. 1st ed. Boston: Houghton Mifflin Co.
Mondy, R., Noe, R. and Gowan, M. (2005).Human resource management. 1st ed. Upper Saddle
River, N.J.: Pearson Prentice Hall.
Mondy, R., Noe, R. and Gowan, M. (2005).Human resource management. 1st ed. Upper Saddle
River, N.J.: Pearson Prentice Hall.
Torrington, D., Hall, L. and Torrington, D. (1998).Human resource management. 1st ed. London:
Prentice Hall Europe.
Wikipedia, (2014).Main Page. [online] Available at: http://en.wikipedia.org [Accessed 4 May. 2.
Mehta, D. (1974). Working capital management. 1st ed. Englewood Cliffs, N.J.: Prentice-Hall.
Ross, S., Westerfield, R. and Jaffe, J. (2002). Corporate finance. 1st ed. Boston, Mass.: McGrawHill/Irwin 014].

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