Business Plan: Strategic Human Resource Management
Business Plan: Strategic Human Resource Management
Business Plan: Strategic Human Resource Management
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Business Plan
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TABLE OF CONTENTS
INTRODUCTION .......................................................................................................................... 1
Organizations Information ............................................................................................................. 2
LO1: UNDERSTAND HOW THE STRATEGIC MANAGEMENT OF HUMAN RESOURCES
CONTRIBUTES TO THE ACHIEVEMENT OF ORGANISATIONAL OBJECTIVES ............. 3
1.1 Importance of Strategic Human Resource Management ...................................................... 3
1.2 Purpose of Strategic Human Resource Management Activities ........................................... 3
1.3 Contribution of SHRM to Achievement of an Organizations Goals ................................... 5
LO2: BE ABLE TO DEVELOP HUMAN RESOURCE PLANS FOR AN ORGANIZATION .. 6
2.1 Business factors that underpin HR planning in an organization ........................................... 6
2.2 Human Resource Requirements ............................................................................................ 6
2.3 Develop a Human Resource Plan ......................................................................................... 7
2.4 Critical Evaluation of how an HR plan can contribute to meeting an Organizations
objectives .................................................................................................................................... 8
LO3: UNDERSTAND HUMAN RESOURCES POLICY REQUIREMENTS IN AN
ORGANIZATION .......................................................................................................................... 9
3.1 Purpose of Human Policies in Organization ......................................................................... 9
3.2 Impact of regulatory requirement on Human resource policies .......................................... 10
4.2 Impact of organization culture on management of human resource ................................... 11
4.3 How the Effectiveness of HRM is monitored in an organization ....................................... 12
4.4 Recommendation to improve the effectiveness of HRM in an organization ...................... 12
CONCLUSION ............................................................................................................................. 13
REFERENCES ............................................................................................................................. 14
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TABLE OF FIGURES
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INTRODUCTION
Strategic human resource management includes the development and implementation of
HR strategies. These strategies are integrated with business strategies and enable the
organization to achieve its business goals. In other words SHRM is the process of integrating
human resource function with the strategic objectives of the organization in order to achieve
organizational goals (Armstrong, 2008). Human resources are the real capital of the organization
as it not only help in achieving organizational goals but also provide innovative ideas which can
change the entire business process. In order to achieve its objectives an organization has to take
optimum utilization of its human resources by framing strong human resource management
strategies.
Human resource management is a combination of five different functions and a HR
manager can increase the effectiveness of its workforce by strategically performing these
functions (Jackson and Schuler, 1995). Human resource management includes:
Staffing
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Strategic human resource management combines the business strategies with human resource
functions so that performance of the workforce can be increased (Lundy and Cowling, 1996).
This present report is going to discuss on the various aspects of strategic human resource
management of two different organizations. This report will try to analyze the role of effective
strategic human resource management in real world. The major aim of this report is to know how
an effective strategic human resource management can help an organization in achieving its
business goals. In order to best possible outcomes this report will be divided into four different
parts. Each part has their own importance in providing comprehensive understanding to the
reader.
Organizations Information
The UK retail industry is the largest service industry with employing more than three
million people and it is predicted that this number will increased by 15% over the next five years.
About 8% part of GDP is generated by this industry (Farfan, 2013). There are two major players
of this industry Tesco and ASDA.
TESCO
Headquartered in Cheshunt, it is the third largest grocery and general merchandise
retailer in world. It is the grocery market leader in UK and has more than 6351 stores in 14
different countries. Company has over 300,000 employees and 3000 stores in UK and its 60% of
group revenue come from here. This amount was 42,248m for the years 20011-12. Company
has a huge of products such as Technology & Gaming, Home Electronics, Home & Garden, DIY
& Car, Sports & Leisure, Baby & Toddler, Gifts & Jewellery, Entertainment & Books, Health &
beauty and Clothing (Tesco Plc, 2013).
Wal-Mart
It is US based multinational retail corporation. Wal-Mart stores are well-known for their
huge discounted products. According to Fortune Global 500 list in 2012 it i s worlds third largest
public corporation and operating on more than 8970 locations. It has more than 2.2 million
employees working all around the world. Company has divided its products into various
departments like Electronics & Office, Movies, Music and books, home, furniture & Patio, Baby
& Kids, Toys & Video Games, Sports, Fitness & Outdoors, Auto & Home Improvement, Photo,
Gifts, Craft & Party Supplies and Grocery & Pets (Walmart, 2013).
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Both companies are operating their operations in a huge part of the world and order to get
benefit of cultural knowledge they prefer to hire local employees.
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Figure 1 Purpose of SHRM
(Source: Finntrack, 2011)
The major purpose of every activity regarding human resource is to increase the
effectiveness of employees either it can be by motivation or training. SHRM ensure that
organizations human resources are being used at right place and for right work. It analyze
internal and external environment and formulate human resource strategies based on
organizations purpose, missions and actions. SHRM the major purpose of strategic Human
resource management can be divided into four sections given below:
One-way Connection: this activity includes formulation of business plan and their
informing employees about that. After formulating business plan activities managers
implement them according to role of employees. One way connection only facilitates
flow of orders from upper level to lower level.
Administrative Connection this phrase indicates the integration lowest level where day
to day activities are focused by HR managers. In order to take optimum utilization of
workforce HR manager takes decisions regarding day to day activities of employees.
Two-way Connection in this section HR manager invites feedback from employees in
order to provide better working environment. This feedback and consideration provides
innovative ideas that also help in strategy formulation. Two-way connection includes
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flow of order from upper to lower level as well as feedback from lower level to upper
level (Pattanayak, 2005).
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This above figure indicates the hierarchy of accountability in an organization for SHRM.
It is important for every organization to deal with their employees in such a logical structure that
reflects the business strategy. According to this figure HR accountability must begin with basic
legal formalities, as it eventually encompasses other four levels (Hall, 1990).
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communication, planning and problem solving (Rasli and Alharthey, 2011). For different
working levels Tesco has below requirements:
As being in the same industry Wal-Mart also looks for the same skills in their employees
but it prefer to hire women rather than man employees as it takes lower wages. Other than these
both companies prefer to hire local people as they have the knowledge of local market and
culture so they can handle customers in much better way (Nicholson, 2003). Hiring from local
community doesnt require training regarding language or culture of customers.
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STEP 1:
STEP 2: STEP 3:
Determing the Business
Scan the Environment Conduct a Gap Analysis
Goals
STEP 4:
Set HR Priorities to Help
Achieve Departmental Goals
STRATEGIES
Developing a Talent Pool
STEP 5:
Work Environment Improvements
Organizational Effectiveness Measure, Monitor and Report
Competency / Skills on Progress
Development
Employee Engagement
Workplace Well-being
Recruitment / Staffing
Retention
The above process includes five steps to formulate a strong HR plan. There are few
major points which must be taken care while formulating an HR plan, first is the ultimate goal of
the organization; another one is companies HR polices, status of current workforce and future
requirements.
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human resource many organizations have put into a wide range of activities in past several years
but, in real world it is not possible without identifying the skills of employees and motivating
them for give their best. So, managers have to implement a strong HR plan and strictly follow it
for getting the best outcomes.
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Structure: it defines the structure of organization so that unnecessary confusion and
chaos can be avoided.
Fairness: HR policies are applicable on entire workforce equally that indicates the
fairness towards individuals.
Best Practices: Some time HR polices are formulated so that organization can analyse its
best practises.
Strategy: organizations formulate HR policies in order make their long term business
plans. These policies help in taking long-term decisions regarding employees.
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Federal Laws: It affects all HR activities starting from hiring to termination of
employees. The major regulations are governed by department of labor which affects
business as well as employees. HR standards are prescribed by federal law such as
standard of health and safety, payment, working conditions, retirement.
State Laws: State laws affects the different areas of employment, it includes transfer,
medical leave, posting requirement, security, compensations and employer notice before
termination.
Certain governmental laws prohibit the discrimination in employment on the basis of
creed, caste, color or religion. Some regulation also requires employers to take positive action to
employ and develop handicapped individuals (Guest, 1987).
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The leadership styles of top managers play a key role in identifying the organization
culture. The ability of the leader to handle conflicts and motivate the workforce can help in the
establishment of an effective working culture. In Tesco, culture of the organization is working as
a team where all the group members co-operate each other to achieve organizational goals
(Milner, 2012).
Good cultures within the organization motivate people as well as provide a good working
environment for employees on the other hand it can also make negative impacts by de-
motivating people. If employees dont like their working environment it will be though to retain
them for a long time.
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decision regarding human resource. The firms should conduct different training and development
sessions for improve the effectiveness of their workforce and enhance their efficiency.
CONCLUSION
Strategic human Resource Management plays an essential role in managing the
workforce as well as improving their productivity. Various activities of SHRM motivate
employees and indicate the track of success through their satisfaction. It is well-known that it is
not possible to archive organizational goals without the contribution of human resource.
Strategic Human Resource Management facilitates the strategic use of human resources. On the
basis of above discussion it can be concluded that SHRM is an essential factor that enables
optimum utilization of workforce.
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REFERENCES
Books and Journals
Afiouni, F., 2013. Human capital management: a new name for HRM?
International Journal of Learning and Intellectual Capital. 1(10). pp.18-34.
Anonymous, 2003. Human resources deliver Tesco's bright Future Human Resource
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th
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London: Kogan Page Publishers.
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in Creating Organizational Competitive Advantage. Academy of Management Journal.
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Hall, M.L., 1990. Interactive Human Resource Management and Strategic Planning. Quorum
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nd
Holbeche, L., 2008. Aligning Human Resources and Business Strategy. 2 ed. Butterworth-
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Jackson, S.E. and Seo, J., 2010. The greening of strategic HRM scholarship.
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Lundy, O. And Cowling, A., 1996. Strategic Human Resource Management. London:
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Milner, B.M., 2012 The Handbook of Research on Top Management Teams. European Journal
of Training and Development. 2(37).
Nicholson, N., 2003. How to motivate your problem people. Harvard Business Review, January.
81 (1). pp.57-64.
Pattanayak, B., 2005. Human resource Management, 3 rd Ed. New Delhi: Twelfth Printing
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Prince, A., 2011. Human Resource Management, 4 th Ed. UK: Cengage Learning.
Rasli, A. and Alharthey, B.K., 2011. Key role of strategic human resource management (SHRM)
in advancing the degree of team learning, African Journal of Business Management.
5(26). pp.10446-10451.
Rothwell, W.J., 2010. Effective Succession Planning: Ensuring Leadership Continuity and
Building Talent from Within, 3 rd Ed. NY: AMACOM.
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USA: Greenwood Publication Group.
Snell, S.A., and Bohlander, G.W., 2012. Managing Human Resources. Cengage Learning.
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