Human resource management in achieving the organisational objectives
Human resource management decisions have important and unique influence on organizational performance. Rapid changes of business and economic environment due to globalization and deregulation of market, changing customers’ and investors’ demand, increasing market competition has become the norms of the business. To compete in this market, organization must improve the performance by reducing cost, product innovation, improving quality, productivity and speed to the market. So by effective human resource management ABN can provide better understanding and creating of sustainable organizational and competitive advantage.
To achieve the overall objective of the organization the human resource manager can play a vital role as a strategic partner, an employee sponsor or advocate and a change mentor and will motivate the employee as well help to achieve the organizational objectives.
As a strategic partner, HR manager contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The HR objectives are established to attain the strategic business plan and objectives set by the organization. By effective design of work positions, hiring, reward, recognition and strategic pay, performance development and appraisal systems and employee development HR manger of ABN can align the human resource objective with the organizational objective.
HR manger of ABN can play an integral role by his knowledge and advocacy role which includes expertise in how to create a work environment in which employee will be motivated. HR manager can ensure employee participation in goal setting of the organization and can establish the organizational culture and climate in which employee will be motivated.
ABN must be able to evaluate the effectiveness of the human resource management with the changing environment and by knowing how to link up the changes to the strategic needs of the organization, ABN can minimize the employee dissatisfaction and resistance to change which lead to motivated employee and productivity.
The role of Human resource management within the Abbey National Bank (ABN)
The role of human resource management of ABN is to develop and implement human resource policies and strategy with the ongoing and future business plan to maximize the return on investment and to ensure survival of the organization in long run. Sustainable human resource management includes attraction, selection, recruitment, development, training, performance management, employee relations to maintain high quality, productive workforce and safe working environment. Besides Human resource manger needs to ensure he is taking into account of local, national and international law.
These are the following role of human resource management of ABN.
Alignment of human resource policies with the organizational policies.
Recruitment and selection of potential employees.
To decide appropriate reward, compensation and pay for the employee to motivate them.
To ensure performance, conduct behavioral management of employees e.g leadership quality.
Maintain industry liaison and employee relation.
Workforce personnel data management and human resource analysis.
Motivating employee and morale building.
Ensuring the conformity with the labour law.
Designing and developing organization structure.
1.3. Planning Human Resources requirement
Proper human resources planning are required to attain the organizational goals and objective effectively and efficiently. To plan the human resources requirement, HR manager of ANB considers both internal and external factors. These are described as below:
Organization needs, e.g. growth, decline and changes are to be considered when planning the human resources requirement. As the Santander Bank acquired the ANB due strategic purpose and market expansion in UK, HR manager must plan its human resources that should be capable of meeting the future growth of the Santander.
HR manager considers the impact of technical change to the human resources and provides training and skill development for the employees to keep them up to date with the technological change.
HR manager designs the skill requirement for the workforce to perform the specific job.
ANB also maintains the workforce profile (based on gender, age ethnicity skill and ability) to deliver the service to the customer. Such as ANB provides service to the customer from specific ethnicity background by the recruiting the employees from the same background.
ANB always considers the supply of efficient workforce in the industry and how to attract, recruit and retain the potential employees. Besides it also consider international supply and demand of workforce.
Human resources policies must conform to the existing local, governmental and international law and legislation and must update with it.
ANB always considers their employees expectations by considering participation of employee to the goal setting process. Besides it also consider the salary and wages of average industry standard like considering the salary structure of Lloyds TSB Bank, HSBC Bank and Barclays Bank etc.
Now a day business environment is changing and competitors are using more automated technology to serve their customers effectively and efficiently. So employee must adapt with the changing business environment.
HR managers also plan its human resources requirement with the impact of organizational change like merger, acquisition, alliances and down-sizing.
2.1. Recruitment and Retention Strategies
To develop and maintain appropriate recruitment strategy, ABN needs to understand how the current system works by considering human resource planning and job analysis. By HR planning ANB can forecast current and future HR needs which must be supported by estimate the number & qualifications the firm will need and availability of the current worker and in the labour market. Outsourcing is used by ANB in their HR planning such as telemarketing, direct sales of their product.
ABN also uses job analysis to determine duties, tasks, responsibilities required to perform the job within current employees and manager. After successful HR planning and job analysis HR department goes for external and internal recruitment. For external recruitment ABN gives advertisement to the newspaper, company’s website and attends in job fair at university.
Apart from external recruitment, ANB also goes for internal recruitment to motivate the existing employee and reduce the cost of the recruitment.
Recruitment steps of ANB are as follows
At first HR manager analyze the background of the potential employee like his/her education background, prior employment history etc for initial screening.
After background analysis short listed candidates are called for both structured and unstructured interview
Then only short listed candidate from the interview goes for further selection process of ability and personality test to perform the job.
After this performance test is also made to measure the job performance.
At the final stage of recruitment HR department asks for reference from previous employer or educational establishment which followed by final medical test.
Retention strategies used by the ANB
Best HR practise only achieves by not only recruiting the right employee but also retaining them for a long term to match the long term organizational goal. To ensure the employee retention ANB takes following steps.
Hire the right person in the right job.
Provide adequate remuneration to the employee
Lucrative bonus and reward system.
Ensuring job enlargement and job enrichment.
Ensuring task identity and task significance of the job which ensures employee morale.
Proper feedback of their jobs.
Provide adequate health and safety measures.
2.2 Assess the techniques used for employee development
By ensuring solid employee development an organization can make differences between a successful company and a company that struggles. Effective training and development can reduce employee turnover, increase efficiency and productivity and reduces need for supervision of employees. Development of employee includes improve his or her skill and maintain for the future roles and responsibilities. Techniques used for employee development of ANB are as follows.
1. Employee development starts with the preparing the employees by themselves. To do this HR manager ask various types of question to the employee. e.g
what type of skill do you require to perform the job?
How well you are performing your job?
What is the major like/dislike about the job?
Where you want see yourself in next five years in the organization?
How do you envisage your career progression?
After asking the question HR manager give some time to employee to discuss with the above
questions and how s/he can develop himself or herself.
2. Provide development opportunities
Training: It is starting point to develop the employee. ANB provides proper training based on employees’ performance (eg. On the job training or off the job training) and experiences.
Peer coaching: ABN also uses peer coaching where employees from one area coaches employee from other area.
Job design changes: sometimes HR manager requires suggestions from the employees about their job and whether any job redesign is needed.
Representing the team: HR manager encourages to work employees as a team to represent themselves and how they work within this team building approach.
Delegate special project: sometimes HR manager gives employees special challenging project which is viewed as reward by them and works as a motivating factor.
Assist the boss: Sometimes Bank attach an employee with the boss where employee can learn the new perspective of the business.
3. Monitor progress: Human resource department meets with employees at a regular interval about how things are going and give feedback about how to improve and develop themselves.
4. Create confidence: HR manger is always tries to boost up their confidence by encouraging them to give feedback about their development.
2.3 Contribution of human resource management to ensuring the employee engagement.
Employer always wants their employee will do their best with utmost care to perform the job whereas employee wants inspiring job. Employer requires employee committed to the values and goals to the company and to help the other employee which is know as organizational citizenship. It is more than motivation and satisfaction. The reason why the employer concerns about the employee engagement because its delivered improved business performance. Engaged employee will help to promote good brand value to the customer while will protect employer from risk associated poor product or service quality.
Human resource development techniques like training, coaching, mentoring, career planning, performance management, job evaluation, appraisals, discipline procedure, grievance procedure etc can ensure employee engagement. To ensure employee engagement all the following factors are be considered (given in the flowchart)
If the training of the employee is not aligned with the organizational goals then employee will not be able to contribute to towards the organization. Mentoring can help employee how to perform the work or any adjustment needed or not.
Performance of the employee should be measured accurately and must be provided feedback as employee can measure the gap of between the actual performance and organizational requirement which will increase the employee morale and feel valued.
Besides, two way communications between employee and employer can ensure effective employee engagement.
Strong and well established disciplinary procedures e.g. equal opportunities and fair treatment to all employees, adequate health and safety measure can ensure feeling valued and involved by the employee within the organization which will lead to employee engagement.
To ensure the employee satisfaction, employer can delegate responsibilities to the employees, provides challenging work and autonomy to perform the task. Besides, there should be job recognition and career progression of the employee which will motivate the employee.
3.1 Marketing activities and achievement of Santander Ltd. Objectives
Organization’s objective defines the marketing activities and what to be considered to fulfil the organizations goals. Santander uses marketing activities to fulfil its goal in various ways.
Santander always analyzes the market to find out a new market or new investment area. For this they entered into the UK market.
It also considers developing new products to new market or existing market.
It also analyzes the market threat, competitors’ performance to remain or increase the market share.
It develops and delivers different products to different market by market segmentation (based on age, occupation, geography etc.)
It has continuous consumer behavioural analytical tool to monitor customer perceived value and how to retain them. Like different survey, questionnaire method.
Takes necessary steps to develop strong brand value and awareness by advertising and promotion.
Participate in the marketing campaign to develop corporate social responsibilities.
Investing in marketing and sales to increase sales of their product.
3.2 Role of marketing operations within Abbey National Bank
ABN’s marketing Operations deals with strategic planning and budgeting, marketing performance analysis and management, development of financial performance and infrastructure and data.
Its marketing operations align different department like sale, marketing, sales, finance & HR etc and ensure that marketing is dealing with transparent, efficient and accountable manner. The roles include:
3.3 Appraise the process that Santander Ltd. Uses to develop its market
To develop the market Santander Ltd uses following process
Define market development plan and target.
Then it identifies different sector, niche market and target market
Assesses existing sales and if any development needed.
Maintain sources of database of market, customer, future sales projection.
Develops the strategic proposition e.g. product strategy, price strategy etc. As for example it purchased 318 branches from Royal Bank of Scotland which cost 1.65 billion pound which will increase market share for SME banking from 3% to 8%.
Design inquiries method.
Design sales and required capabilities.
Design monitoring systems
Analyze the advertising method to be used (viral marketing, relationship marketing.
Follow up the activity and make changes if necessary.
4.1 Information system management and organizational objectives.
Information system management can play significant role to achieve the Santander Ltd’s objectives. With the help of information system, all the department of Santander Ltd can communicate with each other at any time, can process and share information with themselves for decision making. Such as with the past data of numbers of customers served in each month, human resources department can recruit new employees in customer service department. |With the help of information system now Santander Bank’s each branch is connected with one another and can share any information at any time if needed. By using software and hardware of computer with more processing power can deliver its service to its customer more conveniently. Customers around from all place can gain access to their server for online banking. Information systems helps the organization to meet the changing need of the society and helps to deliver service more efficiently.
4.2 The role of information system and Santander Ltd.
To provide information to the strategic, tactical and operation level.
To make the information available at any time with least effort of time and cost. (effectively and efficiently)
Reduce cost of collecting, processing, storing and disseminating information.
To take effective decision making.
To gain the competitive advantages over the competitors.
To get the information in timely fashion.
4.3 Planning information system requirements process
Define information system requirement
To plan the information system requirement Santander defines the overall purpose and desired result of the information system and considers whether planning information systems is persistent with the mission and objective of organization and it will add value to the organization
Scan the environment and factors.
After that Santander scans the entire external and internal factor, forces that may effect or change the information system requirements e.g. whether Santander is capable of implementing information system, how would employee perceive the implementation of IS.
Cost benefit Analysis
Santander always considers the cost and benefit of information system requirement. During the planning they keep in their mind whether the value generating from the planning IS would be more than cost. Besides It also considers assets require to support its information system.
The strategic business challenges
To gain full benefit from implementing information systems sometimes organization needs to be redesigned. Santander always considers fundamental changes in employee and management behaviour develop and redesign new organization structure, eliminate inefficiencies.
Ethics and security:
The bank also considers that whether they would be able to use information system with ethically and social responsibly manner e.g. threats to individual piracy, intellectual property right, health problem associated with computer related uses, elimination of jobs due to automation of the information system.
Besides it also keep in their planning about the security of the information system and how is to managed security related problem e.g. piracy, cyber and computer crime etc.
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