Challenges Faced In Strategic Human Resource Management
Strategic Human Resource Management is related between strategic management and HRM. SHRM is intended to create decisions organization’s employee’s important works of its business strategy. It gives the general way of an organizations hope to achieving objectives through its people. SHRM is run for long term issues of the people in business. It is also connected to the organization’s structure and its culture, requirements of future business. Its performance can change the total management.
Strategic human resource management emphases on human resource programme of Nokia that has long term objectives. It is focusing on internal human resource issues as well as on addressing and solving problems that effect management programs in the long term. so the main goal of strategic human resources is to boost employee productivity by focusing on business resistance that take place outside of human resources.
SHRM of Nokia employs strategies that help to develop the business' performance of Nokia and help an environment of modernism and flexibility among employees. The main actions of Head of SHRM Juha Akras are to identify key HR areas where strategies can be implemented in the long run of progress the overall employee motivation and productivity.
SHRM also describe about the company's internal strengths and weaknesses. This is very important as the strengths and weaknesses of a company's human resources that have a straight effect on the company’s future.
1.2 The purpose of Strategic Human Resource Management activities of Nokia:
SHRM has a unique purpose to meet the company’s objectives. Different company has different strategy and SHRM plays a role to identify the overall need for the company to achieve the company goal. The SHRM activities are as follows for Nokia and it has a great purpose for company’s future:
1.2.1Resource planning: Resources are very important and should accessible to get together present and potential business requirements in favour of business policy. Nokia Resource planning directed executive or global and part or narrow system which is done by SHRM of Nokia. Particularly, talented workers or real apprenticeship schemes must be used.
1.2.3 Workforce planning and recruiting: Workforce planning is the development of assessing a company’s current and future human resources needs. Workforce planning also includes managing any training and recruitment process to make sure the organisation has the exact staff inexact place. Nokia work force planning has a great purpose to properly express one way to make a workforce receptive to cross functional, Cross-cultural teaming that can therefore make fast, high-quality decisions and increase the organization’s flexibility.
1.2.4 Performance management: Nokia SHRM has a system to run employee performance. It ensures individual objectives are copied from company strategy and policies. This is for motivate Nokia’s employee.
1.2.5 Recruiting and exit procedures: Nokia SHRM makes sure the capable and qualified persons are appointed to open positions, according to real need. The dealers check the quality of candidates. SHRM provided with a work contract or offer letter, basic or specific training. SHRM shall ensure that exit procedures are acquiescent with local legislation, international labour law and appropriate collective agreements.
1.2.6 Nokia specific training and certification: Nokia SHRM has the essential guidance on Nokia’s organization and product marketing, if required any compulsory Id or certificates to be trained the community procedure of engaging multicultural, multi-country employees in generating and agreeing on a set of values and to search and get deeper considerate of the relationships between strategy, culture, values and business outcomes.
1.3. Contribution of Strategic Human Resource Management to the achievement of Nokia’s organizational objectives.
To continue a strong, booming and well-organized atmosphere Nokia connects with its workforce in the core target to make an situation for all its workers anywhere they can fulfil their prospective.
1.3.1 Company growth: Nokia expands their business in regularly basis with new innovations and ideas. That is why Nokia needs lot of skill and experienced persons to meet their business growth. For example Nokia’s Research & Development work was spread crosswise in 69 web and its 19,579 technical expertises to activate and build up their own facts. In these situations Human Resource played a vital role. It recruits them and trained
them in specific way to success in this project. Nokia is operating their business all over the world and so the human resource providing a socio cultural environment to its employee relationship and workplace.
1.3.2 Profit increasing: Every company is profit oriented. They want to increase their profit in every aspect. Nokia is also increasing profit very successfully by making new ideas implementations. Human resource has a effective involve to increase their profit by reducing labour cost and other activities. Human resources is the organization of resources other than natural resources and capital resources.
1.3.3 Satisfaction of Stakeholders: Human Resource of Nokia always try to satisfy its Stakeholders like its employees, investors, suppliers and others. It has an member of staff approval training and employee judgment assignment and can get achievement on the grades of the training. It makes sure that information related to employees such as industry performance, communicated crossways the society and ensure performance is evaluated fairly and independently.HR of Nokia provide to dealer forces at Nokia services.
Human Resources Planning:
2.1 Business factors of Coca-Cola that underpin human resource planning:
Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. Though, the term of HRM has come to mean more than this because people are different from the other resources that work for an organisation.
Coca-Cola Human Resource department involves in company strategic planning in various way. When it makes human resource plan there is involve company business factor and external environment factor.
2.1.1 Business Growth: Coca-Cola is a leading beverage company. It increases its business all over the world in every year in different way. So needs lot of staff to meet this incensement of business. Human resources planning takes its consideration forecasting future manpower requirements, where using arithmetical view to plan growth in the monetary situation and expansion of the business.
2.1.2Business Change: Coca cola change their business plan strategy sometimes very frequently in consideration of economic, market variation, competitor and other relative factors. Human resource of Coca-Cola also takes such consideration when it plans in a long term basis.
2.1.3 Impact of Technology: In every certain time all over the world modern technology is invented. Coca-Cola always takes it a challenge when they make a Human resource plan. HR is considered to its existence employee and recruits skilful employee to meet this challenge successfully.
2.1.4 Business Competition: There is a huge competition of all over the world. In this competition rivalry making efficient the organization is a real challenge. Coca-Cola Human resource plan think about this competition and make it organization to fit in this situation.
2.1.5 Labour Cost Control: Coca-Cola Human resource planning includes in a wide way about Labour cost control by maintain waste of time, proper use of materials. Its Human resource always approach training programme to its productions stuff to make difference and make them skilful as they can work fast and more easily. Not only it’s taking consideration for planning or developing its production stuff it also concentrates its:
● IT specialists.
● Project Specialist
● Product designer
● Admin stuff
Other variations should take for consideration new legislations like new health requirements, safety requirements, Changes in government policies like tax tariff, labour demand and supply.
2.2 Human resource requirements in a given situation:
According to the New York Times July, 2009 Coca-Cola market was slipped in U.S. market but Coca-Cola still the best carbonate cola. In this situation there was 60% market share was Coca-Cola. Generally its market share relay between 75%-85% in U.S market. In this situation Coca- Cola surveyed their market and find out the barrier and solved it by various planning implementation. Besides the other department Human Resource Management played a vital role to recover the market as well. In Such kind of situation Human Resource makes sure several things that are as follows:
2.2.1 Personal Requirement: HR will arrange the operation teams and then give exact point to its members. According to the size of industry and the involvedness of the operation, might also need to create sub teams. The following points provide options HR might consider in regard to managing some important issues:
● Let to know and familiar with the specific operations: .
● Special training is given to employees; new employees also are placed with old ones to learn work and the values prevalent in the company.
2.2.2 Workplace: They must provide sufficient working space to per employee. The temperature must be reasonable. The workplace must be adequately lit and where the work can be done seated seats must be provided. Human resource management makes sure promote an comprehensive atmosphere that inspire all workforce to build up and get to their complete possible, consistent with a promise of human rights in our place of work.
2.2.3 Organizing operation teams: SHRM will help to make a team of talent in safety way also serve up as influential of secondary teams. Team members have to have such skills that are valuable according to the requirements.
2.3 Development a human resources plan Coca-Cola:
The Human Resource Plan should also be closely tied to strategic planning.
In order to effectively meet their strategic goals and objectives, a world leading company, hire or develop staff with the required skills, knowledge and attitudes to
Perform the needed functions.
The Human Resource Plan of Coca-Cola can be completed in six steps:
2.3.1 Step 1: Setup a big picture: The main purpose of the first step is to bring the group to realize the meaning of and the need for a business strategy and agenda of Coca-Cola. To understand the business strategy the specific department executives will run a workshop and it can be two days workshop.
In this two-day workshop the business unit executive reviews business strategy in any issues to impact the business. HR highlights the key driving forces of business such as Technology, distribution, competition, the markets etc and also the implications of the driving forces for the people side of business the fundamental people contribution to bottom line business performance.
2.3.2Step 2: Develop a Mission Statement or Statement of Intent: This come up to human resources planning mirrors the section in business plan of Coca-Cola dedicated to clearing up why your company exists and what value it presents. Human resources planning will be based on your organization's mission statement, goals and objectives because your workforce will be in alignment with the company values.
2.3.3 Step 3: Conduct a SWOT analysis of the organization: This analysis will looks at the internal environment of company. By this analysis the human resource will find out what is Coca-Cola’s present strengths and what is weakness as well as current in future opportunity and threats to know the whether they able to achieve with the current human resources. SWOT analysis will ensure the clear image about the organisation resources such as capital & worker.
2.3.4Step 4: Develop consequences and solutions; Human resource will amalgamate all essential for meeting the company objectives. It will take steps for developing the Human Resource Plan as below:
Teamwork of staff to lower levels to the management level should be developed to support in various ways that able to consider necessary in things to build up communication and promote better relationship among all level of employee. The management should emphasize on good quality of corporate culture to build up employees and make a positive and favourable work environment.
The reasonable and complete process of human resource management is Performance appraisal. Through the performance evaluation HRM can collect and proves basics for recruiting and selecting new staff and can give training to its existing staff to develop their skill. It is motivate and maintain a work force by satisfactorily and correctly rewarding their dedications. Human Resources Management will defiantly fall down without a dependable performance evaluation system.
2.3.5 Step 5: Implementation and evaluation of the action plans: Developing a human resource strategy’s main purpose is to make sure that the objectives set are similarly helpful so that the reward and payment systems are incorporated with employee training and career development plans.
2.4 Evaluation of how a human resources plan can contribute to meet Coca-Cola’s objectives:
Human Resource Plan has a great value to achieve of an organisation's overall strategic objectives and it is clearly explain that the human resources role completely understands and supports the route in which the organisation is touching. A complete HR plan will also support other exact strategic objectives undertaken by the marketing, financial, functioning and technology departments.
Generally Coca-Cola evaluates its HR plan in various ways which are below:
● It has the exact people in exact place.
● It has the accurate combination of skills.
● Employees show their correct attitudes and behaviours.
● Employees are organized in a effective way.
Coca-Cola take decision a HR strategy plan can attach importance to the organisation if it has the values which are below:
● Some more clear of the common things which recline at the back the success of other plans and strategies which didn’t show previously.
● Recognize basic an essential issue which has to be addressed to its people as the are motivated more dedicated and work successfully.
The next area should be including:
● Workforce planning issues
● Making plan successful.
● Workforce skills campaign.
●Employment justice plans.
● Motivation and reasonable behaviour issues.
● Recruitment design in compensate levels, retain and motivate people
● A reasonable grading and payment system which is serving proper incentive for dedications.
● A constant performance management structure which is considered to assemble the requirements of all sectors of the business including its people.
Furthermore, the HR strategy of Coca-Cola can put in worth is by making sure that, in all its other plans takes its version of and plans for changes in the bigger environment, those are likely to have a major impact such as:
● Changes in the in general service marketplace.
● Development of the member of staff relations weather is need.
● Changes the legal framework which surrounding employment.
3.1 Explanation the purpose of human resource management policies of Coca-Cola:
Coca-Cola believes in delivering better performance requirements better capabilities. So its HR policy is planned in procession with this approach and stand on attracting and retaining the brilliant people and developing them constantly.
Employee’s development is the main issues for human resource management. It constantly educated on ‘How to Develop People’. Employees, business objectives and ability levels are followed up by the performance management.
Reward system and career management systems are considered on job family model. As a fraction of career management system, internal appointment procedure is used so as to grant them career and job upgrading opportunities. In 2007 there are 97 placement have been filled through internal assignments.
Winning and potential employees are reviewed efficiently and exclusively. Talent re-evaluate meetings are planned for next steps with individualized development programs.
3.2 Analysing the impact of regulatory requirements on human resource policies of Coca-Cola:
The HR policies can help an organization both internally and externally. It meets requirements for diversity, ethics and training as well as its commitments in relative to instruction and commercial governance. The HR policy of Coca-cola establishes a cultural diversity. HR policies also played a very effective at supporting and building the desired organizational culture.
These are lots of system and that actually beneficiary from a company as well as from employee. All around the world, Coca-cola makes sure with 27000 of Expatriates that they be given the kind of correspondence and ongoing support that makes their replacement a positive experience. Coca-Cola team Management with all policies for international mobility with a long term basis.
Coca-cola accepted such kind of policies about its internal environment that make sure that they are flexible, smart and complete enough on the way to contract with the large range of needs and issues that is very essential to run a business successfully.
Task 3: Reviewing Human Resource Management
4.1 The impact of an organisational structure on the management of human resources:
There is a significant impact of HRM of Tesco on organizational structures to get nearer into sight organization in a effective way. The fundamental decision-making scheme was unsuccessful to react quickly to manager’s desires and concerns. So, Tesco taking place scrapping conservative, hierarchical professional structures in act of kindness of compliment, decentralized management systems. Then smaller number managers were concerned in the decision-making process and companies were adopting more of a team advance to management. HRM professionals, as the management change and were charged with reorganizing workers and escalating their effectiveness. This hard work also resulted in the detonation of part-time, or contract, employees, which necessary human resource strategies that contrasted with those applicable to full time workers.
4.2 Analysing the impact of an organisational culture on the management of human resources:
Organizational culture and environment factors are such kind of factor where an organization exist determines the way of managing the organization (Saffold, 1988:547). The connection between organizational culture and human resources practices can be say as follows.
When the member of organization i.e. employees, understand and internalized the organzational culture which can be said as the way things are done around here it will enable for employee to choose strategy, and behavior that fit with their personality as well as with the main routines of organization activities.
Since Indonesia is belong to country with high power distance and low uncertainty avoidance, it is likely that organizational culture that fit with this condition is parochial type. Parochial culture is characterized by the tendecy to give much attention to some factor such as family relationship, social relation, and personal backgroud, and less attention to capability and competency needed to perform the task.
The main power is on the one hand, a powerful person such as the owner or the founder of the company, where “the destiny” of an employee depends on the hand of the most powerfull person (the boss). There is a division of work, the boss is the planner, the other are the doer. In the high power distance society, good leader or good manager in the eye of the employees, is someone who can act like a good father (Hofstede, 1997). This type of relationship will lead to less participative management in decision making.
4.3 The effectiveness of human resources management is monitored at Tesco:
The central point on HR for developing the employees through constant teaching is essential to the achievement of the business; it would amount to a waste of resources. As the UK’s largest merchant crossways 14 countries consists of 470,000 members of staff.
4.3.1 Value: These apply together to consumers and employees, and for the latter focus on teamwork, trust and respect, listening, supporting and saying thank you, and sharing knowledge and experience.
4.3.2 Support: Tesco can claim a perpetual support from the employees even though the company faces a dispute concerning the distraction that includes financial services. The company also stretched internationally and economic downturn is enough to keep the company’s values.
4.3.3 Growth: The Tesco's HR functions are extremely entrenched. They are doing type to both short-term and longer term growth. The company is created 11,000 new jobs in 2009 and they will target the long-term unemployed.
4.3.4 Meritocracy: Tesco boasts the best employee remuneration package in the food retail sector, with an award-winning pension scheme. Some 170,000 staff own shares or are members of share schemes, and there is discounted dental, health and life insurance on offer.
4.4 Justified recommendations to improve the effectiveness of human resources management in Tesco:
4.4.1 Composition of the audit team: There has to be a representative from the HR function and from among senior line managers if the effect has to have any credibility.
4.4.2Identify the function’s main customers: It is important to review to measure that what customer’s main functions are.
4.4.3 Mission reports reconsider: This declaration explains the cause for the HR function’s continuation, its principal actions and it’s most important values.
4.4.4 Reconsider the activities role in implementing the company’s strategy: This is critical point to establishing the connection between HR policy and practices as well as the organization’s overall business strategy.
4.4.5 Reconsider the HR policy and practices: The benefit of this approach is that line managers can go anywhere if they are not happy with the service they be given from the HR function within the organization.
4.4.6 Create domestic comparison to set up best practice: The organization have to make and continually keep posted a exclusive database of HR practices that gives an overview of developments within the world’s major organizations today.
4.4.7Review the outcome of analysis: Performance gaps have to be identified and the policy implications have to be discussed with the customer. The commitment for implementing the necessary improvements should be gained.
4.4.8 Apply the decided improvements: The metrics selected should be the decided on right indicators of the HR function’s performance and evaluate the results with industry averages, competitors, ‘best’ practice firms, and/or with set targets or previous performance ratings.
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