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The purpose of strategic human resource management is to coordinate all the activities and handle all the issues related to company's resources. The aim is to modernize the organization, and move towards the innovation of this era. Now-a-days organizational have to move with the rapid changes in order to get success, and shape failures. Corporation combines resources effectively and efficiently so that they implement its strategic, and accomplish the targets. Strategic human resource management organizes, maintain, develop, control, obtain, lead, and try to retain its human resources (Howard E. Aldrich and Jeffrey Pfeiffer 1976).
Volkswagen is the largest manufacturer of automobile in Europe, one of the four largest all around the world. The company is established in 16th September 1938. Volkswagen designs an affordable car for the ordinary man. Volkswagen the group of America in 2006 has faced demoralizing situation when they relocating its headquarters to Michigan. Volkswagen is not only replacing its work force but also lay-off its employees ,what actually the company wants they were finding the right talent, and assigned the task to the person according to his knowledge, skills, and capabilities. Volkswagen is looking for the candidates to come and join an automobile industry; this is how changes take place and re-evaluation of staff planning in a short time period.
Core Competencies: Volkswagen is filling its position and implementing its core competencies in order to hire general and for the particular job families.
Acknowledging the Talent Gaps: Volkswagen is leading its workforce by planning the beginning efficiently and putting effective schedule and plan to hire by specifying the skills that need to fill position. According to the previous outcome of Volkswagen, they are very effective in developing forecast headcount in order to fill the gaps between the skills needed to help company leaders, and skill available so that the task will be given to the right person.
Consideration of the wider internal and external environmental factors affecting the plan.
Volkswagen is also focusing on internal and external talent by making smart decision and the main reason is that they are efficiently working by making plans for work force, and generating drone in todays economy. It may seems so simple but donï¿½t be fooled. The business leader forecast returns and working budgets, this is just because 25% of organizations who are able to plan its work force are actually executing these plans efficiently. Furthermore, many organization carry out staff planning on look-for basis, mostly when the economic crises hit the business or when other external environment takes place.
Develop such vision so that employees can have clear focus over its plan. Motivate employees and make slogans or abbreviation to create spark of success in their minds thats how teams work and achieve their targets and objectives.
The objectives have to be clean and clear that workforce wont be distracted and have the clear vision of organization so that they meet the requirements and get success in achieving its goals and fulfil its duty.
Communication plays very important role in every organization in every department in every region whether it is small or big area but communicating effectively inspire people and thats how people make favours and exchange deals. Management understand the problem arise in the organization communicate or discuss all the related issues to the problem and find the way to resolve these problems which occur in the organization.
Develop alternatives is very important in order to get rid of hurdles or unusual situations.
External environment is uncontrollable the management should be able to deal with the diversity which occur in the organization, get successful results through recruitment , change leaders and give new weave to the organization (AA Lado 1994).
Most of the organizations have a strategic human resource or personal development plans that implement or analyse the human resource practices, and then make procedures accordingly. The effective coordination between manager and employees leads organization towards success. Good manager needs to be a risk taker in order to introduce the organization to new dimensions of business. But being a risk taker does not mean to make hasty decisions and leave the rest to chance. Being a risk taker means to do proper research for a new project, know the market and its driving factors make forecasts and then takes trust your instincts. When we consider performance appraisal practice in the organization it means organizations planned realistic goal and really want to execute them. Compensation plan always encourage employees towards their duty it involves various benefits such as house rent, medical care, insurance, petrol, driver, and specific percentage of shopping is allowed. Plans vary from organization to organization, its organizational culture, its workforce, its size, and its market. Human resource department plan how many employees do they need, when to layoff, enlarge and enrich employeeï¿½s task or duty. Plan the evaluation strategy, monitor, and control the changes occur in the organization. Plan how to assist managers and discussing human resource management related issues occur in the organization. Plan when to recruit including all the activities such as application submission, candidates test, and shortlist them, interview dates, and finally select them who match your organizational requirement. Manager managing time appropriately increases employeesï¿½ productivity and efficiently achieves organizational goals.
Volkswagen has set a target of removing Toyota as the worldï¿½s largest automobile company. As Volkswagen recently get only 2.2% of the US market and this was result an increase in North American market share after setting these goals. The cost cutting strategy of Volkswagen as countering its cars to better robust the American lifestyle.
This also includes mounting the size of the vehicle, and modifying specific facilities as in raising the cup holder size to better fill the larger one beverage that Americans are acknowledge drinking. The VW team members set goal in order to become the world largest auto mobile company by 2018. They have set the target of selling 1800,000 vehicles a year regardless of economic situation and a decrease in US automobile market.
Strategic human resource management is not only mange or set targets but also cope up with all the challenges faced by the comapny. Organizational function has to analyse those human resources that are always help in contributing in organizational effectiveness and development. Strategic management department is formed to give way to manager, and help in making strategic in order to measure performance. Functional objective help to maintain, control the activities of department, and try to fix the appropriate levels in order to set the corporate needs. The strategic human resource department needs to be highly sophisticated as compare to other organizations. The organization has to be responsive in adopting the technology which is rapidly increasing day by day. Every organization needs to be modified so that it will be able to transmute its threats into opportunities. The strategic human resources department takes decisions via laws which they can address safety, business, and different are as which concern society a lot. When we talk about the personal objectives to help each of the employees in accomplishing its personal objectives and enhance the job satisfaction factors so that organization meets the requirement to achieve its objectives. The personal goals of employees should be met if employees are to be developed, controlled, maintained, organized, and motivated.
Organizations diagnose that every day its people are the most valuable resources who are actually competing. Human resource department is disclosing by playing a simple administrative performance to becoming an efficient strategic participant who is responsible in setting the objectives and targets to meet the requirement of the organization. The management find ways to assess the performance, companies have different styles of assessing the company's performance as well as its employees performance. Strategic management focus more on external factors which can effect organization because dealing with external factors are bit difficult to handle which classifies as uncontrollable factor but if the management is enough efficient in handling external environment its mean they are using its resources effectively and efficiently.
Strategic human resource management focus more on hurdles which comes in their way ,involve in problem solving , and develop innovative strategies in order to achieve organizational goals. It involves high commitment and creative people who can manage and take rational decisions so that organization can achieve its target. These organizational potential is accomplish through the teams and individual cooperative behaviour in the organization. The management should form such environment that its individual subordinates and teams will be able to cope up with each other in the organization. The organization has specialized measures that balanced the organizational environment and help organization in improving its operations. Strategic human resource management has competency which can define in a broader way this essential accountability includes the innovation, development, and maintenance of the operations taking place in the organization. The duties and obligations of the organization carried out in the various ways and execute its activities and review all the work been done. The organization identifies its lacking areas and make amendments in order to make their organization effective and efficient (R Eisenberger, JR Jones, J Aselage 2004).
HR policy statement for two identified strategic HR implications.
When organizations have realistic objectives and the organizations execute them efficiently it would definitely achieve its selected organization's objectives by setting its goals effectively. Setting goal is the main and very important process which helps in transmuting organizational goals into actuality. The organizations have to follow the S.M.A.R.T criteria, their goals have to be specific, measurable, achievable or attainable, realistic, and time bound. By developing specific goals, which are measurable, and with time limits contributes to the skills to analyse and progress the track. The commencement with the departmentï¿½s managers in order to set the goals for their organization is based on the detailed discussion which involves wide objectives, and the give permission to support other departments so that everyone in the organization generate ideas ,and after evaluation good ideas will be taken into consideration.
ï¿½ relevance to the strategic plan
ï¿½ relevance to wider environmental factors
ï¿½ ethical considerations
Assessment of human resource provides a clear insight and help in determining the potential of the manager and its employees. Assessment test helps employees to perform better in the future and they get the reward in the form of certificate or cash. Corporations carry out required resources by assessing the needs in the following ways e.g.:
It helps corporation to take the measures not only the one department but it concerns with the entire department and take care of every plan which they has to execute in order to achieve their organizational accomplishments.
Policies and procedures:
All the legislation, procedures, and other regulations of the organization make benchmark and measure the performance by comparing the standards or predetermine limits.
When the organizational objective is clear and cut to the employees working in the organization it helps in assessing their performance that how much they understand and have mutual consent among teams. The company's vision, mission, and all the basic information should be clear in order to make standards. It also helps in making strategies, execute them effectively and efficiently.
These assessment methods evaluate workplace needs and lead towards more improvement in their organization. Train people taking into consideration their disabilities, cultural differences, linguistics, background, and their qualifications. Organizations assessment its workforce by giving them task such as case studies to solve, making portfolios, questioning, deal with different scenarios, and provide different training courses. When organizations evaluate its teams or individual its bad performance also leads that its management or manager is not that effective. (MR Endsley 1988).
Human resource management is a systematic way which describes the formal operations of an organization and it helps management to perform efficiently. These major responsibilities are divided into three management areas that are Staffing, Employee compensation, and define/designing work. Basically profit maximization due to productivity is the purpose of an organization and it is possible only if the performance of the employees is monitored by the supervisors. And managers and supervisors make sure that work is being done effectively. This value should be practiced throughout in an organization.
In the corporate hierarchy Human resource department is consigned to the lower rungs. And the policy is to nourish the work force and make them work effectively. Right People hired in the organization seems to be the appropriate thing to do and that would be excellent if they are trained by the organization as well in order to work exactly in the same manner that is required by the organization and it leads the organization towards the betterment and success. No matter what the personnel problems are should not affect the work whether itï¿½s small business or big business.
The responsibilities of Human resource management department are classified by Individual, Organizational and Career development areas. Each employee Management emphasizes in monitoring the employees, Let them know about their strengths and weaknesses give them feedbacks about their performance and motivates them so that employees give their best performances. Training and testing is a bright idea to enhance the performance of employees. Organizational development deals with the internal and external issues of the organization and work systematically to make sure that strategic plans workout. Then we Have career development it mainly focuses on individuals and place them according to their capabilities, skill and experiences. or we can say it helps in matching an individual with the most suitable job.
Human resource management justifies effectiveness in the organization by planning, organizing, developing, and leading. Pride is the most precious thing to people and if the manager takes that away from his employees, they will never trust him again. That will make extracting work from them very difficult. A managerï¿½s job is to make sure that the employees are learning, growing and performing to their utmost potential and that can only be achieved through a relationship of mutual trust and kindness. These trainings prove to be very useful in initiating and promoting entrepreneurship. Trainings are required to get sound knowledge of technical and non-technical skills. These trainings should be conducted periodically to keep the manager up to date with the current systems and trends. International trainings are also a good forum for the manager to create new personal relationships and interact with new people. Human resource management also deals with the career development of its employees this is how organization increases its productivity and develops levels to achieve organizational objectives or targets. Manager needs to be a risk taker in order to introduce the organization to new dimensions of business. But being a risk taker does not mean to make hasty decisions and leave the rest to chance. Being a risk taker means to do proper research for a new project, know the market and its driving factors make forecasts and then takes trust your instincts. The organizations train or develop its employees in such a way that their employees balance their lives and that is how human resource department promote quality. A manager managing time appropriately increases employeesï¿½ productivity and efficiently achieves organizational goals. There is also a close relationship between time management and stress. Managing time appropriately decreases stress and enables to meet personal and professional goals more easily. In this world of cut throat competition, valuing diversity and using it to the companyï¿½s advantage can prove beneficial for the organization. Making sure that all the employees understand and respect multiculturalism is another task. To give the employees a better understanding of people from different cultures, I make sure that they interact with each other more frequently. One way to assure that is to conduct in-house trainings where they are divided into groups and are asked to complete a set of tasks. This way they openly communicate with each other and achieve the task dividedly. The more they communicate the better they value and respect diversity (BA Friedman 2007).
All the Leaders and managers focus and they put maximum effort to bring a significant change and try to accomplish the organizational goal. Some managers are very brilliant at this effort while others try, struggle and unfortunately fail. The difference between these two is how efficiently you are doing your work and when you fail it teaches you lesson and give the courage to overcome the deficiency.
This is the fourth Principal of Human resource management. It focuses on the security, safety, health care, workers and management relationship and other employeeï¿½s benefits. The benefits of employees are not incentive for example health insurance and free parking and sometimes non taxed compensation to the staff. It basically protects the employees from the workplace hazard
Employee services, recreational activities, vacations, insurance, retirement and health benefits are the benefits given to the employees by the organization (JB Shaw 1997).
Recommendation and conclusion.
This is the major aspect of human resource management that evaluates the methods and help in measurements of the HR results. Even the well planned programs by the HRM can be failed if we do not find the way to ensure and measure their Capability. Internal and External both the assessments should include in the evaluation of HRM methods and programs. Internal evaluation emphasizes on the internal benefits and costing of HRM methods. Whereas External evaluation emphasizes on the overall issues and benefits of HRM method in order to achieve the organizational goals.
The work force planning should be on the monthly basis, because there is a lot of diversity in the big organization ,as Volkswagen is one of the biggest auto mobile company of Europe, the plans have to be change according to the changes which takes place due to the diversity in the environment whether they are external or internal. Every company has its backup plan, the companies always look for the strategy which is competent and generates maximum profit.