Importance of Strategic human resources management

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Importance of Strategic human resources management (SHRM)

Strategic human management resource has been define by many management consultants however to my understanding SHRM is a unique approach to employment management which seeks to attain competitive advantage through strategic deployment of highly devoted and skilled workforce using an integrated array of cultural structural and personnel techniques is called strategic human resource management.

Armstrong (1994) posed the question: what is this thing called strategic HRM? It seams to be the part of brave new world of strategic management and human resource management. But have these terms any real meaning? How many people actually put either strategic management or human resource management into practice? And if they do, what do they look like and what impact, if any, do they make any organization?

There is considerable debate about what strategic humane resource management actually means, there are different definitions as

"A human resource system that is tailored to the demands of business strategy" (miles ad snow 1984)

"The pattern of planned human resource activities intends to enable an organization to achieve its goals" (Wright & McMahan 1992)

Human resource strategies combine all people management activities into an organized and integrated programme to meet the strategic objectives of an organization.

To find out the impact of strategic human resource management and its importance, a case study need to be discuss here

1.2, 1.3(p2, p3)

Purpose and contribution of SHRM activities in STM Security Group (ltd) UK

There is competitive pressure in between the organizations which has increased the values of skilled, motivated and capable workforce. SHRM has the responsibilities to make strategies to support and develop it. STM security established in 2005, they have been operating wide variety of different industries with flexibility in service. STM knows that their competitive edge in today's market place is people. They are becoming a giant in the security industry because they know how to use humane resources effectively. it is very top of STM's priorities to place particular importance on the understanding of customer's needs, and aim to ensure that they get to know their business, Understand their challenges, Help overcome barriers, Recognise their aspirations and Become part of their future.

Strategic HRM in STM security deals with any aspects of a business that affects its employees, such as hiring and firing, pay, settlement, training, and management. Human resources may also provide work incentives, safety procedure information, and sick or vacation days

Boxall and Purcell (2007) explain SHRM and HRM as different process. They say strategy is not same as strategic plans. Strategic human resource management is a way to implement HRM policies in a planned way. Purpose of SHRM in an organization can also be identified by this diagram

1.2 purpose and contribution of SHRM in an organization

SHRM is like an organization with in the organization, which acts in way that things are done at a business site, improving everything from hiring practices and employee training  programs to assessment techniques and discipline.

Job analysis

Job analysis is a specific tasks and responsibilities of strategic human resource management and identifies the abilities, skills and qualifications needed to perform it successfully. STM department of SHRM has been doing a very good job by appointing the right people in the right place at the right time, as appointed j. Jonathan as the new Accounts Director primarily responsible for the new contracts with South West and East Midlands Trains.

Training and development

STM strategic HRM department held different training sessions to ensure their guards are well educated with the modern equipment and also the need of their clients. Not one market sector exists where innovation and developments in technology have not had a major influence on areas such as health and safety, cost reduction, revenue growth and productivity.  STM aims to provide an entire range of innovative solutions, continuously making improvements and enhancements to our service offering, their raining manager has delivered the Railway Safety Accreditation Scheme (RSAS) and Community Safety Accreditation Scheme (CSAS). Hundred of trained officers are working across the country now. They have a long list of courses to educate and develop the image of their officers.

Employment planning

STM start hiring security guards twice a year, from May to July as they get new contracts during these months and then in November and December because they need extra guards through out their contractual sites, it's strategic HRM who is responsible to solve the issues to employee people and then train them as well according to company needs.

Employee motivation

STM strategic HRM department has a unique style of motivation, through out the year; they check the commitment, enthusiasm and dedication of their workers and then nominate them as gem of the year. They have criteria to choose one person in all departments. They also give free travelling vouchers so that their guards would have better opportunity to perform.

Company growth

HRM helps boost company growth by developing strong and affective policies, by saving financial assets of organization through strategic management, putting the right people for the right job on the right time.

Satisfaction to the stakeholders

Its HRM department which involve stakeholders of the organizations by different ways, by meeting, by communication, by getting feed back and find out the needs and interest of them. They make such policies which are benefited to the organization and stakeholders as well.

Strategic human resource management helps companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days. With out Strategic HRM department no any organization can achieve their goals in a better way. It is compulsory need of an organization in the modern world.

Task 2

(P4, p5)

Acquisitions of Alliance & Leicester with Santander

 Santander's history began on 15 May 1857, when Queen Isabel II signed a royal decree authorizing the incorporation of the founding of Santander. Right from the start it was a bank open to the outside world, being initially linked to trade between the port of Santander in the north of Spain and Latin America. With a long growing history in business, in 2008, Santander continued to grow, making important acquisitions in a strategic market for the bank, the UK. Through the incorporation of Alliance & Leicester, Santander expanded its high street network to 1,300 branches in the country and became the third largest bank in the UK by deposits. With profits of EUR 8,876 million, Santander became the third largest bank in the world by profits. (Aboutsantander 2011)

In this case study we shall discuss the acquisitions of Alliance & Leicester with Santander. Discussion will be on the role of strategic human resource management in acquisition.

Acquisitions in financial services business area are very common and result in consolidation of the business unit. Acquisition is beneficial for all sides involved and Santander's acquisition of Alliance & Leicester is an evidence of this

A&L (Alliance & Leicester), which offers current accounts, savings, loans and mortgages, says that existing customers will remain unaffected by the takeover. No decision has been made on a new brand name, but A&L customers will see Santander branding on connection from the bank.

Savers with money in A&L will continue to receive the same levels of protection under the Financial Services Compensation Scheme. However, A&L is becoming a subsidiary of Santander, which means it is retaining its separate banking license. Deposits of up to £35,000 with A&L remain protected. Santander offered A&L shareholders one Santander share for every three A&L shares. (T. Lauren 2008)

The HR department of both had to work together, exercise least professionalism during the acquisition period which built uncertainty on the employee. They had the responsibility of choosing and implementing the selection process to be adopted by both companies, recruitment process of employees for A&L and Santander, ensure the procedure involved is visible and set up two way communication processes for the employees.

(P6, p7, p8& p9)

Developing an HR (human resource) plan for Santander

According to my understanding, when ever there is an acquisition or merger a very strong human resource strategy needs to be planed. After the completion of the acquisition and integration, operationally and culturally, of the two companies have required human resources to play a major role. The work is still going on: Although most of the integration plan has been implemented, the human side of the integration continues to evolve.

The Santander UK HR Graduate Development Programme is a unique opportunity to understand how HR adds value across Abbey, Alliance & Leicester and Bradford and Bingley. the programme incorporates two years of work experience, development and appraisal, all designed to realize the potential and bring out the qualities Santander look for in our business leaders of tomorrow.

Santander HR strategies are very strong and unique, because they have solid relationship with their stakeholders. Recently they have planned to start a graduate scheme. As an organization, Santander invests heavily in the graduate market. This is an excellent opportunity to absorb the culture and benefit from intensive and structured exposure to a world-class business. The scheme will run for three months and they will be launching 2011 Summer Internships that would also be a good opportunity.

Greater assertiveness can be the key to getting the best out of people increased sales, better customer service, higher productivity and more ideas for improvement.

Santander is "ahead of the game" in offering shared parental leave to its staff prior to next year's new paternity laws taking effect. Where both parents of a new child work for the company they will now be entitled to "swap" the last six months of a year-long maternity leave from the mother to the father. The new rule will also apply to unmarried partners; same-sex couples and adoption leave, and is in addition to the current two-week paternity leave entitlement.

The Santander Master's Scholarships, funded by Santander, aim to assist the most academically able students from leading universities in each of the ten Santander network countries to chase a Master's programme at UCL.

The Internet is a powerful tool for improving business' efficiency. It encourages employees to use the internet effectively, states what you consider to be acceptable use, and sets up procedures to minimise security and legal risks.

Laws and regulations are purposely made for human beings and other institutions as a guide to bring order and sanity into the society

The key HR initiatives have included

Development of initial organizational designs and identification of the top three levels of management, as in A&L they are using their own business licence and name as well but they are regulated and followed by the strategy of Santander.

Assessment of critical players and deployment of appropriate resources in the both Santander and A&L,

Retention of key people and separation of redundant staff is a matter to solve while living in legal boundaries. Banking giant Santander is to cut 1900 jobs in the UK during 2009. Compulsory redundancies have not been ruled out as the bank tries to £180m by the end of 2011. They expect to consolidate offices rather than any major closures. Unions reacted with dismay as this cull is 8% of the UK total workforce. Santander is the owner of Abbey, Alliance and Leicester and Bradford and Bingley. (Redundancy forum 2008)

Development of a total rewards strategy for the combined companies, Santander HR is planning to implement same strategy gradually in A&L.

Employment legislations: are important for all the organizations in the world, its help to implement their policy within the organizations. Santander also has to follow these legislation in the company; Data Protection Act 1998, Sex Discrimination Act 1995/1997, Employment Right Act 1996, Work and Families Act 2006, Human Right Act 1998, Securities Exchange Act 1934, Sarbanes-Oxley Act 2002, Equality Act 2006.

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Organizational structure and culture and its impact on HRM (p10, p11 & p12)

Organizations can be explained as people management systems. They range from simple hierarchies along traditional lines to complex system. Human resource managers can encourage organizations to adopt strategies for their structures which foster both cost effectiveness and employee commitment. Organizational structures can be classified into a number of types, including functional, divisional, matrix.

ASDA supermarket retails food, clothes, toys, entertainment goods and other general merchandise. The organization formed in 1965 by a group of farmers from Yorkshire, who knew very little about the business world. Having created a firm foundation for themselves in northern British regions they soon decided to expand southwards.   This expansion took its course by the 70s and 80s. In 1989 ASDA bought rival chain Gateways superstores

There is an impact of structure of Asda on its human resource management. HR department have to make strategy for external and internal stakeholders while living with in the limits of its department, as each and every department in an organization does have their own needs and requirements and management make strategy for them according to their needs. Asda has won HR best strategy award of the year 2001. Asda's people team developed a strategy to deliver people able to "sell and serve with personality" and offer craft skills in store to offer the best possible service to customers and improve the business's profits. The people strategy is based on recruiting, training, motivating and retaining high quality staff. Its priorities were to recruit the right calibre people with the appropriate personality to serve customers in the fast-paced retail environment, to be able to train key skills as effectively as possible in order to meet business priorities, and to offer employees a motivational working environment free from the traditional retailing command and control style.

Consequently, among other things, 2,500 colleagues have been trained in a skill such as butchery or floristry at the Asda Academy. All new managers' train in one of the eight stores of learning, and morale is regularly assessed through "We're listening surveys"

Asda implemented the strategy in order to gain a competitive edge. David Smith, people director for Asda, says in retail it is necessary to gain a competitive edge through people strategies that align with business performance delivery on a daily basis.

The team at Asda has an HR strategy that is right at the heart of the competitive proposition that the company brings to its customers. The alignment of HR strategy to the business is therefore very strong.

Cultural aspects of organizations are generally thought of as those that evolve in conversation and are in flux, constantly changing. In most instances organizational culture defines what things mean, whether they're valued as good or bad, right or wrong, and how things are to be done when answers can't be fixed by formal structure, policy, or procedure. Within larger structural goals, it's the culture that carries organizational objectives. While the broad purposes of grassroots organizing are to bring together low- and moderate-income families for their political, economic, and social interests, goals that are laid out in basic documents,

Working at ASDA is completely different from working anywhere else. Why? It's because there are so many ways Asda's culture is unique. For example their workers all wear a name badge, they all have daily huddles to keep up to date on how they are performing and sometimes they even all join together for the Asda song.  Asda borrowed many ideas from American supermarket giant WAL-MART' and in 1999 Asda was wholly owned by Wal-Mart for $10.8 Billion becoming one of the world's largest supermarkets. To add to their recent successes they have now entered the financial sector by offering Credit Cards, Insurance policies and other services to customers promoting a 'one stop shop' concept. (Oppapers 2010)

Asda believes that customers are at the heart of everything they do and their purpose is to make all our goods and services as affordable as possible. Behind this is Asda's culture that makes all this possible

Asda management think jackets are a barrier to approachability. So when you join ASDA you can also look forward to saving on those dry cleaning bills

This sounds mysterious, but it's really very simple. If someone's within 10 feet of you, colleague, customer or a supplier, we believe you should always say "hello" to them. It just takes a second, but it builds a real atmosphere of friendliness, warmth and respect

 Asda management strategy includes high profile media marketing campaigns and competitive pricing, fundamental to this is the "way they do things around here", that's their culture and the way they work. This affects to make HR strategy for Asda. This is HRM that keeps business alive in the competitive market.

Conclusion (p13)

Human resource management is a key aspect that links the new economy with its tools and drivers to strategic management of organization. Strategic management may address the implementation of a living strategy, People-centered management, intellectual capital, human capital and knowledge but it is through human resource management that these aspects are incorporated into the organization. Through the function of recruitment and selection, placement and Induction and training and development, human resource also train and develop the skills of employee in the organization. Asda is a leading retailer and have a very good reputation in HR policies as they won award in 2001 for best HRM strategy, but now they are struggling again to get back their reward and award. They need to be more realistic now as there are more strong and healthy competitors in the retail market. The HR department can use questionnaires through continuous feedback forms to monitor and evaluate their staff development aimed at enhancing and improving upon the respective training provided. They could also conduct surveys using questionnaires or HR related information systems. Such measures can be used to collect specific or general data involving policies currently being used in an organization or obtaining respective ratios.