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Strategic human resource management is an informative process which is always developing and being studied and talked about by academics and commentators. As mentioned by Wright & McMahan, SHRM refers to the pattern of planned human resource activities intended to enable an organization to achieve its goals."Human resource strategy is the result of a set of decisions a company makes about the humans with whom it does business. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment.
Strategic Human Resource Management is focal point of activities which are related to employee of the organisation. In any organisation human resource management strategy is crucial to manage human resource in the right way. Strategy also gives the path for organisation to select right person in the right place.
Management of the company's employee's and their right approach in today's business can greatly effect on the company's overall performance. A strategic approach in Human Resource Management is essential especially in expanding companies. Starting from right staffing to maintaining performing employees, HR management is means in developing not only the employees, but the entire organization itself. Human Resources includes a broad range in management. A growing company depends on its existing success which can sustain and further develop its business starting with the right staffing. As demands for the product or services increase, additional manpower is needed to comply with them. The current manpower should be checked but not simply if they can comply with the demands, but it has to ensure that it can still keep its quality and standards. Mass production or bulk orders should not be an excuse in decreasing quality, hence, increased customer dissatisfaction and decreased sale .Strategic human resource management is "human resource management" carried out in a strategic way. The human resource activities are linked to the achievement of the organization's overall objectives. This is the new way of managing human resources as compared to personnel management.
For a company that is already recognized in the industry and is eyeing on expansion, their status and reliability should be maintained. The leaders of the company can now focus on the products itself and expansion, and let the HR department handle the development of the organization. Keeping an eye on the company's long-term goals, mission and vision, the development of performance standards is essential to identify potential problems, non-performing employees and compliance to tasks and standards. Minor employee and performance problems should be seen immediately to avoid any future inconvenience and potential problems to the customers and thus become a liability to the company. HRM professionals can also identify the processes and the proper staffing for each of these activities, and in effect, the systems and approach in terms of the company's front line operations can be improved to decrease manpower hours, improve quality, streamline processes, and elevate standards.
The success and growth of a small company can be attributed to its culture. Due to its size,
Communication between all employees is not complicated. And alongside this communication, the trust and organizational goals are easily shared and understood by everyone. And in its growth, it is important that this culture is maintained and adjust to changes accordingly. HR professionals can work both with management and employees in doing this. With increase in employees and more demands in operations, communication may take a backseat for both parties. However, Human Resources Management can amend this and become a bridge in establishing what the management wants from employees and vice-versa. In its continuous development, it is but imperative that the management or its owner be prepared for more arduous tasks in operations and leading the rest of the team towards continued success.
Management should be equipped with the right skills in planning, leading, organizing and
establishing standards. As they are the ones who will eventually be focused in developing the company instead of the operations and technical aspects, a higher understanding of this responsibility is essential, and this also plays a significant part once competition is put into the picture. Companies fail because of a number of reasons, and mismanagement can be one of them. Operations may spin out of control if personal agendas and politics are placed, and in growing companies, this should be monitored and prevented.
Developing not only management but also its employees is significant. To keep up with competition, employees should be given with a number of reasons to stay with the company, and do their jobs exemplary well. Their continuous growth, the right compensation and benefits, and work-life balance are just some of the things that motivate employees to perform better, producing better results for the customers and ultimately, the company.
Recruitment and selection
â- Learning and talent development
â- Human resource planning
â- Provision of equal opportunities
â- Managing diversity
â- Motivating workers to achieve improved performance
â- Employee counselling
â- Talent management
â- Payment and reward of employees
â- Health and safety
â- Encouraging involvement and engagement
â- Managing cross-cultural issues or international HRM.
All will be concerned in some way to ensure that HRM activities add value by helping the organisation achieve its strategic objectives. They will focus on ensuring that the overall HR policies and procedures support the strategic objectives and that there is consistency in approach and implementation across the organisation. However, for each activity it is likely that other managers will also be involved to some extent. Line managers will be concerned with the actual implementation of the policies and procedures in so far as they affect their team, whereas the HR specialists will also be involved in the bigger picture, although the extent of the differences in role will vary between organisations.
Tesco aims to ensure all roles work together to drive its business objectives. Tesco needs to ensure it has the right number of people in the right jobs at the right time. To do this, it has a structured process for recruitment and selection to attract applicants for both managerial and operational roles.
Evaluate the contribution of strategic human resource management to the achievement of organisation objectives.
Organisations are implementing strategic HR as a change agent, not to replace an out dated personnel department. Even though there is still confirmation within the UK that once these involvements are implemented, they just reinstate the role of the personnel department. To be effective HR belongs on the board of an organisation.
The organisation that will be reviewed is Tesco's; during the past decade they have introduced strategic HR with increased training of employees. The role of HR within the organisation has increased in importance. Their practice of training and the importance of HR will be reviewed with the current theory.
This organisation was chosen, through their introduction of strategic HR policies, which has led to an increase in business. This has demonstrated they are a first class provider of training to their employees, and has given scope for the organisation to expand into new markets.
Tesco's operates in a very competitive market; the consumer has a choice where to shop for their groceries. They have expanded their portfolio to include CD's, DVD's, electrical goods and clothing. Recently they have expanded into the financial services offering customers products from Credit cards to insurance. All their products are available on the internet 24 hours a day.
Their slogan every little helps is used to show their commitment to customers, this has been used to reduce prices and to increase the level of customer service. This slogan is now used in their staff training, that any intervention will increase the knowledge of the work force.
The organisation is widely reported in news papers, this is due to the success of the business. They are rapidly expanding in the UK with the opening of their Metro stores and into new and foreign markets. This has taken a great deal of their resources in the planning and implementing stage of expansion. The core units need to remain focused, to retain the reputation they have built. Reinforcing the culture and values through training will focus employees on their roles.
AC 2.1 Analysis the business factors that underpin human resource planning in organisation.
Human resources planning is a process that identifies current and future human resources needs for an organization to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization.
labour cost control
changing nature of work
impact of technology
employee development etc
There are things, events, or situations that occur that affect the way a business operates, either in a positive or negative way. These things, situations, or events that occur that affect a business in either a positive or negative way are called "driving forces or environmental factors."
There are two kinds of driving forces; Internal driving forces, and external driving forces. Internal driving forces are those kinds of things, situations, or events that occur inside the business, and are generally under the control of the company. Examples might be as mentioned below technological capacity, organizational culture, management system financial manageme employee morale.
External driving forces are those kinds of things, situation, or events that occur outside of the company and are by and large beyond the control of the company. Examples of external driving forces might be, the industry itself, the economy, demographics, competition, political interference, etc.
whether they are internal or external driving forces, one thing is certain for both. Change will occur! A company must be cognizant of these changes, flexible, and willing to respond to them in an appropriate way.
External driving forces can bury a business if not appropriately dealt with. The question is, how does a business know what changes are occurring so that they can deal with them in a positive way. OK, that's the next issue.
In order for a business to succeed and gain the competitive edge, the business must know what changes are indeed occurring, and what changes might be coming up in the future. I guess you might call this forecasting. Thus, critical to the business is what we call "informational resources." It is the collection and analyzation of data. Some examples of critical information might include the following:
Competition (what are they doing?)
Customer behaviour (needs, wants, and desires)
Industry out look (local, national, global)
Demographics (the change populations, there density, etc.)
Economy (are we peaking, or moving negatively)
Political movements and/or interference
General environmental changes
The above are just some issues organizations must be on top of. Well it's never easy, but businesses that are successful include all of the above (and more), to develop the appropriate tactics, strategies, and best practices, to ensure successful out comes )
AC 2.2 Asses the human resource requirement in a given situation
The main purpose of the human resources function is to recruit, select, train and develop staff.
This means finding the right people, training and developing them so they achieve their maximum potential and creating systems that achieve high levels of morale and motivation. HR departments also often have the following responsibilities:
This department is a major area of HRM. This involves anticipating in advanc requirements of the organisation both in terms of employees required and the appropriate skill mix.
This will help the firm to predict likely changes in employment required, recognise future trends, in training and employ new human resources to meet these trends.
2.2.2Recruitment and selection
Recruitment and selection is about appointing the best person to do
Working conditions such as the temperature, amount of light, toilet facilities could also affect an employee's motivation.
2.2.4Induction training & career development
Induction training is given to a new job holder. This could include: history of the business, tour of the premises, introduction to other employees, health and safety procedures including fire evacuation, being shown how to use machinery. Induction training helps new employees to settle and become effective quickly.
Appraisal is the process of assessing the effectiveness of a process or an employee.
Consultation: asking for the views of those who will be affected by a decision. These views should then be taken into account by the executive responsible for taking the decision.
2.2.7Promotion and transfers
Promotion is when someone as being appointed to a more responsible and respectable job. Transfers is when someone as been transfer to a different department or to a different place for work.
2.2.8Termination of employment
This is a better way of saying that an employee has been 'fired' from their job.
2.2.9Pay, rewards & fringe benefits
Any benefit received by employees in addition to their wages or salary. Common fringe benefits are a company pension scheme, a company car and discounts when buying the firm\'s products.
This is where an employee will negotiate their salary with their manager. Because the employee fells that it is time for a wage increase.
2.2.11Heath and safety issues
Imposes on employers the duty to ensure, the health, safety and welfare at work of all staff. Firms must provide all necessary safety equipment and clothing free of charge. Employers must provide a safe working environment. Finally, all firms with five or more employees must have a written safety policy on display.
Employment legislation is where employees need to follow certain rules
and conditions in order to work for the organisation.
AC 2.3 Develop a human resources plan for Tesco.
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Human resources planning refer to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of the availability of the qualified resources that will be needed. Human resources planning should be a key component of nearly every corporation's strategic business planning.To ensure their competitive advantage in the marketplace, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies
There are six work levels in the Tesco. This gives a clear structure for managing and controlling the organisation. Each level requires particular skills and behaviours.
â€¢ Work level 1 - frontline jobs working directly with customers. Various in-store tasks, such as filling shelves with stock. Requires the ability to work accurately and with enthusiasm and to interact well with others.
â€¢ Work level 2 - leading a team of employees who deal directly with customers. Requires the ability to manage resources, to set targets, to manage and motivate others.
â€¢ Work level 3 - running an operating unit. Requires management skills, including planning, target setting and reporting.
â€¢ Work level 4 - supporting operating units and recommending strategic change. Requires good knowledge of the business, the skills to analyse information and to make decisions, and the ability to lead others.
â€¢ Work level 5 - responsible for the performance of Tesco as a whole. Requires the ability to lead and direct others, and to make major decisions.
â€¢ Work level 6 - creating the purpose, values and goals for Tesco plc. Responsibility for Tesco's performance requires a good overview of retailing, and the ability to build a vision for the future and lead the whole organisation.
Tesco has a seven-part framework that describes the key skills and behaviours for each job at every level in the company. This helps employees understand whether they have the right knowledge, skills or resources to carry out their roles.
Recruitment involves attracting the right standard of applicants to apply for vacancies. Tesco advertises jobs in different ways. The process varies depending on the job available. Tesco first looks at its internal Talent Plan to fill a vacancy. This is a process that lists current employees looking for a move, either at the same level or on promotion. If there are no suitable people in this Talent Plan or developing on the internal management development programme, Options, Tesco advertises the post internally on its intranet for two weeks.
Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. Screening candidates is a very important part of the selection process. This ensures that those selected for interview have the best fit with the job requirements.
In the first stages of screening, Tesco selectors will look carefully at each applicant's curriculum vitae (CV). The CV summarises the candidate's education and job history to date. A well-written and positive CV helps Tesco to assess whether an applicant matches the person specification for the job. The company also provides a 'job type match' tool on its careers web page. People interested in working for Tesco can see where they might fit in before applying. The process Tesco uses to select external management candidates has several stages.
Tesco have a plan to recruit and select appropriate employees for the right post.
2.4 Critically evaluate how a human resources plan can contribute to meeting Tesco's objectives.
The HR Plan is a working document that allows us to show what we are doing and what we have achieved. The plan includes an overview of the achievements of the HR Department and a review of the previous Strategy and HR targets
Human resource contributes the success of the company but some changes in the organisation effect in the human resource plan. So positive aspect of the human resource always not the same in some cases it may be criticize.
Human resource plan is the key shape of the organisation which guides the company how to do operate the human resource department. Human resource plan is the key to an effective to decision making process. With the help of the efficient human resource the decision by the company can be effective. If human resource plan is effectively implemented it will positively contribute to the achievement of the organisations objectives. Some of the points which are contributing the company are as follow:
Shape of the organisation
The shape of the organization rely matter in the achievement of organization objectives. So HRM need to plan about it.HRM can help the organization in order to omit all the unnecessary employment from the organization. Thus it is also help in order to find the excess in human resource in the company. According to the requirements of the company if the structure does not match then the human resource plan will not help effectively.
Communication plays vital role in the organization it is considered most crucial part in the organization. In any organization human resource management is a communicator for the organization's employees. In the perspective of communication human resource need to be effective. Communication is a barrier and helps to maintain the demand and supply level in the organization and keep them in the right track.
Training and development.
The skills of the employees are sharpened by training and development. It enables the employees to keep them up to date with the latest requirements.Traning is necessary in order to facilitator with the new technology, because technology is a source to save the time and maximize the benefits.
Transfer of knowledge.
This modern era is the era of globalization and every organization is connected globally and can be. And in this way they can recruit human resource globally. But the time and experiences are different according to the time and new trends requirements. Human resource deals with effective way in order to lead the employees because they know how to deal with the situation the implementation of plan human resource would be effective.
Human resource would be effective depending on the implementation of the plan. In the organisation how they make the plan and what process they set to implementation is the major.
3.1 explain the purpose of human resource management policies in Tesco.
HR policies allow an organization to be clear with employees on:
The nature of the organization.
What they should expect from the organization.
What the organization expects of them.
How policies and procedures work.
What is acceptable and unacceptable behaviour?
The consequences of unacceptable behaviour.
The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behaviour and document disciplinary procedures, is now the standard approach to meeting these obligations.
There has been an increase in training within the organisation; all employees now receive more training than before. This is a result of the HR department taking a strategic role. HR is not an administrative department within Tesco; they are proactive and are on the strategic level of the organisation. This increase in training priority has been supported by a rise in Human Resource Management. This practice emphasises that increased growth can only be maintained in the long run; by equipping the work force with the skills they need to complete their tasks (Mullins, L. 2005).
The learning process has been challenged to create a culture that allows continual learning throughout the organisation. As knowledge is what matters, organisations and individuals alike must become continuous learners (Hawkins, P 1994). The organisation runs an academy that recognises skills in the individual. The training is identified from core, operational and leadership skills. All employees can access the core skills. These development programmes are tailored to the individual's skill level. The delivery method for the training is varied, allowing for the individuals learning preference.
3.2 analyse the impact of regulatory requirement on human resource policies in an organisation.
Regulatory requirements are those requirements which are concerned about the employment law ,regulation requirements ,discrimination of law, data protection law and also human rights are related to these requirements. There is a question how an organisation can access to their rules and other activities which are affected to other stakeholders. Tesco provides several health and safety programmes and to the public as an additional activities.
Without following the correct procedure or having a fair reason is directly to escort to a claim for unfair or wrongful dismissal successful claims damages can be substantial. The cost of defending a claim in particular times of a management time may be important and it does not matter you win or loss.
HR policies can also be very effective at supporting and building the desired organizational culture. For example recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year.
Training and development policies
As part of Every Little Helps,Tesco commitment to their people is that they will give them the opportunity to get on so that they are able to get the training they need to do their job and to develop their careers at Tesco.
They want Tesco to be a great place to work for all our staff. That's why they want everyone here to feel free to follow the career path that's right for them.
There are a number of ways Tesco supports their people to achieve this, be it through an Options Development Programme, offering an Apprenticeship or encouraging the studying for a qualification whilst at work.
Health and safety policy:
Tesco measures health and safety performance using reportable accident rates, which they report each quarter to the Compliance Committee and annually to the Executive Board. Stores measure their own performance as well through the Store Steering Wheel, which Tesco set targets for reducing injury rates in each specific site.
The main causes of injury remain slips, trips and manual handling. Tesco ran an accident awareness campaign in October 2009, in which we highlighted key safety messages to all staff. All stores apart from Express now have special 'clean as you go' tools. In January this year Tesco ran a further campaign called 'see it, sort it, report it!', encouraging staff to give their feedback on near misses and how Tesco can improve safety.
4.1 analyse the impact of an organisational structure on the management of human resources.
An organisation structure consists of action like task allocation supervision and co ordination ,which are leaded the betterment of organizational aims .It might be concerned as the viewing perspective through which individual can see their organisation and its environment ,an organisation can be structured or formed in many different ways, depending on their objectives. The structure of an organisation will be determined the modes in which ways it operates and performs. An organizational structure determines the desired allocation of responsibilities for several functions and process of different equities such as branch, workgroup and branch workgroup.
Organization structure effects organizational action in two ways.
Firstly it allocates or provides the best foundation on which standard operating procedures and rest of routines. Secondly it concerned in which of the individual involve to participate in the process of decision making. Hence it also helps in order to understand what kind of their views can help in the organizations action.
There are several ways through which organization are structured,
Functionally as it is explained above, regional area a geographical structure e,g within a marketing manager products like crisps and drinks.
4.2 analyze the impact of an organizational culture on the management of human resources:
All organizations will have a culture which will have an impact on the way employees behave within the organization.. Employees are seen as a key resource. Our core definition of HRM from Storey talked about cultural aspects of HRM, so part of the way in which employees, as a key resource, can be managed is through the use of organizational culture to generate commitment to the organization and its values. Thus, as Ogbonn(1992: 80) notes, 'the achievement of HRM objectives requires the management of the organizational value system (culture) and this requires skilful implementation. Often within tourism and hospitality such values will be concerned with encouraging employee buy in to the customer care and service quality initiatives, which organizations see as a form of competitive advantage in the crowded market place.
Organizational culture refers to the pattern of beliefs, values, and learned ways of coping with experience that have developed during the course of an organization's history, and which tend to
be manifested in its material arrangements and in the behaviour of its members'. For many this can be succinctly summarized as, 'The way we do things around here' (Deal and Kennedy, 1988. This process of unlocking commitment and enthusiasm is by no means straightforward or uncontested (Thompson and McHugh, 2001).
For example, we should be aware of the notions of sub-cultures, such that all organizational
members might not subscribe to the organizational vision. Recognition of the potentially contested nature of organizational culture is important because it points to the manner in which there may be a disjuncture between the rhetoric and reality of organizational culture. Brown (1998) expresses this point as the espoused culture and the culture in practice. The former may be the positive view that is presented for public consumption, whilst the latter may allow for a more critical reading of any given organizational culture and to further appreciate this point the thread now considers competing views of organizational culture.
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4.3 examine how the effectiveness of human resources management is monitored in an organization:
Organizational effectiveness depends on having the right people in the right jobs at the right time to meet rapidly changing organizational requirements. Right people can be obtained by performing the role of Human Resource (HR) function. Below is an outline and explanation of how to assess the HR functions of an organization by using HR activities in an architectural firm as an example.
An important aspect of an organization's business focus and direction towards achieving high levels of competency and competitiveness would depend very much upon their human resource management practices to contribute effectively towards profitability, quality, and other goals in line with the mission and vision of the company.
Staffing, training, compensation and performance management are basically important tools in the human resources practices that shape the organization's role in satisfying the needs of its stakeholders. Stakeholders of an organization comprise mainly of stockholders who will want to reap on their investments, customers whose wants and desires for high quality products or services are met, employees who want their jobs in the organization to be interesting with reasonable compensation and reward system and lastly, the community who would want the company to contribute and participate in activities and projects relating to the environmental issues.
4.4 Make justified recommendations to improve the effectiveness of human resources management in Tesco:
To judge the effectiveness we have different sectors to identify the monitored human resource management. Human resource strategy, human resource policies and the operation of the human resource management is the main are to monitor the effectiveness. In the monitoring process we need to identify the contribution of human resource management to achievement of organisation goals, costs, benefit, human resource use, efficiencies and the information about the performance of the human resource management.
Staff turnover, productivity, output of the person, employee retention, cost saving these are the measurement tools of the effectiveness of human resource management.
Employee attitude survey: the organisation measures the employee attitude to find out the effectiveness of human resource management. They can survey over the particular topic over the all employee and find the result and their view about the activities of human resource management.
Stakeholder perspective: organisation also finds the view of the stakeholder of the stakeholder perspective. How the employee changes after the human resource management implement their plan and programme from the human resource management.
Mitigation of labour turnover: how much labour turnover in your company that also measure the effectiveness of human resource management in the organisation. Are they satisfied from the company or not, they are interested in their work or not and they give their full work or not in the company that is the cause of turnover.
Reconsider the human resource policies in practice: the organisation also reconsider the human resource policies which are in practice. The organisation reviews their policies to find the effectiveness of human resource management and the implementation of the employee training and development.
Tesco haven't used proper human resource policies in their organisation so they need to make the proper policies and implement the plan with effective regulation. There is a problem of labour turnover in the organisation, every year the company recruit new staff. Labour turnover is one of the measure parts of the organisation which need to keep in control by human resource management. The company also make the effective compensation and other facilities for the labour to control the turnover ratio.