This assignment focuses on the strategic Human Resource Management and its purpose in Cosmo. It provides an in depth knowledge of how Human Resource Management achieves their targets in Cosmo effectively and helps them to accomplish their goals successfully. The assignment will further explain the importance of Human Resource in the Cosmo and how it contributes towards attaining the objectives of the organization. It will finally elaborate the vital policies of Human Resource Management in an organization along with several recommendations.
The company which is under the discussion is Cosmo and it is situated in Pakistan at the heart of Rawalpindi city. Although Cosmo is doing good business in the capital as the area which it cowers is more than 40,000 square feet and more than two hundred employees are working for Cosmo in different shift pattern but still Cosmo is having the problem regarding to the human resource management. The culture and environment in which staff is working is really need to be changeable and It aims to build the capacity of its people by achieving their full potential by applying new human resource policies. Management style is very autocratic and Cosmo realised that they need to bring the changes to empower the employees so they will be more confident on their work place and committed to work. A high level of staff turnover is and absenteeism is increasing and since last five years the situation is nearly going to be worst. Because of these issues moral of the Cosmo is down and this is the reason behind of lack in performance. Being a human resource manager of Cosmo my task is to identifying the gap and to improve the structure of the Cosmo.
Importance of Strategic human resource management:
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Aim of human resource management is to recruit capable, flexible and committed people and then managing them and give them the rewards according to their capabilities. Human resource management are very important for the success of any organization through using its peoples effectively. As Storey describes Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce using an integrated array of cultural, structural and personal techniques. (Storey, 2001, p.6).
HR is the base of any organization which is responsible for hiring people through recruitment policy and their selection and identify which person is capable to do the work which is required and once the person is been selected than how to polish his skills and how to get the individual and organizational goal. It plays a vital role in the progress of any organization because skill workers are the key of the success of any organization and this is the job of human resource management to hire skill staff and make the policies to hold them and make them worthy for the organization.
Now it will discuss with the example of case study which will show that, what is the role of strategic human resource management in Cosmo cash and carry Pakistan
1.1 Purpose of strategic human resource management in Cosmo:
Similarly strategic human resource management is working in Cosmo and it will analyze what is the purpose of that department and how they able to handle the problems related with the peoples. Currently Cosmo is facing a lot of problems even this is the biggest super market in Rawalpindi and surrounded on 40,000 square feet and more than twenty checkouts are there but still there is a high level of staff turnover which is affecting performance of the company.
this is the basic purpose of strategic human resource management in Cosmo to identify that what is the requirement of the company and how they can be able to fulfil this requirement for example if Cosmos is expanding the store or they might have the shortage of the people than HRM will play its role and identify the lack of people and decide that how many people they need.
A very important and common task of HR is recruiting in which Cosmo tried his best to hire the person which really capable of doing the job and how flexible they are and how Cosmo is able to utilize their skills to get the company objective. It is the part of job of HR management to provide a safe environment for the workers in which they satisfy to work without taking any risk and Cosmo also tries its best to provide the risk free environment for their workers. Human resource management of Cosmo always give importance to communication within the staff and management so they can discuss their issue and share their view and suggestion without having any fear.
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A very important purpose of human resource management is to develop the skills of the workers and identify which person need what kind of trainings for example Cosmo always provide a customer service skills to new staff and after that they have different training programs which staff has to do with their service experience. .Cosmo invest the money on training courses to make an employee skilful and make worthy for the benefit of the company.
strategic human resource management in Cosmo set the hours for individual and set the hour's budget and in case if there is any problem with the salary or less hours or a person is not able to do many or less hours than they need to talk to the human resource management because they are responsible to handle all these kind of problems. in Cosmo this is the one of the major role of human resource management to handle the absents and overcome the problems related to holidays or day off, they always do arrangement in the sense that if someone is off in a specific period of time than there should must be the replacement of that one.
Human resource management in Cosmo should be strict about the discipline and providing the equal opportunities to all the staff without having the element of discrimination and any kind of unacceptable situation within the organization should be strongly noticed by the human resource management.
Other purpose of HRM in which if someone is not happy in a location where he works he need to talk to the management for example if someone coming from far and he is not able to manage than he will speak to management to transfer him to the nearest branch to his home or if there is the situation in which a person is not able to work in one department and he want to switch to somewhere else weather because of health issue or others he will speak to the management. If any staff member has any kind of personal problem which really affects his work performance than it's the management role to help him in a way that he should be relax and satisfy with his work.
1.2 Contribution of strategic human resource management in Cosmo:
In above it is been described the role of strategic human resource management and now it will see that how strategic human resource management works to get the company objective.
Strategic human resource management works for the achievement of the company objective for example this is the objective of the company to increase its productivity and once the productivity is been increased it means management has to increase its workforce so through the selection of the effective work force an organization will be able to increase its productivity. An organization is always successful because of the successful planning and this goal is been achieved through the strategic human resource management.
When the peoples are been trained under the strategic human resource management than organization have a skill able force which are capable of doing task under the tough environment and ultimately this is objective of the company to get reliable and excellent team through they can achieve their goals.
One of the major objectives of the organization is to grow and expand their business again in economic growth strategic human resource management plays its role by growing the organization and handling peoples inside the organization.
All the companies or organization have their targets which they achieve by their staff and this is the job of human resource management to give the right task to right person at the right time and motivate them to achieve the goal. A business is called effective when it grows organically and making profit and this objective of the organization is achieved through the human resource management because this department is responsible for managing resources and peoples which are the key of the success of any business. Quality control is the one of the major objective because this is the main route of any organization to get the success in business and human resource management is responsible for the quality control.
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One of the common objectives of human resource management is the cost effective according to their resources and their needs. It deals with fair rewards, promotion system and the justification of large scale jobs. this objective is been achieved through encouraging the employee ideas for example management provide the full detail of product and services to the employee and introduce training through they are able to bring new ideas which helps the organization to get their objective.
2.1 Strategic human resource needs and requirements in Cosmo:
This is the basic need of human resource management to identify the right people in right place at right time so Cosmo should identify the skills of employee and then realised that where they should put him to get the maximum from him in an effective way as Alan price 2007 on page 614 described in his words A process which anticipates and maps out the consequences of business strategy on an organization's human resource requirements. This is reflected in planning of skill and competence needs as well as total head counts"
This is the need of human resource management to recruit a person and identify his skills, experience and qualification which make a person suitable for the job it's been seen the reliability, cost and the resistance power that how a person in able to change according to the environment. After analyzing the personal skill management needs to match these skills to the organizational needs either this person is suitable for the organization or not.
Strategic human resource management needs to identify that where is the gap and how it should be cowered and which are the skills require doing the task. External factors are those which related to the overall performance and analyzing demands of the Cosmo and supply of the labour.
Strategic human resource management needs to follow the basic procedure which is set by the government for example Cosmo cannot hire you if you do not have work permit or you are underage. Cosmo strategic human resource management is responsible to provide safety at work and introducing the different training programs for the staff to keep them up to date.
Drawing job nature
Attracting right candidates
Plan human resource requirement
Selection of right people
Induction of new team
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2.2 Developing human resource plan for Cosmo:
Human resource planning according to Armstrong (2003) is a technique used to facilitate the acquisition, utilization, development and retention of a company's human resources. These resources are considered by some to be the organization's most valuable asset and therefore, need to be utilized in the right way, for the right remuneration, in the right job, at the right time.
forecasting means to analyze the need of the organization and make conclusion which skills need to be adopted and which are the locations where skills need to be implement this is the important step to make any further plan as Cosmo is having problem in using the skills of right peoples.
After analyzing the requirement and availability, it needs to make changes on the fact that either there is a shortage of staff or surplus. If there is the shortage of staff then external recruitment of staff is been required and in case if there is surplus than there are some methods which should be going to apply for example limited hours work, no more recruitment, and retirement plans. it need to identify that what are the opportunities through a company can groom and which are the real threats for the organization like external and internal threat for example low wages or high wages is a type of threat in the organization or people give preference to buy the stuff from other supermarket.
It really need to find the skills which can really make the difference of a person performance and beneficial for the company. This is the process of selection the best people from the market; attract them by giving good benefits and best salary package and holding these people by giving them reward in the organization which are really a big asset for the organization. Strategic human resource management always motivate the employee to get the maximum from him by developing the trust and providing job security. By this way Cosmo is able to achieve their task and get high performance management.
2.3 Contribution of human resource planning in Cosmo:
Human resource planning management can contribute a lot to get the Cosmo's objective by staying in their resource and planning to polish the staff .it can use the resources in a progressive way and maintain the quality of employees. As human resource planning play a vital role by keeping eye on the future prospects and modification. It can identify the need of recruitment and allows the organization to make decision before critical situation to come. It is concerned about the objective and planning to get the objective. It can handle all the legal issues related to the company policy and introducing new technology as the company objective is to groom and train their staff to get the maximum result.
One of the major objectives of the company is to provide safe environment for the employee and this objective is always achieved by the human resource management as they provide the risk free environment for the staff. It identifies the gap between the supply and needs of the organization and develops a plan to fill this gap.
3.1 Impact of the culture and structure on management of HR in Cosmo:
Being the HR manager of Cosmo it is been realized that culture of the Cosmo put a big impact on the human resource management decisions. It is seen that culture is really bad in the Cosmo. Specially recruitment criteria is worst, although there is a proper recruitment policy but people use to bring their relatives and friends at the time of recruitment or bribe is the other factor through staff is been selected. Out of ten vacancies eight peoples are those which are not on merit. If that kind of culture is in the organization that mean HR is failed to bring the right people for the Cosmo and this factor put impact on HRM.
Other culture which is been noticed is the decision power is autocratic and the senior manager has more power than anyone else, this is the called cartelization. So they take the decision what they want as staffs do not know their rights. There is the big gap between the high level management and the staff. In this kind of situation it will be so hard for HR to introduce the new policies like a common answer from the person is that this is the way we use to do things in Cosmo. So employee behaviour shows the culture of the organization.
Organization culture and HRM practise are interrelated to each other as one is changed other will also have to follow. (Zorlu Senyusel, 2009) For example in Cosmo staff uses to call sick and absent from the work. If HR is strict about the policy by giving the warnings to the one who cannot provide the evidence than things will be changed and staff will be present most of the time. HRM works on recruitment, selection, training and development. These practises develop the culture of the Cosmo as the workforce they select will represent the organization's goal.
Weber 1996 argues that attitude of the senior management is crucial for facilitating organizational culture because senior management plays an important part in shaping cultural values.
3.2 Recommendation to improve the effectiveness of human resource management:
Role of HRM is to increase the productivity of the staff but unfortunately management in Cosmo is not able to achieve the required task. Being the HR manager of Cosmo I realise some gaps and lack of performance in the management role. This report will focus on the issues which really need to improve for the effectiveness.
Cosmo can increase the productivity through the effective use of their recourses to beat their competitors. Managers are responsible to set the direction and effectiveness between employees, firm and their work. Managers need to play their role to avoid the human resource problem. Managers should be the knowledgeable and experienced who can really realize their asset.
There are some goals which Cosmo must have to achieve which is performance, satisfaction of employee, stopping turnover, absences from the work, less accidents and effective training for the staff.
It should be able to achieve these goals by analyzing the skill work force and retaining the experience staff by giving them the rewards according to their abilities and structure of the firm should be build again which make it effective. There should be a mission statement and all the staff should follow it.
It needs to identify the key people working for Cosmo who are really beneficial for the company and use to bring the creative ideas for the company. By focusing on these issues it is possible to fulfil customer expectations.
Use of new technology could be the advantage in the global competition as Cosmo has not started yet their online services so it will good for Cosmo to adopt the new technology. One other problem I found is uncertainty of job which should be removed by changing polices including the recruitment policy. There should be more training programs for the staff to improve the skills and communicating policies to them. It will increase the job satisfaction and person will be motivated to do job effectively.
It needs to create an environment in which everyone feels that they are the right person to do this job because this thing will give them satisfaction and they will be more productive. Everyone should have the freedom to speak and give their suggestions. HR should realize at what time which training course should introduced to which person and who deserve the promotion. Most important thing to do is strictly introduce the discipline policies because if the person is working under the company procedure that mean company is in profit and there should be no discrimination.
Human resource management policies:
A human resource policy is a set of direction and responsibilities under the specific environment. They provide help, detail overview and description in a particular condition. Policy is a type of procedure which is predefined in a situation when it occurs for example in Cosmo there is a clear policy about the holidays that how many holidays a person is entitled to get and how he should book his holidays. As the companies start growing they need to define and make their policies so employee should have a clear understanding of the issue. Same as Cosmo have a recruitment policy which is clearly defined and mentioned for the human resource management that how to advertise the vacancy and what is the criteria to select a person.
4.1 Purpose of human resource management policies in Cosmo:
Cosmo is a multinational company which cowers almost all major parts of Pakistan and it has many policies which they review with time to time for example these are the major policies which Cosmo have Recruitment policy, retirement policy, induction policy, probation policy, discipline policy, learning and development policy, staff development policy, performance planning and review policy, health and safety policy and rewarding promotion policy.
It is the main purpose of the Cosmo to hire the right people for the right job through the recruitment policy as their policy is crystal clear, they announce the in store vacancy and hand over the form to the one who is interested in job and when a person fill the form and give it back to the management they decide whether they should call this person for trial or not. As they assess the form and make their mind if the person is eligible for this job after that they will call him in the store and send him to the duty manager for trial and if duty manger says ok than they start doing further checks and doing interviews and after that they finalise either this person is capable of doing the job or not. And human resource management recruit the people free from bias, likeness or discrimination.
As Cosmo is growing and developing day by day and staff is working for Cosmo in a different shift pattern and all kind of people are working for the Cosmo so human resource management has set the policy to work according to their circumstances for example student are allowed to do part time shift and they can request for to work in their available days and they can take the carrier break from Cosmo. one of the major purpose of Hr policy is to give the information to their employees about the background of Cosmo and type of Tesco ,terms and conditions in Tesco, shift pattern, working hours, introducing the rules ,smoking areas ,fire exits, benefits ,salary package, training and telling what to do in which situation and what not to do.
An important purpose of the human resource policy is to maintain a healthy environment for the employee in the organization in which they feel free and secure to perform their role to get the objective of the company and try their best to secure from the legal claims. Human resource policies are made to get the organization goal in an effective way as in Cosmo HR policies are made by the management to support the strategy of general management.
Once you are the employee of Cosmo than you have to follow the rules and procedures and this is the purpose of human resource management to introduce the policies and force the staff to work accordingly to these policies for example Cosmo act strongly on the disciplinary issues and police says that everyone must have to give respect to others weather a member of staff or a customer and a person cannot be absent from the work unless there must be some genuine reason and in case he or she must have to tell the management before 3 hours of starting their shifts otherwise he has to face disciplinary action and there is the procedure to handle all these kind of stuff by giving verbal warnings, written warning , final warning and termination.
Cosmo human resource management is responsible for giving value to the individuals and for the concern of business related skills the elements which are used in diversity are sex, race, religion, appearance and procedures. Cosmo introduce the policies of developing the individual and groups to get the maximum result which are carrier break, coaching courses, management training and other courses for the development. Cosmo has a clear reward policy which tells it employees that what they will get after doing their jobs in a effective way and what is the management expecting from them the type of rewards in Cosmo are extra wages , bonuses , more money for overtime ,incentives , pick and drops , pension , insurance etc. One of the main rewards which Tesco offers is promotion and if someone is really capable than management send him for the further trainings and give more allowance in their pay.
4.2 Impact of regulatory requirement on human resource polices:
There is the big impact of regulatory laws on human resources as it working like a boundary is set from the government side around the organization policies and management cannot deny the enforcement laws. For example employment legislation law states that each employee should get the minimum wage which is predefined by the government and any human resource management is now allowed to set the waged below the minimum as it will be an offence related to pay discrimination. (Minimum wages ordinance 1961)
Same as there are the equally employment rights and no one can deny or discriminate and this is the type of likeness or favouritism which effect the equal rights and strongly condemned by the human resource management. (Employment act 2008)
Race Relations (Amendment) Act 2000 to monitor the ethnic origin of the applicant is set to make a policy by keeping things in mind that no one should be prioritised because of his race or discriminate.
According to government of Pakistan a person should be retired after the age of sixty-five so human resource management will develop the policy of recruitment or retiring policy by putting the age limits. (Employee old age benefits act 1976)
According to disability discriminate act 1995 and 2005 any management cannot make any policy which discriminate a person disability or deny offering a job on the bases of disability.
Suppose there is the situation that organization badly needs the work force as there is some staff on holidays or missing in that case organization is not supposed to bound the people which are working for example if someone on paternity leave or accidental leave or other problem as these comes under the employment maternity rights act 1996. The article 18 of the constitution deals with the unfair dismissal as the employee can go to the court and challenge the decision so HR needs to have very solid reason and documentary proof to rusticate someone.
The only problem in Pakistan is the unawareness and negligence of the employee as they do not know their rights. Employees specially working in private sectors are not treated according to the laws and regulations. However companies always try to make the policies according to the government laws.