Strategic Human resource Management (SHRM) is a complex process which undergoes constant evolution. In the vast changing business environment, the company has to direct its decisions from time to time. These decisions must be closelyÂ monitoredÂ by the HR using strategic management. The company begins with set goals for tenure. It has to constantlyÂ correlateÂ its performances with these set goals. The work force requires a lot of things in order to achieve these goals. Long term people issues, quality of work and fulfilment of desired requirements are few of the jobs related to the HR. A lot of Human resource strategies form part of this process.Â And so it relates more to lodes as it falls under the financial sector over here the most important tool is human resource. Machines and other things play a very small role, the most important assets to a bank in many ways is its employees. And so it's very important for them to use Strategic Human resource Management greatly in their operations.
Get your grade
or your money back
using our Essay Writing Service!
As the private as well as the public sector stutters towards recovery, and public services face a period of long-standing graveness, the economic climate calls for a continuing focus on the main issues the is cost control for all organisations. To be successful in your business organizations have to learn to do more with less investment.
And so it is the most important duty of the hr department to ensure that their workforce is effectively resourced. They also have to take care of the motivation levels of employees as this would help increase better outcome so as to fulfil the cost management objective of organizations. It is important for HR personals to show their abilities as sectors like finance and an environment that's unstable can bring upon many difficult challenges. In these difficult times they need to present an opportunity to demonstrate speedy innovative acts and strong leadership, to make sustainable, long-term value for their organisations.
TSB Lloyd's today has become a household brand across UK. It started as a small player in the UK banking industry. Long gone are the days where this bank is still considered a small player. It is a major player in Uk which operates in insurance and investments as well. Since 1995 it has also been aÂ consistentÂ player in the international banking sector. It is a sea which includes 63000 employees and a net worth crossing 32 billion pounds.Â
Surely to maintain such high standards of banking Lloyds TSB must have had to put several plans rolling. The HR team must be commended for the job that they have carried out for many a years. Tradionally the HR team of this bank was required to provide services. Bank is a prime example of the service industry and service needs to be pin point in order to maximize growth and sustain in the market.Â
The main objectives have been to maintain a good customer relationship, ensure that the customers are happy with the services offered by the bank. It also includes getting a feedback from him clients so as to find out ways to improve the working of the bank. SRHM has ensured the smooth flow of such activities thus ensuring achievement of goals set up by the bank. The strategically formed HR plans like public relations and offering various schemes to customers like low rate of interest, value added services have helped the team be on track to achieve their goals.
Human resource planning (HRP) refers to the Human resource requirement. Not only the requirement, but also the time and stages of requirement. A key aspect ofÂ HRP is RIGHT PERSON ------AT THE RIGHT PLACE------AT THE RIGHT TIME. It is defined as a process which enables the management to reach desired manpower levels from theÂ existingÂ levels. It can also be calledÂ manpowerÂ planning or employment planning.Â
Following are the objectives of HRP:Â
1. Right forecasting or assessment of required HR. A company may require hiring manpower or even downsizing manpower according to the performance. It is HRP that enables the right forecasting of manpower.Â
2. Enable optimum utilisation of existing human resource. The HRP must ensure that the current HR is at its maximum use.
Always on Time
Marked to Standard
3.Â AnalyzeÂ surplus or shortfall of HR.Â
4. Ensure that HR requirement is met as and when necessary.Â
5. Analyzing the type of training and models for the employees.Â
In order to achieve the above objectives a strong HRP need to be in place. Following are the factors that shape the human resource planning of a firm.Â
A. Type and Strategy ofÂ Organizations:
B. Time Horizons:Â
C. Nature of Job:Â
D. Environmental uncertainties:Â
F. Organisational grown cycle and planning:Â
G: Type and quality of forecasting informationÂ
Looking at the current economical situation it is very important for organisations like the financial sector too be very cautious. As this is a more unstable environment hitting mostly the financial sector they need to play their cards smartly. And so HR over here has to play a very important role in cutting the cost as much as possible and getting efficiency out of their employees. They can implement five key measures that are Restructure, Align, Involve, Measure and Develop.
Restructure: Hr managers need to understand the basics and redesign the whole organisational structure which should be leaner and appropriate for long term purpose. Hr managers can easily identify places having excess and unwanted places future restructuring the organization to minimize the cost.
A key challenge duringÂ difficultÂ times is maintaining employee engagement. Staff must be involved during changing times to adjust to the organisational goals. This is aprticularly difficult when morals of the organisation are down and there is a high level of insecurity with many aspects of the job. A such a stage working with the workforce can really beÂ beneficial. this can help in adjusting the costs and maintaining efficient cost management. The HR mustÂ develop a culture that portrays cost as a responsibility of the entire organisation.Â
Leadership is a key aspect In HR. Leaders must be able to exemplify cost and value. They need to recognize ways by which HR costs can work harder for the organisations and demonstrate initiatives toÂ optimize vakue from precious resources. This must be done while ensuring a tight grip on payroll , pensions etc. They must be able to justify costs that add value to the business. They must be able to prove the value of the costs spend by them in tangible measures.Â
When the going gets tough, talent gets going. During uncertain time tackling performance management issues could be dangerous. Loss of talent and poor performances can have a adverse impact on the productivity of the indivisual and thus the organisation. To head off this threat HR leaders must Use restructuring to redefine roles, provide new opportunities for talent and define accountability Ensure that talent is effectively re-deployed around the organisation.Â Provide skills and tools for people to work 'leaner'
Support senior leadership development to enable leaders to cope with turbulent timeÂ Defend development resources for talent and core capabilities, so that these can grow in line with strategic needs.Map clear paths for top talent and proactively manage progressionÂ Â
One of the best models that any bank can apply to its working is the model designed by harsis this model describes how organizations can achieve capabilities through concentrating on its HR processes. It starts with the core bossiness of the organisations, here it is the banking and financial transaction. In this kind of core business it is very important to have highly skilled people. Later on he talks about the importance of hr enabler's i.e. the hr department, it is very important to have a strong hr department because this is the sole department that would build other department in the organisation. People with good knowledge of identifying talent should form the main part. Next he talks about nurturing its talent through different ways. This talent can be nurtured through Attraction, performance, rewards and learning and development.
Attraction: this for the banking sector can be done by giving good working conditions a stress free atmosphere. As these jobs demand lots of concentration and importance the employees should also be giving that much care. They should be allowed flexible working hours and good facilities.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
Performance: as banking sector is very risky in term of transactions happening in the organization it is very important to review employee's performance on a regular basis this could be through management performance or individual performance done by the hr department.
Rewards: Every person feels better when he is appreciated. It motives him to even more increase its performance. This type of motivation should be highly used by the organisation. Rewards should as much non monitory as possible. Very few should actually be monitory rewards. They should introduce awards and competitions that would help its employees to relax a bit.
Learning & development: for any leading bank it is very important to have employees with up to date knowledge about their business and the ongoing seniors. And the organisation should step ahead and train them on a regular basis. They should have design development seminars for its employees relating to their kind of work and position. Employees should undergo a compulsory of a particular time of training and development program every month. They should be session where employees should be allowed to share their views on how they can change or do something that the company would progress through it.
This will later lead the bank into a proper outcome through its employees as they would progress and so would the bank.
Critically evaluate how Human Resources plan can contribute to the achievement of the Bank's
overall strategic objectives.
Human resource planning (HRP) is the process of systematically reviewing human resourceÂ requirements to ensure that the required number of employees, with the required skills, is available whenÂ they are needed. After an organization's strategic plans have been formulated, human resource planning canÂ be undertaken. Human resource planning has two components: requirements and availability. ForecastingÂ human resource requirements involves determining the number and type of employees needed by skill levelÂ and location.
HRP has become more important in recent years for a number of reasons like:
1. Globalisation of Business
2. New Technologies
3. The changing skill levels in the Workforce
4. The changing demographics of the workforce
5. Mergers and Acquisitions
6. Legal developments
HRP canÂ contributeÂ inÂ achievingÂ banks overall strategic goals in the following ways:Â
1. Determine the impact of organizational objectives on specific organizational unit
2. Define the skills required to meet objectives (demand for Human Resource)
3. Determine additional human resource requirements in light of current HR (net HR requirements)
4. Develop action plan to meet the anticipated HR needs
Lloyds TSB has been a provider of financial services for a very long time. It has employed more than 66,000 people and operates on a world stage. ItÂ competesÂ in a market that is ever changing.Â
All services provided by them are on a 24 hour basis. This means that the Lloyd staff is put on a constant world load and is expected to be on their toes all the time. Hence Lloyds TSB has put a lot of HRM policies in place to ensure most efficient use of human resources. These policies are designed in such a way that it makes Lloyds TSB the most amazing place to work. A research carried out in 1988 demonstrated factors influencing the jobs in the most way. After closely analyzing the results of such a survey the Group introduced a newÂ policy, called Work Options, which allows staff to work flexibly.
Flexible working enables good workingÂ sense. This enables Lloyds TSB toÂ deliverÂ high standards. The flexible approach taken byÂ Lloyds TSB enables them to retain more staff than many otherÂ organisationsÂ in the same sector. This is a cheaperÂ optionÂ whenÂ comparedÂ toÂ recruiting. Most graduates put more stress on flexible working over than the pay they receive. Employees are more motivated when it's up to them to decide when they work and when they do not.Â Lloyds TSB gets manpower round the clock without paying overtime because of such a policy.Â Â
Lloyds TSBÂ adoptsÂ another way of flexible work. Â EmployeesÂ have a choice to work more on a day than other. This means theyÂ canÂ complete a week's work in less than a week. Video conferencing, email etc enable the employees ofÂ Lloyds TSB to work from home. They can work and carry out theirÂ householdÂ activities simultaneously.Â
Regulation requirement for human resources:Â
Compliance is no longer is seen by many as the primary role of Human Resources. Â However, compliance is as important today as ever, especially considering the diversity of people in the workplace, including their diverse values, opinions and perspectives. TheÂ followingÂ are the regulation aspects that are required to be considered.Â
1. Personnel Polices and Records
2. Employee Laws, Topics and Issues
3. Ethics - Practical Toolkit
Ensuring Fair, Safe and Equitable Work Environments
Ensuring Fair, Safe and Equitable Work Environments is another important regulation on human resource management.Â The care and cultivation of human resources should consider the following topics. These topics often are addressed as official programs in the workplace.
1. Diversity Management
2. Dealing with Drugs in the Workplace
3. Employee Assistance Programs
4. Ergonomics: Safe Facilities in the Workplace
5. Dealing with HIV/AIDS in the Workplace
6. Personal Wellness
7. Preventing Violence in the Workplace
8. Ensuring Safety in the Workplace
9. Supporting Spirituality in the Workplace
10 .Diversity Management
According to the case study Lloyds has re organised its structure the main this it did is to make hr its business partners. As soon as Lloyds changed it structure and made hr its business partners it became easy for its hr to act statically. They can now be free; can implement its ways and model in the organization. They can now whole and solely concentrate on their hr processes. They don't need to think or get into any pressure of top management. They have created a core value in the business and also strength the business. They are now more related to strategy in their hr processes.
The changing business environment has forced Lloyds TSB to adopt to changing Human resource policies. Earliest the HR was required to assist in servicing of clients. Now the HR has to formulate strategic human resource planning and ensure the human wealth atÂ Lloyds TSB is safe and at maximumÂ utilization.Â Lloyds TSB has been a household name in UK in the banking sector. It has had to ensure a very good HR plan to ensure that.Â
Over the yearsÂ Lloyds TSB hasÂ formulatedÂ a lot of plans for maintaining itsÂ humanÂ capital. A research was made to understand the minds of its employees. A good pay doesn't ensure that the employees will be at their 100 %. A lot of factors areÂ takenÂ into consideration while formulating a plan for the development of human resources. It has used traditional methods to manage their human capital. The employees were offered flexible working hours. This meant that theyÂ hadÂ aÂ choiceÂ to chooseÂ theirÂ workingÂ hours. This helped them to take up otherÂ activitiesÂ accordingly and devote certain time towards other aspects of their lives. They were in much better control of their job while choosing their own work timings. They were also given options in working for a longer time on certain days than others. This meant that they could finish a week's work in less than a week. Flexible work timings was a massive hit amongst the employees and many graduatesÂ
Emphasized on this as much as they would for a higher pay.Â
Lloyds TSM introduced flexible work tenure even beforeÂ government regulationsÂ had passed anyÂ amendment for a scheme like thisÂ and ahead of any other businesses in the same or any fields. Lloyds TSB is aware of the social and economicÂ developmentsÂ in the business environment that make it necessary to react to the needs and the various requirements of its human capital. It has struck a chord between the micro and theÂ macroÂ needs of its workforce. Â Â This has indeed helped in achievingÂ competitiveÂ advantage and sustained growth.
From my understanding of Lloyds and the change that it has made in its organisation mainly relating to its hr is very revolutionary change. I would again relate the model designed by Harris 'increasing organizational outcome by concentrating upon its hr processes' into Lloyds. As Lloyds looking at the importance of it HR department and made it business partners. Harris also talks about the importance of its hr in building a successful business. He states that a good business can work with good people in it and good people can be employed. If u has a good hr teams to employee them. The same thing Lloyds has done. It has given its Hr department due importance to work freely and more in a strategic way. They have strengthened its hr department, which in turn has helped Lloyds increase its capability. It has enhanced its Talent through different talent management nurturing processes. It works under a soft approach to deal with its culture and enhance its hr. According to the Mckinsey's 7 s model it seems to have a soft approach they rely on skill, structure, style and shared value.
Lloyds has done its bit by concentrating on its hr department. It has enhances its department by making it partners and given its hr's an upper hand. They have in their own way motivated their whole Hr department. Here they are trying to let its department be more strategic in their processes. But it is also important to concentrate on core Hr ways of doing things. It is true that an strategic way of doing things is very useful and progressing but we shouldn't even forget the basic hr roles and model them in to proper strategy. Â since Lloyds tsb is in the banking sector and it's in the service industry....it should be looking to improve public relations...a lot of their employees speak to the customers or talk to them....they must be able to maintain good relations....adequate training must be provided
In an more general view to improve HRM in an organisation it is very important for its organisation to concentrate on its hr department. A strong HR department can built a strong company at a whole. The management should change positions of its employees from time to time to see who is best suited where...this helps the employees to take up various jobs and dsnt make their job boring. Introduce more training to the jobs .they can have awards like employee of the week or employee of the month....just to keep the employees motivated.
Johnson, D. and Turner, C. (2010) International Business (themes and issues in the modern global economy). 2nd ed. New York: Routledge
Berger et al. (2010) The Talent Management
Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People. 2nd ed. USA: McGraw-Hill, 2010
Atwood, C.(2007) SUCCESSION planning basics USA: American Society for Training and Development
http://www.aimpapers.com/samples/Strategic_Importance_of_Human_Resource_Management_1_.pdf :-assessed on 2nd April 2011
http://www.cipd.co.uk/hr-resources/factsheets/strategic-human-resource-management.aspx :-assessed on 2nd April 2011
http://www.hrmagazine.co.uk/hro/analysis/1018359/hr-prove-value-grasping-cost-agenda-innovative-initiatives :- assessed on 5 April 2011
http://www.business-analytic.co.uk/article-hrm. pdf :- assessed on 7th April 2011
http://www.bassettgroup.com/Articles/hr-elements.htm :- assessed on 5th April.
http://www.gradfutures.com/companies/lloyds-tsb/schemes/human-resources-h r :- assessed on 2nd April 2011
http://www.thetimes100.co.uk/studies/view-brief-study--changing-working-patterns--99-302.php :-assessed on 3rd April 2011.