Strategic Human Resource Management means the sense of human resource management in a strategic context. It has been taken place of some connection of strategic process through an organizational aims which are managed effectively. Strategy is interrelated in different levels of a company to function successfully. Before 1950 and early 1980 strategy was a core, a key word and near ultimate weapon of true and good management.
Strategic Human Resource Management is the relationship between strategic management and HRM. SHRM is move towards to make decisions of an organization's employee's essential components of its business strategy. SHRM gives the overall direction of an organizations wish to achieving objectives all the way through people. SHRM is dealing long term issues of the people in business. It's also related to the structure of an organization and its culture, future business requirements, its effectiveness, performance and the change of the total management.
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''Strategic Human Resource Management is an approach to making decisions on the intentions and plans of the organisation concerning the employment relationship and the organization's recruitment, training, development, performance management and the organisation's strategies, policies, and practices.'' (Michael Armstrong, 2000)
"Strategic Human Resource Management encompasses those decisions and actions which concern the management of employees at all levels in the business and which are directed towards creating and sustaining competitive advantage." (Miller, 1989)
1.1 Importance of SHRM in an Organization
Employees of a company can be greatly affected by the company's right approach and overall performance. For the growing companies SHRM especially vital for example right staffing to maintaining all employees and the whole organization. SHRM plays an important role such as-
a) To maintain and further development of an expanding company depends on SHRM current success.
b) Increasing the demand for services and products, SHRM helps the company for additional manpower.
c) SHRM maintains the quality, standard of manpower and can be checked and ensure the supply of demands of a company.
d) SHRM control mass production or bulk orders and to save company from customer dissatisfaction and decrease sales
e) Moreover, it can identify the processes, proper staffing, systems and approach of front line operations, activities and its effects to improve quality, decrease manpower hours, elevate standards and streamline processes.
f) SHRM works with culture maintain and adjust the cultural changes to the success and growth of a company.
1.2 Purpose of SHRM activities of British Petroleum
Strategic Human Resource Management (SHRM) is the company function to focuses on the public aspects of an organisation. SHRM ensures the professional management of public in the company. It is also liable for ensuring that an organisation has the right people to carry its in general business plan. (See about British Petroleum Appendix 1)
Meeting customer needs
British Gas has long term prosperity. Its shareholders are expecting the company to show a return on their investment by making profits in the future. To make sure consumer satisfaction, British Gas engineers have to have the technological skills to undertake work to the required standard as well as the public skills to deliver excellent customer service. From beginning to end its engineer recruitment team, the SHRM (British Gas Academy) must therefore make sure that the business attracts and retains the top engineers.
SHRM of British Gas has to certify that it retains its finest people. It is a large amount of cost effective to retain trained and highly expert employees than recruit and train up fresh individuals. British Gas tries to retain people by offering a combine of financial and non-financial benefits. And excellent pay and a retirement fund proposal, provides workers with the chance to purchase shares in Centrica and it offers a good working conditions and high-class training. Organisation desires good workforce who has the right skills to achieve the company's aims and objectives.
British Gas is an expanding business; it required to increase its employees to meet consumer demand. In 2002, British Gas established the British Gas Academy (BGA). BGA has helped to build up and refocus training services to handle the additional training requirement in recruiting an extra 5,000 workers into the engineering workforce. Trainees ought to expect to meet the criteria by year five. Domestic gas engineers develop into completely up to date with the newest computer-aided diagnostic technology. It's also offer a way for new recruits to be trained concerning the gas industry, achieve appropriate skills and qualifications. Consciousness training is provided for workforce across British Gas throughout an online learning package. One more programme is improving employee's cultural knowledge, especially to support the increasing global operations at British Gas.
Always on Time
Marked to Standard
Workforce planning is the procedure of assessing organization current and future labour needs. The SHRM (British Gas Academy) have to think not just generally member of staff numbers but also the skills that will be necessary inside the company. Also workforce planning involves controlling any training and recruitment procedure to make sure the organisation has the right employees in right place. British Gas makes comprehensive forecasts of its required for engineering staff for 1 year in advance and makes extra common estimates for a further 2 years into the future.
SHRM of British Gas implements a diversity and additional strategy using tailored action strategy. It actively seeks fresh recruits from a broad range of backgrounds. Recruiting extra women engineers could help to catch the attention of female consumers. British Gas runs a Georgina and the Dragon campaign for kids. Candidates for a British Gas apprenticeship have to be at least 16 years aged and include a minimum of 4 GCSEs at grade C or equivalent or above (e.g. NVQs).
SHRM of British Gas uses an online submission form. Helping British Gas choose an applicant's fittingness, this includes a value-based survey. Its require responses to a series of statements regarding attitudes to work. At his point, candidates should demonstrate proof of qualifications, ID as well as driving licence.
SHRM of British Gas review centre, the emphasis is especially much leading 'core competencies' and 'life skills'. Life skills are individual skills to be possible to influence the consumer experience when somebody is operating in the field. British Gas engineers requirements to demonstrate courtesy and politeness. The overall scores from the three-part evaluation help British Gas to decide who receives a job offer. Candidates are notified of the result within fourteen days. Every candidate must get feedback. In subsequent of a vigorous selection plan means it maximises the advantage as of its investment.
1.3 Evaluation of the contribution of SHRM to the achievement of British Petroleum objectives
SHRM of British Gas' recruitment programmes contain achieved is established by various awards throughout 2009. British Gas won awards as of the Local Employment Partnership in the East Midlands. Awards for 'Unlocking Talent' and the 'Outstanding LEP Achievement Award' recognise the organization's staffing work with the LEP and Jobcentre Plus in the state. British Gas has been named in the 2009 Sunday Times's 20 Best Big Companies to Work For. SHRM (British Gas Academy) won an award as of Women into Science and Engineering (WISE). Award for sponsor in WISE - rewarded the efforts British Gas makes to encourage science, engineering and establishment to girls and young women.
a) Company growth
HR professionals have to set jointly the strategy that will recruit, retain and reward persons who are capable to maintain BG to the lead of the worldwide energy challenge. Moreover, developing first-class training programmes, building our capabilities and anticipate the demand for innovative skills. When it comes to SHRM policies and procedures, they assist to create a culture of common value. In words, SHRM drives BG's performance is on a worldwide scale.
b) Increase of revenue
SHRM has been functioning appropriately and their extensive term; objective helps revenue growth illustrates sales increases/decreases in excess of time. It is the measurement of how quick a company is growing. Revenue increase helps investors recognize trends for estimate revenue increase in excess of time.
c) Satisfaction of stakeholder
In BG interviews with employee's enthusiasm to engaging by stakeholder's evidence to processes are in set for identifying and engaging by stakeholders at group and limited levels. Moreover, practices and documentation differ between businesses and no proper procedure applied across the set to check the efficiency of engagement. SHRM of British Gas every time meeting the needs of its stakeholder with competitively priced goods and services to give first-class returns to the business. Suburban customers across the nation are the core purchaser of British Gas. These consumers look forward to first-class service at low prices. SHRM of British Gas has been demanding to meet up this standard.
Human Resources Planning (HRP) of Shell (See about Shell Appendix 2)
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HRP is the in progress procedure of organized development to achieve finest utilize of an organization's more valuable asset is human resources. The purpose of HR planning is to make sure the greatest robust between workforce and jobs, whilst avoiding manpower shortages or surpluses. Three key essentials of the HR planning procedure are forecasting employment demand, analyzing present labour supply, and balancing projected labour demand and supply.
2.1 Analysing the business factors of Shell that underpin human resource planning
HR planning is the term used to explain how business ensures to the employees is the right employees to perform the jobs. Sub topics consist of development for employee's maintenance, plan for candidate seek out, training and skills analysis and much more.
a) Business Growth
Shell is preparing a quick growth of its North American business to raise production by 40% to one million barrels equivalent for every day in 2014, gas, Canadian oil sands as well as deepwater oil. HR planning take its concern forecasting of potential manpower needs where use mathematical projection to scheme trend in the financial atmosphere and growth of the company.
b) Business Change
Shell changes company policy at times in concern of financial, market difference, opponent and some other factors. HR of Shell also takes some consideration while it strategies in a long term base.
c) Impact of Technology
Approximately 30,000 technical employees employed by Shell, in areas where they are able to use their knowledge and creativeness. In Rijswijk, the Netherlands Shell has opened a high-tech technological education centre. Moreover, Shell has a worldwide set-up of technological centre, located close to its most important markets and manufacture sites. Shell HR helps to build up expert employee by using technology
d) Business Competition
There is a huge competition of all over the world. In this competition rivalry making efficient the organization is a real challenge. Shell HR has some policy to compete with competitor and make the organization to fit for these situations. Shell HR also helping to do these things-
a) Common accessibility of all sort of manpower necessary by the company.
b) Employment policies, exercise and policies followed in the business and in financial systems.
c) Government rules, prevailing situation of services.
d) Price of changes in changed factors in the environment plus in marketplace to decide the nature of challenges faced by the organization.
e) Common customs of the society in which the business operates as well as any sub-culture that might exist for diverse groups of potential workers.
a) Labour cost control
HR planning of Shell working a wide range of labour cost control by using proper materials, giving training how to work using less time and helping company by create technology specialist, researchers, electric and mechanical engineers, product developers, administrator, and many more.
2.2 Assess the human resource requirements in a given situation
Amnesty slams Shell over Nigeria oil spills (See case study appendix-3). In this case study SHRM requirements are
Employers are obliged to supply and sustain for the essential welfare requirements of their labour force. They must provide good working condition, health and safety procedure, maintaining rules and regulations as well as Keeping good temperature etc.
In HR personal requirement might consider in regard to control training issues are
a) Delay the operation until the employees are completely qualified in the innovative technologies.
b) The employees learnt the necessary skills from the contracted workers as because outsource portions of the work to cover weak points.
c) Contract out the employment, carry and continuation of scheme.
Understand the Importance of work
According to the company's overall needs for the scheme is usually significant for achievement. It's could ensure the deployment team understands and achieves the company's goals.
Organizing Deployment Teams
In the large company, SHRM capable to assist to build core players of experts in safety, networking, interoperability and applications testing might also provide as leaders of sub teams within their areas of proficiency. Team members need such skills as detail-oriented development organizational skills, applied technological knowledge and the capability of innovation and proficient in new technologies rapidly and separately.
2.3 Development of a human resources plan for Shell
Changes in the worldwide economy, demands of consumers, preferences and standards of workers, an essential part of the HR strategy is to make sure to the business is adapting to the outside and inside variables should probable look in the prospect in order to get together its stakeholders' benefits. The HR expert is consequently expected to be capable of to plan and implement the progress.
1. Acquire the 'Big Picture'
SHRM places of interest of key driving forces of company to know the company policy such as technology, distribution, opposition, the markets etc and
a) The implications of the dynamic forces for the consumer's area of trade.
b) The original public involvement to base line company performance.
2. Develop a Mission Statement
SHRM related to the public part of the company. Act unconstructive reactions to the words and references to unrealistic statements and it is the real procedure of idea throughout the issues in an official and open method that is imperative.
a) Public contribution.
3. Carry out a SWOT analysis
SHRM spotlights on the inner strengths and weaknesses of the public part of the company. Judge the existing skill and ability issues. Enthusiastically investigate the outside trade and market surroundings.
a) The impact might they cover on company performance.
b) Think capacity shortages.
c) Impact of innovative technology on employment levels.
4. Determine critical people issues
SHRM classify the important public issues specifically those issues that ought to address which include a key impact on the delivery of company policy.
5. Build up consequences and solutions
In support of crucial issues SHRM spotlights the requirements to improve relations, training or payment, the implications for the company and the employee's role and
a) Worker training and development
b) Organizational progress
c) Business growth
d) Performance appraisal
c) Worker reward
d) Member of staff choice and employment
e) Manpower plan
Build up the action plan about the crucial issue, put targets and dates for the completion of the key objectives.
6. Implementation and evaluation of the action plans
The reason for developing a HR strategy is to make sure that the objectives place is jointly helpful so that the prize and salary systems are included with worker training and profession progress policy. There are very small worth or advantages in training persons merely to then discourage them throughout a failure to offer sufficient profession and progress opportunities.
2.4 Critically evaluation of how a human resources plan can contribute to meet Shell's objectives
HR Plan acts a very important role in the achievement of a company's overall planned objectives and obviously illustrates that the HR purpose completely understands and supports the path in which the company is moving. Generally HR plan ought to aspire to capture "the public element" of what a company is eager to reach in the medium to long term ensuring-
The first area should identify
a) The right individuals in place
b) The right combine of skills
c) Workers show the accurate attitudes and behaviours
d) Workers go in the right way
The second area should identify
a) Employees development issues
b) Progression preparation
c) Personnel skills strategy
d) Service fair play strategy
e) Inspiration and fair management issues
d) Give levels planned to employ, retain and inspire people
e) Grading and payment system is seen as fair and giving proper return for contributions
f) Steady performance organization structure which is considered to meet the requirements of all sectors as well as its individuals
g) The changes of demographic or salary levels
h) The cultural changes of the impact on potential service patterns
i) The changes in the worker relationships atmosphere
j) The changes in the lawful structure adjacent to service
k) HRM and service exercise being developed in other companies (latest flexible job practices)
Judgment of the correct chance to present a case for developing an HR Strategy is crucial to ensure that there will be maintained for the programme and that its early value will be known by the company.
3.1 Explanation the purpose of human resource management policies of Shell.
HRM policy have to be framed in a way that the organizations vision and the HR serving the organization to achieve it or occupation towards it are at every levels of benefit and at the same moment not deviated from their major purpose.
Voluntary labour practices - HRM of Shell strictly ban the utilization of any labour, which is not everything other than unpaid and do not employ any labour below 18 yrs of age.
Non-discrimination policy- HRM of Shell are loyal for fair and objective hiring policy/earnings policy based on the personnel ability to do the occupation despite of individual characteristics such as sex, faith or ethnic group.
Women rights- HRM of Shell treat women employees on the equal footing as male employees in all aspects of service including hiring, wages, profit, progression, obedience, termination and retirement.
Communication- HRM of Shell strongly believes to promote communication and clearness at every levels of administration and established protected communication channels to offer sufficient chance for workforce to interrelate with the organization.
HRM has also anti harassment policy, proper working hours policy, health and safety policy, compensation policy and Recruitment Policies like
a) Mathematical ability
c) Family economic status
d) Proof of age.
3.2 Analysing the impact of regulatory requirements on human resource policies of Shell
Establishment of policies is able to help a business reveal together internally and externally, that it meets needs for diversity, beliefs and training, commitments in relative to rule and business authority, sets out obligations, principles of performance and paper corrective actions and can be awfully effective at supporting and structure the required business culture.
HRM is a discipline that in fact benefits from a mixture of systematic and imaginative crisis solving. Thousands of Expats approximately the world, Shell HRM make sure that they get the sort of parcels and in progress support that makes their repositioning a constructive skill. Shell HRM panel deals with every policy for worldwide mobility as well as short and long term global assignments and global rotators, commuters and common global company voyage. Shell HRM generate and fine tune policies to ensure that they are flexible, intelligent and thorough enough to deal with the extensive sort of desire and issue that Shell HR Exparts face every day.
Task 3 - Reviewing Human Resource Management
4.1 Analysing the impact of an organisational structure on the management of human resources
Persons who work jointly in companies require a defined method or structure during which they relate to all other and throughout which there may be a management of their hard work. Relationships amongst the essentials of a business, namely individuals, tasks, structure and information and organize process are all organizational structure.
HR division made of a variety of jobs as experts, a facilitator, change agent and as a director. The explanation to rising ahead of a manager's point in time, skill and knowledge limits is allocation, the task of authority and liability to subordinates. Good consideration of line and employees relation helps in developing pleasant line-employees relation. HRM is an employee's function but it has a line liability. HR division acts the function of expert, a facilitator, a modify agent and a director. The equations among the line and employees functions have been changing in current times, maintenance with the altering business and employment atmosphere.
4.2 Analysing the impact of an organisational culture on the management of human resources
Place of understandings joint by a group of person that are mostly implicit among members, are obviously related and typical to the particular group which are too accepted on to a new member. Moreover, HR policy is able to adjoin value is by ensuring so as to, in all its other strategy, the company takes report of and policy for changes in the wider surroundings, which are possible to have a main impact on the company like-
a) Then changes of demographic or payment levels
b) The cultural changes- impact on potential service patterns
c) The changes in the member of staff relationships environment.
d) The changes in the lawful structure adjacent to service
e) HRM and service exercise being developed in other companies (latest flexible job practices).
4.3 Examination how the effectiveness of human resources management is monitored of Shell
Mutually with Talent Management, Shell HRM ensures that carry the ideas, persons in Shell with the assets and knowledge they have to develop their skills and abilities. Shell HRM has built a reputation for excellences in training are dedicated to personnel growth and expansion.
HRM help out to build competitive benefit for Shell by maximising the worth of the aptitude they have and the capacity they bring in and to attract new company partners all over the world. HRM is dedicated to developing local aptitude in the regions where they already function as well as planning to expand.
In Shell, learning and organisational effectiveness has a place at the table within SHR, the company and functions it serves. We have seen as a significant partner in the success of company strategies and functioning strategy. Education helps to provide and build up key capabilities to meet up the demands and challenges of the company. Working with Shell will offer a chance to grow cross-business experience, build up a 'Big Picture' understanding and to work with individuals at the most superior levels.
4.4 Justified recommendations to improve the effectiveness of human resources management of Shell
a) Provides training and recruitment
Company success depends on having the correct person in the correct jobs at the accurate time to get together rapidly changing company desires. Right person may be obtained by the stage of the role of HR function.
b) Performance appraisal
Information obtain throughout performance appraisal provides basics for recruiting and selecting new hires, progress of existing employees, motivating and maintaining a class employee by sufficiently and correctly rewarding according to their performance.
c) Maintains a good working atmosphere
Good working situation is necessary for the workers to manufacture the required result. A satisfying environment gives member of staff job satisfaction. General performance of the workforce mainly depends by the occupation culture or job environment.
A significant characteristic of a company's business focus and route in the direction of achieving high levels of competency and competitiveness should depend especially their SHRM practices to add efficiently on the way to productivity, quality, and other goals in the line of mission and vision of the organization.