The Strategic Administration Of Human Resources Business Essay

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For publicizing purposes of certain services, human resource is an important aspect to be taken under consideration. In order to promote services in a better and profitable manner, use of the suitable human resources becomes important. The Philip green have also utilized several sources in order to promulgate its services.


Human resource is the backbone of the every organization. Labour capital, and land etc.are resources effectively used in organization. Every organization makes a strategy for human resource management, how and what's the proper utilization of resources to get maximum level of profits. If resources does not used properly, organization will not gain profit and never stand in the market. Human resources management has become more important to general management, its provide competitive advantage and an awareness of the demands of the technologically advanced environment of the future.

Human resource management is the function of management concerned with finding the right people to fill those jobs-staffing the organization. The most important resource an organization can have is its workforce, the quality of the work the staffing function performs is vital to organization success. Finding the right people, the human resource management function includes training them in the culture of the organization as well as in specific job skills, developing employees to get them ready for promotion and evaluating their performance.

Phillip Green's is always looking for new business opportunities. He seeks new and better ways of doing things. His employees are set high targets but have the authority to decide how best to achieve them. They are encouraged to use their imitative. Green says,

"I am brave but I take a view. It is an educated view. I am careful; I am not reckless."

Human resource management:

Human resource management might be defined as finding the right person with the right skills, in the right place at the right time, and with the right motivation to accomplish strategic objectives.

Johnson and schools (1993) identify a number of chataracteristics that help to define strategy .these lead them to offer the following definition of strategy:

Strategy is the direction and scope of an organization over the long term: ideally which matches its resources to its changing environment and in particular its markets, customers or clients so as meet stakeholder expectations. (Johnson and schools, 1993:10)

This approach to strategy ,focusing on the internal, resource capability of an organization as well as the challenges which it faces in its external operating environment ,has the potential to enhance the role that HR strategies may contribute to the change process as an organization attempts to adapt itself strategically(Purcell,1995).This approach suggests that recognizing and developing these resources will not only help an organization to match them to changes in the environment butt also create 'distinctive capabilities 'to seek(further) competitive advantage(kay,1993;Purcell, 1995).

Burnes (1996:142) recognizes that 'the capabilities of an organization, in terms of its structure, system, technology and management style, restrict the range of strategic options the organization can pursue.'

Mintzberg (1987) refers to the approach of crafting strategy '. Mintzberg 's work suggests that organizational strategies often emerge from the work of those in an organization and the opportunities that become apparent rather than being deliberately planned.Mintberg believes that the development emergent strategies in organizations promotes learning. This will need to be recognized and supported through hr strategies related to, in particular, recruitment and selection, training and development, and reward, as well as through culture and structural strategies.

Human resource strategies may be implemented initially to help to realize the strategic guidelines that have been established by senior managers by promoting the development of strategies at business unit level. Or other things human resource strategies may then be devised to meet the resource implications raised by the development and implementation of these emergent strategies at business unit level.

Hendry and Pettigrew (1990:21) present the central components of strategic human resource management. These are:

the use of planning

a coherent approach to the design and management of personnel systems based on an employment policy and hr strategy, and often underpinned by a 'philosophy';

matching human resource management activities and policies to some explicit business strategy;

Seeing the people of the organization as a 'strategic resource' for achieving 'competitive advantage'.

They emphasis that the strategy is designed to achieve certain human resource outcomes.

Corporate strategy:-

Corporate strategy relates to the definition of strategy which concerned with the 'direction and scope of an organization over the long term' (Johnson and scholess, 1993:10) .Purcell (1989:70) refers to the nature of the strategies as upstream, first order decisions' to indicate their status in relation to lower -order ones and the likely way in which other levels of strategy will flow from these higher-order strategies.

The second and third levels of strategy are seen by Purcell (1989) as being 'downstream' of corporate strategy. The second level of strategy concerns the organizational structures and operating procedures that are put into place to support first order decisions. The third level concerns functional strategies, including those related to hr, which is developed in the context of the first to levels. All three levels have strategic significance since they each affect the long-term direction of an organization and the attainment of its goals.

Corporate and human resource strategy

The nature of hr strategies should be determined by the life cycle stage of an organization. For example the hr emphasis in the start-up cycle of an organization will be related to attracting high quality staff, party by paying market rates or better, and establishing skill requirements for future development and a suitable organizational culture.

Four categories of corporate strategy:-


e.g. continuing with an existing strategy, consolidation


e.g. product development, market penetration, market development, or diversification involving internal investments, joint ventures, acquisition or merger


E.g. harvesting a business by using its existing competencies and resources but reducing costs, investments and running it down; closing down some existing locations; divesting existing businesses


Using a mixture of the strategies referred to above

Human resource evaluation:

Human resource management evaluation refers to the processes that measure, evaluate and communicate the value added of human resource management practices.

Human resource measurement- a practice that is central to the future growth and success of our profession. (Ashton, D.and J.sung 2002).

According to Phillips (1996b), there are seven compelling trends in management thinking and practices that have changed the role of human resource:

organizational change

flexibility and productivity improvements

the adoption of HR strategies

the increased importance of human capital

increased accountability

partnership relationships

the growing use of HR information systems

These seven changes are closely integrated and relate to greater demands for accountability and value -added HR practices and systems.


Strategic human resource management is an outcome: 'as organizational systems designed to achieve sustainable competitive advantages through people.' Snell et al. (1996, p.62), .for others strategic human resource management is viewed as a process, 'the process of linking HR practices to business strategy' (Ulrich, 1997, p.89).An organization's human resource management policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces (beer, 1984, p.25) On joining the Philip Green's company, employees are given responsibilities early on. They are able to progress quickly in the organization and can be promoted rapidly. Each day there are new challenges .Employees has to learn to plan, make decisions and lead a team of people. This helps them to do their jobs more effectively.

"Our strength is the quality of our people."

"Our people are our most important resource."

These often -repeated statements by executives emphasize the importance of human resource management. Human resource managers must find, recruit, train, nurture and retain the best people.

Recruitment and selection process:-

Recruitment and selection as a systematic process applied to meeting an organization's staffing requirement s through filling identified vacancies. This process can be broken down into a series of stages which Wright and storey (1997:212) summaries as 'defining the vacancy, attracting applicants, assessing candidates and making the final decision.'

The employers are involved in a decision making process and the way the process is conducted may have a significant impact on employer attractiveness and employee retention. Recruitment is described as a positive attraction process designed to assemble a suitable pool of applicants against a given job vacancy.

Positively correlated with effective job performance, searching for people with those attributes and persuading such people to apply for the vacancy. In contrast selection can be seen as a negative process of rejection that involves narrowing down the field of candidates until a suitable match against a given vacancy is. (Whitehill, 1991, cited in Wright and storey, 1997:212).

The success relies on the quality of its employees, such as its store managers and its sales staff. To attract the right applicants the Phillip Green's company must have an effective recruitment process.

Recruitment:-Recruitment is the process of generating a pool of capable people to apply to an organization for employment. In this definition two main point is highlight: 1there is a need to generate people's interest in applying for employment-they need to be attracted to an organization. This implies that people do have a choice about which organizations they wish to work for.2people may be capable of fulfilling a role in employment, but the extent to which this will be realized is not totally predictable. Recruitment occurs both at store level and centrally. Philip Green's company head office is using specially designed management development programmes to target two groups: school leavers and newly qualified graduates. Company is looking to recruit the next generation of students who are passionate about a career in retailing and able to become future leaders in the business. They do activities to attract applications the company. These activities include attend career fairs and presentation, produce advertisement and posters, uses in-store communications, advertises on the company website.

REASONS TO RECRUIT:-show in diagram

When recruiting new employees company looks for specific abilities. These are called competencies.

Woodruffe (1992, p.17) has defined Competency as 'the set of behavior patterns that the incumbent needs to bring to a position in order to perform its tasks and functions with competence'. In this include self control, self -development, personal organization, positive approach, leading etc.

Each competency is defined and described by a range of indicators that enables assessment and measurement. The competency of 'creating customer service 'is, for example indicated by:

Anticipating emerging customer needs and planning accordingly

Identifying the customers who will be of value to the company

Recommending changes to current ways of working that will improve customer service

Arranging the collection of customer satisfaction data and acting on them

There are two main ways of developing a recruitment strategy, these are internal and external recruitment:-

Internal recruitment:-this tends to more easily introduced in strongly unionized firms .or where job mobility is low. It has certain advantages:-

1-good for employee morale:-by promoting from 'within', the company is clearly demonstrating a policy of rewarding current employees. This should encourage hard work, as individuals feel more highly valued.

2-use of manpower;-the efficient use of company's manpower trough a policy of job enlargement and job rotation means that skills ,knowledge and aptitude can be fully utilized.

3-costs:-by promoting from an already recruited work force the company avoids the costs of advertising and selection.

4-accuracy:-it may be possible to recruit from a better level of knowledge regarding individual's abilities.

5-labour turnover:-this may be reduced if personnel perceive they have opportunities for promotion within the organization.


1-no 'new blood' there is an absence of new people and new ideas. This may stifle initiative, reduce flexibility and increase resistance to innovation and change.

2-cost:-whatever the previous experience of the internal appointee they may require costly training.

3-bad feelings;-there is a danger of creating jealousies, rivalries and cliques among staff competing for too few promotional opportunities.

External recruitment in the fast changing world of modern business it is quite common for a 'new post' to be created. The current employees do not possess the necessary skills to recruit for the post.

A specialist agency provides higher grade and more specific personnel. They often prepare job descriptions, interviews, test and decide on rank order, before sending applicants.


1-higer number of candidates

2-candidates may have new ideas

3-potentail for new skills to be brought into the organization


1-takes longer

2-people appointed may not be as good as they appear

3-more expensive to advertises

Selection: selection is the process by which managers and others use specific instruments to choose from a pool of applicants the person or persons most likely to succeed in the jobs, given management goals and legal requirements. An organization set the criteria in the form of competencies composed of behavioral characteristics and attitudes which are measure and assess applicants. Selection involves a number of costs:

The cost of the selection itself ,including the use of various selection instruments

The future costs of inducting and training new staff

The cost of labour turnover if the selected staff are not retained

According to wilk and cappelli (2003, p.117), 'it is not simply a case of more is better'. Selection methods will depend on the characteristics of the work and the level of pay and training.

Recent years have indicated that a structure and the use of behavioral a based on competencies increase the effectiveness of interviews in selection. The use of competencies in selection is a reflection selection may be combined in assessment centers to provide a fuller picture of an applicant's strengths and weaknesses. Online testing allows organizations to process applicants more quickly .this may also filter out good applicants as well as unsuitable applicacants.

Selection technique seeks to measure differences between applicants and provide a prediction of future performance at work. Techniques are chosen on the basis of their consistency in measurement over time -reliability-and the extent to which they measure what they are supposed to measure- validity. An applicant's experience of selection methods strongly influences his or her feelings towards the organization.

A valid selection procedure will provide high scores that correspond to sub sequent high job performance.

Application form:-the application form is used to collect information about the applicant's education, previous job experience and other background characteristics. Research in the life insurance industry shows that biographical information inventories can validly predict future job success. [P.W.Thayer, 1977, p.513-524]

Interview:-the interview serves as a two-way communication channel that allows both the organization and the applicant to collect information that would otherwise be difficult to obtain. This selection of technique is used in almost every job category in nearly every organization. The interview is not generally a valid predictor of job performance.

Employment test:-employment test may include intelligence tests, aptitude and ability tests and personality inventories, particularly those shown to be valid predictors. Many companies today particularly interested in personality inventories that measure such characteristics s openness to learning, initiative, responsibility, creativity and emotional stability.

Assessment center:-first developed by psychologists at AT&T, assessment centers are used to select individuals with high potential for managerial careers by such organizations as IBM, General Electric and JCPenney.[W.C.Byham,1970, p.150-167].assessment centers present a series of managerial situations to groups of applicants over, say, a two-or -three-day period. Assessment center is technique for selecting individuals with high managerial potential based on their performance on a series of simulated managerial tasks.

Recruitment and selection legislation:-

Recruitment and selection are governed by equal opportunity legislation. Legislation changing all the time ,so keep up to date with what is happening in this area by reading newspapers or journals and watching quality new programmes on television.

Sex discrimination Acts 1975 and 1986;-these acts ensure that men and women are treated equally.

Race relations act 1976:-this act makes it unlawful for anyone to be discriminated against on the grounds of race, colour, nationality, ethic origin or national origin. Employees must be protected from discrimation.

Equal pay act 1970;-this acts requires employers to pay men and women equally. This includes all aspects of pay including benefits, childcare allowances, sickness benefits and car allowances.

Rehabilitation of offenders acts 1974;-this act is designed to allow some criminal convictions to be considered 'spent' after a certain amount of time. This means that after that time, the convictions are ignored and ex-offender does not have to mention them when applying for a job.

Disability discrimination act 1995;-this act makes it unlawful for a disabled person to be treated less favorably because he or she is disabled, unless there are very good reasons.

Working time regulations 1998:-this directive introduced the idea of a maximum average working week of 48 hours to be measured over a period of 17 weeks, 26 weeks or 52 weeks according to workforce agreement.

Employment act 2002:-the employment act 2002 covers a number of areas within employment law included:-the right to 26 weeks paid maternity leave and 26 weeks unpaid leave. The right for members of trade unions to take paid time off to attend meetings and training etc.

All of these acts together give UK and EU legislative protection to individuals throughout the and selection process. They are regularly updated and aim to ensure fairness in the world of work.

Training: - training and development represent a planned effort by an organization to facilitate employees' learning of job-related skills and behaviors. Bernard keys and Joseph Wolfe (1988, p.205-229).Recruiting the right people does not guarantee to perform well. Training is initiated to prepare the individual and the work force. It main purpose is to increase the general efficiency of those who have undergone the training process and should promote: greater job satisfaction reduced labour turnover, lee absenteeism and sickness, better adherence to practical and financial objectives. Company trained the employees for these reasons:-

To prepare employees for their jobs and the place where they fit into the organization

To prepare more established members of the company for new tasks and techniques

To help resolve 'gaps' that analyses has suggested exist in the 'skills bank' possessed by either individuals or the total employee force.

To enable manpower to adapt more easily to innovation and change.

To promote, transfer or upgrade individuals or groups of workers.

Not all companies can afford specially designed training programmes .some still train within the working environment, using skilled operators or supervisors as the trainers.

On -the -job training: on-the-job training is often called 'setting next to Nellie'. The features of this training are:-

1-there is very little clear distinction made between work and training. The trainee is expected to both work and train simultaneously.

2-everything used by the trainee is 'real', i.e. they learn in real work situation.

3-The trainer is an experienced worker, who trains by showing how something is done. This is usually done in a practical and immediate way.

Advantages and disadvantages of this training:



By being at the place of work it is realistic and not divorced from the working environment.

The trainer may be a poor teacher, who shows little real interest in transferring knowledge.

It is direct.

Poor quality work or inadequate machinery may mean that the trainee learns bad habits.

Hopefully, a 'one-to-one' relationship builds up between trainer and trainee, so helping both learning and motivation.

There is danger that those who have worked for the company for some time will pass on their attitudes and opinions to the trainee.

It is less costly than other forms of more formal training as it takes place alongside work.

Not all of trainee will be desirable.

Much of the training at Philip Green Company is one-the-job and occurs within the stores. Off-the -job training is used for general management skills. The training at the company is linked closely to developing the competencies that the company looks for in its recruits. These competencies are enterprise related.

The training on the Retail management trainee programme includes:

Induction training to learn about retailing and store operations

Workshops that focus on core skills, the include team motivation and planning

Learning about specific areas of responsibility, such as managing a store team

Visiting stores on placements to learn about how they operate.


recruitment and selection describes the process that organizations follow to attract applications from people who want to work for them, and then to choose the best person for the job. Successful recruits must also produce a personal development plan. This helps them prepare for their future management position. Increasingly recruitment and selection processes need to be responsive to a changing and uncertain environment. Increased competition, the internationalization of business and demographic shifts are example of macro level change leading to micro level strategic responses such as restructuring, downsizing, de-layering, HRM, the flexible firm, mergers and culture change programmes. All of these place demands on the type of people required to staff an organization with the presumption that their recruitment will facilitate the achievement of the organizational objectives.