Use Of Strategic Human Resource Management
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Published: Mon, 5 Dec 2016
Strategic means planning and human resources management refers to the planning or maintaining the employees in an efficient way to achieve the organisational goals. Human resource deals with effective recruitment, development, compensation and utilization of human resource by an organisation. Strategic management is a distinctive approach to human management which seeks to achieve competitive advantage with a highly committed workforce using structural and personal techniques. This includes mentoring and training of employees which will help the new employee in getting used with company policies and the current project which he in. Training, rating, assessment and investigating the employee performance will make him a consistent performer. In today’s world both small companies and large companies follow strategic HR management. Strategic human resource management is aligned with the company’s objective, the planning and other things are done to achieve the mission, vision and objective of the organisation. They have a wide focus on company’s future.
Startegic human resource management also focuses on employee issues and also organisational issues such as quality, culture, value and employee required for future needs. It is an overall framework which determines the shape and delivery of every individual strategy. Strategic HRM is based only on HRM principles and both are done in a planned way putting the future at its focus with the organisational goals, policies and action .
Human is the great assest in an organisation, the skills, knowledge and ability of eaxch and every individual should be utilised in an efficient way to create an value, strategic human resources is a key to business strategy, employee management, business and employee performance.
1.2 Purpose of Strategic Human Resource Management
Dell Perot Systems
Dell is an American multinational information technology corporation based in Round Rock, Texas, US that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission. They are the third largest PC maker in the world. Dell is listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in its industry.
Dell has grown by both organic and inorganic means since its inception-notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). May 3, 2010, Fortune magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.
Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers’ needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.
Dell became the first company in the information technology industry to establish a product-recycling goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006. Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc. brands its service agreements at five levels for their business customers:
Retention of employees
The HR activities starts with staffing and recruitment, this involves lots of activities such as advertising and sourcing the candidates in numerous ways according to the organisational capabilities, large organisation prefer walk-in, website, consultancies and employee referral. The HR manager interviews and chooses the right candidate as per the recruitment. Once the employee is recruitment is trained on orgnisational activities, policies and work profile. Human has so many problem in his life including personal and professional problem, human needs are very hard to satisfy. The employee may look for a change in organisation due to numerous factors. It could be monetary wise and work related.
The organisation Dell Perot systems Chennai, India has many issues pertaining to employees. Employees come from different parts of Chennai and they find lots of employees terminating from the organisation because of travelling long distance. HR with strategic plans suggested and implemented pick-ups and drop facility for employees through cab, that was one amazing successful which made employees stay in the organisation.
The employees were given additional training to develop leadership skill, professional qualities and other trainings. Performance appraisal and annual salary increment. See to that the employee needs are addressed as soon as possible to retain the employee in an organisation, human is the important asset in an organisation. All facilities and needs of employees are satisfied which created a long stay of employees in an organisation.
Reducing time-frame of recruitment
Initially recruitment takes place for 2 to 3 days as there is 3 level of interview. As per the feedback of the people who come for interview this was taken into consideration to the senior manager, now people who come to organisation were happier they could know the result within a day, all levels of interview such as aptitude test, HR interview and manager interview were completed within a day time, people could join the organisation and carry on with their work or choose for the next better option. Joining formalities including submission of documents were done side by side at the time of induction. This created a huge impact on the organisation; many corporate companies in India are now following the same attitude.
Production is the output of an employee, employee recruited will be trained to the particular project and frequent updates were given to employees upon the task. Every employee will be assigned with their work and their target, it could be a daily or weekly or monthly that depends on the process they are in. The employee needs to complete to the target , if suppose employee is unable to meet the target then he would be given additional training to train in the place where he lacks. This production is the main output for an organisation. To say it is going to make profit for an organisation, when product come in quality should be added to it. The output made should be of fine quality. For example if 100 product is made out of which 50 is of good quality and 50 is slightly damaged, it is of no use so the quantiy and quality should be equally maintained
1.3 Contribution of SHRM
Strategic human resource management contributes a lot to an organisation.
Growth of an organisation
Organisation growth depends on the employee of an organisation, so the employee plays a main role here, to choose the employee the HR manger should be skilful. It is a kind of life cycle. HR manger chooses right candidates trains them and assign them to a project, then quality, production and quantity comes in. HR team makes several strategic plans puts focus on the mission, vision and objective working towards the attainment of strategic goals.
Increase of revenue
This can be done by capturing the market, most organisation do that in global world. Now we have Dell laptops and service done throughout the world, the company belong to America and now we have consumers all over the world, the distribution channels and customer service has been set up in all over the world considering the economical, social, human resources and climatic conditions of the country.
= Expanding customers
= Good service to customers
= Positive comment from user
= Differentiate from other competitive product
= User friendly technologies to customer
This would definitely create an increase in revenue.
Satisfaction to stakeholders
Stakeholders are one, who has interest in an organisation,
“The satisfaction of stakeholders depends on “hard” factors (e.g. economical,
Financial and legal) and “soft” factors (e.g. psychological, social, political and
As said by Gerrit Muller there is several internal and external factors economic, financial, legal, psychological, social, political, cultural and geographic factors. These factors give a good result then it gives satisfaction to stakeholders. Communication is one important aspect in stakeholders. Communication within the organisation and outside the outer organisation is important. If there is a positive feedback from all ends then it leads to satisfaction of stakeholders.
Human Resource Planning
2.1 Human resource policies and planning
Human resource policies are organisational policies which are defined to manage organisational activities by maintaining the recent trends in employee standards. The policies should be framed in such a way it benefits all levels of employees in an organisation and it focuses on organisational objective.
HR policies feeds employee:
à About the organisation
à Policies and procedures and how they work
à Organisation chart and protocol
à Do s and do not s
à Expectation from employee and in-turn expectations of employee
Every organisation has certain principles, values and diversity; the policy establishment will ensure the employees will adhere to the organisational policies in accordance with the corporate, government and cultural environment.
OfficeTiger, headquartered in New York, provides integrated onsite- offshore BPO services to Fortune 500 companies and to professional services firms through its operations in North America, Europe, India and Sri Lanka. R.R. Donnelley & Sons Company (NYSE: RRD)announced today that it has signed a definitive agreement to acquire OfficeTiger, a leading provider of business process outsourcing (BPO) services, in an all-cash deal, for approximately $250 million. The agreement is subject to customary closing conditions, including regulatory approval, and is expected to close this spring. This is RR Donnelley’s second acquisition of a leading BPO provider in less than a year. In June of 2005 RR Donnelley concluded its acquisition of Astron, a UK-based BPO supplier with resources in Europe, India and Sri Lanka. OfficeTiger was founded by Randolph Altschuler and Joseph Sigelman, both of whom will remain as co-Presidents of OfficeTiger and assume additional responsibilities within RR Donnelley.
There are several reason for organisation to be acquired or merged to other organisation, it could increase the customer base and widen their organisation globally. When a merger or acquisition happens the first and foremost is to change the polices and procedures of the organisation, both the companies have different set of policies, the merger or acquired organisation policies will not be changed entirely, the existing policies with additional policies of the newer organisation will come in to effective. The HR plays a vital role in implementing the policies.
The organisation Officetiger was acquired by RR Donnelley, the entire policies of Officetiger was not changed the policies remained the same with additional policies of RR Donnelley was feeded into it. The HR role as manager includes
à Basic organisation design and top level of management
à Usage of resources in new company
à Staffing in new organisation retention and redundant
à Strategy planning for combined organisation
à Payroll benefits and HR issues
à See to that how these can be achieved faster and efficient
2.2 Human Resource requirement:
The HR manager or managers have has to do wide research on numerous areas and determine the course of action. They can find better way and plan for the improvent of all activies of the acquired organisation. Implementing newer methods to carry on the the activities or applying the existing techniques to the acquiring organisation. Finding right work is done in all aspects. Through check on entire organisation of how things goes on. There are possibilities of downsizing of employees or recruitment. Changes happens in top level management.
Policies and Practices: Examination of policies, practices, and past actions of the acquired company by checking the company’s handbook. Implementation or changes in polices will be decided after this
2.3, 2.4, 3.1 & 3.2
HR plan are developed based on the orgnisational objective, it includes
There are several department in an organisation such as markting, sales, advertisement, financial, administration, supplirs, manufacturing, production. The HR department is interconnected with every other department and helps in performing their activities, they are whole responsible as the human resources are been recruited by the HR department
The purpose of HR policies is to have a control check on every aspect of the organisation activities, including organisational, employee, and general policies of the organisation Some of the HR policies include
Recruitment and selection
Training and learning/ongoing or additional
Employee involvement and development
Pay increment/ appraisal
Health and safety
Disciplinary and grievance
Leave and pay allowances
Absence and record keeping of employees
Communication and involvement, including employee voice
Every organisation has its set of policies, but in general the government has legal requirement for every employees which the organisation should follow, below are some government policies which will have an impact on organisation policies
à Provident fund
à ESI and insurance
à Redudndancy period
à VRS voluntary retirement scheme and settlement
à Data protection Act
à Employee safety
à Equal employment for men and women
TASK – 3
Reviewing Human Resource Management
Cognizant Technology Solutions (Cognizant) a U.S.-based multinational provider of business, technology and consulting services headquartered in Teaneck, New Jersey US. Cognizant has been named to the 2010 Fortune 100 Fastest-Growing Companies List for the 8th consecutive year. Cognizant has also been named to the Fortune 1000 and Forbes Global 2000 lists. It has consistently ranked among the fastest growing companies including the 2010 Business week 50 list of the top-performing U.S. companies, the Business Week Hottest Tech Companies 2010, and the Forbes Fast Tech 2010 list of 25 Fastest Growing Technology Companies In America.
Cognizant was founded in 1994 as an IT development and maintenance services arm of The Dun & Bradstreet corporation with Kumar Mahadeva as its Chairman and CEO. The company was spun off as an independent organization two years later. Kumar Mahadeva resigned in 2003 when Lakshmi Narayanan took charge as CEO. Cognizant was one of the first IT services companies to organize around key industry verticals as well as technology horizontals. It currently provides a wide range of business, technology and consulting services including business process outsourcing (BPO) and has significant practices in Banking and Financial services, Communications, Consumer Goods, Energy & Utilities, Health care, Information, Media & Entertainment, Insurance, Life Sciences, Manufacturing, Retail, Technology, Transportation & Logistics and Travel and Hospitality.
4.1 Organisational structure
“Organizational structure refers to the way people are organized – the company’s reporting structure. This structure varies from every company to company. “large” organizations use many layers of management. “Small” organizations use fewer levels, and managers often have a wider span of control.”
Communication plays a major role in an organisation, the flow of commands or updates from one level to another needs to be as quick as possible, medium of communication is important and it differs from small to large organisation.
Flat structure creates less enthusiasm and anxiety in employees, employee in large organisation feels self esteemed and have job satisfaction.
· Organizational structure impacts the success of a company’s projects. If project personnel also perform routine operational work, it may be difficult for them to focus on projects and meet schedules. If the flow of information across departments is difficult, it may affect ability to share resources effectively.
4.2 Organisational Culture
The way of behaviour or the work atmosphere is the culture. Culture and structure are almost parallel to each other but they affect one another, a good structure helps in developing good atmosphere
4.3 & 4.4
Evaluation of recruitment and training process will have a check on it. It reduces cost, increases quality, source of selection and number required.
The effectiveness of training and development activities can be assessed by monitoring job-impact indicators. The training activities can also be measured by using quantitative tools like benefit-to-cost ratio, payback period, discounted cash flow, and utility analysis.
The attrition levels in an organization can be assessed by using two metrics – employee turnover rate (separation rate) and employee retention rate (stability index). These metrics are periodically computed and the values compared with the industry average and with the past records of the organization.
Equity theory of paying equal to men and women who does their production
Periodic evaluations should be done to ensure proper implementation of an equitable (both internal and external) pay structure. Survey feedback, Human Resource Development (HRD) Audit, evaluation of HR interventions, human resource accounting, and assessment of employee engagement are some of the techniques used for this purpose.
Survey feedback is useful as a control tool as it helps in getting feedback about the various problems and challenges that the organization is facing and finding various ways to bring about organizational changes.
HR interventions refer to the proactive involvement of the HR department in the activities of the organization to improve the organization’s performance. The effectiveness of a particular intervention can be determined in monetary terms by calculating the net present value (present value of benefits minus present value of costs) of taking up the HR intervention. If the net present value is positive and significantly high, the HR intervention is considered to be effective
If the above specified effectiveness are well maintained and had a regular periodic check then it would be effective.
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