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Strategic human resource management emphases on human resource programme of Nokia that has long term objectives. It is focusing on internal human resource issues as well as on addressing and solving problems that effect management programs in the long term. so the main goal of strategic human resources is to boost employee productivity by focusing on business resistance that take place outside of human resources.
SHRM of Nokia employs strategies that help to develop the business’ performance of Nokia and help an environment of modernism and flexibility among employees. The main actions of Head of SHRM Juha Akras are to identify key HR areas where strategies can be implemented in the long run of progress the overall employee motivation and productivity.
SHRM also describe about the company’s internal strengths and weaknesses. This is very important as the strengths and weaknesses of a company’s human resources that have a straight effect on the company’s future.
The purpose of Strategic Human Resource Management activities of Nokia:
SHRM has a unique purpose to meet the company’s objectives. Different company has different strategy and SHRM plays a role to identify the overall need for the company to achieve the company goal. The SHRM activities are as follows for Nokia and it has a great purpose for company’s future:
- Resource planning: Resources are very important and should be available to meet both current and future business needs according to company strategy. Nokia Resource planning conducted at both organizational/ global and unit /local levels which is done by SHRM of Nokia. Particularly, talented workers or real apprenticeship schemes must be used.
- Workforce planning and recruiting: Workforce planning is the development of assessing a company’s current and future human resources needs. Workforce planning also includes managing any training and recruitment process to make sure the organisation has the exact staff inexact place. Nokia work force planning has a great purpose to properly express one way to make a workforce receptive to cross functional, Cross-cultural teaming that can therefore make fast, high-quality decisions and increase the organization’s flexibility.
- Performance management: Nokia SHRM has a system to run employee performance. It ensures individual objectives are copied from company strategy and policies. This is for motivate Nokia’s employee.
- Recruiting and exit procedures: Nokia SHRM makes sure that competent and eligible individuals are recruited and appointed to open positions, according to competence, with equal opportunity and on a voluntary basis. The supplier of Nokia check the eligibility of candidates and that they exceed the minimum legal age of employment. SHRM provided with a work contract or offer letter, basic or specific training. SHRM shall ensure that exit procedures are acquiescent with local legislation, international labour law and appropriate collective agreements.
- Nokia specific training and certification: Nokia SHRM has the necessary training on Nokia policies, products, processes and guidelines and, if needed, have necessary licenses and certificates to learn the social process of engaging multicultural, multi-country employees in generating and agreeing on a set of values and to search and get deeper considerate of the relationships between strategy, culture, values and business outcomes.
1.3. Contribution of Strategic Human Resource Management to the achievement of Nokia’s organizational objectives.
To continue a strong, booming and efficient environment Nokia collaborates with its employees under the main goal to create an environment for all its employees where they can fulfil their potential. Motivation, encouragement and maintaining employee’s satisfaction and well-being at work is vital for Nokia to perform at its best.
Company growth: Nokia expands their business in regularly basis with new innovations and ideas. That is why Nokia needs lot of skill and experienced persons to meet their business growth. For example Nokia’s Research & Development operations were scattered across the world in 69 sites, and its 19,579 engineers, designers and sociologists were given complete freedom to operate and develop their own ideas, over and above their officially designated research projects. In these situations Human Resource played a vital role. It recruits them and trained them in specific way to success in this project. Nokia is operating their business all over the world and so the human resource providing a socio cultural environment to its employee relationship and workplace.
Profit increasing: Every company is profit oriented. They want to increase their profit in every aspect. Nokia also increasing profit very successfully by making new ideas implementations. Human resource has a effective involve to increase their profit by reducing labour cost and other activities. Human resources is the organization of resources other than natural resources and capital resources.
Satisfaction of Stakeholders: Human Resource of Nokia always try to satisfy its Stakeholders like its employees, investors, suppliers and others. It has an employee satisfaction program based on employee opinion surveys and should take action based on the results of the program. It makes sure that information related to employees such as business activities, changes and results is communicated across the organization and ensure performance is evaluated fairly and independently.HR of Nokia provide to Supplier services at Nokia facilities, including (Nokia’s) customer sites.
Human Resources Planning:
2.1 Business factors of Coca-Cola that underpin human resource planning:
Human resources are the people that work for an organisation, and Human Resource Management is concerned with how these people are managed. Though, the term of HRM has come to mean more than this because people are different from the other resources that work for an organisation.
Coca-Cola Human Resource department involves in company strategic planning in various way. When it makes human resource plan there is involve company business factor and external environment factor.
- Business Growth: Coca-Cola is a leading beverage company. It increases its business all over the world in every year in different way. So needs lot of staff to meet this incensement of business. Human resources planning takes its consideration forecasting future manpower requirements, where using mathematical projections to project trends in the economic environment and development of the industry. Making a list of present manpower resources and assessing the extent to which these resources are employed in future.
- Business Change: Coca cola change their business plan strategy sometimes very frequently in consideration of economic, market variation, competitor and other relative factors. Human resource of Coca-Cola also takes such consideration when it plans in a long term basis.
- Impact of Technology: In every certain time all over the world modern technology is invented. Coca-Cola always takes it a challenge when they make a Human resource plan. HR is considered to its existence employee and recruits skilful employee to meet this challenge successfully. Technology is a kind of risk management. It involves sensibly appraising the present and anticipating the future to get the right people into right jobs at the right time.
- Business Competition: There is a huge competition of all over the world. In this competition rivalry making efficient the organization is a real challenge. Coca-Cola Human resource plan think about this competition and make it organization to fit in this situation.
- Labour Cost Control: Coca-Cola Human resource planning includes in a wide way about Labour cost control by maintain waste of time, proper use of materials. Its Human resource always approach training programme to its productions stuff to make difference and make them skilful as they can work fast and more easily. Not only it’s taking consideration for planning or developing its production stuff it also concentrates its:
- Information technology specialists.
- Mechanical and electrical engineers.
- Product developers.
- Managers and business executives.
- Security guards and health and safety experts.
Other variations should take for consideration Â new legislations like new health requirements,Â safety requirements, Changes in government policies Â Â like tax tariff, labour demand and supply.
2.2 Human resource requirements in a given situation:
According to the New York Times July, 2009 Coca-Cola market was slipped in U.S. market but Coca-Cola still the best carbonate cola. In this situation there was 60% market share was Coca-Cola. Generally its market share relay between 75%-85% in U.S market. In this situation Coca- Cola surveyed their market and find out the barrier and solved it by various planning implementation. Besides the other department Human Resource Management played a vital role to recover the market as well. In Such kind of situation Human Resource makes sure several things that are as follows:
Personal Requirement: HR will arrange the operation teams and then give specific roles to team members. Depending on the volume of business and the involvedness of the operation, might also need to create sub teams. The following points provide options HR might consider in regard to managing some important issues:
- Let to know and familiar with the specific operations:
- Hold-up the deployment until the staff is fully trained in the new technologies.
- Special training is given to employees; new employees also are placed with old ones to learn work and the values prevalent in the company, Outsource portions of the work to cover weak points. Then, have your staff members learnt the required skills from the contracted personnel.
Workplace: They must provide sufficient working space to per employee. The temperature must be reasonable. The workplace must be adequately lit and where the work can be done seated seats must be provided. Treat each other with dignity, fairness and respect. Human resource management makes sure promote an inclusive environment that encourages all employees to develop and achieve to their fullest probable, reliable with a commitment to human rights in our workplace. The Coca-Cola workplace will be a place where everyone’s ideas and contributions are valued, and where responsibility and accountability are encouraged and rewarded.
Organizing operation teams: SHRM will help to make a team of experts in security, networking, interoperability and applications testing could also serve as leaders of sub teams within their areas of expertise. Team members need such skills that are project management skills, specific technical experience, and the ability to be innovative and master new technologies swiftly. Team members also need strong analytical abilities to be able to link the project vision with the details needed to overcome above kind of situation.
Realise the value of operation: Securing a management support who can speak for the organization’s systems needs for the project is usually critical for success. This person can help ensure that the deployment team understands and achieves its goal.
2.3 Development a human resources plan Coca-Cola:
The Human Resource Plan should also be closely tied to strategic planning.
In order to effectively meet their strategic goals and objectives, a world leading company, hire or develop staff with the required skills, knowledge and attitudes to
Perform the needed functions.
The Human Resource Plan of Coca-Cola can be completed in six steps:
Step 1: Setup a big picture: The main purpose of the first step is to bring the group to realize the meaning of and the need for a business strategy and agenda of Coca-Cola. To understand the business strategy the specific department executives will run a workshop and it can be two days workshop.
In this two-day workshop the business unit executive reviews business strategy in any issues to impact the business. HR highlights the key driving forces of business such as Technology, distribution, competition, the markets etc and also the implications of the driving forces for the people side of business the fundamental people contribution to bottom line business performance.
Step 2: Develop a Mission Statement or Statement of Intent: This come up to human resources planning mirrors the section in business plan of Coca-Cola dedicated to clearing up why your company exists and what value it presents. Human resources planning will be based on your organization’s mission statement, goals and objectives because your workforce will be in alignment with the company values.
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Step 3: Conduct a SWOT analysis of the organization: This analysis will looks at the internal environment of company. By this analysis the human resource will find out what is Coca-Cola’s present strengths and what is weakness as well as current in future opportunity and threats to know the whether they able to achieve with the current human resources. SWOT analysis will ensure the clear image about the organisation resources such as capital & worker.
Step 4: Develop consequences and solutions; Human resource will amalgamate all essential for meeting the company objectives. It will take steps for developing the Human Resource Plan as below:
Teamwork of staff among lower levels and the management should be created and maintained to support in various ways that would consider necessary in eliminating communication breakdowns and foster better relationship among workers. The management should emphasize on good corporate culture in order to develop employees and create a positive and conducive work environment.
Performance appraisal is one of the important works in the logical and systemic process of human resource management. The information obtained through performance evaluation provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a work force by sufficiently and properly rewarding their performance. Without a reliable performance evaluation system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has.
Step 5: Implementation and evaluation of the action plans: The vital purpose of developing a human resource strategy is to make sure that the objectives set are equally helpful so that the reward and payment systems are incorporated with employee training and career development plans. There is very little value or benefit in training people only to then frustrate them through a failure to provide sufficient career and development opportunities.
2.4 Evaluation of how a human resources plan can contribute to meet Coca-Cola’s objectives:
Human Resource Plan plays a vital role in the achievement of an organisation’s overall strategic objectives and clearly illustrates that the human resources role fully understands and wires the direction in which the organisation is moving. A complete HR plan will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.
Generally Coca-Cola evaluates its HR plan in various ways which are below:
- It has the right people in place.
- It has the right mix of skills
- Employees display the right attitudes and behaviours, and
- Employees are developed in the right way.
Coca-Cola decide a HR strategy plan can add value to the organisation if it has:
- Articulates more clearly some of the common themes which lie behind the achievement of other plans and strategies, which have not been fully identified before; and
- Identifies fundamental underlying issues which must be addressed its people are to be motivated, committed and operate effectively.
The second area should be including:
- Workforce planning issues
- Succession planning
- Workforce skills plans
- Employment equity plans
- Motivation and fair treatment issues
- Pay levels designed to recruit, retain and motivate people
- a grading and remuneration system which is seen as fair and giving proper reward for contributions made.
- a consistent performance management framework which is designed to meet the needs of all sectors of the organisation including its people
Furthermore, the HR strategy of Coca-Cola can add value is by ensuring that, in all its other plans as it takes account of and plans for changes in the wider environment, which are likely to have a major impact such as:
- Changes in the overall employment market – demographic or remuneration levels
- Cultural changes which will impact on future employment patterns
- Changes in the employee relations climate
- Changes in the legal framework surrounding employment.
3.1 Explanation the purpose of human resource management policies of Coca-Cola:
Coca-Cola believes that delivering superior performance needs better capabilities. So its HR policy is designed in line with this approach and based on attracting and retaining the talented people and developing them always.
Developing Employees- is one of the main issues for human resource management. It continuously trained on “How to Develop People”. Employees, business objectives and capability levels are followed up by performance management.Â
Remuneration system and career management systems are planned on job family model. As a part of career management system, internal placement process is used so as to give them career and job improvement opportunities. In 2007 alone 97 positions have been filled through internal coursework.
Successful and prospective employees are reviewed at talent review meetings done both at efficient and exclusive talent re-evaluate meetings and they are organized for next steps with individualized development programs.
3.2 Analysing the impact of regulatory requirements on human resource policies of Coca-Cola:
The apprehension of policies can help an organization both internally and externally, that it meets requirements for multiplicity, morals and training as well as its commitments in relation to regulation and corporate governance. The HR policy of Coca-cola establishes a cultural diversity. HR policies also proved very effective at opinionated and building the desired organizational culture.
These are a lot of rules and that really beneficiary from a company as well as from employee. With 27000 of Expatriates around the world, Coca-cola ensures that they receive the kind of packages and ongoing support that makes their relocation a positive experience. Coca-Cola team Management with all policies for international mobility with a long term basis.
Coca-cola established such kind of policies about its internal environment that make sure that they are flexible, smart and complete enough to deal with the wide range of needs and issues that is very essential to run a business successfully.
Task 3: Reviewing Human Resource Management
4.1 The impact of an organisational structure on the management of human resources:
There is a important impact of HRM of Tesco on organizational structures that come into view organization in a effective way. The central decision-making system was ineffective to react quickly to manager’s requirements and concerns. So, Tesco started scrapping conventional, hierarchical organizational structures in favour of compliment, decentralized management systems. Subsequently, smaller number managers were involved in the decision-making process and companies were adopting more of a team approach to management. HRM professionals, as the management change, were charged with reorganizing workers and increasing their efficiency. These efforts also resulted in the explosion of part-time, or contract, employees, which required human resource strategies that contrasted with those applicable to full time workers.
4.2 Analysing the impact of an organisational culture on the management of human resources:
Organizational culture and its environment factors in which organization exist determines the way of managing the organization (Saffold, 1988:547). The relationship between organizational structure human resources practices can be explained as follows.
When the member of organization i.e. employees, understand and internalized the organzational culture which can be said as the way things are done around here it will enable for employee to choose strategy, and behavior that fit with their personality as well as with the main routines of organization activities.
Since Indonesia is belong to country with high power distance and low uncertainty avoidance, it is likely that organizational culture that fit with this condition is parochial type. Parochial culture is characterized by the tendecy to give much attention to some factor such as family relationship, social relation, and personal backgroud, and less attention to capability and competency needed to perform the task.
The main power is on the one hand, a powerful person such as the owner or the founder of the company, where “the destiny” of an employee depends on the hand of the most powerfull person (the boss). There is a division of work, the boss is the planner, the other are the doer. In the high power distance society, good leader or good manager in the eye of the employees, is someone who can act like a good father (Hofstede, 1997). This type of relationship will lead to less participative management in decision making.
4.3 The effectiveness of human resources management is monitored at Tesco:
The central point on HR for developing the employees through constant training is vital to the success of the organization; it would amount to a waste of resources. As the UK’s largest retailer across 14 countries with more than 470,000 employees making the challenges arise in managing such a large workforce.
Throughout the Tesco’s corporate values: “No one tries harder for customers” and “Treat people how we like to be treated”. The interest in creating new and even in work is always important in any aspect of working industry.
- Value: These apply both to customers and staff, and for the latter focus on teamwork, trust and respect, listening, supporting and saying thank you, and sharing knowledge and experience.
- Support: Tesco can claim a perpetual support from the employees even though the company faces a dispute concerning the distraction that includes financial services. The company also stretched internationally and economic downturn is enough to keep the company’s values.
- Growth: The Tesco’s HR functions are extremely entrenched. They are doing type to both short-term and longer term growth. The company is created 11,000 new jobs in 2009 and they will target the long-term unemployed.
- Meritocracy: Tesco boasts the best employee remuneration package in the food retail sector, with an award-winning pension scheme. Some 170,000 staff own shares or are members of share schemes, and there is discounted dental, health and life insurance on offer.
4.4 Justified recommendations to improve the effectiveness of human resources management in Tesco:
- Composition of the audit team: There has to be a representative from the HR function and from among senior line managers if the effect has to have any credibility.
- Identify the function’s main customers: The input decision has to explain who makes the final decision to buy the services provided by the function.
- HR function’s mission statement review: This statement explains the cause for the HR function’s continuation, its principal actions and it’s most important values.
- Review the function’s role in formulating and implementing the organization’s strategy: This is critical point to establishing the connection between HR policy and practices as well as the organization’s overall business strategy.
- Review the delivery of HR policy and practices: The benefit of this approach is that line managers can go anywhere if they are not happy with the service they be given from the HR function within the organization.
- Make internal comparisons to establish ‘best’ practice: The organization have to make and continually keep posted a exclusive database of HR practices that gives an overview of developments within the world’s major organizations today.
- Review the outcome of analysis: Performance gaps have to be identified and the policy implications have to be discussed with the customer. The commitment for implementing the necessary improvements should be gained.
- Implement the agreed improvements and measure the progress against pre-set targets: The metrics selected should be the decided on right indicators of the HR function’s performance and evaluate the results with industry averages, competitors, ‘best’ practice firms, and/or with set targets or previous performance ratings.
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