Strategic Management Theme Essay Example

manager may assume HRM responsibilities as it does not require a significant amount of time. Conversely, larger companies allocate entire departments to handle HRM activities (Mello, 2010).

The main goal of strategic human resource management activities in an organization is to assess the strategic importance of efficiently managing human resources, which is crucial for the overall functioning of any organization today.

During the 1980s, human resource departments (also known as Personnel departments) were mainly responsible for administrative duties such as managing payrolls and processing applications. However, in the following twenty years, these HRM departments experienced a significant transformation in their role and significance. They evolved into essential elements of organizations and played a crucial part in accomplishing organizational objectives.

Today, organisations place great importance on hiring human resource management experts and leaders, viewing the position as strategic. The purpose of strategic human resource management is to develop various strategic solutions while addressing employee-related matters that affect the achievement of organisational goals and objectives. Some key areas of focus for the Strategic HRM department in any organisation include workplace safety, employee benefits and compensation, recruitment and selection, employee relationships, and training and development (Purcell ; Boxall, 2011).

The human resource management department plays a crucial role in assisting organizations to achieve their objectives, as stated by 1.2. Employees, also known as human capital, have a significant impact on the goals and objectives of the organization.

The HR management department is responsible for maximizing the potential of current talents to achieve organizational objectives. The managers of different departments and HR personnel work together to implement various performance management strategies and HR practices

to motivate employees and enhance their performance. Strategic HR management contributes to achieving organizational objectives through staffing, employee development, managing benefits and pay, performance management, and employee motivation (Mulero, 2010) (Beaver & Steward, 2004). In order to develop human resource plans for an organization, it is important to analyze the business factors that form the basis of human resource planning. These factors determine the quantity and quality of manpower required by the organization to achieve its strategic objectives.

Various factors, such as: influence the planning process.

• The competition in the labour market.
• The current technology in use and the latest technological trends. Knowledge of the current technology may be added into the requirements when advertising vacancies. In some cases, it is also possible that the company train the existing employees if the company can’t afford the cost of additional employees.
• The current growth of business; it determines the budget that the company may spend over the recruitment ; selection process ; towards the employees.
• Business competition.
• The current employment situation in the country.

The government may put more pressure on the company to hire more employees if the country's unemployment rate goes up. Moreover, changes within the organization can also impact human resource planning, such as diversifying the workforce or modifying departmental functions like opening or closing specific departments.

The human resource planning process is affected by demographic changes, such as shifts in workforce composition, age factors, and the arrival of new talent. These changes can result

in a deficit of skilled labor, leading to a negative impact on organizational performance.

The need for a multi-cultural workforce has been emphasized (McBey ; Belcourt, 2009)

To address employee concerns and problems, the organization's human resource department must undergo a significant transformation. Before creating a human resource plan, it is crucial to assess specific requirements. The following prerequisites are important for the human resources.

1. Organisation needs replacement of the current management since the management is practicing discrimination and favouritism.
2. There is a need to develop policies against discrimination and policies to support employee welfare.
3. There is a strong need to motivate the employees so that they can perform up to their potential.
4. Employees need work-life balance to efficiently carry out their work activities.
5. The organisation lacks a leader and the current management lacks leadership skills.
6. The organisation lacks competent people and even the management has no idea about the domain in which they work.
7. The management in the organisation needs focus towards the strategic aims and objectives of the organisation rather than making money for themselves.
8. The employees badly need encouragement, respect and security in terms of their job.
9. The communication between the employees and the management/leaders is poor and needs to be improved.
10. The employee turnover rate is higher so the organisation needs to make policies to retain the employees and get

the best out of their abilities. (Kishore, Murali ; Reddy, 2008)

Design the human resources plan for an organization.

The Human Resource Management plan is a crucial tool for company management to strategically plan and organize human resource activities. The following are some key steps of the plan, as observed in this assignment's case study:

1. Development of the new HR policies keeping in view the legislations and the regulatory laws.
2. Identification of the gaps in the skills required and the current skills of the employees as well as of the management.
3. Identification of the current resource available and the current requirements for the HR in terms of missing skills set.
4. Development of an employee motivation plan that should include performance appraisal schemes, reward systems, flexibility in work to offer work-life balance, scales and parameters to grant promotion without any discrimination.
5. Identification of Leadership skills required and make necessary arrangements to recruit people who have leadership skills.
6. Development of a new organisational cultural plan which is friendlier, transparent and ensures better communication.
7. Development of a plan to align the objectives individual department with the aims and objectives of the organisation. -Development of employees’ training and development strategies. (Bandt ; Haines, 2002)

To achieve its goals, an organization needs a human resources plan as the HR department's effectiveness directly impacts goal attainment. The employees are the company's most valuable asset and their performance affects overall organizational performance. Thus,

HRM has the responsibility of ensuring a high-quality workforce and effectively managing them.

The human resource management plan is crucial for the organization's success as it aligns employee and department goals with overall objectives. It also provides a competitive advantage by having a proficient workforce. To accomplish these objectives, specific skills and knowledge are required. The HR plan identifies skill gaps and ensures the recruitment of suitable candidates for each role.

The high employee turnover rate signifies that the organization continuously loses valuable individuals. An HR plan can aid in retaining the organization's significant asset, thereby assisting in the achievement of its strategic objectives (Johnson, Thite & Kavanagh, 2011).

Learning Outcome

The following text states the need to comprehend the requirements of human resources policies in an organization.

Human resource management policies in organizations serve to emphasize the significance of HR management within an organization and its direct correlation with the overall performance of the organization.

The importance of the HRM department cannot be overstated as it has a significant impact on the quality of work produced by employees. When organizations implement best practices and enforce HRM policies, employees are more likely to produce higher quality work. Below are the various important purposes of these policies:

1. One of the primary purposes of having human resource management policies is to ensure that the uman resource managers don’t abuse their powers and carry out the HR functions in the best possible manner.
2. Human resource management policies helps in having an effective recruitment and selection process which is one of the most important HR

functions as it determines the quality of the man-power the organisation has.

Analyze how regulatory requirements affect human resource policies in an organization.

To address concerns about mismanagement or abuse of power, organizations are now making sure to comply with government or standard body regulations. This helps establish trust among employees and stakeholders. These legislations and regulatory requirements greatly influence HR policies in organizations, including the establishment of minimum wages for employees.

In order to comply with regulatory laws, the HR management department must ensure adherence to all necessary regulations. Failure to do so could result in lawsuits against the organization, damaging its reputation and leading to financial losses from penalties. Western countries have strict laws regarding discrimination based on

religion, race, and gender. Therefore, HR management should establish policies that eliminate any form of discrimination. Additionally, regulatory requirements also impact how the organization develops its equal opportunity policies.

The HR management department has the responsibility of promoting diversity and a mixed culture in an organization. They are also tasked with creating policies that comply with the data protection act to prevent misuse of employees' data. Furthermore, they must devise policies that align with various acts including but not limited to the Employment Act, Equal Pay Act, Race Relations Act, Sex Discrimination Act, Employment Rights Act, National Minimum Wage Act, Work and Families Act (Barbeito, 2006).

Learning Outcome

The management of human resources in an organization is affected by the organizational structure. Examining how this structure impacts human resource management shows that effectively managing the organization's most valuable asset can be difficult, particularly when different organizational structures are involved. This becomes even more challenging when organizations expand internationally and implement a geographical organizational structure.

When an organisation grows, it hires more employees. In this case, the organisation needs to consider its structure and management of human resources. The company organizes itself into different departments as it expands. It is essential to have the right individuals in each department for the department's success and overall company success. Additionally, companies often identify international business opportunities, leading to the expansion of the business and a change in the organizational structure with a geographic spread.

The organization faces the challenge of making complex decisions regarding human resources management in various departments and locations. This includes making wise decisions about hiring at international branches. Regardless of

the organization's structure (geographical, centralized, decentralized), it must effectively manage its human resources to ensure smooth daily business operations (Brown, 1998).

Analyze the effect of organizational culture on human resource management.

Organisational Culture:

Culture encompasses various aspects, including beliefs, attitudes, mindset, knowledge, and customs that exist in daily life. This notion also pertains to Organisational Culture, which involves shared values and beliefs translated into practices and policies within the organization. Additionally, Organisational culture encompasses the anticipated conduct of its members.

Maintaining a healthy culture within an organization can be difficult, especially when there are people from diverse backgrounds and cultures.

Impact of Organisational Culture on Human Resources: The impact of organisational culture on human resources is significant. One can assess the organisational culture by asking several questions, such as employees' perception of the organisation, the level of friendliness between management and employees, the customer-friendliness of the organisation, and its prioritization of employee well-being. Additionally, the extent to which employees are empowered and given authority affects their motivation levels. HR is influenced by key cultural factors like formality or informality within the culture and whether decision-making is conducted by individuals or committees.

1. The physical appearance of the work-place.
2. The style of leadership practiced.
3. Intellectual levels of the people working in the organisation.
4. Dress codes.
5. Change management and the attitude of the people toward the change. viii. Management efforts and concerns towards training and development.
6. Management efforts towards employee motivation.