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(Strategic Change In Organizations Creative & Innovation-Strategic HRM)

TABLE OF CONTENTS
1. ABSTRACT........................................................................................................... ............................................5 2. PURPOSE OF THE ASSIGNMENT....................................................................................................... .................5 3. BACKGROUND...................................................................................................... ............................................5 4. INTRODUCTION.................................................................................................... ............................................5 UNIT 3......................................................................................................................... ........................................5 3.1 THE BACKGROUND TO ORGANIZATIONAL STRATEGIC CHANGE........................5 3.1.1 THE APPROPRIATE MODEL FOR STRATEGIC CHANGE..................................7 3.1.2 RELEVANCE OF SELECTED STRATEGIC CHANGE MODEL ...............................8 3.2 THE ISSUES OF STRATEGIC CHANGE .............................................................9 3.2.1 THE REASONS WHY? STRATEGIC CHANGE REQUIRED ................................10 3.2.2 THE FACTORS THAT LEADS TO STRATEGIC CHANGE..................................10 3.2.3 RESOURCES IMPLICATION IN STRATEGIC CHANGE.....................................11 3.3 STAKEHOLDER INVOLVEMENT IN STRATEGY CHANGE...................................11 3.3.1 STAKEHOLDER ANALYSIS FOR PLANNING OF CHANGE...............................12 3.3.2 RESPONSIBILITY CHARTING ....................................................................12 3.3.3 EVALUATION AND ACTION PLANNING.......................................................12 3.4 PLAN FOR IMPLEMENTING MODELS.............................................................13 UNIT6.............................................................................................................13 6.1 THE SIGNIFICANCE OF AN INNOVATIVE AND CREATIVE MANAGEMENT ..........13 6.2 MOTIVATION TO CREATIVE AND INNOVATIVE MANAGEMENT PROCESS..........14 6.3 THE PURPOSE AND METHOD......................................................................14 6.3.1 MEASURES OF INNOVATION.....................................................................14 6.3.2 INNOVATION MATRIX..............................................................................15 10.1 STRATEGIC HRM AND ITS CONTRIBUTION.................................................16

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10.1.1 THE SCENARIO OF THE EVENTS AT ABBEY NATIONAL BANK THAT INITIATED BY SANTANDER LTD.........................................................................................17 10.2 HUMAN RESOURCE PLAN FOR AN ORGANIZATION.....................................18 10.3 THE DESIRABLE HR POLICY IN AN ORGANIZATION......................................19 10.3.1 ASSESS THE IMPACT OF THE HRM ADOPTED IN AN ORGANIZATION..........20 10.4. AN ANALYSIS OF ORGANIZATIONAL STRUCTURE.......................................21 (KOTTER 2006)................................................................................................22 10.4.1 AN ANALYSIS OF ORGANIZATIONAL CULTURE.........................................22 10.4.2 ASSESSMENT OF HRM MONITORING.......................................................23 10.4.3 RECOMMENDATIONS TO IMPROVE THE EFFECTIVENESS OF HRM.............23 CONCLUSION...................................................................................................24 BIBLIOGRAPHY................................................................................................24

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STRATEGIC CHANGE IN ORGANIZATIONS


(CREATIVE & INNOVATION-STRATEGIC - HRM)

1. ABSTRACT A demonstration of Investigation of existing strategy , similarly


development of new strategy expressing strategic change and change process with creative and innovative human resource Plan and Management, besides that how it works with organisational structure and culture for to achieve the organisational goals, moreover measures the effectiveness of human resource management followed with justified recommendations.

2. PURPOSE

OF THE ASSIGNMENT

To

illustrate the strategic change process consists of background, issues, role of stakeholders, planning and implementation of models for strategic change and ongoing change process, besides that explains the significance of creative and innovative management and how supporting that process, as well as discloses how to influence others to effect change, furthermore presented the plan for to overcome the barriers to implement the creative and innovative ideas in an organisation , likewise evaluate how the strategic management of Human Resource contributes to achieve the objectives with defined Human Resource plan and policy, and then examining Human Resource Management in an Organisation.

3. BACKGROUND

The

Northern Spain based traditional historic Santander Bank Ltd since 1857 launched in U.K market in 2004 and takeover the Abbey National Bank plc, similarly transformed the entire management systems and structure for the better profitability as well as broaden its brands of value for money products. This assignment performed with the view point of Senior manager at Abbey National Bank plc at strategic level and role in Human Resource Manager and Change Consultant.

4. INTRODUCTION Since
Industrialisation there was major perpetual changes occurred not only in the economy of countries but also in organisations, besides that globalisation abolished the boundaries up to an extent, consequently there are collaborations, takeovers, expansions

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occurred beyond the geographical boundaries. Plainly the success or achievement of organisational goals of an organisation depends the strategic planning and implementation, and then in takeover of an organisation has to transformed with strategically changed plan, besides that it has to implement correctly for better performance and attainment of organisational objectives.

The

formulation of the strategy depend the background of the organisational strategic change and issues behind the strategic change. However the stakeholders even have a role and participation in system planning development. The creative and innovative way of management of precious human resource asset and strategic management of Human Resources reduces the distance to organisational objectives. Obviously the dynamic change depends and demands the robust human capital with fully engaged and responsive, mean while assertively developed and deployed. A well defined and executed H.R. Development Plan contributes to develop and sustain a sprightly and flexible collaborative organization.

UNIT (3)

3.1 THE BACKGROUND

TO

According to (Scholes 2002), Strategy is the direction and scope of an organisation over the long term; which achieves advantage for the organisation through its configuration of resources within a challenging environment to meet the needs of markets and to fullfill stake holders expectations. Certainly it refers to where is the organization trying to get in future, which market to compete and what kind of activities to involve in and focused market, besides that how the performance can made better than the other competitors and what skills, assets, finance, relationships, technical competence and facilities required to compete and what external environmental factors affect to compete and what are the values and expectations of it have power in and around the business. The benefits of merger and acquisitions are that, it strengthening the position, increased market position, increased sufficiency through group effort of working condition of the combined companies, Increased cost efficiency and value generation, tax gains and reduce cost of capital, Introduce a brand new product developed through R&D, Achieve administrative benefits, Industry knowhow and positioning, Financial leveraging, high Profitability and leveraging, diversification of products and services, reducing Competition, organic growth and employee benefits. World, F. M. (2012, october
10).

ORGANIZATIONAL STRATEGIC CHANGE

So the strategy works at different levels of the organization not only of overall business or groups but also the individuals working

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on it. The overall scope and expectations of the stakeholders reflect in the corporate strategy and it has influenced by investors of the organization and guide to formulate the corporate strategic decision all the way through the business and it express in a mission statement Whereas the business unit strategy more focused with how business can compete in a particular market and strategic decisions choice of products meeting the new needs of customers, victory over competitors, exploiting the present market or creating new opportunities with creative and innovative management. After that the Operational Strategy concerned with how can organize each and every part of the business based on the corporate and business level directions with focus on the issues of resources, processes and human resource. Strategic Management refers the broad sense of strategic decisions and it has components of Strategy Analysis, Strategic Choice and Strategy Implementation. A. Strategy Analysis: Strategy analysis focused to analyze the strengths of business position and examining the main external factors that may cause to influence the organization and it can done various tools as follows.

Certainly the changes since 1857, Santander bank reached the position of largest bank in Euro Zone with a market presence of 10 Crore in Europe and North and South America, besides that the position of Fourth largest bank in the World by profit basis in 2009. 2004 Santander bank Launched in U.K and made Acquisitions, agreements and finally made rebranding. (Fig.1) Fig.1

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The U.K based Abbey National Bank formerly begins with Building societies Act 1836 and incorporated in 1849, since 2004 acquisition by Santander Bank it has come over through transformation of changes.(Fig.2) Fig.2
Yea r
1849 1874 1944 1989 1996 2000 2004

F unctions
Na tional F reehold Land a B nd uildingS iety ises oc tablis hed S John'sWood Perm t. anent B enefit B uildingS iety ises blished oc ta Abbey R oad & Na tional F reehold merg to c e reate the Abbey Na tiona B l uildingS iety oc Abbey Na tiona c l onvertsto aplc Abbey Na tiona merg with Na l es tiona a P l nd rovinc l B ia uildingS iety oc Ca hoot, asepa tely bra ra nded e-ba , iscrea nk ted. Ac ition by S nta quis a nder B Ltd ank

3.1.1 THE APPROPRIATE

MODEL

FOR

STRATEGIC CHANGE

Strategic Management evaluate and analyses the main initiatives done by the strategic level managers on behalf of the owners. Mean while it consists of not only resources but also performance in external environments. It specify the vision, mission and objectives, besides that developing policies and plans in terms of the projects and programs those developed to achieve the objectives and follows the allocation of resources for implement the policies, projects, plans and programs. The strategic performance measure of Balanced score card method is used to access the overall performance of the organisation and its progress to objectives. (Norton 2004) The strategic choice depend various circumstances and it based on under limited growth, substantive growth and retrenchment, besides that there is other methods of growth in building up new business from scratch and develop, acquire existing business , merger or joint venture. The new opportunities of growth and value creation depends the selection of alternate approach of strategic model. The growth depend the selection of path, for instance; The heavy investment in product development leads to new and best offerings. Development of deep consumer insights to offer customers new and better ways to satisfy needs of customers.

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New strategy formulation to grow by acquisition and extended markets. The business model includes aspects of organizations approach to develop and deliver profitable offerings to target customers, besides that there exists basic questions such as ; o Target customers o Need of the customers o Offerings for the need o Access by the customer to the offerings o Role of organization to provide offering. o How earn the profit So it is better to use the innovation model to extract the optimum potential from the focused activities of R&D, customer insight, strategic development efforts.

3.1.2

RELEVANCE OF SELECTED STRATEGIC CHANGE MODEL

Kaplan & Norton proposed a five key principles required to build a strategy focused organizations. Those are, translate the strategy into operational terms, align the organization in to the strategy, make strategy everyones everyday job, make strategy a continual process and mobilize change through strong effective leadership. (Norton, 2004) The Balanced Score card known as the integrated system of managing strategies and it connected the long term objectives of the organisation with short term actions, besides that connected with senior management with frontline employees and organizational vision with organisational activities.
Fig.3

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The Balanced Score Card Institute Introduced a nine step to success, it is a practical approach based on the balanced score card method and can used by strategic managers to develop strategic plan and manage the system. This disciplined frame work leads to different components of the strategic planning as well as management. There is a visible contact with the projects and programs and the measurement can used to track success of that the organization trying to attain, besides that the vision, mission and strategy of the Organization. Fig.4

(Balanced Score Card Institute 1997-2012)

3.2 THE ISSUES

OF STRATEGIC CHANGE

Obviously the issues derived from the adoption of a model of change and it affects people. It should be informed throughout the period of design and implementation, moreover the support from the management is vital for any type of operational change, besides that the information should be available easily and testing out options is time consuming process especially if it has to be built and tested. The strategic issues occurred in different areas of the strategic plan and ongoing implementation, just as: The unclear priorities between the competing initiatives cause to loss focus and resources. If the assessment of the impact of external changes on existing plan not measures correctly it result in it back end expenses. The wrong strategic alignment between units caused in duplication of effort. If not deciding all projects important to attain objectives cause in waste of time.

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Chance to allocate resources on projects for the reason why ever changing priority, and it cause lost of energy, time and money. The wrong interpretation of key words results in inefficiency in management and miscommunication. If failure to address the prioritize projects of IT and Marketing. If not establish clear priorities, what is important and what gets done. Inability to keep focus on what really dealt with. Problems to keep the strategy alive in front of the management and staff. If not clear about the questions of : What has yet to be done, what is going to get done and what isnt to get done (INC. 2012) (Kotter 2006)

3.2.1 THE REASONS WHY?

STRATEGIC CHANGE REQUIRED

According to Abbeys Chairman, Lord Burns, This is a momentous day in Abbey's 155-year history. Abbey has always changed with the times, and has a track record of breaking new ground. Santander will build on this heritage, and provide the support and know-how to accelerate our plans and ambitions in the UK. Under Santander's ownership, Abbey will emerge as a stronger, more competitive force on the high street. The combination of the two banks will deliver substantial benefits for shareholders, customers and employees. (rincon castellano, 1997-2012)

The

significant responsibility of the organisational leaders framed to build the organisational capabilities which supports not only innovation but also collaboration and continuous learning. The achievement of ambitious goals to meet head on economic uncertainty, environmental risk, social changes and unpredictable forces, therefore to execute successfully in the unfavourable environment, they have to embrace the new way of thinking for to succeed in complex and fast changing environment.

3.2.2

THE FACTORS THAT LEADS TO STRATEGIC CHANGE

The acquisition of Abbey places us among the 10 leading banks in the world by market capitalization. We are increasing not just our size but also our diversification in terms of both countries and currencies. We have achieved an excellent position as the largest bank in Spain and the Euro zone and the leading financial group in Latin America. We are now in the premier league of international banking. This acquisition is proof of the strength of our share, the currency of exchange for the largest cross-border acquisition in European banking to date. The purchase of Abbey will create value for Group Santander shareholders and at the same time benefit our customers and employees. Santanders Chairman, Emilio Botin

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The strategic change took place due to the Abbey National Banks desire to emerge more stronger and competitive force to the changed global situations under Santanders ownership for the benefit of stakeholders and in other hand Santander Bank became one of the 10th global leading position in banking sector with diversification of currency and culture. The acquisition occurred by the strength of Santander Banks share and it benefits the stake holders of both banks.

3.2.3

RESOURCES IMPLICATION IN STRATEGIC CHANGE .

The achievement of objectives in an organization obviously depend the allocation and productivity of resources. The resource allocation is the responsibility of leadership and management, besides that it can be delegated. The resource allocation methods as follows; 1. Strategic allocation Growth and enabling and supporting function Strategic initiatives Investment decisions of mega market and cities Sharp focus on business 2. Tactical allocation Focus on value added actions Core activities Prioritize value added activities Make remaining cuts 3. Technology enabled allocation Transaction processing Process re-design and support Technology enabled work The resource allocation preferred strategic priorities with a clear instruction and then it follows allocation and relocation of resources including. A. Diversification B. Re-engineering C. Out sourcing D. Resource attrition and other incentive packages The re-location of resources should be managed and should consider the cultural impact on the work atmosphere. It is a management activity and it has accountability, besides that the main keys to manage the relocation is COMMUNICATION and MANAGING BUSINESS IMPACT. The resource re-location process is an ongoing process, it is not a crisis action and it should be part of strategy and routine of management, besides that it is inside the budgeting territory, due to that the organization will be productive in long run.

3.3 STAKEHOLDER INVOLVEMENT

IN STRATEGY CHANGE

Undoubtedly the stakeholder participation is significant to the strategy change, because those who will be the most affected by the change and the stakeholders are characterized as those who have anything of monetary or non monetary of value that may affected the strategic change. The stakeholders may individuals or group of persons and they may be policy makers, managers, communities in the area of risk at present and in future. So they can contribute their personal and academic knowledge to design the strategy formulation process. The stakeholder participation shown in Fig.5. (IPCC, 2012)

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FIG.5

3.3.1 STAKEHOLDER

ANALYSIS FOR PLANNING OF CHANGE

The stakeholder participation is vital to arrive in solutions to select the right plan and the previous involvements prepared them to address the root causes. The stakeholder analysis helps to identify the them and the process involves; Identifying stakeholders Prioritizing stakeholders Understanding key stakeholders Managing stakeholders
RESPONSIBILITY CHARTING

3.3.2

The responsibility charting ensuring clarity in who is responsible for not only in operational setting but also in change management and the responsibility chart shows: List of activities chart List of the people involved Identification of each persons responsibility

3.3.3 EVALUATION

AND ACTION PLANNING .

The key components of successful project management are the active participation of stakeholders and cover all areas of the project, so it has to confirm; All areas of necessary actions should covered It breaks target results in to achievable portions Deliver the project at time within the budget, with defined actions and assigned responsibilities with confirmed time scales, besides that the action plan should have to produce with the following questions. Where we are exist? Where we do want to reach? What to do for desired target? Who is required and what is target date?

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The action plan should review regularly for ensuring the completion of actions and should let others see what actions are outstanding.

3.4 PLAN
To

FOR

IMPLEMENTING MODELS
the result, plan it with the objective questions,

ensure

predictions and answer with, who?, what?, where? And when?. Collect the necessary data for analysis, study the data and then compare with analysis and follow with the question of whether it can be implemented.

Fig.7

(Langley G.L. Nolan K.M. Nolan T.W. Norman C.L., 2012)

UNIT6 6.1 THE


SIGNIFICANCE OF AN

INNOVATIVE

AND

CREATIVE

MANAGEMENT

According to David Gurteen, Knowledge Management is an emerging set of principles that govern organisational and business process design, as well as specific processes, applications, and technologies that help knowledge workers dramatically leverage their creativity and ability to deliver business value. (Gurteen 2012) Innovation Management is the act of getting people together for the processes of; development of new customers solutions for new needs Solution for mumbling needs

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Approach previous customers and markets with new approach or with effective products, processes, services, technologies and new idea. The innovation management consists of a set of tools that permits managers and innovators to ties together for a common perceptive of goals and processes.

6.2 MOTIVATION

TO CREATIVE AND INNOVATIVE MANAGEMENT PROCESS

The knowledge management required basically focuses on creativity and innovation, besides that creation of knowledge and applying it productively make radical changes and positive impacts to approach the organizational objectives. The innovation and creative management focused to utilize the creativity of the team in all levels and it motivates and rewards the employees, besides that it has uses and advantages likewise: To respond with an external or internal opportunity Creative efforts to introduce new ideas, processes or products Innovative ideas not relegated with R&D, but any level of work force can contribute for the development Innovation management tools can be make use of whole work force for the unending development The progress can be measured and viewed as a gradual development mixing of organization, technology and market (Kelly, 1978)

6.3 THE

PURPOSE AND METHOD

The purpose of creative and innovative management is that it creates business value by incremental improvements to existing products or new products and services or reducing cost for survival and growth. The innovators always survive and grow.

The Innovation process to be able either it may pushed or pulled during on development The pushed process refers to an existing one or newly invented technology with access by the organization and can add profitable additions to use the product. The pulled process refers that to find the areas where the users needs are not satisfied, where as the organisation focused to find the solutions for the gap. To succeed with both of these methods needed not only the understanding of market but also technical knowledge required.

6.3.1

MEASURES OF INNOVATION

The measures of innovation of an organization level belong in:-

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Individuals Team level Assessments Private companies both small and large

To determine the innovation level of organizations by conducting surveys to introduce targeting. The emerging body of The Management Innovation Index uses regression analysis to enable the measure of organizational innovation by focusing through the organizational pillars of innovation such as; 1. Culture and environment 2. Strategy 3. Innovation 4. Personal traits such as managers beliefs and attitudes to creativity and innovation The creative outputs can get by map the flow of index through the organizations operating system that produces the innovations or creative out puts of the organization.

6.3.2

INNOVATION MATRIX

The innovation involves with the organization into unknowns and to identify these unknowns, it has to identify it through intelligent risk taking and it required innovation process. The matrix are two types, the soft matrix deals with the qualitative provocative questions for deep thinking about their work and in hard matrix deals with the quantitative questions that can be make statistical analysis.

The Innovation Funnel


The Innovation funnel includes nine steps of stages; 1. Strategic thinking 2. Portfolio and metrics 3. Research 4. Insight 5. Ideas 6. Targeting

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7. Innovation development 8. Market development 9. Sales 10. Input process and output

UNIT10 10.1 STRATEGIC HRM AND ITS CONTRIBUTION. The HR is the significant factor of the organization and the performance of an organization depends this key factor, therefore the proper HR policies and process are developed and implemented dynamically, besides that the strategic HR management and its impact make vital contribution on organizational goals. Michie and Sheehan (2005) define that strategic human resource management is the pattern of scheduled HR tasks and development intended to enhance an organization to gain its aims. Finally Batt (2007) described that the major strategic HRM theory premise is that successful performance of organization relies on a close alignment or fit between HR strategy and business (Dyne and Pierce(2004) and Batt(2007) cited in ( Armstrong 2008)

The performance management considered flexible process and it defines as a continuous self-reviewing cycle and consists of planning, acting, and reviewing. The planning process sum up with performance and development of contract, Acting deals with the managing it throughout the year and finally Reviewing process examining the progress and achievements. Fig.5 (Armstrong 2006)

The performance of agreements developed from analysis of role requirements and follows objectives, there are different types of objectives:-

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Ongoing Objectives Targets Tasks Behavior

The criteria for objectives uses the SMART for summarize the objectives.FIG.6

The measurement of performance required to achieve objectives, due to that generate the feed backs , identify the direction and then take corrective steps and make use of the outcome for achievement of objectives, competence, quality, contribution to team, customer care, working relationships, productivity, flexibility, skills and learning targets, aligning personal objectives with organizational goals, business awareness and financial awareness.

10.1.1 THE SCENARIO SANTANDER LTD.

OF THE EVENTS AT

ABBEY NATIONAL BANK

THAT INITIATED BY

The interview with Simon Lloyd, the HR Director of Santander Bank by Jason Spiller reveals the essence of the strategically managed HR policy of the Santander bank. The HR Director come up through different prospective and witnessed the change, also experienced to manage it. The statement by Simon Lloyd, appreciate the huge impact that change made in business. The people dont like change and they can cope up with it when they know what is changing. The Alliance and Leicester do not have any credit problems and Santander bank arguably proceeded to prosper and grow and productivity is important, that means review the incentive schemes and get vision on what the vision needs. The sum up of HR is that successful business is built on the quality of people in the organization. (Lloyd 2011) The interview discloses the approach to risk by Santander Bank throughout the take over and acquisitions and answered how the HR team set up across the Organization? The answer was, the business partner model and close relation with the business and areas of expertise around talent and training, policy on employee

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relations and operational HR around the Matrices. Communication and clarity is the key and the survival of bank exists in satisfied customers. The key work is making sure all systems and operations put across as faultless as possible. Further comments on successful HR Strategic management was, the ability to distribute knowledge through the combined Organization as swiftly as possible, such as different ways of working, new procedures and the knowledge is moved around, and an all rounder in every branch with knowledge of every sector encouragingly huge willingness to get the job done His concept on maintain continuity and maintain correct pace is that a lot of it is the training when you introduce a new system for example, its usually live, and the most important thing to do is give people hands on experience. We watch and supervise, and its done branch by branch, and you need to back it up with experts, people with experience in getting branches up and running, plus the intranet provides a good deal of back up and support, giving people access to processes. Training is primarily hands on, on the job, and general training can be done with e-learning. (Lloyd 2011)

10.2 HUMAN

RESOURCE PLAN FOR AN ORGANIZATION

The HR planning refers to people resourcing and HR Management matching the HR to the operational requirements of the organization and maximum utilization of it for organizational goals. The resourcing process not only considering to obtain number and quality of staff but also people who fit for the culture and strategy requirement of the organization. KSACS = knowledge, skills, abilities, cultural ground and strategy fit. TDRS = tasks, duties, responsibilities If the KSACS = TDR = Job success The HR plan involves with the talent search and management, recruitment, interviewing, selection test, introduction to the organization, retaining and releasing. The chart below (Fig.6) provides a detailed view on HR plan and process. FIG.6

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10.3 THE

DESIRABLE

HR

POLICY IN AN ORGANIZATION .

The HR Policy reflects the overall values of the organization. The overall policy describes how the organisation behaves with the employees and the social responsibility and it express how the organization treated its people. The value of an organization reflects in its equity, consideration, organizational learning, performance through people, work life balance, quality of working life and working conditions.

According to US Legal, HR policies are official guidelines and rules that are put into place by a companys HR department to hire, train, evaluate and reward staff. Cited (Shehan, 2012) The HR policies and guide lines put by HR department to deals with the following aspects: Hiring staff Train staff Evaluate and train staff Function of an HR Policy

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It prevent misunderstanding between employer and employees It explains the rights and obligations in the work place Employee use it as a guide line and direction Employers use it as , if any questions arise in office process

Importance of HR Policy in work place Establishing consistency Help employers to maintain order in work place Protect employers and employees in court of law Types of HR Policy codes to obey by employees Behavioural Ethical Professional Policy on training requirements Performance evaluation Benefits and wages Overtime Breaks International protocols The employment legislation is one of the fastest changing areas of HRM and every country there is supportive Acts, such as in U.K, Minimum Wage Act 1998, Race Relations Act1992, Equal Pay Act1970, Disability Discrimination Act1995-2005, Sex Discrimination Act1995-97, Employment Relations Act2004. These rules are established before and made amendments time to time. So it is a legally in deficient HR policy is suggested.

10.3.1 ASSESS

THE IMPACT OF THE HRM ADOPTED IN AN ORGANIZATION .

The organizations are social arrangements with collective goals and controlled performance. It is a group arrangement for efficient work with process and nature in different types and enables people to share skills, knowledge and followed systems and procedures to ensure to achieve goals. The HR is the key resource in rapid changing atmosphere and it is one of the sources of competitive advantage. The SHRM creates link with overall objectives of the organization and HR strategy, besides that involved to implementation for better organizational performance, due to that it contributes benefits such as : Goal accomplishment and survival

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Supporting to implement business strategies Creating and maintaining competitive advantage Improving creative and innovative potential of the company Increased availability of strategic options Part with strategic planning and influence strategic direction Helps to improve co-operation with line managers

10.4. AN

ANALYSIS OF

ORGANIZATIONAL STRUCTURE

Refers to Business Dictionary the organizational structure explains and defined as the frame work, typically hierarchical, within which an organization arranges, its lines of authority and communications, and allocate rights and duties. Organizational structure determines the manner and extent to which roles, power and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. (Business Dictionary 2012) A structure depends entirely on the organizations objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments divisions have varying degree of autonomy. An organizational chart illustrates the organizational structure. (Business Dictionary 2012) Consequently the objectives of the organiztional structure consists of the organizations performance, resource utilisation, accountability, co-odination, flexibility and social satisfaction. Meanwhile the significance of hierarchy is the allocation of the responsibilities among the group for aiming to the successful implementation of the objectives with wise allocation of human and other resources for tasks designing responsibility as well as authority for their proper control and co-ordination. In common, the levels of organization are, technical, managerial, and community level, further the importance is responsibility and accountability. A well designed structure required for co-ordination , recognizing the division of work , identifying the process of managing the activities besides that avoiding the conflict and support the staff for their interest and jobsatisfaction and it should be economy. The organisational structure differs in nature and each has its own advantages and disadvantages. Various organizations chosse its structure according to its industry, size and aims. The most common organizational structure are: Centralised Structure Decentralised Structure Entrepreneuraial Structure Functional Structure Product/Division/Department Structure

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Geographically Structured Matrix (Kotter 2006)

10.4.1 AN ANALYSIS

OF

ORGANIZATIONAL CULTURE

There is no collaboration if there is not a supportive culture, Bellingham, R. (2004) The Business Dictionary refers that Organizational culture is the sum total of an organization's past and current assumptions, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, express or implied contracts, and written and unwritten rules that the organization develops over time and that have worked well enough to be considered valid. (Business Dictionary 2012) (Furnham.A and Gunter 1993) Suggest Culture repesents the social glue and generates a we-feeling, thus counteracting processess of differentiation which are unavoidable part of organizational life. Organizational culture offers a shared system of meaning which is the basis for communications and mutual understanding. If these functions are not fullfilled in a satisfactory way, culture may significantly reduce the efficiency of an organization. (Armstrong 2006) The concept of culuture is that it is multi dimensional with different components at various levels as well as not particularly dynamic and beeing relatively stable over diminutive period of time . The problems with this concept are, the terminology which used to catagorize the culture, the time and reason for the culture change and how the change take place and which is the desiraple option of culture. The organizational climate is important to develop an ideal culture and the components of it described in terms of values, norms, artefacts and management style and if these factors are ideal, it shoule part to build a an ideal culture. The values reflects in organisations performance, competitiveness, innovation, quality, customer service, team work and care and consideration of people. The norms are unwritten policies and proceedures inside the organisation and the artefacts are that visible or tangible aspects that people hear, see and feel. The leaderdhip style also significantly involving to mould the culture. Therefore an appropriate culture should have a possitive impact on to obtain the objectives.

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10.4.2 ASSESSMENT

OF

HRM

MONITORING .

The effectiveness of HR strategy measures through its performance and the result achieved what it set for and it is particularly: Must satisfy the business needs Based on broad analysis and study Can be turned into actionable programs Anticipate the implementation requirements and problems Be coherent and should and integrated moreover components should support each other Consider the needs of line managers, employees, organization and stakeholders (M. Armstrong 2006) cited in his work, Boxall and Purcell (2003)emphasize: HR planning should aim to meet the needs of the key stakeholder groups involved in people management in the firm.

10.4.3

RECOMMENDATIONS TO IMPROVE THE EFFECTIVENESS OF

HRM.

The IT enhancement and globalization, besides that emerging opportunities provide an abundant chance to experienced employees, moreover the new generation organizations even recognizing the value of HR. Improved HRM process allows to manage the information of employees efficiently and pay employees at right time with right salary The satisfied employees are asset of any organization and more suggestions as follows. a. Manage and utilise the employee information properly b. Direct deposit of salary to bank c. Develop HR capabilities d. Integrate applications e. Compliance f. Define performance metrics g. Analysis of performance data h. Recognition of leaders from performers i. Reward the leaders j. Train or drop non performers k. Continuous motivation, create creativity and innovation in HR. l. Be a reliable organization. Fig.7 FIG.7

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CONCLUSION
To recapitulate, there is no change for changes, since the knowledge starts sparks and move to optimization of every status of universal dealings , especially the challenging changes emerging in globally for the organizations, it is vital to change strategically for the survival. The changes all emerged from the human brains and the Strategy managed organizations are recognized the real value of creative and innovative management , moreover the strategically managed HR.

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