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Table of Contents

LO1. Understand the role and importance of human resource management in achieving organizational effectiveness .................................................................................................................. 2 1.1 Define strategic human resource management .......................................................................... 2 Definition of HRM.............................................................................................................................. 2 1.2 Explain the importance of human resource management in organisations .......................... 3 1.3 Analyse the framework of strategic human resource management ...................................... 4 LO2. Understand the formulation and implementation of human resource strategies ..................... 6 Formulating and implementing HR Strategies .................................................................................. 6 2.1 Analyse the strategic human resource process........................................................................... 6 2.2 Assess the roles in strategic human resource management ..................................................... 6 Strategic Frameworks .................................................................................................................... 7 LO3. Be able to assess a range of HR strategies that may be implemented within an organisation .. 9 3.1 Identify a range of HR strategies for an organisation ................................................................. 9 1.1 Social Cognitive Career Theory (SCCT) .................................................................................... 9 3.2 Assess HR strategies and their application in an organisation ................................................. 10 The Strategic role of human resource management .................................................................. 10 LO4. Understand contemporary issues affecting strategic human resource ..................................... 12 4.1 Identify contemporary issues affecting strategic human resource management ................... 12 Alignment of SHRM between Headquarter and Subsidiaries .................................................... 12 References ............................................................................................................................................ 15

LO1. Understand the role and importance of human resource management in achieving organizational effectiveness

1.1 Define strategic human resource management Management is one of the most important human activities. Since the time people started to form social organizations to achieve the objectives as individuals, they cannot be completed management is essential in order to ensure that to coordinate the efforts of the individual, although the company is supporting the group great efforts, has become a large number of organizations, the task manager Increase in size and complexity. Now, the management Managers manage complex organizational theory has become essential. Central thesis of this article is that some managers in different parts of The world has basic management been successful, if not Knowledge management theory, should be clearly stated Managers who co-management theory in their day to day It is easier to manage in the practice of their organization effectively achieve personal and organizational Objectives. Therefore, managers are contemporary organizations Due to the important role they play in their organizations, if they To achieve objectives. Secondly, it is necessary, in order to promote excellence People in the organization, especially the managers themselves. Definition of HRM Management is an art or a science, the realization by people. Because Leaders also control management can be interpreted literally means Views" - that is to ensure that people do what they are supposed to do. The leaders are expected to increase productivity, or with the support of the current jargon, the "continuous improvement". More generally, the management is the process of designing and maintaining environment in which individuals, group work, effectively to achieve the chosen goals (Koontz and Weihrich 1990, p. 4). Expanded form, this basic definition means different things. First, as leaders, people perform Leadership positions in planning, organizing, staffing, and to manage. Second, the management of all types of organizations. Third Management leaders at all levels of the organization. Fourth, to all leaders is the same to create a surplus. Finally, the President is concerned about the productivity - which means efficiency and efficacy

1.2 Explain the importance of human resource management in organisations

HRM started to become an integral part of business, where PM had been reactive HRM became proactive and was involved in decision making. They are also involved with management up to board level and contribute to the bottom line of the business (profit). HRM is now responsible for the hard strategic planning, structure, systems and service internal/external. HRM still includes the soft Ss and these are now much less involved because HRM is about planning ahead and making provisions for retirements, temporary cover for busy periods and other foreseeable and unforeseeable problems ahead. HRM staff now work closely with unions, with a close relationship both parties are now far better at avoiding union action and problems can generally be sorted quickly with little fuss. There is still a great debate between academics as to whether HRM is a whole new concept or just a repackaging of PM. Some experts, for example Legge 1995 and Storey 1989; 1995 suggest that the message itself is not the important part, but that the messenger is of much more significance. According to Bratton J Gold J 2003 pge15 Millwood et al show that HRM can today be broken down into eight basic functions: Planning Staffing Developing Motivating Maintaining Managing relationships Managing change Evaluating HRM represents the discovery of human capitals potential by senior management. Senior managers in business corporations realised the need to treat employees as more than just numbers. In order to gain greater employee commitment and organisational performance businesses became more employee friendly. To gain the full potential of their employees and respond to advances in technology and global markets big businesses realised that they needed to be more flexible in their approach to employment. There was suddenly a need to have a work home life balance and schemes such as flexi time were introduced, this allowed

employees to build up a bank of time in order to for example have an afternoon off and go to a sons sports day. Staff now also have much more control over work patterns, work locations and work times in other words there is not a need for them to be in the office all day every day, they have the flexibility and technology to work from virtually any location (Human resource management theory and practice 3rd edition 2003). 1.3 Analyse the framework of strategic human resource management

(SHRM) is a field of enquiry that has evolved over time to be classed as a disciplinary field in its own right. SHRM differs from previous human resource management (HRM), and earlier personnel management through placing the role of HR in such a place in the organisation that the policies contribute to, and even drive, the strategic direction of the organisation. Traditional personnel management centred on the individual and involved policies focussed on recruitment, pay and performance and administrative, maintenance, activities. SHRM centres itself on strategies that fit the organisations mission and goals. Alignment of policies and strategies with the abilities, motivations and strengths etc of employees with the demographics of the organisation is crucial if HR activities are to be facilitative and strategic, rather than orthodox. Finally, to be truly strategic, HRM must influence, or shape, an organisations strategy as well as be shaped by it (Purcell, 2001).

Each of these models is to be delivered by HR strategy. The appeal of the Universalist approach is the assumption of a best practice model of operations (Millmore et al., 2007, p47). Walton (1985) and Pfeiffer (1998) provide a list of policies which, if successfully implemented, will lead to motivated employees who excel at their work. Many characteristics of their differing approaches involve policies that would be implemented in any successful organisation including: reward for performance, expectations of achievement, providing employee voice through a variety of for a, and job security. The approach is appealing to human nature generally that of a list of practices which, if followed, will result in a happy and rewarding life. Unfortunately, life is complex and cannot be prescribed. An organisation, consisting of individuals, is even less likely to fit to a list of best practices. So this approach is both useful as a type of template of best practices, and too simplistic.

LO2. Understand the formulation and implementation of human resource strategies Formulating and implementing HR Strategies There is typically no HR strategy in a firm, although research conducted showed that a number of the firms we contacted did have an overall strategic approach within which there were specific HR strategies. Business strategy maybe an important influence on HR strategy but it is only one of the several factors and the relationship is not linear. Implicit in the mix of factors that influence the shape of HR strategies is a set of historical compromises and trade-offs from shareholders. HR strategy can influence as well as can be influenced by

business strategy. In reality however HR strategies are more likely to flow from business strategies that will be dominated by product/market and financial considerations. But there is still room for HR to make a useful, essential contribution at the stage when business strategies are conceived, for example, by focusing on resource issues. 2.1 Analyse the strategic human resource process The Development Process

The process of developing HR strategies involves generating strategic HRM options and then making appropriate strategic choices. These choices should relate to but also anticipate the needs of the business 1. Be congruent with the present or desired culture of the organization 2.Have the capacity to change the character and direction of the business 3.Equip the organization to deal effectively with the external pressures and demands affecting it 4. Focuses on areas of critical needs 5. Focus on fundamental questions as "What is constraining us?" or "What is stopping us from delivering business results?" 6. Be founded on detailed analysis and study and not just wishful thinking 7.Incorporate the experienced and collective judgement of top management 8. Anticipate the problems of implementation if managers are not committed to the strategy and or lack the skills to play their part. 9. Anticipate any problems that might arise because of the hostility or interference of employees or trade unions 10. Ensure that the organization has the resources required to implement the strategy 11. Provide for the acquisition and development of people with the skills needed to manage and sustain the organization in the future to meet organizational objectives

12. Consist of components that fit with and support each other 13. Be capable of being turned into actionable programmes 2.2 Assess the roles in strategic human resource management Strategic Frameworks The formulation of coherent HR strategies is more likely if the overall approaches the organization intends to adapt to managing its human resources are understood. The most common approaches are following. 1. The development of resource capability 2. High-commitment management 3. High performance management 4. Best practice Resource Capability this approach regards the firm as a bundle of tangible and intangible resources and capabilities required for product/market competition. Human Resources are seen as a major source of competitive advantage. Within this framework, firms attempt to gain competitive advantage using human resources through developing distinctive capabilities (competencies) that arise from the nature of the firm' relationship with its suppliers, customers and its employees. It is concerned with the development and retention of human or intellectual capital. The high commitment management approach It is based on the assumption that higher levels of performance from people and a belief that the organization is worth working for, are more likely when employees are not tightly controlled. Instead they should be given broader responsibilities, encouraged to contribute and helped to achieve satisfaction in their work. This approach involves treating employees as partners in the enterprise, whose interests are respected, who have a voice on matters that concern them and whose opinions are sought and listened to. It is concerned with communication and involvement. The high-performance management approach it aims to raise the performance of the organization through its people. High performance management practices involve the development of resourcing, employee development, performance management and reward processes that focus on the delivery of added value. Best practice approach it is based on the assumption that there is a set of best practices and that adopting them will inevitably lead to superior organizational performance.

Analyse the development and implementation of human resource strategies Resource Development (HRD) as a process of developing and unleashing human expertise through training and development and organization development for the purpose of improving performance. The following section shall provide an overview of Human Resource (HR) practices. Organisation must continue to offer more specific programs like training and developmental feedback to help employees learn skills which eventually improve the whole organisational development and increase productivity. A common strategy will align the operations towards common goals and purposes (Barlett and Ghoshal, 1987) Organisational success cannot be achieved even if firm had hired the right person alone. (Carrig and Wright, 2006).

LO3. Be able to assess a range of HR strategies that may be implemented within an organisation 3.1 Identify a range of HR strategies for an organisation 1.1 Social Cognitive Career Theory (SCCT) The Social Cognitive Career Theory (SCCT) as described by Lent, Brown and Hackett (2008) provides a framework of how people form career interests, make choices and achieve educational and occupational pursuits. The focus on several cognitive person variables, the interaction with other aspects of the person and the larger environment all correlate with selfefficacy, outcome expectations and goal-setting behaviour that individuals exercise within their own career development. Recent career trends emphasises the role of these contextual factors in determining an individuals career goals and actions. 1.2 Constructivist Systems Theory Framework (STF) In recent times, constructivism has assumed a more central role in career theory (McMahon and Watson, 2008). Inherent to constructivism is the recognition that individuals are taking a more active role in their career development. The Systems Theory Framework (STF) contains the content influences and the process influences on an individuals career development. McMahon and Watson (2008) describes the content influences as the personal qualities and characteristics intrinsic to individuals and the influences of their environment, such as the people and organisations they interact with and the surrounding society and environment. 1.3 Globalisation, International Work and Expatriates With contemporary trends, organisations have become increasingly subject to globalisation. Some multinational private and public sectors, require an increasing need for employees to work abroad and/or frequently at home with international responsibilities (dealing with foreign customers and suppliers, overseeing overseas operations, developing business or networks abroad). Organisations need employees, who are receptive to careers in international work, but many refuse to become expatriates, often because of family reasons and hence suitably skilled employees are hard to find (Hiltrop, Jenster and Martens, 2001). 1.4 Women in the Workplace Changing trends in the macro socio-cultural environment suggests that men have become more reluctant to work abroad due to dual-career and family constraints, limiting their readiness to trade-off work for family (Hard, 2004), thus the increase in women taking expatriate roles. Hard (2000) further defines Giddens Theory of Structuration as a dynamic interaction between external and internal career and views career as an individual process and social structuration process with a reflection on culture. Culture has a significant

impact on career dynamics in modern society where, women influenced by factors outside their personal influence (cross-culturalisation, 1.5 Work/Life Balance According to Kirby (2005), more than 250 working patterns including compressed working week, job-share and flexible hours, encompass the flexible working initiatives that organisations are using to increase recruitment and improve retention in times where individuals strive for work/life balance. Balancing work and family has overtaken benefits and compensation as a key aspect of employee satisfaction as the family unit takes priority. It is believed that employees will not give their best if they are tired or stressed due the demands of day-to-day life and hence, a work/life balance enables individuals to promote a healthier general lifestyle that transcends back into the workplace through improved job satisfaction. 1.6 Change in the Labour Market As career trends change, the demographics of the labour force also changes as mentioned earlier. Cobert (2005, 35) defines the American labour market as four generations: Generation X (aged 22-33); Baby Boom (aged 34-52); Swing (aged 53-65) and World War II (aged 66 and over) the global breakdown would not be too different to this. Each generation require different education and training, and presents different cultures, work values and expectations to the labour force. The old social contract between employers and employees no longer exists and the traditional model in which individuals worked their way up the corporate ladder in a single organisation is becoming rarer as mentioned before.

3.2 Assess HR strategies and their application in an organisation The Strategic role of human resource management The role of human resource management has always faced a battle to justify its position in organizations. In good times, when there is a sufficient budget, companies can easily justify the cost of training, staff, reward systems and employee participation, but facing financial difficulties such HR systems get the first cuts. The advent of the sub-area of Strategic Human Resource Management (SHRM), dedicated to the exploration of the role of HR in supporting corporate strategy, was the opportunity to demonstrate their value to the business. In other words, the strategic management of human resources is "linkages and integration between the overall strategic business objectives and implementation strategy and human resources. Initially, processes and people within the company managed in order to promote the objectives of the business strategy and create an integrated management of various HR

functions such as resource selection approach, training and reward so that they complement each other. Strategic human resource management may bring a number of benefits to the organization. Contributing to the goal accomplishment and the survival of the company, Supporting and successfully implementing business strategies of the company, Creating and maintaining a competitive advantage for the company, Improving the responsiveness and innovation potential of the company, Increasing the number of feasible strategic options available to the company, Participating in strategic planning and influencing the strategic direction of the company as an equally entitled member of top management, Improving cooperation between the HRM department and line managers.

LO4. Understand contemporary issues affecting strategic human resource 4.1 Identify contemporary issues affecting strategic human resource management

Alignment of SHRM between Headquarter and Subsidiaries On the basis of Baird and Meshoulams (1988) Two Fit Theory, Milliman et al (1991) has expanded the fit theory specific to IHRM, named Four Fits of Strategic IHRM. It is demonstrated as follows. Subsidiaries Fit to Headquarter IHRM: A Polycentric View Polycentrism assumes that host countrys employees have different values and cultures that headquarter personnel are difficult to understand, so human resource tactics such as training, motivation, rewarding and assessment should be adjusted according to host country needs (Perlmutter, 1965). The following table shows characteristics of polycentrism. Perlmutter (1969) compared a polycentric firm to confederation where headquarter has loose connection with subsidiaries. Alignment Problem behind Polycentrism Polycentrism can generate both pain and pleasure for a global company (Hoecklin, 1995). Pleasure comes from the benefit of cost effectiveness while pain may mean two levels of alignment problems. The superficial level means the coordination problem between headquarter and subsidiaries. Since managers are locally recruited, communication might be reduced due to language and market differences. Local managers sometimes even complain headquarter never tells them anything (Perlmutter, 1962). Solution to the Alignment Problem In the context of diversity discussed above, to align the headquarter HRM with subsidiary requires not only coordination but also reconciliation. Compatibility can be one key factor to achieve coordination, while Trompenaarss (1993) process of reconciliation will be helpful in directing reconciliation. Resourcing Plan This part will focus on the topic of resourcing with reference to the polycentric policy discussed above. Armstrongs (2006) human resource planning process will be applied. Two stages of resourcing plan including business strategy and resourcing strategy derived from the process will be analyzed. Stage 1: Business Strategic Plan In this stage, company should define future activity levels (Armstrong, 2006, p.369). Corporate strategy directs the company to start with hypermarkets followed by convenience

stores and discount stores. As the establishment of hypermarkets would help build relationship with the local suppliers, distribution and marketing partners, it will be the format taken at the early stage of the penetration. When the market is mature, hard discount store and convenience stores will be set up (Zenttes et al, 2007). Stage 2: Resourcing strategy In accordance with business strategy, HRM endeavours to build a high-commitment, intrinsic motivation culture among the employees. Therefore, it will apply the soft resourcing strategy to ensure employing staff with the right attitude and motivation. The soft resourcing strategy will base on peoples attitudes and commitment to work instead of number and techniques with the aim to enhance engagement, teamwork and coherence (Armstrong, 2006).. Demand/ Supply Forecasting Forecasting is a process to estimate the future demand for workers and provide a human resource budget for it. In this process, scenario planning could be helpful in opening minds to predict the possibilities the company have to confront (Reilly, 1999). Demand Forecasting Company forecasting analysis will base on the company strategy and corporate each subsidiary has a central control office in charge of the host country business. Each department manager position will be filled with HCN. This is for the concern that host government requires employing local people (Dowling et al, 1999). What is more, most countries legally limit the expatriate numbers to maximize local employment within a foreign owned subsidiary (Vo, 2009). One expatriate from headquarter will fill the position of finance manager and central management at the same time. Flexible Employment Handys (1989) Shamrock Model suggests a concept for core and complementary employment design. The three shamrock leaves stand for distinct groups: the professional core consists of specialists and managers, the contractual fringe which is responsible for the non-core activities, and the flexible labour force made up of part-time or temporary workers and consultants. He later develops the theory by including the customers as the fourth leaf- an informal and unpaid form of subcontracting by introducing some customer self-helping service. Impact on the UK Base Since a polycentric view is adopted in the overseas expansion; there would be no radical change in the UK base culture. Several reason counts for this. Firstly, under the polycentric

policy, host country practice is mostly applicable in the local subsidiary and it will not be carried out to other regions. Secondly, being a more integrated and successful economy, UK is more likely to influence its overseas subsidiaries than being affected by them. Smith and Meikins (1995) posited that home base with strong economy tend to transfer out rather than adopt practice from oversee subsidiaries

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