STRATEGIC HUMAN RESOURCE MANAGEMENT

Table of Contents Description Introduction Page No. 1

TASK 1 1.1 Strategic Human Resource Management Human Resource Management Strategic Human Resource Management Importance of SHRM 1.2 Strategic HRM Activity HR Creates the real value for Lloyds TSB 1.3 SHRM Contribution.. TASK 2 2.1 Human Resource Planning 2.2 Human Resource Requirement Plan human resource requirements 2.3 Lloyds TSB Human Resource Plan 2.4 Human Resource Planning (HRP) Contribution TASK 3 3.1 HRM Policies Flexible Working option Policy Health and Safety policy Recruitment and Selection policy Training and development policy Equality and Diversity Maternity Leave, Paternity Leave, Adoption Leave and Parental Leave Policy .. 3.2 Regulatory Requirement.. Pay System Equality Act Disability Discrimination Act(DDA) Sex Discrimination Act Data Protection Act TASK 4 4.1 Organisational Structure.. Impact on Human Resource function 4.2 Organisational Culture and impact on HR 4.3 HRM Monitoring. Quantitative Measures Qualitative Measures 4.4 Recommendation for HRM Improvement Performance measurement Balance Scorecard Conclusion Bibliography . Figures
Figure1 Planning Human Resource Requirment . Figure 2 Human Resource Plan

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Introduction Lloyds TSB is one of the leading retail banks in the UK. It Serves over thirty million people for insurance, investment, international banking. The main goal is to provide best financial services in the UK. The Lloyds and TSB group merged in the year of 1995, to form the Lloyds TSB Bank. The total revenue is 9,434m with the great workforce of 75,856 employees. This case study provides the Human resource and its related functions for the success of an organization (Lloyds TSB, 2011). This case study helps to analyze how the Strategic HRM plays a crucial role in Lloyds TSB - its activities and contribution to meet the organizational strategic objectives. The growth of Lloyds TSB, business expansion during recession period can be analysed; determine human resource plan and its contribution. To identify HRM policies, various regulatory requirements and organisational structures, culture of Lloyds TSB in this case study. TASK 1 1.1 Strategic Human Resource Management (SHRM) Human Resource Management Human Resource Management is a practice of organizing employees in the organization. This is a managerial function which is used to match the skills,

abilities, knowledge of employees with the organization needs, requirements and wants. Human resource plays a important role for organization success. Armstrong, (2006) the people are the most valued assets in the organization for the achievement of organizational objectives. Strategic Human Resource Management (SHRM) Strategic HRM is a strategic approach of the organization in order to form the strategy, plan and practice concerns with employment relationship, resource, learning and development, performance monitoring, reward and employee relations. Armstrong (2006) the concepts strategic HRM is derived from the HRM and strategy. The HRM model is focusing on strategy, incorporation and unity. SHRM is a managerial process of linking policies and practices of human resource (HR) with the strategic objectives (Bratton, 2001).

Importance of Strategic Human Resource Management (SHRM) There are various employee related critical issues are addressed by the Strategic HRM. The overall performance of Lloyds TSB employees are vital role for the success. HR department is focusing on long-term goals, vision, mission and development of the organization. HR expert responsibility includes examine the performance standards of employees and identifying their potential problems and it can be sorted out to void further inconvenience. Armstrong, M & Baron, A (2002) to improve the business performance Strategic HRM is used. It includes various concerns about Lloyds TSB culture, values, structure, quality of product and services, available resources, employee commitment; it is also concerns with long-term individuals problems. The SHRM roles are: Brewster (1992) explained that delegate the responsibility to line managers in each department instead of having specialists; Integrate HRM into the corporate strategy. To provide solutions for complex organizational problems; ensuring that all no surplus or shortage in workforce, technical and financial resources are allocated for implementation; the long-term focus of SHRM is helping to accomplish competitive advantage.

1.2 Strategic HRM Activity The main activity of Strategic HRM is: linking organisational strategy. Human resources are mainly used for planning. This includes career development, forecasting, reconciliation of demand and supply. HR process involves staffing, selection. Remuneration and performance management. Employee progress programme training, education. Supervising employee relationship. Focus human resources management to a top priority level. Integrate the companys strategy, mission, goals with HRM

All HR activity of Lloyds TSB is "strategic", focusing on the vision; mission (Strategic Human Resource Management, 2001). It includes improving quality of work-life, minimizing work mistakes & industrial accidents, minimize absenteeism,
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maximizing turnover, and improving efficiency and good quality of customer service. The Strategic HRM Activities not only deregulation, delegation, downsizing and outsourcing but also could take place at the line level management activities and also supporting to achieve organization mission. Most of the line managers describes that without HR support is not able to accomplish the mission of organization. The most important contributions of HR include the following areas: recruitment, selection, staffing, employee development and establishing relations with employees. The HR activity is vital role to get their jobs done and involves also in the innovative areas.

HR Creates the real value for Lloyds TSB The following example shows that the SHRM activities of HR people who create a real value for Lloyds TSB. Senior HR Manager: The Bristol Senior HR Manager of Lloyds TSB was third generation development projects and supporting major strategic change within the organization. He got 3 internal promotions for the operational and strategic HR activities. Regional Training Manager: All the regional training activity in Aylesbury which includes 5200 bank staffs with leading team of 24 trainers. SHRM activity is addressing with improving not simply the quantity but also the quality of employees efforts, to achieve a movement from employee fulfilment to employee commitment. It is concerning the employees attitude, dedication towards the organizations growth. 1.3 SHRM Contribution Employee engagement is the one of important activity of HRM. Employee satisfaction is the major key for any organizations success. Their commitment to work for is measures as the employees engagement and satisfaction, is contributed for the organizations success (Employee engagement, 2002). Employee engagement is measured by the Towers Perrin-ISR model. Lloyds TSB uses this model to identify the employee engagement. The following ways to engage the employees in various activities: Provides career advancement opportunities. Establishing good relationship with higher authority.
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Encourage innovative thinking Assign challenging roles and tasks. Setting high personal standards Input into decision making. Give opportunity to improve their skills and capabilities.

TASK 2 2.1 Human Resource Planning HRM in Lloyds TSB is playing a vital role for the survival and success of the business in the baking industry. The main function of HRM is selecting right people at right time. Before selecting the right employees for the right job, it is significant to determine the quality and quantity of people required in the organisation. So HRP is the primary function of HRM. The various business factors that determine the Human Resource Planning of Lloyds TSB: Business growth, change, Employment cost, Operations Location, Work nature, Competitors and New Technology. Business Growth: Lloyds TSB has provide flexible work options to all employee, those are who are really needed especially women with children, those who are caretakers. The 85% of the business growth in the UK workforce will be women in 2010. Lloyds TSBs flexible working is a very essential for achieving strategic goals towards business growth. Change: Over increase of Internet banking Lloyds TSBs expansion of new data centre in Dumfriesshire at 200 million expenditure. It creates 600 anew jobs. So the HRP is in a right position to determine the shape for the organization by providing proper plan in the HRM (Lloyds TSB Internet Banking: New Data Centre Expansion, 2011). Competitors: HR director duties to retain the skilled employees in the job market by providing competitive package. HRP is a fundamental part of business planning. The strategic business plans of Lloyds TSB are interpreted to the employees HRP. Some of scenario planning is assumed in the absence of clear business strategy. It is a systematic approach, continuity in the process, it is a flexible approach. It can be done at micro or the macro level in Lloyds TSB.

2.2 Human Resource Requirement Due to the present economic crisis - Lloyds TSBs merged of HBOS with Lloyds TSB in September 2008. When merging occurs, then the important thing to consider is the employees of the two organizations, they are the most valuable asset in the organization to achieve the objectives. In this case Lloyds TSB Human resource is an important functional area to addressing the turbulent situation with the workforce. Some of the important duties of HR during recession period are: Employ highly skilled people they are able to handle all kind situations in the financial market. Encourage and motivate in various programs and increase the responsibility of employees in decision making process. Retain the good employees in terms of rewards and opportunities than the competitors. Train and develop the skills and knowledge those who are willing to take challenging roles. Increase the Positive attitude among employees in the working environment.

Planning provides the knowledge of strategic expansions or reductions during the turbulent situation (Lloyds Banking Group To Cull 2,100 Staff , 2009) Employees have been shifting within the two organisations (HBOS and Lloyds) after merging (Costello, 2009). Laying off or cutting back over 7000 employees due to the crisis Lloyds TSB takeover of HBOS thousands of job losses. Although it creates 350 new roles in the wholesale division to manage the merging operations. It also encourages the current retirements, promotions transfers or discharge

Figure 1: Planning Human Resource Requirment(Source: The Management consultancy Ltd)

Plan human resource requirements Identify the human resources required to meet the organizational objectives, plan accordingly to handle the critical situations, Identify the skills and knowledge of people required for the team to survive in the bad economic climate. Draw up job specifications: Be clear about job roles and specification, look for a specific type of person, consulting with colleagues about organisational requirement. Attract the right candidates: The right candidate at right time and right knowledge person is attracted by providing proper advertisement, press, job centre etc., Assess and select people: Match the quality of the person with the organisational requirement in order to cope up with the market scenario. Appoint People: Right people at right time and right quantity will take the organization towards the success path. Induct new members: Induction is the first day introduction of people, work and background of the company.

Handle Redundancy: To avoid redundancy introducing part-time jobs, encourage early retirement. The above mentioned human resource requirement was strictly followed by Lloyds TSB to tackle the turbulent situations.

2.3 Lloyds TSB Human Resource Plan The Human resource plan is a systematic approach of matching the skills, knowledge and competency of individual to achieve the long term objectives of an organisation. Lloyds TSB is managing people and effectively and developing their skills for the improvement. It is focused on attracting, retaining, developing, managing and motivating its employees. Staff planning is the approach of getting the right staffs, with right skills for right jobs at the right time.HRP of Lloyds TSB is a two-step process as shown in the following figure: The most important role of HRM is which is used to reduce the uncertainty of the future. The proper planning not only leads the organization to success but also helps to define the organisation's objectives. Human Resource Planning (HRP) focus on three concerns: Needs forecasting: This is used to analyse the external factors such as political, social, economic, government new rules and regulations, workforce level, technological and competitions in the market. The external factor is addressing the human resource availability and requirements. Resource requirement of HR in Lloyds TSB are plans, budgets, policies, philosophy etc., forecasting the movements, development are the human resource availability of Lloyds TSB.

Figure 2: Human Resoure Plan (Source: J.W Walker as publishedin Cascio, 1998)

Program Planning -Includes performance and career management. Consider Lloyds TSB its activities, relationship, responsibilities, standards, quality of life. Performance Appraisal, Rewards in the form of compensation, benefits are encouraging the employees to meet t the organisational objective. The opportunities provide personal career plan, recruitment, and selection.
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career

2.4 Human Resource Planning (HRP) Contribution The Human Resource Planning (HRP) Contribution of Lloyds TSB is the one of most effective way to achieve the overall strategic objectives. Human resources planning predict not only the required number of employees but also decide the action plan for all functions of employee management (Datapole, 2011). Human resource planning is essential for all organization. The human resources backed up the availability of organization regarding expansion, diversification and technological change. It also suggests modification in the plan when the expected manpower is not available. HRP balances uncertainty and change in Lloyds TSB. It may have enough resources like money and machines but no correct workforce. HRP provides the possible right people at right time and in the right place. It is used to set the strategic direction for the organization. HRP contribute to the progress and development of employees through training programme, development, commitment and also establishing employee relationship for better performance. Design the human resource management system. The contribution includes individual employee satisfaction such as salary increment, promotions, better employee benefits, transfers etc., Retaining the highly skilled employees in order to handle the critical economic situation It helps to predict the need for redundancy and plans to check of employee for the change and techniques of management. Effectively managing the downsizing programme. It includes retraining, redeployment etc.,

TASK 3 3.1 HRM Policies Lloyds TSB provides banking services for over 16 million customers with workforce approximately 75,000 people. All customers are expecting quality in service. This requires high demand of employees. Lloyds TSBs HR policies it pprovides

frameworks which consistent decisions are made, ensures that employees are treated equally, facilitate empowerment, devolution and delegation. It establishes employment relationship and psychological contract (Changing Working Paterns, 1995)

HR policies may be implicit or explicit or a combination of the two. Explicit policies are consistent, difficulty in understanding, inflexible, constrictive. Policies are expressed in abstract forms and formalised HR policies provide the guidelines. Flexible Working option Policy Lloyds TSB is attracting employees because of flexibility in working conditions. It also helps sustainability of employees. They are more productive and motivated due to the flexible working conditions they work. Work from home, tele-working which allows the employees to carry out some work even at home. These are designed basically to make sure that Lloyds TSB is a good place to work. There is a balance in work-life. This is the balance life in between job and family. This HR Policy is named as Work Options. This provides flexible work timings for the employees. HR Policies fit and shape the corporate culture. To ensure this approach it is in line with corporate values and adapted to the entire organization. Health and Safety policy Lloyds TSB Group plc is committed to high standards of health and safety welfare for its employees.. Minimize the risk to the health and in the working environments, this policy is cost effective (Health and Safety Policy Statement, 2004). Lloyds TSB supports Smoking free policy provided designated area for the needs. Recruitment and Selection policy It provides the guided principles of hiring practices, directing new employees, agree with employment laws, and confidentiality. To ensuring that the fair and consistent practise in line with governing document Training and development policy This policy helps Lloyds TSB to train and develop employees skills by providing various development programmes of employees. Bullying and Harassment an anti bullying policy that stressed that bullying will not be tolerated and disciplinary action against bully.

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Equality and Diversity The diversity starts from the top and ends to all level of an organization. The success of a business depends on the employees from diverse groups. The environment have been created in Lloyds TSB in which all staff can contribute to success or during the training period the program consists of work balance, race, religion, gender age, work balance life, sexual orientation, disability. Lloyds TSB is an equal opportunity employer, amongst employees could be managed more effectively and efficiently (Equality and Diversity, 2011) In case of Sexual harassment: The employees can complaint to same sex. Victim can be advised, counselled and provides support. Victims of sexual harassment will be given advice, counselling and support as required Maternity Leave, Paternity Leave, Adoption Leave and Parental Leave Policy This policy supports working parents, offers upto 63 weeks parental leave. Additional parental leave until childs first five years is up to 13 weeks leave for urgent family situations Compassionate & Emergency provided. 3.2 Regulatory Requirement The following are the various regulatory requirements of Lloyds TSB covers human resource policies such as: the Pay, Equality, Employment rights and responsibilities, Data protection, and contract conditions. The above mentioned has major impact in the HR Policies. Pay System Lloyds TSB will pay workforce fairly, whilst meeting legal requirements and also made necessary contributions it includes: Minimum Wage , Tax, pension, NI, Pay statement, Sick pay, Equal pay for male and female and also comparing the same skills, knowledge, experience, expertise and, holiday pay etc., These are based on the equality act 1970. Equality Act According to equality act of 2006, Lloyds TSB has followed the legislations: It eliminates discrimination and harassment of individual form training that is unlawful under the Sex discrimination Act 1975. Discrimination was completely eliminated in Equal Pay Act 1970. To prove the equal opportunity of employer it is giving opportunity for both men and women equally.
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Disability Discrimination Act(DDA) As per DDA 1995 the disabled person can also encouraged in employment and treated fairly as like normal people have given an opportunity in order to prove their skills, knowledge and giving standard life style. Opportunities in employment on special quotas system, Providing good services and facilities, DDA amended on 2001. The DDA is highly supported by Lloyds TSB by promoting equal opportunity and offer disability equality scheme.

Sex Discrimination Act This act was established in 1975 and amended in 1986. From concerned with the recruitment, till the employees resignation in Lloyds TSB will strictly adhere to Sex discrimination act. Lloyds TSB strictly condemn the direct or indirect discrimination of their own employees. This act also deals with employees training, promotion, dismissal etc., Lloyds fairly treating women employees and giving more respect to months and those having kids. This can be proven by offering up to 63 weeks holiday with at least of statutory pay, and offering flexible working pattern to support their family life balance. Data Protection Act This promotes the way of protecting the employees data on company files, in terms of storing the data of all individual workers. It establishes an 8-point rule requiring that personal information should be: kept secure, legally processed for limited

purposes, sufficient use, not transferred to anywhere without protection .

TASK 4

4.1 Organisational Structure The Lloyds TSB structure is a framework, which may be hierarchical or flat structure which arranges duties and responsibilities, in line of authority and communications, roles and powers, the information flow, responsibilities of delegation, control and coordination. It is of hierarchical structure, where the decision making is addressed
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by the top management. This structure posses the influence on human resource department of Lloyds TSB. Impact on Human Resource function Organizational Structure creates a basic structure that supports Human Resource practices such as recruitment, training and development, planning. Subsequently it reduces repetition cost and minimizes uncertainty to the line managers. Decision made for long term objectives, groups budget approval of capital expenditure, investments and disposals, operations and various risks that are comply with legislation and regulations; policy approvals relates to pensions and charitable and political issues; number and quality of directors to fulfil its responsibilities; the employees service, including remuneration, rewards(Role of the Board, 2008). 4.2 Organisational Culture and impact on HR
The organizational structure and its impact on HR can be analysed in the previous section Task 4a. In this section the Lloyds TSBs culture on HR and its impact will be analysed. It may be shared values, norms, beliefs that affect the workforce in Lloyds TSB. The organisational behaviour can be easily determined by the culture of workforce. The characteristics are: Innovation and risk taking, attention to detail, outcome, team & people

orientation and stability. The corporate responsibility strategy is to support by helping to build a great place for employees and increase their employee engagement. The equality and diversity approach of Lloyds TSB regardless of age, gender, sexual orientation, race, religion or disability. Lloyds TSB has created an environment in such a way that all employees can contribute to meet their objectives.

Dignity at Work- Appreciate and respect all different backgrounds and beliefs Work-Life Balance- providing flexible work options, part time, work from home and job sharing. Disability -unique Individual training programme for disabled staff Sexual Orientation Opportunities for Womens Gender- encouraging more women employees.

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Race- Ethnic minority employees are encouraged and highly supported by Lloyds TSB Religion-Employees from various faiths are motivated Age recruiting, training and promote people on merit not age (Equality and Diversity, 2011)

4.3 HRM Monitoring

The HRM of Lloyds TSB can be measured by using performance indicators: Two types of indicators are (Gelade, 2003):

Quantitative Measures Productivity -the introduction of development programs often improves productivity and also has a positive impact on employee support. Employee retention Flexible working pattern attracts more employees leads to retention in the same organization Staff turnover- reduced staff turnover based on internal promotion, rewards Qualitative Measures Employee attitude surveys In each department all employees attitude surey conducted once in a year Benchmarking - Targets are fixed each and every year to meet those target effective HRM can be monitored. Proposing improvements-Continuous monitoring and improvement will be the effective way 4.4 Recommendation for HRM Improvement
Lloyd TSBs corporate objective is to be the best financial service provider in the UK. To achieve this, some of the methods for monitoring and improving the effectiveness of HRM on recommendation

Performance measurement Balance Scorecard To measure the individual employee or group members performance by using balance scorecard method. This is an effective method of managing and measuring the performance. It considers various factors such as financial condition, contributions, long term business success, business strategy customer service, personal development, risk management to measure the individual performance. The tool is designed in such a way considers all these factor and needs of employees. Customer satisfaction is the cornerstone of business success.
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The balanced scorecard method show that employees actions impact on other colleagues and customers, which in turn into overall business performance. It identifies the employees personal objectives integrate to organizational strategy. All employees receive official evaluation and feedback on performance every year (Performance Management, 2007). Conclusion This case study is about Lloyds TSB - the UK leading high street bank. Strategic HRM plays a vital role in Lloyds TSB - its activities and contribution can be analysed. The growth of and its business expansion during recession period is obtained because of proper human resource planning. Its HRM policies, various regulatory requirements and organisational structures, culture, monitoring and evaluation and performance measurement by balance scorecard method can be found.

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