Strategic HRM Practices and Challenges

Added on 2020-04-01

12 Pages2790 Words65 Views

Running Head: ENGINEERING MANAGEMENT 1Engineering ManagementNameInstitutionDate

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ENGINEERING MANAGEMENT 2Engineering ManagementExecutive summaryThis project provides an extensive look at ArcelorMittal-a steel mining andmanufacturing company. It provides in-depth study of workforce in the company and identifieskey workforce challenges encountered. Factors that affect workforce and their considerationsduring recruitment will be discussed with reference to labor supply and demand, organizationalimage, demographic issues as well as recruitment strategies. To find out what the company iscurrently doing and possibly project how it will be doing sometimes later, employment trendwithin the company in the last five years will be surveyed. Other issues that will be covered arefactors affecting workforce such as improvement of productivity, expansion of the company andreplacements need due to retirements, deaths, job quitting etc. Conclusion of the major issuesarising from the study will be made and recommendations provided.

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ENGINEERING MANAGEMENT 3Table of content....................................................................................3Executive summary................................................................................22.0 Introduction....................................................................................43.0 Discussion......................................................................................4 3.1 Labor supply and demand............................................................4 3.2 Organization image....................................................................5 3.3 Demography and workforce.........................................................7 3.4 Recruitment strategies.................................................................84.0 Conclusion.....................................................................................95.0 Recommendations...........................................................................106.0 References.....................................................................................11

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ENGINEERING MANAGEMENT 42.0 IntroductionArcelorMittal is a leading steel manufacturing and mining company. It has over 260,000employees from over 60 countries and with subsidiaries in 20 countries across Europe, America,Middle East, Far East and Africa (Chawla & Joshi, 2011). For such a big company withmultinational employees of different cultures, races and varying background, recruitment ofworkforce to suit the needs of the company as expected at the top of management can prove to bequite challenging. This particularly becomes interesting given that similar workforce resultsmaybe expected across all company’s satellites regardless of the differences in work attributesand beliefs across the world. The challenge is to come up with a recruitment plan that will ensurethat hired workers best suit the requirement at local level while delivering to achieve commongoals set at the top of the management.3.0 Discussion3.1 Labor supply and demandArcelorMittal faces challenges of being overstaffed and understaffed at the same time.Biggest challenge facing employment at ArcelorMittal is automation, according to thecompany’s 2015 integrated report. While the company needs to look for ways to reduce its staff,it also suffers dilemma in that it needs to develop in-house skills and hire external expertise inorder to achieve arising strategic goals. The company has excellent in-house skills but it doesn’thave all talents need to achieve certain objectives. The company is overstaffed in general incomparison with the current supply demand for steel in their European and North Americanmarkets. However, need to make strategic hires for adequate coverage in all areas is a good idea(Othman, 2009). In-house skills and talent development is the ultimate initiative, in the wake ofreduced external recruitment, to make adequate coverage in senior positions as well as for