Importance of HRM in Strategic Planning & Recruitment Decision Making

This article discusses the importance of HRM in strategic planning and recruitment decision making. It highlights the role of HRM in improving the bottom line of an organization and provides insights into how to handle recruitment problems and offer sales incentives to branch managers. The article is based on three questions and provides detailed answers to each of them.

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A A M TFIN L SSIGN EN
8/8/2018

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Question 1
As a human resource manager, I will try to convince my top management
that I should be heavily involve in the company’s strategic planning process. As I
can leave a favorable and positive impact on company’s bottom line. From
conducting recruitment to employee development, training and retention strategies
HRM plays a vital role in providing data-driven solution and contribution in
achieving overall business goal of an organization (Entrepreneur, 2015). The
potential of bottom line improvement can be brought up with the help of me in
various areas as apart from finding an appropriate, suitable and competent employee
I can perform several functions like performance assessment, succession planning,
career pathing and identifying talent acquisition software that can make a company
successful (Fastcompany, 2015). I can suggest ways, which gives top management
reason to involve me in strategic planning process of company. Here are the reasons:
 The survival of the company is dependent on the knowledge, skills, ability,
capacity, capability, specialization and information its employee have and no
one can understand this better than I can as the recruitment process is
undertaken by me (Bohlander & Snell, 2010).
 I can maintain a healthy and friendly work culture and provide comfort to the
employees by resolving any kind of dispute taking place among employees. In
addition, helps in eliminating stress and anxiety among employees by creating
a positive environment (SumHR, 2018). This will help in smooth,
uninterrupted, and regular functioning of the company.
 I can help the company in handling and avoiding lawsuits and in addition
handling disputes that occur between employee and employer and can also set
benchmarks for employees and review to which extent they have become
successful. (Smallbusiness, 2018).
 I can design and arrange various professional training and development
programme that helps in ensuring corporate culture development (Cleverism,
2014).
 I have in-depth knowledge of the company and can provide the company with
the necessary and potential human resource who can positively contribute
towards achievement of company’s goal.

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 I can provide the company with the healthy workforce by monitoring the
wellness and health of employees and implementing strict safety policies so
that any kind of disruption may not occur or takes place in company’s routine
working (Liebowitz, 2010).
By keeping the above points, I can try to convince my top-level
management to involve me in the company’s strategic planning process. This
will be beneficial for the progress and growth of the company.
Question 2
BASED ON INCIDENT 6.1
1 No recruiting is not a problem in Powermat, Inc. The decision of making
recruitment is the main problem because they are not satisfied with their internally
recruited employees and those employees who are externally recruited and well
qualified opt to quit the organization after some time. As after a thorough reading of
incident 6.1 a conclusion can be derived that earlier the process of recruitment of the
company was internal from among the middle- level management employees but it
was experienced that they were not able to discharge their duties effectively due to
lack of necessary skills. Later on, the company opts for external recruitment and
hired some persons for their lower level management positions to prepare them for
middle level positions. However, within two months all the externally recruited
employees left their job (Billsberry, 2008). The problem of recruitment decision is
because when the organization is opting for internal recruitment then it is not satisfied
with its employees because they lacks in the required skills and if company goes for
external recruitment process then the employees they are employing are not loyal
towards organization and leaves the job after a certain period of time.
2 As a consultant I would strongly recommend that in case if the company is
recruiting the internal employees and feel that they lack skills and qualities, which are
needed to discharge their duties the company should first identify and examine the
skills and abilities in which their employee is lacking. After a proper examination

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being done they should give focus on improving the skills and abilities in which their
employee is lacking or lagging behind. Proper and professional training,
developmental programme, coaching, mentoring, cross-departmental training, and
positive motivation should be given to them so that they can provide their best to the
company. In addition, they should be making aware about changes taking place in an
organization, make sure their employees are not overloaded with work as this can also
adversely affect their skills and provide them thoughtful and meaningful feedback
about their work on regular basis. A positive feedback about their work will help to
motivate employees to work more efficiently than before and negative feedback will
compel them to improve their quality of work. In case if the company were interested
in external recruiting process then being a consultant I would recommend that, they
should give lucrative and attractive offer, generate a sense of job satisfaction, security
and effective training and guidance by professional to the newly recruited employees
so that they can gain skills and may not opt to change their job because frequent
resignation by employees from job may lead to instability in the working of the
organization (Gary, 2010).
Question 3
BASED ON INCIDENT 14.1
1 Jim must be satisfied with his current raise, as majority of raises lies between
4% to 10% and 10% of the base salary is the maximum raise allowed in the appraisal
system and he has earned maximum of it. He has earned the maximum percentage
raise i.e. 10% just because of his potential, ability, productivity, quality, and quantity
of work done by him. This maximum raise has given him internal satisfaction and
positive motivation to perform in a best way to earn maximum raise that is prevailing
and allowed in the system. If Jim does not give his best or has not given his full
efforts towards his banking sector organization then he may not have received the
highest percentage raise. As there may be many managers who must be lying between
the bracket of 4% to 9% of the base salary. However, he is the one out of them who
got 10 % of the base salary. He must be satisfied with his raise and efforts used by
him.
2 No banks are currently not offering adequate sales incentive to its branch
managers. However, it is essential to offer adequate and reasonable sales incentive in

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order to motivate branch managers. The incentive that a bank must offer to its branch
manager should be according to their potential, productivity, ability, and contribution
to sales done by them. They should be provided with the best incentive that they
deserve to be as appropriate sales incentive helps to motivate branch managers. It is
important to revise sales incentive policy to lure its branch managers. In case if the
appraisal system does not allow them to do so or they are not under position to give
monetary sales incentive beyond a certain limit then branch managers should be given
non-monetary sales incentive. Non-monetary sales incentives includes flexibility in
working hours, on the spot recognition, privilege such as giving free lunch in office,
pick and drop facility, accommodation provided by office, meal passes, health
insurance policy, and many more. These kinds of non-monetary benefits will also lure
and help a branch manager to be loyal with the organization and motivate them to
increase sales of the organization (Fisher, 2015). It is important for an organization to
reward good performance of their branch managers. If they do not so do then the
respective branch manager may feel demotivated and will not show his full efforts
and energy towards achieving sales goal.

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REFERENCES
Billsberry, J. (2008). Experiencing recruitment and selection. England: John Wiley &
Sons.
Bohlander, G.W., & Snell, S. (2010). Managing human resources. Canada: Cengage
Learning.
Cleverism. (2014). How to design and implement an HR strategy. Retrieved from:
https://www.cleverism.com/design-implement-hr-strategy/
Entrepreneur. (2015). 3 reasons HR need to be involved in planning a business’s
strategy. Retrieved from:
https://www.entrepreneur.com/article/249586
Fastcompany. (2015). 4 reasons to invite HR to your strategic planning meetings.
Retrieved from: https://www.fastcompany.com/3041098/4-reasons-to-
invite-hr-to-your-strategic-planning-meetings
Fisher, J.G. (2015). Strategic rewards and recognition: Improving employees
performance through non-monetary benefits. Great Britain: Kogan
Page Publishers.
Gary, D. (2010). Fundamentals of human resource management: content,
competencies, and application. India: Pearson Education.
Liebowitz, J. (2010). The role of HR in achieving a sustainability culture. Journal of
sustainable development, 3(4), pp. 50-56.
Smallbusiness. (2018). Role of HR in achieving business goals. Retrieved from:
https://smallbusiness.chron.com/role-hr-achieving-business-goals-
1767.html
SumHR. (2018). Roles and Responsibilities of HR managers in Growing
Organizations. Retrieved from: https://www.sumhr.com/hr-manager-
role/