Understanding Organisations and the Role of Human Resources - Prudential PLC

This article provides an analysis of Prudential PLC, its products/services, customers, external factors, organisational structure, functions, culture, and the role of HRM/L&D activities in achieving organisational goals.

Understanding Oragnisations and the Role of Human Resources
Prudential PLC

Table of Contents
Task 1..........................................................................................................................................2
Prudential PLC........................................................................................................................2
Products/Services...................................................................................................................2
Customers and their needs....................................................................................................2
Purpose, Goal, target and financial structure........................................................................2
Analysis of external factors and their impact on the company.............................................3
Task 2..........................................................................................................................................4
Structure and Functions of Prudential PLC............................................................................4
Coordination between functions of Prudential PLC for optimising performance.................4
Organisational Culture and its impact...................................................................................5
Task 3..........................................................................................................................................6
Role of HRM/L&D activities in the achievement of organisational goals..............................6
Role of HRM and L&D professionals in support of line managers and their staff.................7
References..................................................................................................................................8
Page 1

Task 1
Prudential PLC
Prudential PLC was founded in 1848, and it is a British multinational life insurance
organisation (Prudential, 2018a). The corporation operates in the financial services industry,
and its headquarters is situated in London, UK. The company has over 26 million customers,
and it has assets of over £669 billion under its management as of 2017 (Prudential, 2018b).
Currently, the corporation is one of the market leaders in the financial market.
Products/Services
The corporations provide a number of financial products and services to its customers that
include annuities, investment management services, retirement-related services, consumer
finance, life insurance and mutual funds. The company offers these products and services
globally with major operations situated in different areas of Asia, Latin America, Europe, the
United Kingdom and the United States (Bloomberg, 2016).
Customers and their needs
Customers of Prudential PLC is divided into three segments which include:
 The increasing number of middle-class people in Asia who have needs relating to
health and wealth products
 The baby boomer generating in the United States who have needs relating
retirement income solution
 The ageing population situated in the United Kingdom who have needs of savings
products (Prudential, 2018c)
Purpose, Goal, target and financial structure
The company’s goal is to become the market leader in the financial services field and
become a trustworthy partner of its customers. Its purpose is to achieve financial prosperity
by targeting its customers and providing them innovative solutions for protecting and
growing their wealth. The current P/E of the company is 19.53, and its total debt to total
equity is 73.27. The price of sales ratio of the company is 0.57, and its return on total
investment is 9.01 (Market Watch, 2018).
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Analysis of external factors and their impact on the company
 The volatility in the industry and negative economic conditions resulted in negatively
affecting the interest rates, investments and equity markets. These factors have a
negative impact on the business of Prudential PLC, and it affects its profitability
(Financial Times, 2017).
 The company operates in the highly competitive market and the taste and
preference of customers quickly changes which affect the sustainable growth of the
corporation.
 Its business is affected by fluctuations in foreign exchange rates because its
operations are situated across the globe. Any significant change or fluctuation in
exchange rates resulted in negatively affecting the financial position of the
corporation in foreign countries.
 The corporations have to comply with a number of government regulations, and any
changes in the legal structure of the country have a negative impact on its products,
channels of distribution, capital and competitiveness. For example, Brexit affected
the European business of the company, and it is cutting its exposure to the capital-
intensive products due to rigorous European solvency regulations (Martin, Cohn and
Jessop, 2018).
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Task 2
Structure and Functions of Prudential PLC
The corporation has an independent business structure with a simple organisational form
which assists the corporation in supporting its business activities. There are four key
business units which perform the functions of the company.
 In the United States, Jackson National Life Insurance Company focuses on the target
customer base by providing them effective customised retirement products. There is
a strong population of 78 million baby boomers in the US and the company assist
them by providing them solutions regarding their work life (Prudential Corporation,
2018).
 Prudential UK focuses on wealthy and affluent customers who are living in the UK
and deliver value to such groups by providing them pension solutions and life
insurance.
 In Asia, Prudential Corporation Asia focuses on providing healthcare and protection
insurance services to middle-class families whose population is increasing
continuously. The asset management of the company, Eastspring Investments,
management the investments in 13 different markets which are situated across a
diverse set of asset classes (Prudential, 2018d).
 In Europe, M&G has become the largest retail and institutional fund managers, and it
offers expert knowledge to customers regarding investment solutions.
Coordination between functions of Prudential PLC for optimising performance
The strategic units of Prudential PLC focus on working together to utilise capabilities of its
different functions. Due to such collaboration, the corporation is able to offer the most
effective and optimal wealth production and savings solutions to its customers. The
corporation offers financial protection solutions to its customers by effective coordination
between its different divisions which include Prudential Corporation Asia, the Jackson
National Life Insurance Company, and Prudential UK. On the other hand, M&G and
Eastspring Investments provide solutions for asset and investment solutions to their
customers (Prudential, 2018e). During this process, the corporation earns revenue by
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managing the wealth of its customers. Due to effective collaboration between different
divisions of the company, the corporation is able to increase the efficiency of its operations
which resulted in increasing its profitability.
Organisational Culture and its impact
The organisational culture in Prudential PLC focuses on maintaining respect, dignity and
equal opportunities for all employees and the management. The corporation believes in
fostering an organisational culture which encourages employees to behave appropriately by
adhering to the code of conduct in the corporation (Prudential, 2018f). Effective compliance
with the code of conduct avoids misconduct in the corporation. The corporation hires
employees from different cultures and backgrounds to promote diversity because it
recognises the fact that it enriches the company and its culture. The senior level
management leverages the capabilities and strengths of each employee which assist in
contributing to the overall success of the corporation. The corporation has implemented
different rules and regulations for employees which avoids disputes and ensure that they
perform at highest capacity. Employees are trained, and the strictly follow guidelines and
policies for maintaining a high ethical standard. Therefore, the establishment of a positive
organisational culture ensures that employees work at their highest capabilities which assist
the company in achieving its corporate goals.
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Task 3
Role of HRM/L&D activities in the achievement of organisational goals
Following are different ways in which HRM/L&D activities supports Prudential PL in
achieving its corporate goals and business objectives.
Apprenticeship Program
The HR department of the company has established an apprenticeship program for people
who are not privileged to further their careers and achieve better business opportunities by
opting for higher education. The HR department gives chances to talented employees who
have the capabilities to learn new skills and expand their knowledge. In this program, 13-
month training is given to employees that assist them in gaining valuable experience and
collect skills and knowledge which assist them in expanding their careers and gain a higher
position in the company (The Big Choice, 2018).
Diversity and Inclusion
Based on this principle, the HR department did not discriminate between job candidates
during their hiring and provide equal opportunities to people from different communities
irrespective of their religion, caste, gender, age or background. Due to this structure, the
corporation hires candidates based on their academic and intellectual qualifications rather
than physical characteristics which assist the company in hiring highly qualified employees
that assist it in achieving its corporate objectives (Prudential, 2018g).
Participation in development of the community
In Prudential PLC, the HR department encourage and organise different programs to
participate its employees in various community development activities. These programs
support different activities including child and youth education, protection of heritage,
charity and donations and welfare of the society and environment (Prudential, 2018h). Due
to these activities, collaboration between employees increase which improve their
productivity, and it creates a positive brand image of the company.
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Role of HRM and L&D professionals in support of line managers and their staff
Following are different ways in which HRM and L&D professional assist the line managers of
the company and their staff.
Affinity Networks
The HR department of the company has established different affinity networks. For
example, “M&G Pride” is a program established by the company which focuses on
establishing a socially supportive environment in the company for employees who have
identified themselves as LGBT or Lesbian, Gay, Bisexual or Transgender (Where Women
Work, 2018). This program focuses on avoiding discrimination between employees at the
workplace. Another example is London based Prudential Women’s Professional Network
(PWPN) which is established by the company for providing equal opportunities to female
employees and encourages the hiring of female employees at the workplace (Wegate,
2018).
Talent Development Program
The HR department provides training to line managers and their employees that include
both on the job and off the job training programs. It helps them improve their knowledge
and review their performance to improve their skills. This program increase competition
between employees to improve their performance by learning new skills or improving their
knowledge to stay relevant in the field (Sunway, 2007).
Employee Rewards Program
The HR department has established a reward program for its line managers and their
employees to motivate them to perform better and achieve their targets. It helps managers
in increasing the retention rate of employees and ensuring that employees perform at their
highest capacity. The company provides rewards and incentives based on the performance
of employees. The top-level management also monitors the performance of employees and
continuously encourage them to perform better which assist line managers and their staff in
achieving their targets (Pru, 2018).
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References
Bloomberg. (2016) Company Overview of Prudential PLC. [Online] Bloomberg. Available at:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=527074
[Accessed on 2nd June 2018].
Financial Times. (2017) Prudential plc - HY17 Results - Risk Factors. [Online] Financial Times.
Available at: https://markets.ft.com/data/announce/detail?dockey=1323-13325626-
2G00JBBRBNSJAFABINFL3E6PDJ [Accessed on 2nd June 2018].
Market Watch. (2018) Prudential PLC. [Online] Market Watch. Available at:
https://www.marketwatch.com/investing/stock/pukpf/profile [Accessed on 2nd June 2018].
Martin, B., Cohn, C. and Jessop, S. (2018) Prudential to split in new world order for British
insurers. [Online] Reuters. Available at: https://uk.reuters.com/article/us-prudential-m-g-
demerger/prudential-to-split-in-new-world-order-for-british-insurers-idUKKCN1GQ0NX
[Accessed on 2nd June 2018].
Pru. (2018) Our Employee Benefits. [Online] Pru. Available at:
https://www.pru.co.uk/careers-at-pru/our-employee-benefits/ [Accessed on 2nd June 2018].
Prudential Corporation. (2018) Business Disclaimer: Jackson. [Online] Prudential
Corporation. Available at: https://www.prudentialcorporation-asia.com/corp/prudential-
pca/en/our-company/business-disclaimer/jackson/ [Accessed on 2nd June 2018].
Prudential. (2018a) Our History. [Online] Prudential. Available at:
http://www.prudential.co.uk/about-us/our-history [Accessed on 2nd June 2018].
Prudential. (2018b) Prudential PLC full year 2017 results. [Online] Prudential. Available at:
http://www.prudential.co.uk/news/news-releases/2018/14-03-2018 [Accessed on 2nd June
2018].
Prudential. (2018c) Our Customers. [Online] Prudential. Available at:
http://www.prudential.co.uk/about-us/our-customers [Accessed on 2nd June 2018].
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Prudential. (2018d) Serving Asia’s economic transformation. [Online] Prudential. Available
at: http://www.prudential.co.uk/businesses/asia#/CN [Accessed on 2nd June 2018].
Prudential. (2018e) Prudential plc to demerge M&G Prudential from Prudential plc, and
announces the partial sale of its UK annuity portfolio. [Online] Prudential. Available at:
https://www.prudential.com.sg/en/our-company/press/2018/20180314a/ [Accessed on 2nd
June 2018].
Prudential. (2018f) Code of Business Conduct. [Online] Prudential. Available at:
http://www.prudential.co.uk/investors/governance-and-policies/code-of-business-conduct
[Accessed on 2nd June 2018].
Prudential. (2018g) Diversity and inclusion. [Online] Prudential. Available at:
http://www.prudential.co.uk/investors/governance-and-policies/diversity-and-inclusion
[Accessed on 2nd June 2018].
Prudential. (2018h) Responsibility – at the heart of our business. [Online] Prudential.
Available at: http://www.prudential.co.uk/responsibility/approach [Accessed on 2nd June
2018].
Sunway. (2007) Prudential young talented programme grooms Sunway Students for the
world. [Online] Sunway. Available at: http://sunway.edu.my/success/2007/01/prudential-
young-talent-programme-grooms-sunway-students-for-the-worl/ [Accessed on 2nd June
2018].
The Big Choice. (2018) Prudential Apprenticeships. [Online] The Big Choice. Available at:
https://www.thebigchoice.com/Apprenticeships/Prudential [Accessed on 2nd June 2018].
Wegate. (2018) Professional Women’s Network London (UK). [Online] Wegate. Available at:
https://wegate.eu/professional-women%E2%80%99s-network-london-uk [Accessed on 2nd
June 2018].
Where Women Work. (2018) M&G celebrates Pride Network's first anniversary. [Online]
Where Women Work. Available at:
https://www.wherewomenwork.com/Career/145/MandG-celebrates-Pride-Networks-first-
anniversary [Accessed on 2nd June 2018].
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