Strategic Human Resource Management

This assignment analyzes the chief human resource issues faced by Hartley Electronics Ltd. and discusses theoretical perspectives and recommendations for improvement.

Running head: STRATAGIC HUMAN RESOURCE MANAGEMENT
Strategic Human Resource Management
Name of the Student
Name of the University
Authors Note

1STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
Abstract
The purpose of this assignment is to eliminate the HRM issues associated with the organization Hartley
Electronics Ltd. An effective human resource management contributes greatly to the overall direction and
accomplishment of an organization along with its goal and objectives. The purpose of this report is to
analyze the chief human resource issues that have been faced by the organization Hartley Electronics Ltd.
Along with identifying the issues, in this report, demonstration of critical awareness of the 3 theoretical
perspectives associated with the HRM issues of the mentioned organization will be discussed.
Recommendations in order to justify a particular course that follows logically from the argument will also
be provided in the report.

2STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
Table of Contents
Introduction.......................................................................................................................................................3
Discussion.........................................................................................................................................................3
Identification of the HRM issue of Hartley Electronics Ltd.........................................................................3
Implementation of the Theoretical Perspectives...........................................................................................5
Recommendation...............................................................................................................................................9
Conclusion.......................................................................................................................................................10
Reference List.................................................................................................................................................11

3STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
Introduction
The term Human Resource management refers to the strategic approach for effective management of
individual in a company that helps the management to gain competitive advantage. It is designed for
maximizing the performance of the employees in service of strategic objectives of the employees. Human
resource is majorly associated with the management of staffs along with focusing on the policies as well as
on systems. HR departments are accountable for looking after the benefit designs of the employees,
employee recruitment, rewarding, performance appraisal and training and development. Human Resource is
also associated with industrial relations as well as organizational change that include balancing of the
organizational practices. In this era of high competition between organizations, retaining skilled staffs and
gaining employee loyalty is highly crucial for achieving both short term goal as well as long term goal of an
organization (Wood 2016). Employee retention is directly proportional to the increment in the revenue of
the employees. Considering the fact that employee satisfaction is directly associated with compensation,
performance management, organizational development, health and safety, employee motivation and other
factors, the human resource department of an organization deals with the above mentioned factors as well.
Thus HRM plays a strategic role when it comes to managing individual well as workplace culture and
environment. An effective human resource management contributes greatly to the overall direction and
accomplishment of an organization along with its goal and objectives (Velez-Castrillon, White and Brown
2018). The purpose of this report is to analyze the chief human resource issues that have been faced by the
organization Hartley Electronics Ltd. Along with identifying the issues, in this report, demonstration of
critical awareness of the 3 theoretical perspectives associated with the HRM issues of the mentioned
organization will be discussed. Recommendations in order to justify a particular course that follows
logically from the argument will also be provided in the report.
Discussion
Identification of the HRM issue of Hartley Electronics Ltd
The Hartley Electronics Ltd. Is a macro electronic component manufacturing organization. The
company due to its superior quality of the product and skilled workforce has experienced a steady growth in

4STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
a limited amount of time. Considering the fact that the employees of the organization have got increased
from 50 to 125 staffs, the organization is facing the following issues that is imposing negative impact on
employee retention.
1. The first issue that is faced by the Hartley Electronics Ltd., is discrepancy in the structure of the
employee salary. The salary structure of the organization is distorted. Employees performing tasks
of similar effort have difference between their salaries that ranges from 2,000 pounds to 3000
pounds per year (Collings, Wood and Szamosi 2018). This in turn, act as a discouragement and is
hampering the productivity of the employees. While an incentive structure is there for 60 production
employees of the organization, lack of production has resulted in no incentives.
2. The company lacks effective approach to learning and development of all levels within the
organization. Lack of effective learning approach can be considered as one of the chief reasons
behind deterioration the interest, loyalty as well as productivity of the employees within the
organization. in spite of the fact that no trade union is recognized by the management till now ,
several production employees are found to have joined recently in “Unite –the Union.”
3. The Hartley Electronics Ltd lacks formal as well as constructive information arrangements. Lack of
information arrangement within an organization makes it highly difficult for both the employees a
well as the management to share crucial information to all the required personnel within a limited
amount of time. This also results in ineffective information distribution between the employees that
in turn hampers their productivity and can also result in spreading of rumors and grape vine
communication.
4. The managers of the organization lack leadership skills. While managers tries to practice
transformational leadership techniques, they fails to act consistently and fairly. This in turn, often
results in conflict between the workforce and the management o the organization.
5. The employee morale of the company is deteriorating with time and a good number of employees
possess the fear off becoming jobless. This in turn, is affecting their loyalty towards the
organization. Lack of effective information distributing system is to blamed for the mentioned issue.
The far off loosing job in the mind of the employees comes from the hanging macro environment.
However, they are not aware of the fact that the company is expecting big orders too come within

5STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
the next few months that can enhance the revenue as well as reputation of the same in the micro
electronic equipment manufacturing industry.
Implementation of the Theoretical Perspectives
From the above discussed issue, it can be clearly understood that the Hartley Electronics Ltd is
suffering from major HRM related issues. In order to develop effective recommendations for the mentioned
organization, HM theories associated with the mentioned issue has been discussed bellow.
Considering the fact that the employees of the mentioned organization is lacking motivation, one of
the most crucial HRM theories associated with employee motivation is Maslow's hierarchy of needs. The
mentioned theory has pointed out the factors that have the potential to motivate employees. According to
the theory the five factors that have the potential to motivate the employees are physiological needs, safety
needs, social needs, self esteem and self-actualisation. The mentioned needs are organized in hierarchy with
the basic need kept at the bottom. The basic needs that can enhance employee motivation are food, shelter
and warmth. This may includes basic benefits like a cafeteria in the office and effective work life balance.
According to Noe et al. (2017) employees whose lowest level needs have not been met tries to make
decisions on the basis of the compensation, safety and stability concern. Hence it is highly crucial for the
HR professional of an organization to ensure that the basic needs of the employees have been maintained.
As one need is met the employees desire the level above it. The next step motivational needs of the
employees include safety needs that are comprised of security, stability, freedom from threats and comfort.
In order to enhance the satisfaction of the employees, the management needs to include safe working
conditions, benefits and job security. For instance, Tesco has implemented a monthly OHS monitoring
strategy in order to ensure the safety and security of the employees in the work place (Scott-Jackson et al.
2017). The third step implemented by the mentioned organization includes social needs that are comprised
of affection, belonging and love. In order to develop and maintain the urge of attending the workplace every
day, it is highly crucial for the management of an organization to ensure effective work relations and
professional association. Effective professional and personal relationship between employees not only
enhances their loyalty towards the organization but also reduces conflicts and other issues.

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When it comes to the fourth stage of employee satisfaction it includes esteem. This stage mainly
includes self respect, prestige as well as status. In order to gain intrinsic motivation while working for a
company, it is highly crucial for an employee to gain prestige and status on the basis of his r her personality
and performance (Rees and Smith 2017). The last stage of the mentioned theory is self actualization that
includes growth advancement and creativity. Employees who have worked for a prolonged period in an
organization, needs to feel a sense of achievement and advancement in order to enhance and maintain their
loyalty towards the organization. Considering the fact that majority of the employees of Hartley Electronics
Ltd are found to lack motivation and engagement with the organization, it is highly crucial for the
management to develop strategies for enhancing employee’s motivation based on the discussed theoretical
perspective.
The second most crucial theories that is associated with the HRM issues of the Hartley Electronics
Ltd. Includes Adam’s Equity theory. The mentioned theory acknowledges that both subtle as well as
variable factors have the potential to affect an assessment of the employee along the perception of their
relationship with their employer and their work (Konrad, Yang and Maurer 2016). The mentioned theory
focuses on the inputs given by the employees and the output obtained by the same in return. While the
inputs include hard work, skills as well as enthusiasm, the outputs include salary, responsibilities and
recognition. Employees spend a huge amount of time, energy as well as engagement at the workplace. They
share idea, hard work, trust to their superiors s well as engagement to work. Each and every day the
employees make an effort by arriving at work within time and carrying out their task effectively. They are
also expected to demonstrate their skill as well as enhance the same in an effective way so that enhancement
in the overall productivity o the organization can be experienced.
When it comes to output of the employees, it can be segregated into three parts namely, financial
rewards and immaterial rewards. While financial rewards like appraisals act as a extrinsic motivation for
three employees, immaterial rewards like recognitions acts as a basis of intrinsic motivation for the same.
Some of the major financial rewards that the Hartley Electronics Ltd. Can implement for enhancing the
extrinsic motivation of the employees includes salary, bonus and profit. Some of the immaterial rewards

7STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
that can be implemented by the company in order to enhance the intrinsic motivation of the company
include recognition, challenge and responsibility.
The theory states that a proper balance between input and output ensures that an employee feels
satisfied and motivated, contributing to their productivity (Shields et al. 2015). Not only this, the Adam
Equity theory also demonstrates why salary as well as benefit alone does not possess the potential to
determine the motivation of the employees. In this era of high competition between the organizations, fair
and equal treatment of an organization is considered to be equally important for an employee like
remuneration and benefit. In case of Hartley electronics Limited, one of the chief issues is unfair and
unequal treatment of the employees by the managers. Considering the fact that Hartley operates in an
industry where a good number of competitor organizations are ready to pay higher salary to skilled
employees, unfair treatment along with discriminatory act may result in excessive employee attrition.
Unequal treatment of employees makes the employees unsatisfied with their job roles that get manifested in
different ways. One of the major impacts of unfairly treatment of the employees is lack of optimal
performance. According to Ryan (2016), demotivated employees does not possess job loyalty and thus are
not afraid of losing their jobs. Skilled employees, who are aware of their skill and demand often feels free to
leave the organization in case of constant discrimination. Considering the fact that losing skilled employees
in the highly competitive market is equivalent to loss of a huge amount of revenue for the Hartley
electronics Ltd., it is highly crucial for the organization to develop strategies that can enhance the
leadership skills of the mangers so that discriminatory acts can be prevented.
The third crucial HRM theoretical perspective that has the potential to eliminate HRM related issues
associated with the mentioned organization includes Frederick Herzberg’s Motivation-Hygiene Theory.
In order to understand the attitude as well as motivation of the employees, the mentioned author needs to
perform studies in order to determine the factors that are causing satisfaction as well as dissatisfaction in the
work environment of the employees (Torre, Pelagatti and Solari 2015). Considering the fact that the
organization lacks effective approach to learning and development of all levels within the organization,
implementation of the mentioned theory has the potential to motivate the employees to enhance their
learning and development approach. The two factors theory chiefly distinguishes between motivators and

8STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
Hygiene factors. The major motivators as being detected by the theory includes recognition for one’s
achievement, responsibility, challenging work , responsibility and growths. On the other hand, the chief
hygienic factors, that is the factors that leads to dissatisfaction includes company policy, supervision, work
condition, salary and relationship with peers.
According to Miner (2015), considering the fact that the factors resulting in satisfaction is
completely different from the factors that are causing dissatisfaction, the two feelings cannot be treated as
opposites of one another. For instance, the opposite of satisfaction is not dissatisfaction by t no satisfaction.
Not only is it highly crucial for the management of the Hartley Electronics Limited to provide hygiene
factors for avoiding employee dissatisfaction, but also provide factors that will provide intrinsic motivation
in order to make the employees satisfied with their job profile. According to the mentioned theory, it is
highly crucial for the management to ensure that the job profiles possess sufficient challenges for utilizing
the full ability of the staffs. Not only this, employees who demonstrate enhanced level of ability should be
given enhanced levels of responsibility. Off course, enhancement in responsibility should always be
accompanied by extrinsic motivation factors like rewards and high appraisal. In increment in responsibility
without both extrinsic and intrinsic recognition has the potential to impose adverse effect on employee
satisfaction. As being stated in the case study, their prevail discrepancy in the salary structure of the
employees, it is highly crucial for the organization to focus on the issue since lack of justified salary has
high potential to give rise to employee dissatisfaction. According to Thiriku and Were (2016), if a job
profile lacks the potential to use the full ability of the employees, then the organization should considered
automating the task as well as replacing the employee with one who possess lower skill level. In case an
individual cannot be fully utilized, it signifies lack of motivational issues in the organization. For the
managers, it is highly crucial to ensure that critical information is shared with the employees. Considering
the fact tat the Hartley Electronics Ltd. Lacks proper information sharing techniques, it can lead to major
dissatisfaction of the employees. Sharing of crucial information helps the employees to be aware of the
current situation of the organization. Not only this, it also enhances their sense of empowerment since this
enables them to consider themselves as a part of the organization.

9STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
Recommendation
From the above discussion, it can be clearly understood that with the implementation of effective
HRM strategies, the Hartley Electronics Ltd. has the potential to enhance the performance of the
organization to an effective level. In order to gain success, the organization should implement the following
strategies:
1. The management needs to understand that in this highly competitive environment, the chief assets of
the company are employees. In order to retain employees, it is highly crucial for the management to
eliminate discrepancies between the salaries of the employees who give similar effort for the
company (Sankar 2015). The company should recruit an personnel who will be monitoring the
yearly performance of all the employees on the basis of their productivity, quality, total presence
and absenteeism. Four bands or salary structure will be fixed and all the employees will be assigned
one of the four bands depending on the above mentioned factors. Employees falling under same
band will have similar quality and productivity an equal amount of remuneration will be given to
them.
2. In order to motivate the employees, it is highly crucial for the organization to implement both
intrinsic as well as extrinsic motivational techniques. Intrinsic motivational techniques may include
fun sessions to cheer up the employees, effective health and safety polices and leaves policies. Not
only must these employees who are showing increased productivity be given recognition through
both verbal appraisal as well as monitory rewards (Yoon et al. 2018). This in fact, will act as
extrinsic motivation. Not only this, employees who will demonstrate promising increment in
productivity and quality should be given a satisfying amount of salary hike in order to ensure
employee satisfaction. Good salary hike, along with satisfying the employees will enhance their
loyalty towards the mentioned organization and this in turn will provide competitive advantage to
the Hartley Electronics Ltd.
3. The third crucial strategy that should be implemented by the organization is to incorporate an
effective internal communication. Sharing of information is highly crucial since it not only helps the
management to understand the issues faced by the employees but also enables the employees to
understand the perspective of them management. For this, the Hartley Electronics Ltd. can

10STRATAGIC HUMAN RESOURCE MANAGEMENT Discussion
incorporate intranet facilities with in the organization. If both the employees and the management
remain connected through intranet, it will be easier for the managers to convey crucial information
amongst the employees within a very limited amount of time (Parker et al. 2017). Not only this,
employees will also be able to address their issues to the supervisors and thus an effective
employees –manager relationship will be established.
4. The management needs to incorporate employees during making decision for the company.
Considering the fact that a good number of employees are not aware of the upcoming big orders that
can enhance the revenue of the organization, the fact demonstrate that employees are not given
crucial information. In cooperating employees during the decision making process will enhance their
feelings of being empowered (Sankar 2015). Empowered employee will have higher loyalty towards
the organizations and this in turn will result in increment in revenue o the same.
5. Lastly, it is highly crucial for the organization to train its leaders. Managers should be given training
for increasing their leadership and communication skills. Not only should that, monitoring of the
same should be done on a monthly basis.
Conclusion
From the above discussion, it can be conclude that the Hartley Electronics Ltd. has the potential to
eradicate the identified HR issues by implementing proper HRM strategies. The chief issues that were
detected in the organization include lack of employee motivation, salary discrepancies, lack of leadership
skills and lack of sharing of information. In order to eradicate the issues a good number of effective
recommendations based on the Adam’s Equity theory, Maslow's hierarchy of needs and Frederick
Herzberg’s Motivation-Hygiene Theory has been discussed. It is expected that within a very limited time
the management of the mentioned organization will be able to eradicate all the HR related issue and
experience an effective growth of revenue.

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Reference List
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