Human Resource Management: Current Trends

This assignment delves into the evolving field of human resource management (HRM). It examines contemporary HRM practices, their impact on organizational effectiveness, and the influence of global factors. The focus is on understanding how HRM adapts to meet the challenges of a dynamic business environment.

STRATEGIC HUMAN
RESOURCE MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Current trends and development that influence HR strategy in an organisation...................1
P2 External and internal factors that influence HR strategy and practice...................................2
TASK 2............................................................................................................................................4
P3 Theories and concepts for growth & development in an organisation..................................4
TASK 3............................................................................................................................................5
P4 Appropriate changed management models that supports in HR strategy for an organisation
.....................................................................................................................................................5
TASK 4............................................................................................................................................6
P5 Methods by which HR outcomes can be measured so that it can be applied in
organisational situation...............................................................................................................6
P6 Effectiveness of HR management and development for sustainable performance and
growth.........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic HRM is a part of Human resource management and it can be said as one of the
important criteria to operate a business in a proper manner (Wright, Coff and Moliterno, 2014) .
This includes some of elements like hiring, discipline, working together in order to boost
retention. Virgin Megastores is one of the leading retailer stores in United Kingdom. Most of the
commercial activities are formulated by them and help some amount in nations economy. In this
report, some of the current trends in included so as to know what kind of strategy a company will
implement. External and internal factors that influence the business operations is also involved in
this. Apart form this theories and concept is included for having a better growth in business.
Various models used by different organisation has been involved in this.
TASK 1
P1 Current trends and development that influence HR strategy in an organisation
The word strategy was derived from a Greek noun strtegus, that means commander in
chief. Strategic human resource management is a process that is used to determine long term
benefits and performance of an organisation. Thus, this assist company to achieve their set
targets and goals in specific period of time. Therefore, it is a continuous process which requires
adjustment on a regular basis. Some of the current trends are explained below that can have an
impact on organisation's HR strategies and they are as follows:
Recruiting new employees: This is considered as one of the basic work of Human
resource management. They hire suitable candidates for the job respectively in order to gain
maximum profits. For this company train their workers using various training programmes so
that employees can perform the task in an appropriate manner. Virgin megastores is a retail store
and to operate the business they needs lot of workers and department of HR is helping them for
doing the same (Tyson, 2014).
Cosumerisation: In order to make their customers know about any new product it is
important that they commercialise their product. For this, company can collaborate with different
new partners. To convey the message of the fresh commodities Virgin Megastore is using
different mediums like internet, social media, websites etc., so, it is important that firm goes with
the recent trends because there may be a possibility of making alterations if organisation is using
old methods of commercialising the items.
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Consulting the performance: It is not necessary that enterprise gains profit all the time,
there may be phases of difficult situations when company will need consultancy firm. As Virgin
megastore is a big company they have developed a different departments that give them ideas in
order to modify and make some alterations if required. All the members in this section is helping
them in making proper strategies. Thus, it is Human resource is overcoming with all the
problems that is creating problem in business operations (Cooke, Saini and Wang, 2014).
Staff member to squad to network of teams: Coordination between team members and
organisation is very important in order to get better outcomes. As a result the department of
Human resource is maintaining a healthy relation with the all the members working in an
organisation which is helping them in making proper strategies. Other than this, managers of the
company are assisting them in conveying the message in an appropriate manner.
Man Machine Collaboration: Machines and latest technologies has made our lives more
easier. Now anybody can perform the task with the help of new tools for example: Earlier HR
department of the company use to maintain their records in notebooks which was a very hectic
work but now as computers have come firms can store their data securely (Schuler, and Jackson,
2014). Other than this, Virgin megastore is using latest machineries for manufacturing their
products and this is providing them a better results. Making strategies is far much easier as now
company can monitor the performance on just one click and based on that organisation can make
plan of action.
End of open space: According to the recent trends now workers don't want to work in
open space and needs working locations where they can sit and perform the task in a better way.
Human resource department is providing all the facilities for the same, this is allowing workers
to put up their innovative ideas in making strategies and plan of action for betterment of the
company.
P2 External and internal factors that influence HR strategy and practice
Human resource department is one of the crucial part in an organisation as they helps
them in making proper plan of action in order to attain the set targets. This will enable the
company to sustain a better position in the market area. There are many factors that can effect the
business operations and it can be external or internal, depends upon the circumstances or
situation in market area (Popaitoon and Siengthai, 2014). Some of the factors are mentioned
below that is having an impact on business and they are as follows:
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Internal Factors
Size of the firm: It is considered as one of the reasons that can effect the business of any
firm. Thus, it is necessary that there is a positive relation between company and the department
of human resource management. It will help them in maintaining a level of standardization and
healthy environment. The behaviour of employees may differ form organisation to organisation
for example: if the firm is small than managers can easily coordinate with them for a peaceful
environment whereas in large companies, as there is an increase in number of workers there may
be chance of conflicts between employees and departments as well. Therefore, Virgin
megastores is maintaining a healthy relation between all the departments (Banfield, Kay and
Royles, 2018).
Organisational culture: This kind of department is necessary in order to cope up with
various changes so that organisation can run their business effectively. It is helping them in
gaining competitive advancement that is gradually pushing Virgin megastores in forward
direction. Thus, company should maintain a supportive nature in workplace. The organisation
has provided a healthy environment where employees can sit and work peacefully. By giving his
kind of surroundings organisation is boosting the morale of their employees so that they can
execute their best efforts in completing the work in a proper manner.
External Factors
Governmental regulations: To run a business in an effective manner it is required for a
company to follow all the rules and regulations that are formulated by governmental bodies, so
that firm doesn't face any problem in future proceedings. This can effect the policy of hiring,
training and recruitment process. By not following all these norms firm can face extensive fine
along that can leads to shutting down of the company. Virgin megastore has made its strategies
as per the rules and regulations given by the higher authorities and by this they are getting
maximum profits (Wilton, 2016).
Economic Conditions: This is a major factors on which most of the organisation
depends, a sudden change in economic policies can hamper the business operations. To sustain a
better place in market area it is important to have a ample amount of money so that company can
invest those funds for the betterment of the firm. HR department needs to control the excessive
use of money in order to gain much profits. Thus, for this is very necessary to make proper plan
which they can execute for getting better results.
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Technological advancement: With the increase in globalisation, invention of new
technologies have taken place. New tools and machineries is helping an organisation to
manufacture products in best possible way so that they can increase their sales and productivity.
Thus, HR department should ensure what kind of technologies is required by various sectors so
that they can give better outcomes (Hill, Jones and Schilling, 2014).
TASK 2
P3 Theories and concepts for growth & development in an organisation
Virgin megastores have adopted many theories and strategies which are adopted by the
company in order to increase the productivity and sales. Some of the approaches are mentioned
below which are as follows:
Resource based strategies: This kind of framework is used in order to make strategies so
that company can deliver potential outcomes for giving advancement to a firm. Basically it uses
internal resources so that they can identify assets, capabilities and competence. Thus, it enable
organisation to provide superior services and facilities in order to attain their goals and
objectives. This concept is assisting companies in making both strategic management and
strategic marketing. Through this approach Virgin megastore is trying to identify and evaluate
the factors which is providing advantages and disadvantages to the organisation (Collings,
2014).
Strategic Fit: This theory was profound by Wright and McMahan in the year 1992. he
mainly classified the concept into two parts i.e. vertically and horizontally. Basically this identify
the resources and capabilities which is required by the organisation for fulfilling the set targets
and goals. Strategic fit can be linked with resource based view because it gives better ways by
which they can adopt and gain profits and gradually enhances and maintain the position in
market area for a long period of time. For this it is required that they utilise unique characteristics
according to the capabilities this will provide competitive advantages. Further more it can be
classified into two categories tangible that includes financial and physical: other one is intangible
which involves technology, human resource and culture. SWOT, value chains, cash flow and
many more tools and techniques can be used to evaluate the resources and capabilities in a better
manner (Ellinger and Ellinger, 2014). Therefore, Virgin megastore is using merger and
acquisitions opportunities for making plan of action.
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High performance management: This theory enables them to measure and determine the
performance and productivity of a company. Thus, managers and supervisors have an impact on
the productivity and sales in a particular unit or business operations. Virgin megastores tries to
deliver the best quality products to their customers so that they can earn the loyalty of their
consumers. This will enhance their brand image in front of their clients. For getting better results
superiors are assigning task in such a way that it gives the best results. Employees also plays an
important role and for this company is providing training programmes so that workers can
enhance their existing skills and knowledge.
High commitment management: This basically focusses on individual development
rather than focussing on higher power. High commitment management makes a person
independent and empower so that he/she can perform the task properly. Basically it is used to
design and make structures which company can follow for implementing them in their business
operations (Debroux, 2017).
TASK 3
P4 Appropriate changed management models that supports in HR strategy for an organisation
Change is a good things if it is in a positive manner, thus, company should be ready to
accept alterations so as to grow in forward direction. In business operations there are certain
rules that are to be followed by the organisation so that they can get maximum benefits which are
as follows:
Lewin's change management model: This model was profound by Kurt Lewin around
1950s and he has categorised it into three stages which are
Unfreeze: If company wants to grow in positive way than it is required to make some
alterations and change the old concept of doing the business operations. This shows that every
step should be analysed before implementing the plans for improvement. By following this
model Virgin megastore is eliminating all the pros of the company thus, this keeps the
organisation motivated in performing the task in a better way. Through this they also get to know
about the related problems which is hampering the business (Bal and De Lange, 2015).
Change: Under this category employees starts accepting the changes and alterations by
adopting them. This process can be hectic and there may be chaos in doing the same. For this it
requires extra skills and knowledge so that the set targets and goals can be achieved. It includes
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introducing of new tools and techniques and along with this implementation of fresh marketing
policies which can provide them with maximum benefits. Apart from this communication with
employees on a regular basis is also essential so that the problems and issues can be determine
and tackle them in a better way.
Refreeze: This is considered as the last step in which all the strategies and plans are
identified and evaluated once again so that a proper results is evaluated. Mainly they change the
entire process which is not adding any value to the market. For this, it is important that review is
taken from customers on a continuous basis. Performance appraisal is also essential so that they
can keep up the good work. Large amount of efforts and support is required for the same
(Luthans and Doh, 2018).
McKinsey 7S Framework: This was developed by Robert H. Waterman, Jr and Tom
Peters both were business consultants. They have framed 7S structures which is giving benefits
in operating their business in a better way. All these 7S is considered in two elements first one is
Hard element which includes Strategy, Structure and system whereas other one is soft element
that involves shared values, skills, staffs and style. Therefore, it is helping an organisation in
monitoring the changes for both internal and external situations. For example: changes in
recruitment process so that company can select suitable candidates for the company and Virgin
megastores is doing the same and as a result their business is going in forward direction.
According to the case scenario that is given, HR Director of MEGASTORES have
discussed about the strategies they are going to implement which is top line approach for this, all
the managers are working together in order to convert them into reality. Company is using
McKinsey 7S framework for organising and performing their activities. Further its steps are
given below for having a better understanding:
Shared Values: As MEGASTORE is a big company, managers of this company has
managed to establish mutual understanding between its employees because of which workers
shared same values. This help them in knowing where organisation stands along with what are
the beliefs, attitudes and core values they share.
Strategy: Company is making strategies by keeping all things in mind like resources
available to them and how they can reach for achieving their desired goals and objectives. For
example: for hiring eligible candidates they are giving advertisement through various mediums
so as to attract high calibre candidates for their organisation.
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Structure: They are following hierarchical structure which is helping them in operating
their business in systematic manner. Structure that company follow can make them centralised or
decentralised. Further, it also includes lines of communication through which they can interact
with others.
System: This constitutes procedure or process or the way by which they perform their
entire task. This majorly includes financial system, recruitment, promotion and appraisal system
based on performance etc., process that have in incorporated by MEGASTORES can be directly
linked with improvement in business operations.
Staff: MEGASTORES in their company have different departments in which eligible
candidates are hired as per the positions that are vacant. For proper functioning firm have
adequate number of staffs which are working for giving better results to enterprise in return.
Style: Every company has different working style which they incorporate for attaining
their set goals and targets In context with MEGASTORES, they are effective managers who are
very good in leadership skills because of which they are able to motivate its employees for
performing in a better manner.
Skills: This indicates skills and capabilities that an individual acquire as this makes them
different from one another. MEGASTORES are implementing different strategies and training
programmes for upgrading its employees knowledge.
Therefore, McKinsey's Framework plays an important role in establishing
interconnection between staff and superiors, further it helps them in making appropriate
strategies which they can incorporate for gaining maximum benefits.
TASK 4
P5 Methods by which HR outcomes can be measured so that it can be applied in organisational
situation
Human resources help an organisation in achieving its objectives and goals in a successful
manner. But many companies think that they are no so valuable like other assets. Therefore,
success or failure of any strategies of HR has to be measured and monitored in following
manner:-
Metrics: Importance of HR can be measured in terms of efficiency, effectiveness and
their impact on strategies of company's operations. For monitoring such analysis, one common
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metric is hiring process. It involves long procedure like searching candidates, taking interviews
and finally introduce them in workforce. So, all these process needs much costs which can be
measured by human resource department (Al Ariss, Cascio and Paauwe, 2014).
Analysis: By measuring Cost-to-hire, effectiveness can be measured if it is low otherwise
not. But lowering such type of cost need not necessary to imply on topmost priority. For
instance, if a manger wants to improve sales in stores of a company, then hiring decision could
be effective one when new recruiters help in achieving the same.
Impact: Strategic HR always identifies the area which has the greatest impact on
operations of a company. Like in Virgin Megastore, internet sales process doesn't need much
hiring staffs. But if retail sales generate high percentage of total one then impact of hiring the
best managers comparatively proves much better.
Managers of HR can apply various scientific methods on metrics which is based on
observations, data analysis, hypothesis and experimentation.
Therefore, in context with MEGASTORES, they can incorporate a system in through
which they can analyse performance of HR managers or departments. Inspection can be done
regularly on a quarterly basis, and some external sources can do this entire process. By going
through the past records of recruitment in order to know how many eligible employees are being
selected and how many have been retained. This will help company in knowing whether HR
department is doing their task in a better manner or not. Other than this, they can implementation
of strategies for increasing their growth in sales can be analysed so as to if applied plan of action
was successful or not.
Furthermore, inspection team can take feedbacks and reviews from employees whether
for improving their skills and knowledge HR department have implemented appropriate training
programmes or not. Therefore, all these helps company in identifying if their HR department is
performing their task in a better manner or not.
P6 Effectiveness of HR management and development for sustainable performance and growth
Human resource management can be said as one of the important element for an
organisation as they enhances the skills and knowledge of the employees. Basically there main is
to train their workers in such a manner that they give their best efforts in completing any task.
This will gradually takes the company in a better position (Meyers and van Woerkom, 2014).
Therefore, HR department of an organisation first identify and evaluate the performance of an
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individual so that they can analyse and know the behaviour of workers. It will assist them in
applying appropriate methods by which organisation can obtain a long term goals and objectives.
Some of the effective method which will help them in achieving organisational objectives and
they are as follows:
Benefits: The main benefit of the Human resource department is to give information
according to the recent trends and market situations. For this Virgin megastores is adopting
various training and seminars so that employees can learn from them and implement those in
their business operations. Human resource department first analyse the needs and requirements
of employees so that organisation can introduce the activities accordingly. Therefore, all these
process is providing benefits directly to the customers in order to get best outcomes. As a result
Virgin megastores is able to maintain and sustain the position in the market area for a long
period of time (Lecuonan and Reitzig, 2014).
Giving new employee orientation: It is also considered as one of the important element
that company should keep in mind before implementing any strategies or plan of action.
Organisation tries to introduced new tools and techniques so that workers can apply them so as to
get their set targets and objectives. Other than this it involves strategic plans from the past so that
they can know if any changes is required to be done (Wright, Coff and Moliterno, 2014). To new
employees company can conduct or guide them by conducting orientation programmes,
meetings, sending mails all these factors are helping new freshers to learn the basic knowledge
which is required for performing the task in an appropriate ways.
Helping in developing career of an individual: Companies are responsible for shaping
the career of a person so it is important for an individual to select a company from where they
can learn and apply them in their future proceedings. For this it is essential that company is
giving relative materials, coaching and training. By encouraging employees firm can get the
better results and with the help of them organisation can achieve company's mission (Tyson,
2014).
CONCLUSION
From the above report it can be concluded that strategic human resource management is
one of the essential part for an organisation, as it provides guidelines about what all strategies an
organisation should follow in order to get better outcomes. Some of the current trends and
developments are mentioned which is influencing the company to make strategies that is
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essential for a firm to grow in forward direction. External and internal factors also plays a
prominent role for an organisation so that enterprise can attain their set targets on time and in an
appropriate way as well.
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REFERENCES
Books and Journals
Wright, P. M., Coff, R. and Moliterno, T. P., 2014. Strategic human capital: Crossing the great
divide. Journal of Management. 40(2). pp.353-370.
Tyson, S., 2014. Essentials of human resource management. Routledge.
Cooke, F. L., Saini, D. S. and Wang, J., 2014. Talent management in China and India: A
comparison of management perceptions and human resource practices. Journal of World
Business. 49(2). pp.225-235.
Schuler, R. and E. Jackson, S., 2014. Human resource management and organizational
effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and
Performance. 1(1). pp.35-55.
Popaitoon, S. and Siengthai, S., 2014. The moderating effect of human resource management
practices on the relationship between knowledge absorptive capacity and project
performance in project-oriented companies. International Journal of Project
Management. 32(6). pp.908-920.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management. Oxford
University Press.
Wilton, N., 2016. An introduction to human resource management. Sage.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business. 49(2). pp.253-261.
Ellinger, A. E. and Ellinger, A. D., 2014. Leveraging human resource development expertise to
improve supply chain managers' skills and competencies. European Journal of Training
and Development. 38(1/2). pp.118-135.
Debroux, P., 2017. Human Resource Management in Japan: Changes and Uncertainties-A New
Human Resource Management System Fitting to the Global Economy: Changes and
Uncertainties-A New Human Resource Management System Fitting to the Global
Economy. Routledge.
Bal, P. M. and De Lange, A. H., 2015. From flexibility human resource management to
employee engagement and perceived job performance across the lifespan: A
multisample study. Journal of Occupational and Organizational Psychology. 88(1).
pp.126-154.
Luthans, F. and Doh, J. P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill.
Al Ariss, A., Cascio, W. F. and Paauwe, J., 2014. Talent management: Current theories and
future research directions. Journal of World Business. 49(2). pp.173-179.
Meyers, M. C. and van Woerkom, M., 2014. The influence of underlying philosophies on talent
management: Theory, implications for practice, and research agenda. Journal of World
Business. 49(2). pp.192-203.
Lecuona, J. R. and Reitzig, M., 2014. Knowledge worth having in ‘excess’: The value of tacit
and firm‐specific human resource slack. Strategic Management Journal. 35(7). pp.954-
973.
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