Strategic Human Resource Management

Strategic Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Trends and development that influence HR strategy of organisation.........................................1
Internal and external factor that influence HR strategy and practice..........................................3
LO2..................................................................................................................................................4
Concepts for strategic HRM growth and development...............................................................4
LO3..................................................................................................................................................6
Manner in which change management offer support to HR strategy..........................................6
LO4..................................................................................................................................................8
Modes that help in monitoring HR outcomes.............................................................................8
HR management effectiveness....................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic human resource management is termed as connection among company
objectives, goal, strategies and its human resources. Main purpose of managing human resources
in a strategic manner is to utilize individuals talent in an effective manner while aligning their
roles and responsibilities with entity vision (Yu and et. al., 2020). In order to conduct this
process, human resource department is authorized to make application of this process within
organisational workplace structure in order enhance company performance objectives. This
approach also facilitate entity to reduce labour turnover and maximise performance, commitment
and job satisfaction of employees.
Present report has been conducted on EasyJet plc which is operating their business
services as low-cost airline group with having its headquarter in Luton, United Kingdom. This
company offers domestic as well as international services in more than 30 countries with more
than 15,000 employees. HR practices and policies of this travel and tourism company is inclusive
of non discrimination and anti harassment policies, leave and time off, benefits safety and
security. This organisation emphasizes upon various aspects of employment and make sure that
employees are being provided with proper compensation and benefits.
In this report formative discussions has been conducted on trends as development that are
influencing organisation HR strategy. In addition to this report also include concept for strategic
HRM development and growth along with the way in which change manager provide support to
HR strategy. Lastly, models that aid assistance in proper monitoring of HR outcomes and HR
management effectiveness is also being discussed in this report.
LO1
Trends and development that influence HR strategy of organisation
Strategic human resource management is defined as the connection between company's
human resource and its strategies. It requires a thinking ahead and framing ways for company to
better meet the need of the employees and for employees to better meet the need of the company.
Strategic human resource is a multi-faceted concept well going beyond the traditional strategic
concept it is designed to respond more effectively to the employees. With the help this approach
EadyJet can increase the efficiency of the ways in which things are done in the organisation.
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There are number of trends and development that are having significant influence upon
organisation HR strategy some of the trends are stated below:
Workforce Diversity:
This is most important trend which is having significant influence upon HR strategy, it
has been evaluated that EasyJet perform its business operations in more than 30 countries. Thus
to effectively manage business operations company is required to hire employees from different
background, culture, geographical location and more. Thus, in order to manage workforce
diversity HR manager of respective organisation by making themselves equipped with various
strategies and policies of workforce diversity cam maximise their competitive growth, end
results efficiency and productivity.
Process for improving productivity:
Employees plays most important roles for an organisation as they are major source of
revenue generation. This makes entity like EasyJet to ensure that employees are being provided
with different learning and training courses in order to increase their productivity. Regular
training and development supply competitive intelligence that is useful in strategic planning
process and provides an well organised way of performing task. It provides a job satisfaction to
employees by providing them a supportive environment to do work. Strategic HRM give
assistant to the people development issues and to addressed them systematically that
automatically lead towards significant improvement in productivity.
Impact of globalisation:
There are various trends in modern business environment which is required to be
consider by organisation. It has been evaluated that HR strategy significantly get influenced by
various forms of external elements. In this, HR department of EasyJet is required to be fully
equipped with the knowledge of different types of factors like globalisation in order to perform
business objectives with more effectiveness.
Changing skill requirements:
There are number of changing prevailing in trends related to skills that employees need as
to perform business roles and responsibilities. In relation to this, HR department of EasyJet is
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required to analyse dynamic changes in skill requirements and provide necessary training and
development courses to employees in which they can equip employees with required skills. This
will allow respective organisation to continuously maximise performance of employees can
make them competitive. This process will allow EasyJet to ensure long term sustainability,
profitability and profitability in hospitality industrial segment.
Internal and external factor that influence HR strategy and practice
There are various internal and external elements which is having significant influence
upon HR practice and strategy (Sukier and et. al., 2020). All these factors are required to be
understand by HR of an entity in order to have in-depth analysis of internal and external business
environment. Mentioned below there are different types of factors within internal and external
environment is being defined:
External Factors:
This factor involves elements that are mainly affecting activities and operations of entity
in negative and positive manner. Elements such as economic, social, legal, political and
technological changes are involved in this element and have impact upon company HR practices
and strategy and operations.
Market Trends:
There are number of trends prevailing in market and are mainly uncontrollable, these
elements affects entity in number of ways. Thus it is essential for an organisation to have proper
understanding of the factors like legislation, technological, political environment and laws in
order to frame against them to control negative influence of these factors upon entity operations.
Market trends include regular change such as change in preferences and taste of customers and
customers. Negligence of these factor will affect company overall profitability and sales. In
terms with HR of EasyJet it is essential for them to evaluate different market trends along with
their impact upon company functioning. It will facilitate them to develop strategies through
which company can undertake significant opportunities from these trends.
Laws:
Rules, legislations and laws that has been framed by government authorities are having
major influence upon organisation activities and functioning. Thus, it is essential for EasyJet HR
to posses proper understanding and knowledge of obligations, rules and laws being imposed by
government on industry. This will facilitate entity to conduct their business operations in a
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smooth manner without get affected by legal obligations and penalties. This is most important
factor and negligence of this will lead entity to face many adverse legal consequences that can
affect smooth working operations of entity.
Internal Factors:
This factor include elements that are prevailing within organisation and affect its
profitability and productivity on daily basis. All these factors are required to be effectively
analysed by HR in order to assure efficient utilization of company human resource:
Available Funding:
Funds are most important aspect for any entity and acts as lifeblood that allows
organisation to conduct their business functioning with more effectiveness. It is essential for an
organisation to identify different sources of funds in order to ensue that their business does not
get affected due to scarcity of funds. In addition to this, it has been evaluated that EasyJet by
offering regular specialised training of employees those who are operating their roles and
responsibilities in finance department can enhance their efficiency to work. It will facilitate
entity to strengthen performance of company finance department through which entity can gain
many advantages.
Employee relation:
The goals and objective are very important aspect of the organisation, strategic HRM
helps in to communicate them and to translate plans to the employees by which they can have the
clear objectives and can perform effectively. In the competitive environment, strategic HRM
help in to forecast the future human needs in the business and reduces the chances of
insufficiency of future human supply,it helps organisation to be harmonious in the way of their
operations (Shahreki and et. al., 2020). Employees need promotion and social recognition to feel
motivated, in this HR department by undertaking different ways to make them remain motivated
that to achieve business desired goals. HR is responsible for measuring the performance of
employees , the employees are given rewards on basis of their output given. It provide support
HR to develop and to select the conventional method of measuring performance. This will
facilitate EasyJet to maintain strong relationship with employees.
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LO2
Concepts for strategic HRM growth and development
HRM growth and development can be maximised with the use of effective theories as
well as concepts. This will not only facilitate HR manager of a entity to provide better workplace
environment to employees but also allow them to ensure higher growth of employees and
organisation. There are some certain form of methodologies is being defined below that will
allow HR manager of EasyJet to accomplish organisational objectives with more effectiveness.
Performance Management:
It is a ongoing process of improving performance of the employees by setting individual
and team strategic goals which are aligned with strategic goals of the organisation. Performance
management is a continuous process which evaluate and supervise the task perform by the
employees. It includes planning performance, reviewing and assessing the progress and
developing the knowledge, skills and abilities of the people which will facilitate EasyJet to fulfil
their objectives with more effectiveness . It also consist of personal development planning which
means what behaviour, skill or knowledge that individual need to develop to successfully
achieve their objectives and upholds the organisational values. Performance management
standards are generally organised and disseminated by the leaders in a organisation and by the
task owners. It can include specifying tasks and outcomes of the job, timely feedback, training,
comparing actual performance of the employees with the desired performance, instituting
rewards etc.
E-Recruitment:
This is also known as online recruitment that refers to the use of electronic resource to
recruit the capable employees for vacant place in the organisation. It includes the attracting,
assessing, selecting, recruiting and on boarding job candidates through web based technology
through this recruitment is done more effectively and efficiently. Companies undertake their
online promotional activities via their online website where the complete information about the
corporation is enclosed through this candidates could decide whether to be a part of this
organisation or not. Firm's official website considered to be a essential element in the online
recruitment. This will facilitate EasyJet to hire candidates from wide geographical area can be
covered and candidates can be hired from the any part of the world. e- recruitment is easier and
cheaper as compared to the physical recruitment. Respective company can build their e-
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recruitment platforms in-house or can use e-recruitment HR software or employment recruitment
agencies which use e-recruitment as a part of their package.
360 Performance Appraisals:
This is a type of evaluation of employees performance and provide review to them in
which subordinates, co-workers, managers and all anonymously rate the employee . 360 degree
is different in that it obtains a feedback from the co-workers and subordinates instead of just
from the direct supervisor. Main goal of this process is for the better understanding of the
employing performance, behaviour and functioning of the employee as team and to improve the
ways of working team together. With the help of this EasyJet HR can have a better recognition of
the ability of the resources for the future growth and development.
Motivational theories
Maslow Hierarchy of needs:
Maslow Hierarchy of needs is a motivational theory that mainly comprises five levels
which is associated with the need of individual. For an organisation it is essential to management
to emphasise upon all the needs in order to provide effective motivation to individual. With the
help of this individual can be satisfied from upper to lower level. In this five levels include that
are psychological, love, safety, belonging, self esteem and self actualization. With the help of
this five stage model organisation can effectively enhance motivation level of employees and can
further encourage them to accomplish organisational objectives with more effectiveness.
Physiological needs -
It is inclusive of basic needs such as food, drink, clothes, shelter and more. It is basic
needs of human as negligence of this can lead ineffective performance. Thus, it is essential for
Easy jet to consider psychological needs of employees and provide them good working
atmosphere, basic amenities in order to make them work in a positive workplace environment.
Safety needs -
It is another most important need that an employee seeks in an organisation it is related to
security and safety of self as well as family. In this it is essential for easyjet to provide medical
care, jobs safety and stability, compensation against accident and injury and other factors. With
the help of this easyjet can effectively enhance loyalty among employees towards organisation
through his overall objectives can be effectively accomplished.
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Love and belongingness needs -
In these employees seeks for social involvement in order to have a feeling of belongings.
In this it is essential for easyjet to develop interpersonal relationship with employers and trust
among them. For this company can conduct small celebration and celebrate small wins in
organisational workplace structure.
Esteem needs
At this level of need individuals seeks for dignity and reputation from other individuals.
In this need easyjet can provide certification reward to employers according to their performance
in order to enhance the dignity.
Self-actualization needs
At this level individual seeks for peak experiences, personal growth and self appointment.
In this it is essential for easy jet to effectively fulfill the need of employee by providing them
compensation and other benefits.
HR theories
Contingency model.
This model allow organisation to have an adaptive approach, in this leaders and managers
are required to effectively emphasise upon entire factors and evaluate situation in order to
undertake appropriate decisions this approach. With the help of this approach leaders can allow
to assure more productivity. With the help of this leaders within easyjet can undertake advantage
of different leadership theory according to situation and in order undertake decision accordingly
the situation. With the help of this leaders can effectively choose different leadership style
according to the situation through with the can effectively deal with all type of situation in
organisational workplace environment.
LO3
Manner in which change management offer support to HR strategy
There are different models that allows entity to increase effectiveness of their HR
strategy. It is important for an organisation to determine positive as well as negative change as to
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operate their business actionable with more efficiency. Different types of models is being defined
below with the help of which EasyJet can ensure high performance and productivity:
Lewin Three Step Model:
This model was coined by Kurt Lewin, it mainly include different types of steps that are
being defined below in context with Thomas Cook Group:
Unfreeze Stage:
It is the change in which it is essential for HR manager of EasyJet to focus on the need of
new changes and the manner in which the change get implemented within organisational
workplace structure. With the assistance of this model respective organisation can implement
change in effective manner. Furthermore, it has been underlined that this model will aid entity to
gain employees support and refreeze their current behaviour in order to further motivate them to
adopt change in an effective manner.
Change Stage:
In this stage, it is essential for every individual associated to plan or project to have
efficient understanding related to change in addition with its implementation process in company
premises. For this HR manager is having most important responsibility to communicate
employees about the reason of change and address their issues in order to make sure that change
get successfully implemented within company.
Refreeze Stage: This stage is having significant importance in Kurt Lewin change
management model, in this HR manager of entity is having most important responsibility to
provide effective training and support to employees as to make them adaptive towards change.
For this, it is essential for HR manager of EasyJet to offer different training and reward
employees in order to motivate their success and performance.
Kotter's 8-Step Change Model:
Create Urgency:
In this stage, it is essential for EasyJet HR manager to motivate and communicate
employees about the requirement or change within company structure. At this stage, most
important responsibility of HR is related to engage in open discussion and effectively provide
employees with the information of need of change along with possible opportunities and threats.
Form a powerful coalition:
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At this stage, HR manager of EasyJet is required to formulate a team with highly
qualified, skilled and talented employees. Along with this, it is essential for each and every team
member to have knowledge of mission and entity. For this, HR manager hold responsibility to
equip employees with the same.
Create vision for change:
In this stage, it is essential for HR of EasyJet to formulate a picture of what organisation
looks after when change get adopted. In this, HR manager is having responsibility to implement
strategies as well as realistic targets.
Communicate the vision:
HR manager of EasyJet is required to communicate employees about strategies and
objectives of organisation as to influence them towards organisational growth (Haak-Saheem and
Festing, 2020). For this HR by taking of decision-making, problem solving etc. can accomplish
this objective.
Remove obstacles:
With this, HR manager of EasyJet is required to make sure that employees are
performing their business operations without facing any unnecessary obstacles.
Create short term wins:
In this EasyJet HR manager is required to offer reward and acknowledgement to
employees according to their performance. It acts as a motivating element that lead towards
enhancing their overall performance
Importance of Psychological contract in organisation and nudge theory
In contact with easy jet it has been identified that company is having strong psychological
contract with employees in which they see their value and importance within organisational
workplace environment. With the help of this company assures that there is no unrealistic
expectation prevails from both the sides. In addition to this with the help of psychological
contract organisation and employees perform their work in an effective manner. With the help of
psychological contract easy jet HR management improve human capital management in
workplace and strengthen organisational productivity.
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Nudge theory allows organisation to offer small that effectively support in decision
making management effectively help individual to improve their thinking and decisions and
modify existing. In addition to this with the help of nudge Theory Company effectively improve
understanding and management of heuristic influence upon human behaviour and strengthen
their decision making.
LO4
Modes that help in monitoring HR outcomes
HR outcomes can be maintained and monitored with the help of different techniques and
approaches. With the help of this, company can perform its business functioning in more
effective manner (Gannile and et. al., 2020). There are some certain techniques that will allow
EasyJet to conduct their business operations while effectively monitoring HR outcomes:
The Best Fit Approach:
Best fit approach mainly emphasise upon making sure that HR strategies will offer
effective results in different organisational circumstances like external operational,
environmental and culture processes. HR manager of EasyJet is required to emphasise upon both
organisational and individuals need while formulating strategies. By making application of best
fit approach EasyJet can conduct their operations operations with more effectiveness while
assuring more competitive advancements in industry (Esho and Verhoef, 2020). Along with this,
it has been underlined that with the application of this approach respective company can monitor
employees performance in a systematic manner while measuring performance of employees on
regular basis.
Resource based view:
It is basically termed as a managerial framework that allows an organisation to
determined the strategic resources through which organisation can ensure higher competitive
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edge as compared to other rivals. By taking assistance of resource based review EasyJet can
determine those resources through which they can assure more growth and development in
respective industrial sector (Pius, Alharahsheh and Sanyang, 2020). For instance, EasyJet is
facing with the organisational issue which is related to dis-satisfaction among employees. In
order to effectively overcome this issue it is essential for HR manager to provide employees with
the advantage of development courses, training, seminars and more. This will not only allow
them to increase satisfaction of employees but also facilitate entity to gain higher competitive
advancements.
HR management effectiveness
Key Performance Indicator ( KPI )
This is an essential strategic framework that allows EasyJet to perform activities by
evaluating various processes and task. There are some certain form of aspects is being defined of
this model in relation to company:
Concrete:
EasyJet manager is required to develop KPI in tangible manner along with measurable
objectives and goals. Further it has been evaluated that it is essential for EasyJet to monitor day
to day process as to ensure successful outcomes.
Measurable:
Entity is required to effectively measure its performance with the help of performance
indicators as to effectively take use of opportunities for more efficient end outcomes.
Reachable:
In this, it is essential for EasyJet HR manager to elaborate KPI in a realistic way as to
accomplish organisational objectives within higher efficiency.
Relevant:
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Within this, it is important for EasyJet HR manager to determined required and efficient
elements through which entity can gain numerous benefits, this model also allows entity to
evaluate those factors that can affect company resources and time.
10-C Model of HRM:
With the assistance of this model EasyJet can conduct their business responsibilities as
well as role in more effective manner. There are some certain form of aspects of 10C's model is
being elaborated:
Comprehensiveness:
It mainly include overall aspect of management.
Credibility:
It is one of the most important aspect in which it is essential for employees within
company workplace structure to posses trust upon company policies and strategies.
Communication:
It is essential for EasyJet HR manager to make sure that there is open communication
culture prevails within organisation along with two way communication process in order to
conduct organisational objectives with more effectiveness.
Cost-Effectiveness:
Organisation is required to assure that they offer employees efficient reward and fair
treatment in order to encourage their performance towards company objectives.
Creativity:
It is essential for an organisation to develop different strategies to encourage creativity
within workplace structure in order to assure more competitive advancements as well as higher
profitability.
Coherence:
Organisation is required to assure that HRM strategies are local as well as meaningful.
Competence:
It is essential for an organisation to formulate policies and strategies as to accomplish
company objectives with more efficiency.
Change:
For any organisation change acts as one of the most important element through which
they can gain more competitive edge as compared to other rivals. In context with EasyJet it is
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essential for HR manager to bring a change as to facilitate creativity and innovation within
organisation.
Commitment:
It is the stage, in which organisation is required to provide regular motivation to
employees as to align their roles and responsibilities towards organisational objectives. This will
facilitate EasyJet to fulfil their goals and objectives with higher efficiency.
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CONCLUSION
As per the above mentioned report it has been concluded that strategic human resource
management is as essential aspect for an organisation that allows them to manage human
resources in an effective manner. For this human resource management plays most important as
they are authorized to provide proper training and guidance to employees. With the help of
strategic human resource management company can not only manage performance of their
employees but can also increase organisation efficiency to fulfil their objectives with more
effectiveness. In addition to this, entity can also undertake advantage of different practices like
540 performance appraisals, best fir approach and more through which performance of
employees can be enhanced while assuring higher profitability and long term sustainability.
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