Strategic Human Resource Management Report

This report analyzes the strategic human resource management (SHRM) practices of TNT, an international courier delivery service. It examines contemporary HR trends, analyzes the influence of external factors, and explores change management models like Kotter's 8-step model. The report also discusses how HR outcomes can be monitored and measured, highlighting the importance of benchmarking and key performance indicators. Finally, it explores how effective HR management and development can support sustainable performance and growth to meet organizational objectives.

Strategic Human
Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
1. Contemporary trends and developments in HR......................................................................1
Critically analyse the influence of external and contextual developments.................................2
2. Changes in HR policy and practice related to current trends and developments...................3
Activity 2.........................................................................................................................................4
Relevant theories and concepts related to growth and development of HR practices................4
Activity 3.........................................................................................................................................6
Change management models support HR strategy ....................................................................6
Activity 4........................................................................................................................................9
How HR outcomes can be monitored and measured and apply this to a specific organizational
situation. .....................................................................................................................................9
How effective HR management and development can support sustainable performance and
growth to meet organizational objectives.................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
I

INTRODUCTION
Strategic Human Resource Management(SHRM) can be defined as the linking of human
resources with the strategic goals and objectives in order to improve business performance and
develops organisational culture which fosters innovation and provides an competitive advantage.
In an organisation SHRM means involving HR function as a strategic partner in formulation and
implementation of company's strategies through HR activities such as recruitment, selecting,
training and rewarding personnel (Aladwan, Bhanugopan and Fish, 2014). To better understand
this concept,TNT: Delivering in business strategy case is being analysed by this report. It is an
international courier delivery service headquartered in Netherlands. It is the market leader in the
provision of business to business express delivery services that delivers documents, parcels and
freight between business using road or rail transport. External and contextual developments are
influenced by the strategy of human resource are explained in this report. There are some change
models which supports human resource strategy is being discussed in this report. Hence
contribution of HR managemnt and human resource development is greatly helpful in sustainable
business performance and growth.
Activity 1
1. Contemporary trends and developments in HR
Human Resource Management of an organisation is directly related to the formulation
and implementation of plans and policies. These policies need to be followed by the employees
of the organisation which enables them to perform their job effectively. HR trends are changing
very frequently in the complex environment. As a outcome of these trends these are affecting
human resource strategy of an organisation like TNT, these contemporary trends and
developments are discussed below-
Impact of globalisation
In order to sustain in this complex competitive environment it is mandatory for the
organisation to start their operations at the global level. Respective organisations also analyses
that best match for performing jobs can not be found locally but a global level. Due to
globalisation, organisations are liable to change their human resource strategy according to their
global trends which benefits the organisation as well as the employees (Bonache, Trullen and
Sanchez, 2012).

Work force diversity
Work force diversity refers to the similarities and differences among the employees in
terms of age, cultural background, religion, race and gender. If in the respective organisation
there is lack in the acceptability in cultural diversity as well as issues related to performance of
work because of abilities of the individual. In order to solve this issue should provide diversity
training which enables employees to accept and respect each other differences.
Changing skill set requirements
Skills are he capacity of an individual which enables the employees to perform their job
effectively. Individuals need to enhance their skills because of the the impact of globalisation as
well as gradation in technology. TNT should determine and recruit people who can enhance their
skills according to the requirements in the organisation. These requirements affects human
resource strategies as they have to formulate according to the organisation and employees
(Brewster, 2017).
Continuous improvement and processes for improving productivity
Continuous improvement in the process are very important in order to increase
productivity of TNT. This helps the organisation to properly sustain and compete in the market.
If the model of continuous improvement is implemented in respective organisation there is a
needs to formulate and implement strategies accordingly which enable organisation to manage
their work in relation to continuous improvement.
Critically analyse the influence of external and contextual developments
Their are various external and contextual developments factors which are outside the
organisation and makes impact on the human resource strategy of the company.
Competitors-
Competitors play an important role in the market and makes an effect on human resource
strategy of an organisation. It the competitive organisation provides attract terms and condition
than the human resource of TNT, this determines the need of TNT to formulate their strategy in
order to attract suitable candidates (Budhwar andVarma, 2013).
Trade Unions-
Trade Unions are the major constraints for the organisation. These are formed to deal
with the issues of employees at the workplace. As with formulation of these trade unions,
employees interests are no longer determined by management. So it is very important for human

resource of TNT to formulate strategy by considering trade unions because they can make
impact on strategy of human resource.
2. Changes in HR policy and practice related to current trends and developments
Their are changes in HR policy and practice related to the current trends and development
which are described below-
 Focus on productivity- In the current trend, there has been a lot of focus on increasing
productivity of employees and organisation. This could be achieved at respective
organisation by recruiting new and knowledgeable employees.
 Power to the people- In modern trend, authority and responsibility is given to the
employees which provides them a sense of confidence and motivation to work effectively
in organisation(Prieto and Pilar Pérez Santana, 2012)
 Learning in real time- This practice has enabled the organisation to formulate their
strategies in order to provide efficient training and learning facilities for all its employees
which helps them to enhance their skills and knowledge.
These are the major trends and developments in HR policy and practice which will assist the
company to improve their business performance and thereby increases productivity.
HR issues in public, private and third sectors
Their are various HR issues in public, private and third sectors which are described below-
Public sector- Public sector is responsible for providing a range of governmental services. The
main HR issue in public sector is of Staffing and promotion in which vacancies are filled
according to the seats available but the skills are mismatched. Promotions are not linked
according to the employees performance. This issue could be solved by HR practices such as
proper recruitment of employees adopting proper selection process as well as promotion should
be linked to high performance among employees (Petrick, 2017).
Private Sector- Employee engagement and lack of training facilities is the major issue address
in TNT which is a private sector, there has been conflicts between the employees and
management which creates unhealthy environment in the organisation and maintains effective
relationship among employees. This issue could be solved by maintaining effective
communication between employees at all levels as well as provide training to them in order to
increase their skills.

Third sector- Voluntary sector is majorly facing the problem of change management practices
at the organisation in which individuals are not ready to accept the change as well as their is high
employee turnover. This issue could be solved by proper training to employees in order to gain
confidence and work according to change implemented in organisation. In addition to this
management should be effectively communicate the importance of change to employees and
motivates them to accept it.
Activity 2
Relevant theories and concepts related to growth and development of HR practices.
Organisational development and growth is very important for the organisation in order to
be sustain in competitive and dynamic business environment. Growth and development of
strategic Human resource management in TNT depends on various factors. In the given case,
TNT needs high level skilled employees which can cover a wide range of functions in various
departments of the company. In addition to this, it also wants to offer interesting careers and
opportunities to both existing and prospective employees which enables them in their
professional development. David Ulrich model will be suitable for TNT as this model focuses on
employees and their roles in respective organisation which are discussed below-
 It provides link between the employees and the management as well as with outsiders
such as shareholders, creditors and many more. It provides feedback on a continuous
basis to the internal parties which allows TNT to formulate and implement strategies
accordingly which enables growth and development of SHRM (Buller and McEvoy,
2012).
 When the respective organisation wants to expand its business, role of HR also gets vast
and expanded. Role of HR is to communicate the internal changes further provides
training programmes to enhance the skills of employees to adapt change properly.
 Administrative expert is the major role of HR. They should be aware of the changes in
legislation, regulation , health and safety standard rules. TNT may use Human Resource
Information system to monitor, update and secure the information in order to balance and
comply with such changes.

 It is the responsibility of HRM to understand the interest of the employees and provides
service accordingly. Here, HR puts emphasis on employees moral and satisfaction and
thereby creates a positive working environment.
Their are some practices which are discussed below-
 Flexible work arrangements- It is the most common practice which allows employees
at TNT towards flexible work arrangements such as flexible work schedules regarding
shifts and break schedules . It also allows employees for job sharing and let the people
share their responsibility with other employees in the organisation. It makes the employee
highly satisfied towards their work and helps in the growth and development of strategic
HRM. In comparison to DHL, which provides international, courier and parcel services
provides flexible working hours for all its employees, TNT should provide such facilities
in order to attract more customers.
 Performance Management- It is the process of creating a work environment in which
people can effectively perform to best of their abilities. It is the responsibility of TNT
managers to create a healthy and friendly working atmosphere so that employees can
work more productively for the organisation. HR practices such as effective training
sessions should be provided to the employees which motivates them to perform
effectively and helps in the growth and development of HRM.
 E- recruitment- It is the process of hiring the potential candidates for the vacant
positions using the internet. It helps the respective organisation to hire employees from
various candidates via internet facility. It helps the organisation to recruit candidates by
reducing cost and time. This helps in the growth of Strategic HRM which helps in
developing strategies related to recruitment of employees online and helps in the growth
and development of SHRM (Drucker, 2012).
 540 performance appraisal- Performance appraisal is the method of an monitoring and
reviewing the employees performance as well as providing suggestions to them which
enables them to improve their performance. In 540 performance appraisal of employees
feedback is taken for immediate supervisors, team members and customers as well as
respective company adds an external element of feedback which is collected from
customers or clients. It enables the employees to get feedback from its outside customers
and assist them in improving their performance. This also helps in the growth and

development of HRM by properly retaining the employees in the organisation as well as
formulate strategies accordingly. DHL compares the performance of employees by 540
performance appraisal and takes feedbacks from all its customers which will help in
providing training effectively and growth and development of HR practices.
These all models and practices have helped in the growth and development of Strategic HRM as
the employees are happy and motivated which resulted in low employee turnover and has able to
attract new prospective candidates. This practices when compared to DHL organisation, TNT
should provide all such facilities to its employees which will help in the growth an development
of SHRM.
Activity 3
Change management models support HR strategy
Change management is a collective term for all approaches to prepare and support
individuals, teams in making organisational change. It is very important for the organisation as
manage and help the employees to cope up with the change effectively. It is a complete process
which focuses on overall development in the organisation. Below described model of change
management which supports HR strategy are as follows-
Kotter Model of change- This model is a process of change. This model is not necessary
that will bring desired results. This model is introduced to improve an entity's capability and
performance to change and to increase profitability which will bring success in the organisation.
When change is introduced in the organisation it is not necessary that it will bring positive results
to the company (Greenhaus andCallanan, 2012 ). Company should follow these 8 step models of
change in which initial three steps are creating right culture of change and next three steps are
focused on connecting the change with achieving organisational objectives and last two steps are
for implementing such changes.

 Create a sense of urgency- This s the first step in which TNT creates a sense of urgency
of change in organisation. In order to implement change it is necessary for the
organisation to recognise potential threats and benefits of change process. Human
resource strategy should be implemented and formulated in such a way that helps the
organisation to mange and cope up with change in order to achieve organisational goals.
 Develop a core coalition- It is important to convince people regarding change is required
in the organisation. As to lead change managers of TNT should bring employees of all
departments together which helps in proper managing of change and human resource is
responsible for proper implementation of strategy.
 Create a vision for change- A clear vision should be created and communicated to all
the employees in order to make changes in organisation. As the vision for change
supports human resource strategy in order to get goals achieved.
Illustration 1: Kotter's 8 steps change model

 Communicate the vision - This is the stage in which change process should be spread
and communicated within TNT. This is necessary so that different departments of the
organisations can make strategies according to change management(Mahesh andCrow,
2012).
 Empower Action- This is the stage when managers of TNT should put in action the
change process. It is the managers responsibility to remove whole obstacles regarding the
change which helps in performing jobs according to changes implemented in
organisation.
 Create short term wins- company should create short term goals. Because success
motivates most to adapt changes. TNT should create some short span of targets so staff
will be feel motivated and adapt changes. As this goal can align with the human resource
department in order to support the strategy formulated by human resource department.
 Build change-At this step, change is implemented in organisation and company set goals
in order to continue building momentum.
 Anchor change- At this stage, this ensure that change is now becomes integral part for
organisational culture and visible in every organisational aspect (Sheehan, 2014).
With the help of this model, change can be properly implemented and managed in an
organisation and also leads to the effective development of HR strategy.
Their are various benefits of implementing change in TNT
 It helps the organisation to compete in this dynamic environment and respond faster to
customer demands.
 It reduces the risk and inefficiency of work in TNT as well as it enables employees to
enhance their skills to work according to the change implemented in the organisation.
 When the change management plan is introduced in the organisation it enables the
business to develop their human resource strategy and helps to maintain growth and
innovation in future.
Drawbacks for implementing change in TNT
 When the respective organisation implements change it will result in employees feeling
of stress and tension which impacts on employee's productivity.

 Ineffective training to the employees at TNT regarding the change implemented in
organisation reduces their morale towards the organisation and leads to employee
turnover.
Activity 4
How HR outcomes can be monitored and measured and apply this to a specific organizational
situation.
Company measure the performance of HR to a specific situation such as measuring the
performance of employees after providing them training. It helps the managers of TNT to
properly monitor the performance of its employees. One best way is-
Benchmarking- This technique is considered with measurement of employee performance
according to the set standards. It allows the organisation to monitor employees performance and
providing them effective training and formulate and implement strategies accordingly. It helps
the organisation like TNT to achieve high performance levels thereby achieving business
objectives. . In the case TNT, HR can hire the employees who will work effectively in the global
network and in all areas of an organization (Varma and Budhwar, 2013). It can see the HR
strategies of its rivals to evaluate and identify where it is lacking for attracting and retaining the
customers. TNT should frame the compensation to appraisal of the employees to meet its goals.
This technique greatly helps in enhancing employees performance.
Further it can use key performance indicators to measure the performance of HR. This
indicator adapted by the TNT for performing the task of human resource with the purpose to
evaluate the performance of employees and success of respective organisation. By analysing the
previous performance of employees TNT can evaluate the performance on the following basis-
 Retention of Talent- This allows the company to evaluate the average number of
employees that it is able to retain in the existing work force culture.
 Average time for recruitment- This indicator within the respective organisation
identifies that whether the HR in TNT is efficient enough to complete the whole
recruitment process within the specified time.
 Training- It identifies the time taken for providing training to employees as well as how
the employees are understanding and responding to the Knowledge given by HR.

10 C HRM Model
This model is regarded as a pragmatic model. Alan price introduced this model and
presented in his book titled Human Resource Management. There are 10 principles in this model
which are described as follows-
 Comprehensiveness- HRM strategy in TNT should include all aspects of people
management, typically starting from recruitment to selection programmes.
 Credibility- HR practices adopted by the TNT should build trust between staff and top
management which encourage employees beliefs in HRM Strategies.
 Communication- It determines the effective communication among the employees and
employers in respected organisation. TNT should create a culture of openness and should
be free from all barriers (Ulaga and Loveland, 2014).
 Cost effectiveness- Reward and promotion system in TNT for its employees should be
fair and competitive.
 Creativity- TNT should formulate its strategies which provides competitive advantage to
the company and helps in achieving organisation success.
 Coherence- It signifies that HRM strategy adopted by TNT must be meaningful and
should serve the purpose of organisation.
 Competence- HRM strategy in TNT should be crafted in such a way that it enables the
organisation to become competent and achieves its objectives.
 Control- HRM policies and practices must ensure that performance of HR is consistent
with business objectives.
 Change- HRM strategy should ensure that continuous improvement and development in
organisation is essential for survival.
 Commitment- This step analyses the employees within TNT should be able to achieve
organisational goals.
How effective HR management and development can support sustainable performance and
growth to meet organizational objectives.
Every business operates with the motive of of sustainable development and performance
to meet organisational objectives. Company can evaluate its from “best fit” and “resource based
view”.

Best fit and Competitive advantage- It is an approach of strategic human resource
management that identifies the close relationship between the strategic management and HRM.
It assist the organisation in selecting the the best competitive strategy that best fits in the
respective organisation. This could be done by analysing the level of competition in the market
by conducting an analysis (Stone and Stone, 2013). TNT can formulate various competitive
strategies and by analysing its competitors as well as the respective organisation it helps them to
retain employees for a long term by providing them with various opportunities. This will help the
company to support sustainable performance and growth as well as assist in achieving
organisational efficiency.
Resource based view- It is an approach which discusses that respective organisation
should evaluate various sources of competitive advantage instead of taking decisions to carry
business at a competitive environment. TNT should easily exploit external opportunities from
the market by using the available resources. This technique allows the managerial framework to
TNT to determine the strategic resources business has in order to deliver comparative advantage
to the firm. This helps the TNT to support sustainable performance and meet organisational
objectives.
This approaches can help TNT to support sustainable performance and development of their
business and also meet its organisational objectives and goals.
CONCLUSION
From the above report it has been described that organisation should have defined
strategies in order to achieve its business objectives. Human resource is the most important asset
to the company thereby helps in achieving organisational goals and objectives. It is necessary for
the respective organisation to implement strategic HRM practices to keep the employees
motivated as well as reduces employee turnover in the organisation. It analysed various HR
theories and practices which are essential for the organisation to keep their employees work
efficiently. Various change management strategies are implemented in organisation which assist
the employees to work efficiently and achieves organisation set targets.

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Online:
Kotter's 8 steps change model. 2017. [Online]. Available through:
<https://www.managementstudyguide.com/kotters-8-step-model-of-change.htm>.