Strategic Human Resource Management

This document discusses the concept of strategic human resource management and its importance in organizations. It explores the rationale of embedding HR strategies into broader corporate strategies, analyzes how HR strategy is embedded in the broader corporate strategy of Tesla Inc., discusses the implementation of HR strategy at the departmental level, and highlights some of the contemporary HR challenges faced by Tesla Inc.

STRATEGIC HUMAN RESOURCE MANAGEMENT
HRMT20026
Strategic Human Resource Management
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STRATEGIC HUMAN RESOURCE MANAGEMENT
Contents
Introduction......................................................................................................................................2
Body.................................................................................................................................................3
1. Outline the rationale of embedding HR strategies into broader corporate strategies...........4
2. Analyse how HR strategy is embedded in the broader corporate strategy of your chosen
organisation..................................................................................................................................5
3. Discuss how the organisation may implement their HR strategy at the departmental level.5
4. Discuss some of the contemporary HR challenges facing your chosen organisation..........6
Conclusion.......................................................................................................................................7
References........................................................................................................................................7
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Introduction
For helping the organizations in meeting the employees needs while also promoting the goals of
a business, strategic human resource management is designed in such way. The different facets
of business affecting the employees in terms of recruitment and termination, pay, benefits,
training, and administration are dealt by human resource management. According to YILMAZ &
KITAPCI (2017), strategic human resources management can be best understood by making
comparison with HRM, the key focus of which revolves around the recruitment of best
employees and provide them remuneration, benefits, training and development needed for
becoming successful in organizations. However, all these responsibilities are taken one step
further by SHRM with the help of coordinating them with other departmental goals and that of
the overall organizations. Furthermore, it is also ensured by the HR teams practicing strategic
management that their objectives are in-line with organization’s mission, vision, values, and
goals. One can describe strategic human resource management as a dedicated people
management requiring to think ahead and plan better ways for meeting the needs of employees
by a company and vice versa. According to Saha, Gregar&Sáha (2016),the impact of this gets
reflected from the ways things are getting done within a business right from improved hiring
practices and employee training programs to techniques of employee assessment and their
discipline. SHR endeavours in linking the activities of human resources with performance
measures that are based on competency besides establishing a link with the surpluses or profits
of a business. The key purpose of the report study revolves around comprehending the concept of
strategic human resources management in the context of the chosen company Tesla Inc., an
American automotive and energy company.
(Source: content.wisestep.com)
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Discussion
1. Outline the rationale of embedding HR strategies into broader corporate strategies.
According to Bagga& Srivastava (2014), today’s highly competitive business environment has
brought a rapidlyincreasing pressure on the traditional support services such as HR, finance, IT,
administration, legal etc. in producing an impact on the outcomes of businesses that is more
direct. It is quite easy in comprehending the business rationale behind the mounting pressure.
According to Gond, et al., (2011) customers, boards of directors, analysts, and investors are
pushing organizations (public and private) in doing more with the available resources; in most
cases – delivering more services with less besides getting them delivered faster, with more value
in more locations, customizing the experience; gathering, analysing and integrating data through
multiple means for enhancing controls and cross-selling; allowing flexible work hours for
balancing work-life; providing an atmosphere for continuous learning; shifting everything online
for 24/7 access anywhere and anytime, with robust privacy and security.According to Ngo, Jiang
&Loi (2014),with the advent of 21st century a new breed of HR has resurfaced to lead the
transformation with wider skill set in order to reinvent the area as a strategic function that is data
driven and critical in organizational success. The friction revolving around ‘us’ versus ‘them’to a
certain extent has been removed through this shift, which in the past had framed HR as a
deviated business function. A newer approach based on partnership, accountability, and shared
outcomes have been embraced. One particular position i.e. the role of HR business partner traces
back the tipping point of this dramatic shift. Today, instead of keeping HR secluded as a
centralized team, the HR strategies are embedded into broader corporate strategies thus,
integrating them more deeply into business units. According to Harrison &Bazzy
(2017),embedding the HR strategies to other corporate strategies significantly contributes in
overall success of the business by understanding and adopting the organizations and objectives;
seeing the practices of HR via a business lens; making the connection: linking the HR strategies
and practices to the outcomes of a business; discussing the HR practices with business leaders,
and showing the decisive impact of HR practices and programs on the business outcomes.For
example, progressive HR is shown by Mattelfor transforming the organization and modernizing
its capabilities by bringing an HR veteran as its new chief people officer. A new leader-led
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model of HR was adopted for giving the tools and support to managers for evaluating the
company’s health in terms of talent and capability to design the people strategy parallel to their
HR business partners.
2. Analyse how HR strategy is embedded in the broader corporate strategy of your
chosen organisation.
According to Oppong (2017), the organisational structures, values, decision-making process,
leadership style, recruitment and termination, reward and incentives systems for to boosting the
productivity and performance of employees at Tesla are controlled by its HR strategy. It has
contributed in cultivating an organisational structure enabling consolidated managerial control,
accentuating the philosophy of global leadership for its long-term plan of international
expansion.The HR strategy focuses on hiring the best of talents by conducting hiring procedures
that are highly intense. Potential applicants have to face an extensive interview process having
multiple interviewers asking complicated questions for putting them under great pressure
continuously. This is followed by convincing the CEO in hiring them. Employee engagement is
emphasized in the management strategy at Tesla perceiving it as the major factor driving
customer satisfaction. According to Naznin& Hussain (2016),for promoting employee
engagement actively employee engagement the top leadership is garnered. In addition,
transparent communication across all organisational levels is ensured. Moreover, for better
comprehending the concerns and aspirations of its employees Tesla360 survey is carried out
periodically. The involvement and impact of the HR strategies in the execution of Tesla’s
different business functions and operations gets readily reflected with its companywide staffing
responsibility further extending to the employment’s full life-cycle. According to Mishra, Sarkar
& Singh (2013), the HR strategy of Tesla is embedded with the broader corporate strategy in
terms of talent acquisition; performance management; training and development; employee
retention and engagement; employment law compliance; compensation and benefits; and safety
and security. For achieving the Tesla’s mission, it is critical to align the HR strategy with
strategies of the business.
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3. Discuss how the organisation may implement their HR strategy at the departmental
level.
According to Anisimov, et al., (2017), getting the HR strategy implemented at the departmental
levels can be challenging for Tesla owing to internal and external factors might hinder the actual
procedure. The company may implement their HR strategy across their national branches by
breaking the glass ceilings of local national. This can be done by bringing an end to the
managers’ favouritism towards the local employees--- a key step to build a global HR strategy.
According to Katou (2017), based on its business strategy Tesla must determine the essential
activities needed for attaining global success besides specifying the positions, representing as the
company’s life line, liable to perform them. Local circumstances should be considered while
implementing the HR strategy to different types of employees. For most of the positions, skills
profiles should be circulated however, for meeting the local needs managers should adapt them.
Furthermore, focus should be on building global database for monitoring the career development
of all its employees scattered worldwide just like database complied by IBM and Unilever for
feeding the names of all employees and track them through annual reviews. According to Saha,
Gregar & Sáha (2017), to implement their HR strategy on project teams Tesla should focus on
constructing amobility pyramidfor evaluating them on their willingness in moving to newer
locations along with their abilities and experiences. This concept in the global markets of Tesla
must be perceived as a graduated scale. Also it must be re-evaluated continuously owing to the
changing situation in the lives of project team members and opportunities of the company.
4. Discuss some of the contemporary HR challenges facing your chosen organisation.
According to Lee, Lin & Huang (2017), some of the contemporary HR challenges that Tesla
faces revolves around management changes. It derives from the continuously growing business,
with which its strategies, structure, and internal processes also grow. Few employees face tough
times to cope with these changes eventually leading towards declined productiveness and
confidence levels during the periods of change. In such situations it is recommended that the HR
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team focuses on conveying how the impending change will be beneficial for everyone by
conducting regular employee meetings. Employees when understand why, how, and when
achange will be implemented, it becomes more likely of them to come on board. According to
Momeni & Martinsuo (2018),retention of talented employees isyet another contemporary HR
challenge faced by Tesla because of fierce competition to poach them by luring them through
attractive retirement plans, expensive insurance plans, packages and other perks. Employee
turnover is expensive leaving a negative impact on the growth of its business.It is recommended
that for dealing with this HR challenge, the leaderships focus on onboarding, which is greatly
effectual for employees. With a structured onboarding process the company can increase the
scope of employees in staying with them for a longer time period.
Conclusion
Finally, it can be conclude from the above study that the foremost concern of strategic human
resource focuses on distinguishing organizations from its competitors. Moreover, it contributes
in providing ideas for allocating the available organizational resources with matching and
capable employees; designing the chosen organization Tesla’sfoundation for attaining productive
business benefits, structure and culture, values propositions of the employees and effective
communication strategic plan for the management of human resources.
References
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(2017). Strategic approach to forming a human resource management system in the
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strategy. Strategic HR Review, 13(4), 207-209. Retrieved from
http://dx.doi.org/10.1108/SHR-03-2014-0023
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Bamber, G. J., Bartram, T., & Stanton, P. (2017). HRM and workplace innovations: Formulating
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