Strategic Human Resource Plan in Pryde Group

The report demonstrated the various aspects of strategic human resource management practice and how it have contributed to the overall business performances and accomplishment of the goal and objective. The plan should include the identification of the present and future needs of the human resources, creating a link between the HRM and strategic corporate plan, and developing a positive corporate culture.

ASSIGNMENT COVER PAGE
Assignment: Strategic Human Resource Plan in Pryde Group
Subject: Strategic Human Resource Management
Programme: Pearson BTEC Level 7
Extended Diploma in Strategic Management & Leadership
Student Name: Lam Cheuk Wai
Student No.: 179148101
Assessor Name: David Mui
Due Date: 9 Feb 2018
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Executive summary
The report demonstrated the various aspects of strategic human resource management
practice and how it have contributed to the overall business performances and accomplishment
of the goal and objective. Pride Being is one of the major manufacturing, distribution and retail
company Pryde Group and its focus on SHRM practices has helped in accomplishing the
corporate objectives and even fostered the innovation, creativity and evolvement in business for
long-term success. The major HR practices included performance management processes,
recruiting and selection of staffs and even the training provided to them to enhance their skills
and competencies. From the report, it could be understood that the structure and clan culture of
the organization were considered as important factors influencing the management of staffs at
the organisation. The flexibility and aggressiveness also fostered innovation, creativity and
openness, which supported the team working, coordination and consistency within the workforce
of Pryde Group, Hong Kong.
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CONTENTS
Introduction ……………………………………………………………………... P.3
Content
1. Understand how the strategic management of human resources contributes to the
achievement of organizational objectives
1.1 Importance of SHRM(AC1.1) …………………………..…………………….. P.4
1.2 Purpose of various SHRM practices (AC1.2) ………………………………..…P.4-5
1.3 Evaluate SHRM contribution to achieving organizational objectives (AC1.3)…P.5-6
2. Be able to develop human resource plans for an organization
2.1 Business factors that underpin HR planning in an organization (AC2.1).....……P.7
2.2 Human resource requirement (AC2.2) ………………………………………….P.7-8
2.3 Develop the human resource plan (AC2.3)……………………………………. P.8-9
2.4 How HR plan can contribute to achievement of business objectives (AC2.4) …P.9-10
3. Understand human resources policy requirements in an organization
3.1 Purpose of HRM policies in organization (AC3.1) ……………………………P.11
3.2 Impact of regulatory requirements on HR policies (AC3.2) …..………………P.11-12
4. Exam HRM in an organization
4.1 Organizational structure impact on HRM (AC4.1) ………..………………….. P.13
4.2 Organizational culture impact on HRM (AC4.2)………………………………P.13
4.3 How the effectiveness of HRM is monitored in an organization (AC4.3) …..... P.14
4.4 Recommendations to improve the effectiveness of HRM in an organization (AC4.4)
……………………………………………………………………...… P.14
Conclusion ………………………………………………………………………………… P.15
References …………………………………………………………………………………..P.16
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INTRODUCTION
The human resource management strategies are integrated by the business organizations
within the retail sector in Hong Kong to accomplish the business goals and objectives with a
shared vision. The report is prepared to discuss the various aspects of managing human resources
and how it have created ease for Pryde Group, HK to ensure maintaining the organizational
standards and improve its delivery of services to its customers (Armstrong and Taylor 2014).
The HR manager will be responsible for managing the human resources and ensure that a good
workplace culture is maintained too at Pryde Group, HK.
Figure1: Function of HRM
Company background
Pryde Group is a multinational sports group that has its head quarters in Hong Kong and
has been owned by Shriro Group. The company designs products and services that can cater the
needs of people and is one of the largest retail sectors in Hong Kong in terms of sales and profit
generation. The company has a huge market share in Europe for the last two decades and has
made huge sales revenue for the last few years. The company has established its position in the
Hong Kong market too and has been success due to its great quality products and services at
much affordable price. It is ranked in Fortune Global 500 list of the world's largest companies
and has even portfolio of brands such as Cabrinha, Imagine Surf, NP Water wear and accessories
within the manufacturing, retail and distribution sectors (Jackson, Schuler and Jiang 2014). The
company has now retail and financial services’ divisions, which has allowed for opening new
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ventures in Honk Kong. The business is specialized on brand management, distribution and
manufacturing. The company maintains a workforce consisting of more than 2500 people and
has its operations in more than 40 countries. One of the major products of the company is the
RS:X that is one of the sailboards used (Wood and Kispál-Vitai 2014).
Pryde Group’s vision is to become a company that possess string human resources and
mission is to provide the best quality products and services to the customers. The company has
been serving the diverse needs and preferences of the customer with a portfolio of multiple
strong brands and even managed corporate responsibilities to act with integrity and develop
quality and passion (Marler and Fisher 2013).
1. Understand how the strategic management of human resources contributes to the
achievement of organizational objectives
1.1 Importance of SHRM(AC1.1)
The company has to see their internal and external environment to find out the factors
that can increase and effective to the business performance, and you will see the key factors
should be related to human resources. The strategic human resource management is set to the
long term goals for workforce wherebased on the company business goals. The well strategic
human resource plan can help the company to achieve its goals, when the company sets the goals
or targets to achieve, it is the employees who will perform the necessary duties toward the goals,
and it’s the human resource management to identify the key areas in the company that require the
manpower (Kramar 2014).
Pryde Group is the well-known names in the manufacturing, distribution and retail
industry that the employees over two thousand people in the world and the main three hubs are
located in United State, Germany and Hong Kong, as you can see there were different culture
and languages in different countries and it is not the easy to manage. As being the role in human
resource management, the focus on the long-term objectives is most important than internal
human resource issues (Taylor, Doherty and McGraw 2015). In such, Strategic Human Resource
Management plays in a major role to retain them as well as attracting talent.
1.2 Purpose of various SHRM practices (AC1.2)
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All the companies will formulate their objectives and goals as the business strategy and
human resource will align as the HR policies and that they can maintain the employees with
required skills, work in the right position and keep the company performance and efficiency. It is
quite clear that Pryde Group, being one of the most reputed retail companies has employed
thousands of employees from all over the world and the large workforce has resulted in more
production and better quality. To achieve the long term organizational goals, the company shall
need to identify the internal issues and make sure that the issues does not result in deteriorating
the strategic HRM performance (Lengnick-Hall, Lengnick-Hall and Rigsbee 2013). The HRM
plan’s purpose is to improve the skills, competencies and expertise of the staffs at Volkswagen
and even retain the most talented and experienced workers (Paillé et al. 2014). The SHRM
practices should also match the resources with the future needs and even maintaining their needs
of safety, furthermore reduce the operational costs and utilize their potential for the advantage of
the firm.
Though Pryde Group is an automated organization, still human efforts and commitment
are needed for managing the machineries and equipments, which often incurs a lot of errors. To
resolve these kinds of issues, the business organization managed the resources properly through
rewards and recognition, hiring training and development needs and performance management
process. Rewards and incentives could bring the best of employees by influencing their
behaviors and providing them with the best information. In case the employees are incapable of
performing their tasks, the HR manager should plan training for them (Kehoe and Wright 2013).
It should be done with the involvement of HR manager and line managers for assessing the risks
and implement useful HRM strategies aligned with the corporate objectives. By providing them
flexible working hours and leaves whenever necessary can keep the employees encouraged and
motivated, furthermore balancing work life with personal life would be easy at Pryde Group,
Hong Kong (Nankervis et al. 2013).
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Figure 1.2 Purpose of SHRM
(Source: DeCenzo and Robbins, 2014)
1.3 Evaluate SHRM contribution to achieving organizational objectives (AC1.3)
The tasks on Strategic Human Resource Management include the implementation on the
right skills, place and time in the company. In order to achieve the long-term objectives from the
company, it has to improve and utilization of workforce in assigning the duties according to the
employees skills. It’s not possible to survive and achieve the company goals and objectives if
they without the contribution in the current competitive market (Akingbola 2013).
Figure 1.3 Aligning Business & HR Strategy (Source: hhoppe, 2018)
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Figure 1.3.1 Hierarchy of strategic decision making (Bratton, 2003)
The strategic human resource management practices are useful for recording employee
activities, their performances and even the monetary benefits including pay structure
management, training and developmental sessions to be provided and termination of employees.
The administrative grievances regarding the employees are also managed wisely, which can
further contribute to the promotion of needs and expectations of the customers and reducing the
costs of operations to achieve competitive advantage (Morgeson et al. 2013). One of the first and
foremost things to be done is the matching of skills with the corporate objectives and individual
roles. The strategic decision making is managed by the HR managers, by which the right skilled
employees can be assigned to the right positions with a perfect hierarchy (Zhou, Hong and Liu
2013).
2. Be able to develop human resource plans for an organization
2.1 Business factors that underpin HR planning in an organization (AC2.1)
The HR planning requires identification of the present and future needs of the human
resources and creating a link between the HRM and strategic corporate plan for ensuring proper
selection, retention and flexibility strategies at Pryde Group. The changes in social structure and
population are considered as important factors that can strengthen the SHRM practices. The legal
factors include change in laws, rules and regulations to maintain the organizational standards and
fostering the development of a better economic environment. By not following these factors,
Pryde Group would face difficulty in reaching the benchmark. The governmental rules and
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regulations could also affect the organizational functioning and so it is necessary to align with
those. The behaviors of employees are to be aligned with the major values and beliefs of the
organization through the development of a positive corporate culture (Chelladurai and Kerwin
2017). This would foster the development of positive behaviors and it could benefit both the
employees and employer of the organization. The external and internal factors could also be
assessed to understand the needs and preferences of the employees, furthermore provide them
with good wages, rewards, labor rules, laws, working environment, positive culture.
Strengthening of relationship between the employer and employee is also considered as effective
factors for keeping the employees motivated at Pryde Group, Hong Kong (Stone and Dulebohn
2013). The transformation of organizational structure would be possible by centralizing of
decentralizing the HR functions through the development of a new strategic HRM unit. The roles
of staffs are important for improving the administrative effectiveness; furthermore create value to
the firm by integrating the human resources into the strategic planning process (Albrecht et al.
2015).
2.2 Human resource requirements (AC2.2)
To create a structured human resources plan at Pryde Group, the requirements of HR
should be analyzed at first. The existing employees of the company must be retained and the
recruitment and selection procedures could bring in more talented staffs to strengthen the
relationships with customers and influence the process of decision making too. The HR planning
process must include job roles ate various work levels. At the work level 1, there would be
frontline jobs that would be to work with the customers and provide them with the best quality
services while at work level 2, the team leaders should guide them towards the goals and
objectives and even keep them motivated an encouraged. At the work level 3, there would be
functions managed at various departments including the planning, management, targeting and
reporting whereas work level 4 would allow for data and information analysis along with
development of skills to create a sustainable vision or objective (Van den Brink, Fruytier and
Thunnissen 2013).
One of the most important requirements is the availability of staffs from the local areas,
because they can adapt to the culture easily and will be able to serve the local customers with
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much convenience. The Chief Operating manager should deal with these functions whereas the
HR manager must handle the staffs related queries and provide relevant solutions accordingly for
the betterment of the business (Bondarouk and Ruël 2013). Need for informing the employees
about the corporate plans and sustainability aspects is essential for creating a sustainable future.
2.3 Develop the HR plan (AC2.3)
The strategic human resource planning would require identifying the present as well as
future needs of human resources by linking the HRM with the overall corporate strategic plan of
Pryde Group, Hong Kong. By implementing an effective SHRM plan, it would be easy for the
HR manager of the organization to estimate the demands and evaluate the size, nature and supply
sources that should be needed to meet the demands in the market. The entire HR plan must also
include developing an employer brand, maintaining flexibility strategies, retention strategies,
management strategies and selection strategies to manage the human resources properly and
ensure business functioning at a faster rate (Lamba and Choudhary 2013).
The practices of SHRM to support strategic implementation and organizational capability
development are as follows:
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Assessing the present HR capacity at Prude Group – A skills catalog is developed for the
employees to understand about the staffs, their performances, volunteer activities and degrees
that they hold. It should be checked to make sure whether they could add to more responsibilities
and handle the various functions related to the future development plans or not (Den Hartog et al.
2013).
Forecasting the requirements for HR – The identification and analysis of HR needs must be
according to the strategies goal and objectives considering the fact that external factors may also
impact the business function. The skill sets would be assessed, upcoming jobs to be filled,
numbers of staffs required to meet the strategic goal and involvement of community were to be
checked.
Analysis of gaps – The present condition of the organization and where it wants to be in the
future shall be observed and then the HR requirements shall be evaluated along with the skills
and competencies possessed by them. The new skills, job roles and strengths of the company
should be analyzed and the employees must align with the corporate strategic plans to
accomplish the long-term future goals of Pryde Group (Bagga Teena and Srivastava Sanjay
2014).
Development of HR practices and strategies to support the organization’s accomplishment of
objectives – Recruitment strategies for creating well designed job roles and maintaining a stable
employee hierarchy, which could reduce the staffs’ turnover rate. The HR outsourcing strategies
would create a diverse workforce and collaborate with other workers to foster creativity,
innovation, flexibility and enhanced customers’ services delivery within the retail sector of Hong
Kong (Bratton John 2003).
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Figure 2.3 Strategy plan to HR plan flow (Source: Laura, 2018)
2.4 How HR plan can contribute to achievement of business objectives (AC2.4)
As it could be seen from the previous section, The HR plan could allow for the HR
manager to communicate with the other managers at different levels of the organization and
make the employees understand about their individual roles and responsibilities properly too. But
most importantly, it would be important to identify the requirements of human resources
management at first and then manage the recruitment and selection strategies to attain the right
skilled and knowledgeable workers at the company (Daniel et al. 2016). They shall be recruited
with the use of interview sessions and through effective hiring procedures by making sure that
their skills and knowledge match the job roles and requirements (David, DeCenzo and Stephen
2013). This will result in the success of staff development programs and retention of existing
staffs too for Pryde Group, Hong Kong. The analysis of gaps can facilitate the implementation of
HR plans and ensure that the skills’ sets are managed properly along with the availability of right
numbers of staffs with the most relevant skills and knowledge within the workplace.
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3. Understand human resources policy requirements in an organization
3.1 Purpose of HRM policies in organization (AC3.1)
Human resource constructs the company policies and procedures to maintain the
employment matters according to company’s philosophy and in compliance with
regulations that apply to labour and employment. HR policies support the way an
organization defines roles and rules, explain consequences of actions and behavior
and provide employees with tools necessary to do their work (Paul, 2005).
As the company ideally to hire the local people for those 3 subsidiaries to save on the
cost and resource which improved the workforce and effectiveness. The purpose of
human resource policies can be defined as below:
• Structure – defines the company workforce structure to avoid any confusion
• Fairness – support the equal employment opportunity to applicants and
employees throughout the hiring process and employment experience.
• Best Practices –analyses the business operation and review the human resource
policies and procedures that to have the most positive affect (Howard Distelzweig
2018).
• Consistency –handle the employment matters, policies and procedures
consistently to prevent the workforce conflict.
3.2 Impact of regulatory requirements on HR policies (AC3.2)
Government is committed to improving employee’s rights and benefits. (Labour
Department, HKSAR, 2018) Government setup various rules and schemes to protect
the employees in their right, health, safety and other legislation, and therefore
everything organization have to fulfill these government requirements in regard
employee’s welfare which was included in HR policies include local law on the
recruitment, monetary, termination, etc. And so, human resource manager has to
consider all these government laws while developing and formulating any HR policy
regarding the decision on workforce within the company (Laura Portolese Dias 2018).
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The HR manager and division managerare in process to select the applicant
foravailable positionsand following the local employment regulations and laws at the
same time. Other than that, the tasks on the training for candidates, minimum wages
and health & safety have to measure as well (Paul Sarvadi 2005).
Regarding the key regulatory frameworks in Hong Kong, two major impact human
resource polices are as below:
•Minimum Wage Ordinance – statutory minimum wage has come into force since
1 May 2011 in HK$32.50 per hour and now, it raised into HK$34.50 per hour from 1
May 2017. (Minimum Wage Ordinance, Chapter 608) The running cost was
increased and the since the cost leadership is the business strategy goals and
objectives that have to filter and retain the right talent and employees only in the
company to reduce the headcount costing.
• Factories and Industrial Undertakings Ordinance – the factory and industrial
undertakings ordinance provides the safety and health protection to workers in the
industrial sector. And the coverage included repair workshops and other industrial
workplaces. (Factories and Industrial Undertakings Ordinance, Chapter 59)
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4. Examine HRM in an organization
4.1 Organizational structure impact on HRM(AC4.1)
Due to the strategic human resource management strategies, the structures and cultures of
the organization are impacted and this has created diversified workforce and the situations could
be handled with much ease and efficiency. The HR managers do play a major role in managing
the organizational structure by taking decisions with the involvement of the employees so that
they could provide their useful views and opinions. This can also make the staffs of Pryde Group
feel that they were being valued for the organization and considered as important organizational
assets. The democratic leadership style favors the positive behavioral management of the
employees, this can even develop an appropriate culture, and structure to keep the staffs
motivated and encouraged to perform to their potential (Wood and Kispál-Vitai 2014). It has the
potential to manage the wages scale, remuneration policies, sharing of profit and analysis of
developmental positions. With the maintenance of proper working conditions evolved through
management of organizational structure, Pryde Group should maintain the safety and hygiene of
workers at work, manage ergonomic working conditions, prevent occupational diseases, reduce
the occurrence of psychological risks leading to stress and depression. This could definitely
promote smooth flow and exchange of information and improve the expert areas of management,
economic, legal laws, sociology and psychological aspects too (Kramar 2014).
Figure 4.1 Business structure (source: Pryde Group, 2018)
4.2 Organization culture impact on HRM (AC4.2)
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Maintaining a good culture is necessary for each and every organization nowadays, not
only for the successful management of values, beliefs and ethics but also for promoting
teamwork, coordination and communication among the team members. A proper culture can
enhance the efficiency of decision making process, furthermore establish a sense of trust and
loyalty among the employers and employees, which will ease down the sharing of roles and
responsibilities with the peers. Decision making process can be both centralized or decentralized
according to the size, nature and scope of business with the formation of a positive culture. The
top level managers, HR manager and line managers work together to boost the culture of the
organization to create motivation and encouragement among the workers and retain the existing
staffs too for the betterment of organizational outcomes.
Hofsetede’s cultural dimensions theory or model is one such framework that enables
cross cultural communication between the team members and creates positive effect on the
values and beliefs managed by the members of the society. It creates a link between the values
and behaviors through the use of factor analysis. The power distance index could allow the less
performing workers of Pryde Group to accept the fact that the job roles, responsibilities, freedom
and power were not distributed equally. Here the team members might question the authority and
power and even might focus on distribution of power to achieve better hierarchical management
of human resources (Paillé et al. 2014).
The individualism vs collectivism could allow for making the employees learn to work in
groups and communicate with each other to form stable relationships. This would reduce the
workload of employees and even create a sense of trust and loyalty among the workers to reduce
the chances of conflicts properly. The Uncertainty avoidance index represent the organization’s
policies, guidelines, laws, rule and regulations that must be acceptable by all the employees
working there to ensure smooth flow of information and messages along with the maintenance of
organizational values too. Masculinity vs feminity represents the equal opportunities and scopes
provided to the male and female staffs of Pryde Group (Kehoe and Wright 2013). The employees
should be treated as one and equal for all and it should be important to maintain a culture free
from any discrimination based on race, religion, color, creed or ethnicity.
The long-term vs short term orientation defines the HR practices that should be
undertaken prior to comparing the actual outcomes derived with the future predicted outcomes.
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This would allow the workers to adapt to changes and gain problem solving skills to contribute
to the economic growth and development, furthermore create a good financial status of Pryde
Group, HK. Last, but not the elast, indulgence vs restraint could focus on the desires and
expectations of the staffs and regulate those within the workforce according to the social norms
and regulations. It could make them capable of handling their emotions and maintain a positive
attitude while working at the company (Nankervis et al. 2013). This will be possible by
maintaining a clan culture, which create a friendly working environment where people can work
together as an unit to derive positive business outcomes. Here the needs of clients are addressed
and staffs are promoted to engage in teamworking, coordination and better comunication .
4.3 How the effectiveness of HRM is monitored in an organization (AC4.3)
The performance management system is one of the most effective ways of monitoring the
performances of employees and raising the performance level of the organization. The physical
fitness and health of individuals are monitored to check whether their performances have met the
business expectations or not and also they are provided with ratings. The factors affecting the
company strategies are identified by using metrics including the cost to hire. For example, the
HR manager of the retail company would like to hire an internet-marketing manager to track the
sales achieved by the company and then compare it to the cost of hiring and retaining the
existing talents within the workplace. If the results obtained can confirm the hypothesis testing,
then the HR strategy will be successful and noteworthy (Morgeson et al. 2013). The managers
often check whether the employees are working properly or not and in case of any misconducts,
they should be provided with warning considering the e tire situation rather than taking any
immediate step. The performance management process could assess their performances and
identify the areas of weaknesses, based on which, necessary training are provided at Pryde
Group, Hong Kong.
4.4 Recommendation to improve the effectiveness of HRM (AC4.4)
Based on the previous section, it could be understood that the HR strategies efficiency
must be improved for deriving positive outcomes in terms of profit and competitive advantage.
After evaluating the weaknesses of the employees, they must be provided with training and
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development programs to sharpen their skills, knowledge and creative thinking abilities. SHRM
strategies focus a lot on maintaining flexible work conditions and so it would be important to
provide the staffs with flexible working conditions that should keep their behaviors influenced
positively. The employees could perform with more commitment and dedication for achievement
of the organizational goals and objectives at Pryde Group. Formation of a good culture would
promote teamwork and better communication to ensure smooth flow and exchange of
information (Chelladurai and Kerwin 2017).
Figure 4.4 Future research into strategic HRM (Source: Daniel, Jon-Arild, Helene,
2016)
CONCLUSION
Nowadays, Strategic Human Resource Management plays as the important role in the
business to manage the workforce as well as the productivity. The well strategic human resource
management plan can either motivate their employees to increase the effectiveness and
productivity; and to build up the well organizational culture which will increase and raise up the
company goodwill. Therefore, the strategic human resource management is an essential factor to
enable fine workforce which optimum utilization.
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