Current Trends and Developments Influencing HR Strategy

This report discusses the current trends and developments that influence an organization's HR strategy. It explores the external and internal factors that shape HR strategy and practice. The report also evaluates how change management models support HR strategy and the theories and concepts for the growth and development of strategic HRM.

Unit 21 - Strategic
Human Resource
Management
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INTRODUCTION......................................................................................................................3
LO1............................................................................................................................................3
P1 Current trend and developments that influence organisation's HR strategy.....................3
P2 External and internal factor that influence HR strategy and practice...............................5
TASK 2......................................................................................................................................8
P3 Theories and concepts for growth and development of strategic HRM............................8
LO 3...........................................................................................................................................9
P4 Evaluate how change management models support HR strategy.....................................9
P5 Methods with the help of which HR outcomes can be monitored..................................10
P6 Effectiveness of HR management and development for sustainable performance and
growth...................................................................................................................................11
CONCLUSION........................................................................................................................12
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INTRODUCTION
Strategic management is defined as a process in which performance and roles and
responsibilities of employees are aligned with the objectives of company by managing their
capabilities, performance, skill and talent. Main aim of strategic human resource management
is effectively utilise potential of employees towards accomplishment of organisational
objectives in a well define and effective manner (Pham and et. al., 2020). It is one of the most
important approach through which performance and efficiency of both management and
employees can be maximized. For this process HR manager is having significant
responsibility to undertake various techniques such as employee relation, recruiting, training
and development and compensation in order to build effectiveness and capabilities of
employees according to organisational culture.
Present report has been conducted on EasyJet, company perform its business
operations as British low cost airline group having its headquarters in Luton, United
Kingdom. This company provides both domestic and international schedule services with
having more than 15000 employees. In this report formative discussions have been conducted
on current trend as well as development that are influencing organisations HR strategy along
with the relevant theory and concepts associated to the development and growth of strategic
HRM. In addition to this report also include appropriate change management model,
contribution of HR management and HR development to sustainable business growth and
performance.
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LO1
P1 Current trend and developments that influence organisation's HR strategy
Modern business environment is changing on continuous basis which lead towards
continuous change of trends and developments. It has been evaluated there are different type
of trends and developments that are having significant impact upon organisations HR
strategy. In order to ensure more growth and competitive advantage means it is essential for
an organisation to effectively emphasise upon current trends and developments in order to
provide its services and facilities to the customers effectivel. In context with EasyJet it has
been identified that company provide the services in more than 30 countries, thus it is
essential for entity to focus upon current trend in development in order to align employees
performance according to the change. Mentioned below there is some certain form of trends
being defined below:
Continuous Improvement:
Continuous improvement can be seen in terms of different aspects like skills and
knowledge in order to perform roles and responsibility. It has been evaluated that business
environment is continuously developing along with this there is dynamic change in the needs
of customers. In this it is essential for EasyJet HR to identify the current changes in the
requirements of skills and developments of employees according to the current trends and
demand and further provide them training and development courses to improve in order to a
align their performance accordingly. In this HR can take advantage of developing technology
as well as innovation in order to enhance efficiency of employees and maximize overall sales
of entity. It has been determined that it is essential for HR of EasyJet to evaluate employee’s
performance levels and current trends and developments in order to increase their skills level
accordingly.
Workforce Diversity:
It is most important trend and development that are affecting organisation HR
strategy, as it has been underlined that EasyJet offer its business services in approximately
more than 30 countries, Thus it is essential for company HR manager to have employees
from different backgrounds, skills and expertise in order to serve customers from different
geographical areas accordingly. With the help of having diversified workplace sculpture
entity can assure more competitiveness compare to other rivals. In this HR manager strategy
is affected by hiring and providing individuals with different culture, ethnicity, age, ability
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and religion. Thus, it is essential for HR of organisation to recruite employees from different
geographical location with the help of digital platforms.
Process for improving productivity:
To maximize targeted productivity performance organisation is required to evaluate
trends and development that are affecting respective industry. In this HR manager is also
required to identify competitor’s strategy in order to gain more competitive advancements. It
has been identified that consumer needs and demands are changing on continuous basis thus
in order to satisfy them in an effective manner and improve productivity of organisation. It is
essential for HR to undertake feedback from employers and further provide them training
accordingly in order to align their performance with organisational objectives and enhance
their productivity levels.
Impact of globalisation:
Globalisation is one of the most important and major affecting element that have
emphasized upon company HR strategy. EasyJet offer their services in number of countries
thus, it is essential for HR for entity to effectively emphasise on globalisation. In this HR
manager of EasyJet is required to determine advantage of globalisation and integrate human
resources from different areas in order to bring innovation and creativity in organisational
structure as it allows company to assure more growth
.Changing Skill requirements:
It is essential for an organisation to maintain healthy relationship with their employees
in order to determine the abilities and potential. It has been identified that there is continuous
change in skill requirements as needs and demands of consumers are dynamically changing.
Thus, in order to serve customers in more efficient manner while assuring more
competitiveness it is essential for HR manager to make employees adaptive them towards
change by enhancing their skills and efficiency.
P2 External and internal factor that influence HR strategy and practice
External Factors:
This factor includes elements that are having significant impact on business
functioning on external basis. Elements like social factors, legal, technological, political and
economic effect employee’s external business in a negative and positive manner. Thus, is
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essential for an organisation to have proper understanding of these elements along with the
direct or indirect impact upon the activities of business in order to accomplish organisational
goals with effectiveness. There are different type of external elements which is defined below
along with their impact upon company performance:
Market Trends:
This factor involves trends that are basically uncontrollable such as consumer
perception, technological changes and more (Löfsten, Klofsten and Cadorin, 2020). These
elements are having direct and indirect impact upon operation and business functioning.
There is continuous change in technology and negligence of this may lead company products
and services to get outdated in respective industrial sector which can affect their sales and
profitability. In this it is essential for EasyJet manager to determine dynamic changes in
market trends and facilitate innovation and creativeness in organisational structure in order to
assure more competitive advancements compared to the rivals.
Laws:
It is one of the most important trends that affects organisation in number of ways. It
has been identified that legislation of government is changing continuously which can affect
overall production and operation process of entity (Vuong and Sid, 2020). There are various
form of state and federal regulations that can affect EasyJet operations. Thus, it is essential
for company manager to have proper understanding of laws that are affecting organisational
activities and functions and make sure that all the legislations are being employed on
company workplace structure. With the help of this EasyJet cannot only serve customers in
ethical manner but can also assure higher goodwill in market.
Internal Factors:
Factors that affect functioning of business internally are known as internal factors.
Mentioned below there are some factors that affect internal activities of EasyJet:
Available Funding:
Funs act as lifeblood of any organisation as they are the major source through which
company conduct their operation and functioning in a smooth manner. Thus, is essential for
company to focus upon various sources of funding in order to ensure that their business
operation does not get affected due to inadequacy of funds. In context with EasyJet it is
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important for company manager to determine various sources of finance in order to assure
smooth organisational functioning in a systematic and proper manner. Shortage of funds can
lead company to face many losses that can lead entity towards liquidation.
Employee relation:
This is most important internal factors that can affect company operations in number
of ways. Employees are major source of revenue generation for an organisation thus, it is
essential for EasyJet manager to make positive and healthy relationship with employees and
further provide them different training and development courses in order to increase their job
security (Muideen, 2020). Along with this EasyJet managers are also required to provide
different rewards, benefits, compensation and monetary and non monetary advantages to
employees. This will lead company to retain experienced, talented and potential employees
that can enhance company competitiveness in respective industrial sector.
HR issues in public, private and third sector
Recruitment:
Employees plays major role in an organisation through which company can assure
high growth, productivity and competitiveness. Thus, it is important for EasyJet manager to
engage in efficient recruitment process and place right candidate at right place in order to
provide time job satisfaction. By hiring candidates according to the job requirements
managers can not only satisfy employees but can also increase performance efficiency of
organisation.
Retention:
High labour turnover is having significant capability to affect organisation brand
value and lower goodwill in industrial segment. Thus, it is essential for EasyJet manages to
strengthen relationships with employees and undertake different employee retention
strategies in order to lower down employee turnover rates. Along with this, entity is also
required to emphasise upon employee’s satisfaction while framing strategy as to provide
them maximum job satisfaction.
Discipline:
In order to conduct process with higher efficiency discipline plays major role as it not
only increase capabilities and productivity of organisation but also assures healthy disciplined
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structure. In order to align employee’s performance according to organisational objective it is
essential for EasyJet HR manager to make sure that there is positive discipline environment
in organisational workplace structure.
TASK 2
P3 Theories and concepts for growth and development of strategic HRM
There are different type of theories and concepts through which organisation can
enhance the development and growth of strategic HRM process. EasyJet provide domestic
and international low cost Airlines services to customers. Thus, in order to ensure leading
positioning in United Kingdom it is essential for organisation to undertake different type of
strategies and methodologies which is being further defined below:
Performance Management:
It is the most important strategies that allows organisation to offer support in order to
maximize performance of employees in an organisational structure and allow their roles and
responsibilities with organisational objectives (Pérez-Conesa, Romeo and Yepes-Baldó,
2020). In this it is essential for EasyJet HR manager to evaluate daily basis activities and
function of employees in order to identify gaps in their skills and capabilities according to
competition prevailing in respective industry. It is essential for company to undertake use of
this performance management tool in order to effectively increase overall performance level
of employees in an organisation. This will facilitate entity to assure hire profitability and
sales. Along with this HR manager of respective organisation is also required to engage in
continuous monitoring and reviewing performance of employees in order to evaluate their
performance status. Entity is also required to increase efficiency of employee by making
gradual changes in their skills and capabilities according to the current trends and
requirements.
E-Recruitment:
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E-Recruitment in this modern world is playing most important role, in which entity
can hire candidate from different geographical location. This approach will not only lead
company to have diverse workplace culture but can also conduct their process and
functioning with more innovative ideas, creativeness and effectiveness. For example with the
help of different e- recruitment measures such as LinkedIn, Facebook and other online job
platforms HR manager of EasyJet can hire individuals of different talent, background and
knowledge from different places around the world. It actually allow organisation to facilitate
creativeness and innovation that can strengthen company image in global market.
540 Performance Appraisals:
It is one of the most important and systematic approach in which entity can improve
performance of employees in which workers get self assessment, superior through which they
can assure higher performance objective (Bombiak, 2020). With the help of this performance
appraisal method ent6ity enhance overall performance levels of employees and can assure
that the delivery of services to consumers is increases. EasyJet HR manager with the help of
540 performance appraisal can not only facilitate employees towards higher performance
objectives but can also provide support to underperform employees. This will lead entity to
ensure higher higher performance objectives.
LO 3
P4 Evaluate how change management models support HR strategy
Kotter's 8- Step Change Model:
Create Urgency: This is the first stage in which it is essential for management to
create urgency for change. With the help of this TNT express can effectively implement
change
Form a powerful coalition: It is the stage in which leaders and managers are required
to provide knowledge to employees related to the need of change were there as well as
organisation benefits.
Create vision for change: In order to apply changes in organisational workplace
structure it is essential for leaders and managers to take advantage of different form of ideas
and have a clear set of aim. With the help of this TNT Express can effectively implement
change.
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Communicate the vision: It is an essential step in which TNT Express is required to
effectively communicate aims as well as objectives with every individual who is associated
with change.
Remove obstacles: It is an essential stage in which leaders and managers of TNT
Express are required to make sure that there is no obstacle or unnecessary issue exist in the
path of implementing change.
Create short term wins: In order to effectively accomplish long term objective
managers of effective organisation is required to create short term in order to enhance
employee motivation and morale.
Build on the change: After successful accomplishment of change organisation is
required to effectively build on the change and celebrate its success with employees.
Anchor the change to corporate sector: In this stage TNT Express is effectively
required to implement change within organisational day to day activities in a permanent
nature.
According to the above analysis it has been identified that with the assistance of this model
TNT Express can effectively implement change within their works structure and can enhance
overall productivity. However this model is having major drawbacks as if an individual
missed one step then it can further lead towards overall failure. Thus, in order to effectively
overcome this failure leaders and managers are required to if properly invest their time in
making aims and objectives and sure that every step is implemented in a well defined and
effective manner and divided by every individual who is associated with change.
P5 Methods with the help of which HR outcomes can be monitored
There are different types of techniques and approaches with the help of which
organisation can effectively manager HR practices outcome and can conduct organisation
practices with high efficiency. There are some certain form of techniques is being defined
below:
The Best fit approach:
With the assistance of best fit approach company can effectively monitor outcomes of
Human Resource practices and strategy in a well define and effective manner. With the help
of this entity can automatically evaluate status of employee’s performance and can keep live
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track on them. In this HR manager is required to implement efficient strategies for specific
time period and further align performance of employees in order to stay align towards
organisational objectives. It has been identified that EasyJet is facing with the issue of
financial crisis, thus in order to overcome the situation it is essential for HR manager to adopt
changes and implement new ideas in organisational workplace structure in order to develop
employees and make them adaptive in order to overcome this crisis. Along with this HR
manager is also required to increase performance of employees in order to enhance
productivity through which organisation can assure more profitability and financial reserve
ratios.
Resource based view:
With the help of resource based review organisation can determine the sources
through which they can overcome the problem or issue in an effective manner. This
technique is defined as managerial framework that aid organisation to evaluate strategic
resources through which they can assure competitive advancements (Malik, Pereira and
Budhwar, 2020). It has been identified that EasyJet is currently facing the issue of changes in
employee behaviour thus, in this HR manager is required to determine those resources
through which level of employees can be positively directed towards company objectives. In
addition to this HR is also required to provide development training session to employees in
order to identify behaviour of employees and further provide them job satisfaction in order to
overcome this problem.
P6 Effectiveness of HR management and development for sustainable performance and
growth
There are various ways and approaches through which HR manager of company can
deliver efficient performance while accomplishing objectives of entity in a well define
manner. There are uncertain form of approaches is being underlined below:
Key Performance Indicator ( KPI):
In this model entity is required to evaluate and analyse process or task. There are various
form of characteristics involved in KPI which is determine below:
Concrete: It essential to have kept in a tangible manner alone with particular goals
and objective EasyJet HR manager is required to evaluate daily basis performance which is
important to be in the form of tangible manner.
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Measurable: It is essential that key performance indicator is in the measurable form.
In this EasyJet HR manager is required to measure perform activities of employees in order
to utilise the talent in effective manner.
Reachable: It is important that KPI is to be in a realistic way as to accomplish
underline goals in effective manner. In this HR manager is required to undertake the process
of monitoring performance on continuous basis.
Relevant: Key performance objectives are required to be relevant. For this HR
manager is having responsibility to know the factors which is necessary and does not lead
entity to waste time. Along with this HR manager of EasyJet is also required focus upon
those activities and factors through which entity can gain more benefits.
10-C Model of HRM: This is one of the most systematic model through which EasyJet can
conduct their functions in different ways. 10C's model of HRM includes different aspects
which is underlined below:
Comprehensiveness: It mainly include over all aspects of management.
Credibility: Employees are required to have formative trust upon policies and
management strategies.
Communication: It is essential for organisation to have formative communication in
the organisational structure along with two way communication process.
Cost Effectiveness: Effective reward and promotional culture is required to be existed
in an organisation (Setiawan and et. al., 2020).
Creativity: Various strategies are required to be undertaken by HR manager in order
to assure long term sustainability and growth.
Coherence: It is essential for HR manager to underline HRM strategies in meaningful
and local manner.
Competence: Strategies must require to be developed in a way to accomplish
organisational goals.
Change: Company is required to ensure long-term growth in sustainability is required
to be adapted to change in continuous manner
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Commitment: Organisation is required to continuously motivate their employees in
order to increase the performance towards higher organisational profitability.
CONCLUSION
According to the above mentioned analysis, it is being concluded that strategic human
resource act as most important aspect for any organisation irrespective of its size and scope,
as employees are most important part of an organisation that also act as major revenue
generation source. Thus, it is essential for company to manage performance and productivity
of employees with the help of strategic human resource management approach. In this HR
manager is responsible to provide effective training and development process in order to
maximise capabilities and efficiency of employees. With the help of different approaches of
strategic Human Resource Management HR can align performance of individuals according
to organisational objectives. In addition to their with the assistance of best fit approach,
resource-based view and Kotter’s 8-step change model HR manager of an entity can
effectively conduct their processes and can manage performance and effectiveness of
employees. However it is essential for an HR to effectively emphasize upon market trends,
laws, employee relation, availability of funds and other essential aspects in order to
effectively manage and improve performance of employees. All these measures will lead
entry to ensure its long-term sustainability and growth of respective industrial sector.
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Bombiak, E., 2020. Barierrs to implementing the concept of green human resource
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