Strategic Human Resource Management Report: AIA Malaysia Analysis

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) at AIA Malaysia. It begins with an introduction to SHRM and its importance in achieving organizational goals, focusing on attracting, retaining, and developing employees. The main body includes a SWOT analysis of AIA Malaysia, evaluating its strengths, weaknesses, opportunities, and threats within a dynamic business environment. The report emphasizes the importance of SHRM in aligning business planning with strategic goals, retaining talent, and gaining competitive intelligence. It also explores human resource planning, including forecasting employee needs and the impact of technology, along with the significance of human resource policies in guiding employee practices and mitigating risks. The report discusses how HR policies affect employee satisfaction, motivation, and retention, supporting AIA Malaysia's strategic direction. The report also covers the contribution of strategic management in the achievement of organizational goals, importance of human resource policy for AIA Malaysia, and the importance of structure and culture to strategic human resource management. It provides a detailed overview of SHRM principles and their application in a real-world context, offering valuable insights into effective human resource management strategies within the insurance industry.

STRATEGIC HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.1 Contribution of strategic management in achievement of organizational goal.....................1
1.2 SWOT analysis of AIA Malaysia.........................................................................................2
2.0 Importance of Strategic Human Resource Management .....................................................3
2.1 Human resource plans for an organization to predict number of employees needed...........4
3.1 Importance of human resource policy for AIA Malaysia.....................................................5
4.1 Importance of structure and culture to Strategic human resource management...................6
4.2 Effectiveness of Human resource management....................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................12

INTRODUCTION
Strategic human resource management includes components like hiring, retaining, attracting,
developing workers for the benefit of both employees and company. It also includes factors like
pay roll, reward system and self-discipline which boosts or encourages the motivation level of
employees. AIA Malaysia is the biggest independent publicly listed insurance company covering
more than 18 countries across tworld. Vision describes the long term goals of company which is
to become world's number one insurance providing organization. Main aim of company is to
provide best services to consumers and shareholders. Mission of AIA are short term aims of
company which they want to fulfil includes play a prominent leader role in driving economic and
social development across the world. Company provides medical and life insurance, accident,
critical illness and disability protection(Jackson, Schuler & Jiang (2014).
MAIN BODY
1.1 Contribution of strategic management in achievement of organizational goal
Strategic human resource management helps AIA in ensuring that organization is filled
with skilled, committed and motivated workers. It makes sure that business planning is set
according to strategic goals. It helps company in providing specific business strategy and a
vision for the future of organization. This management also helps AIA in retaining talented
employees which helps in increasing their productivity and efficiency. Organization are built
with help of individual, consumers and suppliers so SHRM helps company to meet with
requirements of these people. For building successful firm, managers must have a keen
understanding of needs, wants, demands, likings, preferences of consumer which will help them
in attracting , retaining customers.
In accordance with strategic human resource management it also helps AIA in gaining
competitive intelligence that may be useful in planning process of company. Enterprise can also
recognise external environment factors like political, economic, social and technological easily.
Firm can also follow a right path by making strategic decision with the use of strategic human
resource management(Brewster, (2017 ). It also helps company in recruiting, retaining and
hiring talented employees and providing them training so it can help company in increasing their
market share.
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Strategic human resource management also help company in recognising their strength
and weaknesses by interacting with employees and encouraging them to provide feedback. It also
helps them in building relationships with workers. In accordance with strategic human resource
management, firm can also recognise threats and opportunities which can help them in gaining
competitive advantage over competitors. Risks can be in the form of substitute products, threat of
new entrants, low price of other commodities, change in economic condition of company etc.
Organization can also be built with the help of Fiedler's contingency model which
includes that there is no best style of leadership rather managers' effectiveness in particular
situation define success for company. This model keeps a key focus on building relationships
with sub-ordinates which includes level of trust and confidence between them. Initiatives taken
by team leader to make their employees understand the particular situation and positive attitude
of managers towards which can help them in increasing motivation and self confidence.
1.2 SWOT analysis of AIA Malaysia
SWOT can be described as strength, weaknesses, opportunities and threat which can
hamper or foster the growth of enterprise. It is a fundamental model that measures what company
can do to achieve success. Strength defines about in field company excels which makes them
unique from their competitors(Kramar, (2014). Weaknesses is the part where organization needs
to improve. Opportunities refers to external environment that an organization can use and gain
competitive advantage. Threats are the factors which can hinder the growth of company.
Basis Analysis
Strength Company has strong base of cash flows and has more than 18 outlets
across the world. Leaders of organization are supportive and emotional
which have helped company in retaining existing talented employees.
They have various distributive channels which helps them in covering
wider market areas. These design their products according to the needs
and wants of consumer and keeps them satisfied.
Weaknesses AIA faces many challenges due to globalisation like changes in rules
and regulations of government, increase in tax rates for importing or
exporting products.
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Opportunities Innovating new products according to the needs, demands and
preferences of consumer can act as opportunities for them and also
help in gaining corporate advantage. Organization should be involved
in making strategies according to business plans which will help them
in boosting profitability and also increase productivity of enterprise.
Threats Company faces risks like disturbance in regional financial market,
threat of new entrants, competitors product, instability in economic
condition of country, threat of large multi-national insures.
SWOT analysis of company shows that AIA has successful proved its existence in
dynamic and uncertain business environment. For being more successful company should adapt
flexible leadership in which leaders can help employees in developing self awareness,
confidence and a keen sense of strategy. Also, for expanding more it's market share organization
should be involved in creating new partnerships and collaborations. Strategies should be made by
human resource department in accordance to consumer which includes creating of new and
innovative product, discovering demands and buying patterns of consumer, keeping price low.
These suggestions will help AIA in increasing their growth and market share.
2.0 Importance of Strategic Human Resource Management
SHRM helps organization in providing with clear objectives, goals and continuous
monitoring of external and internal environment. It also helps company in dealing with
globalisation, government regulations, changing behaviour of labour groups. Main objective of
SHRM is to retain, higher and recruit talented employees which helps organization in growth. It
also helps in mixing operation budget with strategic plans which helps company in increasing
revenue and profit.
According to Paillé, Chen, Boiral & Jin, 2014 Strategic human resource management
helps company in reducing employee turnover as it includes training and education of workers to
improve their skills and methods. It also helps them in better understanding of consumer
requirements and develops a sense of belongingness in them which helps in increasing their
motivation and confidence. However, if this department does not exist in AIA employees will
not be able to understand consumers and will start thinking of quitting.
According to Sheehan, 2014 Strategic human resource management also helps in
improving employees efficiency, as they are provided with training and education which helps
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them in improving their skills and knowledge. Leaders also provide support to them to achieve
objectives which help them in increasing their motivation. However, if this management does not
exist in company, they would not be able to improve their productivity.
Contingency theory of strategic human resource management has helped organization in
adapting flexibility in administration. It includes that different management styles can be
beneficial for various types of business based on forces like type of work, companies structure,
and stress level. This theory also lays emphasis on opinion of workers, encourages them to
participate in open discussion and allowing them to provide feedbacks related to work. However,
this model is not useful in complex structure where manager has to ascertain various task and
dimensions(Jabbour & de Sousa Jabbour, (2016) . This approach is also reactive and not pro
active in nature and also this model is unable to bring more assistance to practice of
management.
2.1 Human resource plans for an organization to predict number of employees needed
Human resource plan is designed by AIA to forecast future requirements human in the
company and deciding how existing workforce can meet the requirements of organization. HRP
process helps the administration of company to meet the future needs of human resource with
supply of appropriate people at right place and time.
Human resource planning activities can also help organisation in recognising number of
employees required, labour cost and capital, impact of technology change , increase in
competition etc. These activities may include organisational structure, budgeting, recruitment
and management.
Organisation structure helps company in determining staffing needs. This process starts
with creation of charts which list the diverse positions which firm may need, determines vertical
hierarchy and also describes job position for every employee of company. Developing human
resource plans also requires budgeting which help in fulfilling staffing needs of organisation.
Managers should do keen research into firms compensation standards so that organisation can
balance its demands to offer competitive pay, benefits, incentives and perks.
Human resource planning also helps organisation in determining strength and weaknesses
in labour pool market. Management activities also include recruitment process which can help
company in determining needs of employees(Wright, Coff & Moliterno, (2014). This planning
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includes strategies for updating job description and right screening of employees. Organisation
is also involved in recruiting talented and skilled workers which works as strength for company.
These activities help in increasing productivity of employees and also boost their morale.
SWOT analysis of company also describes that threat can be faced by company in using old
technology, so human resource planning also have a impact on development of technology.
Management activities can also includes in-house training seminars, sending key employees to
workshops, rising managers' leadership, communication and time management skills and
developing succession plans. These activities will help company in determining number of
employees needed to perform task assigned to them.
3.1 Importance of human resource policy for AIA Malaysia
Human resource policy are set of rules and guidelines that organisation puts in place hire,
train, assess and reward the members of company. These policies serve as reference point when
human resource practices are being developed in an organisation. These guidelines are most
important for development of AIA as it provides clear communication between the company and
their workers regarding their state of employment. In contrary if these guidelines were not
present in organisation their will exist miscommunication and misunderstanding among
employees. In accordance to Schuler & Jackson, 2014 these policies form a base for treating all
workers of organisation equally. However, if employees are not treated fairly it will develop a
feeling of negativity with them. These guidelines create a base for developing employee
handbook. Policies helps in establishing a base for regularly reviewing changes which affect
employees. HR policies also helps in mitigating risk. Companies get protected from liabilities
concerning assertion of unfair employment practices. In contrary if risk is not being measured by
company, it can hamper the growth of organisation
In accordance to Popaitoon & Siengthai, 2014 providing workers with HR policies can
help them in improving job satisfaction, motivation, confidence and ultimately their morale and
engagement. Employees who are happy and satisfy in their job develops a feeling of
belongingness towards organisation and helps company in retaining them. HR guidelines support
the companies strategic direction and consequently support organisation growth and ability to
sustain operations. However, if employees in an organisation is not supported or encouraged to
improve their motivation and confidence can result in high employee turnover for company.
Human resource policy for AIA Malaysia
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Employment and working condition: AIA has commitment to provide all employees with
good working condition, healthy and safe environment. As such company provide workers with
flexible working condition and encourage workers to participate in management decision.
Organisation is involved in building relationship based on trust and loyalty. Therefore,
administration is committed to build a relationship based on trust and respect at all levels of
company.
Training and learning: AIA is engaged in providing both on the job and off the job
training to employee to enhance their knowledge, skill and talent. Company also provides
comprehensive range of training activities and methodologies to support every workers' learning
and growth.
Employee relation: AIA manages employees to create and maintain positive and healthy
relationship as a core part of their job. In order to improve organisation encourages workers to
participate in open discussion in order to share knowledge and find opportunities related
important topics like developing shared value and health-safety in company and concern for
environment(Jackson, Schuler & Jiang, (2014).
Flexible and dynamic organisation: AIA is committed to establish flat and flexible
structure with low level of management control and broad spans of growth which enable
employee development, increase efficiency and easy implementation of rules and regulations.
Rewards: AIA is committed in providing each worker an opportunity to develop, evolve
and contribute. Organisation therefore focuses on fixed and variable pay, benefits, self growth,
development and job life. Rewards given can be on monetary or non monetary basis.
4.1 Importance of structure and culture to Strategic human resource management
Organisation structure and culture is important for every company as it helps in providing
guidelines and clears picture regarding specific human resource issues such as administrative
authority. It helps employees in determining organisation purpose and provide a flexible and
ready way of growth.
AIA is following mintzberg theory of organisation structure. This model includes five
type of organisation structure which are entrepreneurial, Machine, professional, divisional and
innovative. Company is following professional structure which includes highly bureaucratic
organisation(Kramar, (2014). This structure consists of high degree of professionalism, strict
rules and regulations, proper policies and procedures and competent skilful employees which
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helps in driving economy. These workers have usually had unique skills which makes them
more decentralised in their working. In this type of structure employees are asked to perform
only the task assigned, no other activity should be adhere by them.
Organisational culture should be peaceful in order to determine its growth. For this
company is involved in following Handy's model of organisation culture which includes power,
role, task and person culture. Company is currently following role culture in which every
employee in organisation is controlled with their roles and authorities in organisation. In this
type of culture company is too sensitive in taking risk and all the conversation between senior
and subordinate is related to their work and is quiet formal.
Structure and culture has a huge impact on Strategic human resource management as
these both give them specific objective to achieve. The current professional structure and role
culture should be changed by AIA as professional structure is bureaucratic and do not allow open
discussion or building relationship in organisation. This can hinder the growth of employees as
they can feel suffocated in working with strict environment. Also, it does not lay any emphasis
on developing creative and innovative product or designing goods according to needs of
consumer(Brewster, (2017).
Bureaucratic model also does not lay focus on obtaining feedback from employees or
consumers regarding work or product which should be changed as it can help in knowing
strength-weaknesses of organisation. Innovation should be encourage in organisation. Role
cultural model is being followed by company which should be changed as it is specifically based
on their roles and can hinder growth of employees. Focus should be laid on employees
performing various and distinct task which can be beneficial for both company and workers.
They should also be encouraged to participate in all activities other than their roles which can
help company in increasing their growth and expanding their market share.
4.2 Effectiveness of Human resource management
Human resource management helps AIA in providing characterization which helps in
building relationship. This management help company in recruiting and attracting talented
employees by providing them training, team work management, recruiting them and scheduling
assistance for them(Importance of Human Resource Management, (2017). It also help company
in supervising overall talent management. Human resource manager also encourages employees
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to give feedback or discuss problem related to work with them which helps in increasing
confidence and motivation level of employees.
The Warwick model helps company in identifying macro or external environmental
forces, internal factors affecting company, business strategy context, human resource
management context and content. It helps company in mapping connection between external
environmental factors and how company can adapt changes related to it. This model also lays
focus on developing fair, standardised and strategic compensation plan. Treatment of employees
fairly can help company in retaining them which can also result in high growth of organisation.
This theory also involves active and safe workplace environment for employees. Workers
safety is keen aspect for company, HR manager has the responsibility to seek it. This model
helps company in determining external factors like political economical technical legal and
environmental which can foster or hinder the growth of organisation. Company can face many
challenges like change in government policies, increase in inflation and fiscal rate, change in
needs and demands, likes and preferences of consumer. This theory also help them in
understanding internal factors like suppliers, consumers, people and board of management. This
model helps company in knowing strength-weaknesses of organisation which can help them in
gaining competitive advantage(Albrecht & et.al., 2015).
It also helps them in knowing threats and opportunities which firm can adapt to grow its
business. Risk can be related to competitors product, substitute, change in government
Rules and regulations, low demand of market. This theory help organisation to adapt and adhere
it. Model helps in designing policies according to strategic business plans or goals which makes
company to follow right path and correct decision. It also helps in increasing employees'
motivation and confidence which results in business growth and creating high profit for
organisation. It brings efficiency in over all business transaction.
CONCLUSION
From this report it has been concluded that human resource management helps to provide
best services to its employees. The company mainly aim at providing best services to its
consumer and share holders. It has been concluded that human resource helps organisation to
find its strength and weakness. SWOT analysis of company shows that AIA has successful
proved its existence in dynamic and uncertain business environment. Strategic human resource
management helps the company in reducing employees turnover. Human resource plan is
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designed by AIA to forecast future requirements human in the company and deciding how
existing workforce can meet the requirements of organization. This report shows that the
management help company in recruiting and attracting talented employees by providing them
training, team work management, recruiting them and scheduling them. In this report various
policy are used to explain the role of Strategic human resource. Also, in this report various
theory of human resources are there.
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REFERENCES
Books and journals
Albrecht, S. L. & et.al., (2015). Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance.2(1).7-35.
Brewster, C. (2017). The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35).
Routledge.
Jabbour, C. J. C., & de Sousa Jabbour, A. B. L. (2016). Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production.112. 1824-1833.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. The Academy of Management Annals. 8(1).1-56.
Kramar, R., (2014). Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human
Resource Management. 25(8). pp.1069-1089.
Paillé, P., Chen, Y., Boiral, O., & Jin, J. (2014). The impact of human resource management on
environmental performance: An employee-level study. Journal of Business
Ethics. 121(3).451-466.
Popaitoon, S., & Siengthai, S. (2014). The moderating effect of human resource management
practices on the relationship between knowledge absorptive capacity and project
performance in project-oriented companies. International Journal of Project
Management.32(6). 908-920.
Schuler, R., & E. Jackson, S. (2014). Human resource management and organizational
effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and
Performance, 1(1), 35-55.
Sheehan, M. (2014). Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal, 32(5), 545-570.
Wright, P.M., Coff, R. & Moliterno, T.P., (2014). Strategic human capital: Crossing the great
divide. Journal of Management.40(2).pp.353-370.
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Online
Importance of Human Resource Management. (2017). [ONLINE] Available through:
<https://blog.mettl.com/talent-hub/importance-of-human-resource-management>
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APPENDIX
Basis Analysis
Strength Company has strong base of cash flows and has more than 18 outlets
across the world. Leaders of organization are supportive and emotional
which has helped company in retaining existing talented employees.
They have various distributive channel which helps them in covering
wider market areas(Albrecht & et.al., (2015 ). They design their
products according to the needs and wants of consumer and keeps
them satisfy.
Weaknesses AIA faces many challenges due to globalisation like change in rules
and regulations of government, increase in tax rates for importing or
exporting products.
Opportunities Innovating new product according to needs, demands and preferences
of consumer can act as opportunities for them and also help in gaining
corporate advantage. Organization should be involve in making
strategies according to business plans which will help them in boosting
profitability and also increase productivity of enterprise.
Threats Company faces risk like disturbance in regional financial market,
threat of new entrants, competitors product, instability in economic
condition of country, threat of large multi national insures.
12