Strategic HRM Analysis: Framlington Property Plc, Level 7 Report

This report provides a detailed analysis of the strategic human resource management (SHRM) practices at Framlington Property Plc (FP), a UK-based property developer. The report begins with an introduction to SHRM and its importance in achieving organizational objectives. Task 2 delves into internal and external factors impacting FP's human resource planning, assesses current and future HR requirements, and proposes a SMART objectives-driven HR plan. The plan includes milestones, resource allocation, success criteria, and monitoring/evaluation strategies. Task 3 examines the purpose of HR policies, specifically addressing the need for a zero-tolerance harassment policy, a working environment policy, and employee responsibility guidelines. It also explores the impact of employment laws like the Sex Discrimination Act 1975 and the National Minimum Wage Act 1998. Task 4 analyzes the potential impact of a de-layered organizational structure on HR management, evaluates FP's current organizational culture, and identifies performance indicators for the HRM function. The report concludes with recommendations for improving the HRM function at FP. The report is based on a BTEC Level 7 assignment.

Strategic Human Resource Management
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
Attached in ppt.................................................................................................................................3
TASK 2 ................................................................................................................................................3
2.1 Internal and external factors affecting FP’s human resource planning......................................3
2.2 Assessment of the current and future human resource requirements of FP...............................4
2.3 Human resources plan for FP, with SMART Objectives...........................................................4
2.4 Critical evaluation of HR plan for achieving FP's objectives....................................................5
TASK 3 ................................................................................................................................................6
3.1 Purpose of human resource management policies.....................................................................6
3.2 Employment law requirements that are likely to apply in FP and their likely impact...............6
TASK 4.................................................................................................................................................7
4.1 De-layered UK organisational structure for FP could affect the management of human
resources..........................................................................................................................................7
4.2 Current organisational culture at FP .........................................................................................7
4.3 Performance indicators for monitoring and evaluating the performance of an HRM function.7
4.4 Effectiveness of the HRM function at FP, ...............................................................................8
4.5 Recommendation and justification for improvements of the HRM function at FP..................8
CONCLUSION....................................................................................................................................8
References..........................................................................................................................................10
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INTRODUCTION
Strategic human resource management (SHRM) refers to an approach with respect to the
human resource management that helps in developing strategic framework for supporting long term
goals of an organisation. SHRM helps in managing and maintaining the functions of human
resources with the help of strategies. It results in creating a strategic plan by linking all HR
functions of the organisation (Strategic Human Resource Management, 2016).
In the present study, Framlington Property Plc (FP), a property developer firm of UK is
taken into the consideration. In this research focus is on contribution of SHRM for achieving
organisational objectives. Along with it, file consists of human resource plan, policies which are
required in the company and proper examination of its HRM. In the end, conclusion is explained
with the key findings.
TASK 1
Attached in ppt.
TASK 2
2.1 Internal and external factors affecting FP’s human resource planning.
Internal and external factors are affecting the HR planning of the FP which are as follows.
Internal Factors:
 According to the case study, there is no proper guidance and consultation for the employees
working in the organisation which results in inappropriate and ineffective results. As per the
opinion of 80% of workers there views are not heard by FP. (Boxall and Purcell, 2011).
 Organisational culture of FP lack the morale, ethics and values which makes female workers
feel unsafe and insecure. For example, Daisy Jenkins is facing problem due to the
inappropriate behaviour of the Mark Caine but management is not taking the issue serious
which creates job dissatisfaction for Daisy.
 There is no procedure for grievance handling in the firm which affects the employee’s
relationship which in turn impacts negatively on their performance. For example in the
given case, two female faces problem regarding sex and race discrimination but no
grievance procedure was followed by the firm (Human Resource Planning-HRM, 2016. ).
External Factors
 Due to the rise in property prices, sales and customers of FP decreased which make it to face
financial problem.
 As per the case, combination of various factors such as increase in lending criteria results to
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decrease profit margin of FP which results to decline the salary of the employees which
causes job dissatisfaction in them (Armstrong and Taylor, 2014).
 Low interest rate and instability in emerging markets of China increases the property prices
and foreign investments and it creates hurdle for FP to achieve its objective of business
expansion.
2.2 Assessment of the current and future human resource requirements of FP.
Assessment of the current and future HR requirements of FP are as follows. Personnel Requirements: FP needs to identify its personnel requirements for achieving the
objectives of maintaining market share, enhancing client base and recruitment of successful
team. It is essential to determine the skills such as communication, marketing, team work,
etc, experience and qualification candidates such as marketing (Werner and DeSimone,
2011). Match of personnel requirement with the organisational requirement: It is essential that
personnel requirement should meet the need of company. For this, FP needs to analyse its
working environment so that it can determine its requirements on the basis of available
resources. These needs can be of improving HR policies, training and development
programs, reward system, relationship management etc as per the goal of firm. Internal Factors: FP needs to improve its internal working environment and for this, it will
need talented and skilled manpower, various work-profiles, appropriate policies and
practices, etc. So that firm can improve its future growth and success. Company require a
proper analysis of the internal environment for implementing effective strategies for
improving it (Bratton and Gold, 2012).
 External Factor: With respect to the external environment, FP needs to follow all the
government laws and regulations with respect to the employment rights, training acts, etc for
working legally and getting success. Along with it, firm should identify the demand and
supply of the labour on the basis of business expansion (Guest, 2011).
2.3 Human resources plan for FP, with SMART Objectives
SMART objectives: The smart objectives of FP for its UK and Indian based business is as follows.
 To train 40% employees by the end of March 2016
 To increase the employee retention by 10% every year.
 To recruit 30% workers every year
 To decrease staff performance issues by 5% to 3% at the end of 2016 (Haughey, 2016)
For achieving the above SMART objectives, FP needs to create proper HR plan which is as
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follows. Identify purpose: For determine the purpose, company will use various techniques such as
human resource audit for identifying the purpose of achieving all the formed SMART
objectives (Monk and Wagner, 2012). Milestone Setting: In this step, milestone will be set by the company in the form of short
and long term. Such as training to the employees by the end of March 2016 is short term
objective whereas increasing employee retention is long term objective. Arrangement of resources: In this, FP will need to analyse the requirement of resource for
both UK and India location. It can be regarding new employees, infrastructure, software,
investment for establishing enterprise in India, etc for achieving the SMART objectives
(Buller and McEvoy, 2012). Setting criteria for success: After arranging all the required resources, next step is to set the
criteria regarding success. FP needs to set the success criteria for both India and UK
business. These criteria can be related to the expansion and success of the business along
with the development of staff members. Monitoring & Evaluation: After achieving all the above steps, overall plan will be
monitored and evaluated by the HR manager of FP for determining the feasibility of plan as
per the expectations.
 Tacking Corrective Action: At last, corrective actions will be taken by the firm for making
the plan more appropriate and effective for both UK and Indian business (Lengnick-Hall,
Beck and Lengnick-Hall, 2011).
2.4 Critical evaluation of HR plan for achieving FP's objectives.
Stredwick, 2013, has stated that “Human resource planning is a continuous and systematic
process which helps organisations in achieving its objectives by making optimum use of its most
valuable assets” (Stredwick, 2013). On the other hand Niehaus and Price, 2013, has explained that
“HR planning should be flexible so that it can meet short term of goal of staffing and long term goal
regarding changing business conditions and environment ” (Niehaus and Price, 2013). In favour of
this, FP's plan is designed according to the both short term and long term goals. It is essential that
SMART objectives of both India and UK business should be meet by that plan.
Along with the above statements Saks and et.al., 2010, has found that “Training to the
employees helps in improving their performance which leads to provide quality services to the firm.
It is one of the essential need of employees and by fulling it organisation can achieve its SMART
objectives effectively and efficiently” (Saks and et.al., 2010 ). In context to it FP plans for providing
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effective training to their workers which will help in achieving the other goals i.e. decreasing
performance issue and increasing employee retention more fast and in appropriate way.
TASK 3
3.1 Purpose of human resource management policies.
FP has inappropriate HR policies due to which workers are facing problems while working
their. To satisfy them, firm needs to apply proper HR policies which are as follows. Zero Tolerance Policy for harassment: Employee of the FP i.e. Haisy Jenkins is facing the
issue of harassment by Mark Caine and to solve this issue, it is essential for the firm to apply
this policy. It will not only solve issues of sexual annoyance but also of religious molestation
that may be faced by the employees and workers of FP in the near term future. . The
purpose of this policy is to protect the workers of the company from any kind of
mistreatment and to maintain a safe and comfortable environment (Human Resource
Policies, 2013). Working environment policy: Working environment of FP is not appropriate as there are
various problems such as differentiation between the senior and middle or below middle
level employees. This results to create feeling of dissatisfaction and mistreatment which
make workers to leave their post. To prevent this, it is important for the company to apply
policy of working environment for resolving all the issues (Van Buren, Greenwood and
Sheehan, 2011).
 Policy for Employee responsibilities: Workers of any organisation are responsible for
following all the behaviour norms. This policy set standards related to the working hours,
attendance, health and safety, non discrimination, etc. With respect to FP, there is improper
delegation of roles and responsibilities among the senior and low level employees. By this
policy, staff of the firm will feel secure and work properly for meeting their responsibilities
(Purce, 2014).
3.2 Employment law requirements that are likely to apply in FP and their likely impact.
The requirement of various employment laws in FP are as follows. Sex Discrimination Act 1975: This UK act is for preventing the men and women of the
organisation from discrimination on the basis of sex and marital status. Workers of the FP
are facing sex and race discrimination such as Daisy Jenkins so for resolving this issue and
to control it in future, firm needs to apply this act. (Barnard, 2012).
 National Minimum Wage Act 1998: As per this act, firm must pay minimum wages to the
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workers as per their post. FP has freeze salary of below middle level employees which is
causing problem in their professional and personal life. Company needs to pay minimum
wages to its staff instead of freezing their salary and for this, it should apply this act within
its working environment (Grimshaw, Bosch and Rubery, 2014).
TASK 4
4.1 De-layered UK organisational structure for FP could affect the management of human resources
De-layered UK organisational structure for FP will result to remove the middle level
management from the organisation. It will boost the operational efficiency and decrease the wage
bill. Through this, senior level management will get easier and direct access over the HRM of whole
firm. It will help in enhancing the employee engagement and motivation of the workers of lower
level management with the proper communication (Colombo, Delmastro and Rabbiosi, 2012). On
the other hand, company can face some problems also such as senior level leaders will get more
control over decision making process which will result to poor individual decision making. It can
affect the morale of workers due to the redundancies related to the delayering of the structure. So
there are both negative and positive impact of de-layered organisational structure for FP (What is
delayering, 2016).
4.2 Current organisational culture at FP
Current organisational culture of FP is not appropriate and which make its employee to
suffer a lot. There is lack of appropriate HR policies and practices, communication, decision
making, problem handling, etc. All these deficiencies affect the working environment of the
organisation as workers do not feel comfortable to perform their. Along with it, there is a major
issue of differentiation between the middle level and senior level employees which creates a feeling
of mistreatment. Employees are also facing problem regarding the values, ethics and morale which
make them to feel unsafe and insecure. For example, blue collar workers were being removed by
management of FP. This was causing demotivation for the workers. All these problems are require
to handle properly by taking proper decisions regarding the organisational culture (Mohr, Young,
and Burgess , 2012).
For this, firm needs to apply Charles Handy's model of organisational culture which will
help in developing all the areas of the culture by the help of four steps: Power culture, role culture,
task culture and person culture. Along with this, organisation can use 360 degree feedback approach
for understanding the problems of the staff members (Rameezdeen and Gunarathna, 2012).
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4.3 Performance indicators for monitoring and evaluating the performance of an HRM function.
FP can monitor and evaluate the performance of HRM function by using following key
indicators. Recruitment key performance indicator: This key indicator includes identification of the
satisfaction rate of the new employees, percentage of new worker retention, percentage of
acceptance rate of job offer, average number of interviews from the applied applications, etc.
All these factors will help FP in determine its areas of improvement in recruitment process
(Parmenter, 2015).
 Employee development key performance indicator: This indicator consist calculation of the
average time of employees in the same job, ROL of training, percentage of human resource
budget spent on training, average training cost per staff member, etc. All these factors will
help the FP in monitoring and evaluating the training performance of the workers (Barone
and et.al., 2011).
By the help of above indicators, FP will help to resolve its problem regarding the people
management and work performance.
4.4 Effectiveness of the HRM function at FP,
From the above evaluation, FP needs to use both the key indicators for calculating the
effectiveness of its HR functions. By using employee development indicator, it is evaluated that
senior level employees are developed and updated as per the present requirement of market but
there is lack in the development of lower level and middle level employees. The training budget for
the middle and below middle level workers is also not appropriate which shows that firm is not
interested in providing training programmes to them. Along with this, recruitment key indicator
evaluated that there is lack of employees in the organisation and recruitment process is also not
effective. There is lack of proper decision making at the time of hiring of any new candidate which
results to wastage of time, cost and resources (Arrowsmith and Parker, 2013).
4.5 Recommendation and justification for improvements of the HRM function at FP.
Recommendations for bringing improvement in the HRM functions at FP are as follows.
 Firm needs to plan recruitment process properly before implementing it because at the time
of interview their arises conflict among the panel which is not good for it
 Enterprise should select talented, skilled and experienced employees for the interview
session so that they can hire right candidate for right post. This will also help in reducing the
confusion problem among the panel.
 Training and development is right of every employee and due to this, company needs to
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conduct training programmes for their middle and lower level workers. This will help in
improving the performance of the organisation (Ansari, 2011.).
CONCLUSION
As per the above study it is concluded that Framlington Property Plc is facing various
problems due to improper human resource management. It needs to apply proper HR functions for
achieving its short term and long term objectives. There are various problems faced by the
employees such as sex and race discrimination, sexual harassment, lack of training programmes,
freezing of salary ,etc which is lowering their motivation and confidence level. On the other hand,
company wants to redesign its organisational structure which has its positive and negative impact.
With the help of key performance indicator it is identified that HR functions of FP are not effective
which needs to improve.
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