Analysis of HRM Issues and Solutions for Thames Building Society

This report focuses on the HRM challenges faced by Thames Building Society, particularly high employee turnover and performance issues. It examines the role and objectives of HRM, emphasizing the need for a positive work environment, effective training, and alignment of individual and organizational goals. The report proposes a human resource planning strategy, including steps for assessing manpower needs, recruitment, skill gap analysis, and training. It highlights the link between HR management and organizational performance, stressing the importance of employee behavior, compensation, and policies. Furthermore, the report identifies legal issues related to recruitment and employee behavior, emphasizing the need for safe recruitment practices and attitude assessments. The aim is to provide a comprehensive analysis and suggest actionable solutions to improve the overall performance of Thames Building Society.

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Human resource management
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HUMAN RESOURCE MANAGEMENT 1
Introduction
This report is focused on issues faced by Thames building society. Despite having all department
such as manufacturing, finance, marketing and HR, management is not able to reduce down the
turnover ratio of employees in the organization. This report is also focused on the key objectives
of human resource management in the organization. In addition to this, it is also focused on
human resource planning which can improve the present situation of Thames building society.
This human resource planning will include all the important aspects which can improve the
current performance of the employee in the organization (Marler and Parry, 2016). It is also
focused on the link between HR management and organizational performance so that necessary
change can be implemented in order to reduce the gap between employees and management. In
addition, this report is also including possible suggestion which can improve the present situation
of the organization and help the management to bring positivity in the employees.
Purpose and main objective of HRM (500)
Human resource department plays a very important role in the progress of the organization by
handle issues related to individuals working in the Thames building society. The main purpose of
HR department is to maintain a positive work environment in the organization so that employees
can perform better in all situations. In addition, purpose of HRM is to understand the rules and
regulations associated with the employee benefits it may be wages or other benefits which are
linked with the motivation of the employees (Schutte, Barkhuizen and Van der Sluis, 2015). In
addition, it is also purpose of HRM to re-engineer the present approaches in order to make
employees more connected with the new business strategies. This will ensure strong internal
strength of the organization in the business environment. In this situation, human resource
management plays a significant role by focusing on important aspects associated with
employees. Human resource management helps in resolving issues such as ineffective training to
employees, need of advanced skills, conflicts as well as cooperation between employees as well
as other departments. In addition to this, human resource management main objective is to focus
on the market wage standard in order to offer the best suitable wage to their employee in order to
keep them happy (Ali, Metz, and Kulik, 2015). Human resource management is also focused on
resolving possible conflicts which can arise in the organization setting during the work process.
In most of the cases, it has been seen that conflicts play the major role in decreasing the
performance of the employees because employees see other employees as competitors and do not
offer their cooperation to complete the task. It is one of the most important responsibilities of
human resource management to connect the organization objective with the goal of the
individual so that a close node can be developed between employees and management. The
purpose behind this objective is to introduce effectiveness and efficiency in the business
operation of the organization which will help in improving the present performance of the
Thames building society. Another objective of human resource management is to interlink all the
departments of Thames building society with the help of effective business communication
(Fındıklı and beyza Bayarçelik, 2015). Another important objective of human resource

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management is to maintain the ethical and legal aspects within the organization setting. The
purpose is to eliminate the chances of miss conduct within the business operation in order to
maintain a positive work environment in this organization. One of the biggest objectives of
human resource management is to understand the change in the external environment. Change
can be related to technology, environment protection, and another financial aspect so that it can
evaluate the internal strength of the organization and introduce necessary change in order to
compete with this changing environment (Stubelj et al., 2017). In this, human resource
management first shares the reason for this change with their employees in order to eliminate the
chances of resistance related to this change. This helps in creating a positive work environment
which offers a platform to introduce positive change in the internal setting of the organization.
Human resource planning (600)
At present situation, Thames building society is suffering from performance issues related to
employees are not skilled enough to break the deal and are in great need of improvement in
order to fulfill the gap between expectation and reality. Low wages related to market standard
has boosted employee turnover ratio in the organization and HR department has no effective
policy in order to retain their employees (Baran, Filipkowski and Stockwell, 2018). In order to
improve the present situation of Thames building society, one of the best options is to create
human resource planning. In this plan, management will follow the number of steps and try to
connect them with same business objective. In addition to this, organization is also suffering
from sales issue because employees are not able to perform better. Other departments are
blaming that HR department is not working effectively (Chuang, Jackson and Jiang, 2016). In
addition to this, HR department is also considered responsible for creating a negative impact on
the present situation of the employees. First step is to develop an objective, in this step objective
of management must be to improve the skill set of the employees so that they can perform better
in the organization (Baum, 2018). Employees will be segregated on the base of their performance
and will be offered necessary training related to their improvement. In second step will
understand the exact requirement of manpower and then plan the recruitment process according
to the need so that skills cannot be compromised. Next step is to analyze the current need for
improvement in the skill set in order to match the future demand. This will help in understanding
which skills set will be a good match with what kind of task in order to increase efficiency
(Salehi-KordAbadi et al., 2019). In this step, management will develop a plan related to the
recruitment process so that only the best suitable employee gets selected which can contribute
towards the improved performance of the organization. Next step is to explore the gap between
expectation and reality of skill set an employee is having so that best suitable action can be
planed as per the current requirement. Then employees will be offered proper training related to
the required skill in order to close this gap between expectation and reality of employees (Olson
et al., 2018). It will help the employees to acquire new skills which will help them to perform
better. One of the most important steps in this human resource planning is to develop more
positive work environment in the workplace of Thames building society so that employee will

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work facing any risk related to their health and safety while working in the organization (Haraj
and Hameed, 2019). This will help employees to remain connected with the management in
order to complete the organizational objective. In addition to this, it will eliminate the possibility
of generating negative in the minds of the employees working in the organization. Positive
environment ensures that individuals are capable enough to handle new changes which are
essential for future sustainability of the organization
Relation between HR management and organizational performance (500)
HR management is considered an essential fundamental competitive advantage which decides
the performance of the organization in this dynamic business environment. As per the study, it
has been found that HR management must have a positive relationship with organizational
performance (Verburg et al., 2018). But in Thames building society it seems that management
was not able to maintain a healthy relationship between HR management and organizational
performance. HR management believes that employees are the most important asset in the hands
of organization. These are the asset which cannot be easily copied by any organization and will
offer a competitive advantage to Thames building society over other rivals present in the
business market (Para-González et al., 2018). HR management also focuses on the behaviour and
attitude associated with the employees. It is the behaviour and attitude of the employee which
decides the overall performance of the employee which directly impact the performance of the
organization. In simple words, it can be said that if HR management of the organization is
effective then there are maximum chances that overall performance of the organization will be
effective. It is the HR management which helps the management in creating value in their work
which is being respected by most of the employees working in the organization (Gutierrez-
Gutierrez et al., 2018). HR management helps in focusing on compensation part of the
employees such as benefits and training which decides the growth of the employee based on the
future requirement. Training proves that skill sets to the employee which helps organization to
meet the changing demand of the potential customers because due to globalization Thames
building society is operating in dynamic business environment and it becomes very difficult for
an organization to remain sustainable in this business environment (Subramony et al., 2018). In
addition to this, HR management is linked with policies which are being connected with the
business operation of Thames building society because polices also decides the organizational
performance. Policies usually connect employees with the setup goals of Thames building
society which can help them to remain sustainable in this dynamic situation. In addition, a
positive related between HR management and organization performance can be linked with the
internal as well as external recruitment of the recruitment process. Internal recruitment is mainly
linked with the organization target of filling the empty post in the organization (Tweedie et al.,
2019). External recruitment is often connected with exploring the best candidates outside the
organization which can offer perform well in the organization context. In addition, it is also
focused on the recruitment strategies and approaches which helps the organization in increasing
their capability in the business market. Having a positive relation between HR management and

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organizational performance will ensure that employees are being offered skill set which is
essential for their personal as well as professional growth (Han et al., 2018). This growth is
directly linked with the overall performance of the organization and therefore offers necessary
direction which is essential for remaining competitive in the business world.
Two legal issues (600)
The present situation of Thames building society is not good at all. This company is continuously
suffering from performance issue related to sales which have directly impact the overall
performance of the organization. In addition to this, it has been found that there is no coordinate
between all the departments of the organization. In fact, every department was blaming each
other for this negative performance and was blaming HR department for recruiting unskilled
people for this job. In this situation, it has been found that HR department is not able to explore
the pool of candidates in order to select best candidate for the organization (Jaworski et al.,
2018). In this recruitment process, HR department has not focused on both behavioural and
attitude testing pattern while selecting a candidate. In these tests, a candidate will be analyzed on
the base of some criteria which will help in exploring possible. These tests will help the
management in understanding the behaviour of the person towards his professional life with the
help of advance information technology which will offer both accuracies as well as time-saving.
Behaviour is considered as one of the most important aspects which decide future development
of the employee. In addition to this, attitude test will help in exploring the viewpoint of the
employee towards professional life which is important to better performance (Wee and Taylor,
2018). A positive attitude always connects with better performance while a negative attitude
brings a decline in the performance. Safe recruitment is the part of UK employee legislation and
plays a very important role in the progress of the any organization. This law was completely
ignored by the organization in order to increase their man power. It seem that they were living in
a perception that in present business having huge man power offers competitive advantage over
others. Hence, sometimes it is better to avoid the specific attributes in order to generate profit in
the business. This will help the organization to remain sustainable in the business market.
Another important issue related to Thames building society was employees were not receiving
standard pay as per the market. In fact they were receiving low pay as compared to other
organizations. This has created a sense of dissatisfaction among the employees and spread
negative work environment in the organization. This negative feeling in the employee has
directly impacted the performance of the employees which is connected with the organization
performance. As per the UK employee legislation, employee must receive equal pay as per the
market standards. It seems that management of this organization was taking advantage of worker
poor condition in order to generate maximum revenue. In this situation, employee were so
disappointed with the behaviour of management of the organization that they started resigning
from their post and started seeking jobs in other organization which can offer them market
standard wages. This has increased the employee turnover ratio in the organization which has
created big issue for the Thames building society and has created misbalance in their man power

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which they were using as competitive advantage over other organization. It seems that
employees were looking for better opportunity in the market because this organization was not
able to fulfill their equal wages. It seems that this organization was ignoring this equal wage
issue intentionally because they believe that that reducing some percentage from employees
wage will help them to generate some amount which they can utilize in organizations other
activities. These activities can offer addition benefit to the organization in the business market as
per the management perception because employees have very limited choice as per their
economic situation.
Recommendation
One of the important options for HR department is to introduce training related to advance
technology. In this, management will explore the gap between present skill set and demand of
the market and then according to the required training program will be developed. This training
program will include advance sale skills which will make use of digital marketing technology.
This training will offer both knowledge as well as a practical use of new technology which will
not only help employee to complete their task with efficiency but also will help organization to
perform better as compared to their present situation.
Conclusion
Due to globalization present business market is not stable and is changing continuously. In this
situation, it is not easy for Thames building society to remain sustainable in the present market
with their traditional pattern. Their employee turnover is high as well as their performance is
very bad. In this situation, HR department will be helpful in playing one of the most important
roles in improving present performance of this organization. In this situation, HR department
must offer a positive work environment to the employees by eliminating possible risk associated
with the employee.

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