HRM and Sustainability: The Role of HR in Sustainable Organisations

This report delves into the crucial role of Human Resource Management (HRM) in fostering sustainable organizations. It begins with an executive summary highlighting the challenges and opportunities in contemporary HRM, particularly in the context of an evolving workforce. The report addresses a case study scenario, providing recommendations to the CEO of a hospital lacking a formal HR department. Key recommendations include the selection of a qualified HR manager and the establishment of a one-person HR department, along with a detailed budget plan. The report then outlines the key features of building a sustainable HR capability, emphasizing the importance of flexible policies, information-related policies, money-based policies, and direct provision policies to address challenges like increasing attrition rates and the demands of a changing workforce. The report also highlights the importance of manager training to bridge communication gaps and mitigate conflicts. The conclusion reinforces the need for flexible and adaptable operational systems to meet the demands of an aging and Millennial-dominated workforce, ultimately advocating for a flexible system as a pathway to sustained business success.

Running head: HRM AND SUSTAINABILITY
The Role of HR in Creating Sustainable Organisations
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1HRM AND SUSTAINABILITY
Executive summary
The assignment presents a brief research on the sustainability, which has become a challenge
for the contemporary human resource. Some very good factors have been presented in this
assignment in context of human resource management of the future. The human resource
management of future has been shown to have few challenges, which are mainly because the
changing workforce. The ageing population would be highly occupied by the enlarging
numbers of Millennial. Millennial would be in majority, which is why the problems would
also be in huge amount. This particular paper has provided some solutions to counter the
adverse effect of changing workplace.

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Table of Contents
Introduction................................................................................................................................3
Answers to questions given in the case study............................................................................3
Recommendation to the CEO.................................................................................................3
Key features of building a sustainable HR capability............................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................7

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Introduction
The human resource department is an important and integral part of organisations,
which have influencing contribution in attaining a sustainable business. HRM is productive
as it supplies valuable talents who carry the business with their professional skills. However,
it is challenging as well for the HRM to attain a sustainable business. This is because of loads
of issues such as ageing workforce, high attrition rates, unlike working nature in different
generations, changing demands of workforce, increasing competition in the market, lack of
professional graduates etc (Guest, Paauwe & Wright, 2012). Despite the issues, there works
are acknowledgeable. They are responsible for multiple tasks such as recruiting the
professional, arranging the training & development program, calculating the payrolls, making
policies for different sets of requirements like absenteeism, leaves, etc. These are few works;
however, they do many other things as well (Reiche, Mendenhall & Stahl, 2016). The main
purpose of this assignment is to highlight the importance of HRM in attaining a sustained
organisational growth.
Answers to questions given in the case study
Recommendation to the CEO
In the given case study, the first hospital does not have any HR department neither it
has any HR manager. Interestingly, the CEO of the centre thinks that the operation is on the
right track. The CEO feels so because they have one consultant who on a weekly basis to
oversee the policies and other required things. An approval from the consultant makes the
CEO satisfied. However, this is also evident in the given case study that the middle managers
who are responsible to the basic HR roles, they fall in trouble in few occasions. This happens
in the company because the HR works are not organised. The first hospital in the given case
study needs some urgent setting of HRM, which could organise the different stuffs and
provide flawless works to the company (Armstrong & Taylor, 2014). However, the set up of
the required human resource department in the company requires some extensive research
and many priorities to be considered. Following are some recommendations, which would
help the first hospital in the given case study in setting up the required human resource
department and the selection of human resource manager:

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Selection of Human Resource Manager-
This is the first and foremost requirement for the hospital in the case study. However,
this is even tougher to recruit the fittest person in the role of human resource manager. The
selection of HR manager should be done based on following requisite (Chelladurai &
Kerwin, 2017):
 Number of years as an experience in the role of HR manager
 Level of responsibility in all the previous experiences
 Size of organisations with which the participants have worked before
 Level of qualification of the applicants
 Knowledge of various etiquette related policies
 Adequacy with compliance issues and employment laws
Set up of Human Resource Department-
The one-person HR department would be highly recommended for the first hospital
in the given case study. This means that one HR executive would work with the HR manager.
This is very feasible with the current situation in the case study hospital. They have not yet
considered the formation of a HR department, which is why they would not be keen enough
to invest huge in the recommended process. The required HR executive would need to be
selected; however, the selection would involve a thorough recruitment process. The
recruitment process would include the preparation of policies, which play an important role in
screening the most suitable professional in the position required to be filled up (Storey,
2014).
Budget plan-
This is another important segment, which would be required while processing the
entire set up related to the HR department. The selection of HR manager and the selection of
HR executive both require a significant investment. This is why it is necessary that the
hospital in the case study first decide the feasible investment, which the company can bear.
This is the primary function, which needs a thorough study on the available net cash flow of
the case study hospital (Kerzner, 2013).
Key features of building a sustainable HR capability
Sustainability has emerged as a challenge to the human resource department in
nowadays. Incrementing attrition rate is one of the challenges, which has posed serious
challenge to the human resource department. The ageing workforce population has put
immense pressure on the HRM to retain the hired employees. However, they have been failed

5HRM AND SUSTAINABILITY
in retaining the employees in most cases. One of the reasons behind the soaring attrition is the
Millennials who prefer shuffling with different jobs and organisations jus to satisfy their
needs. They tend to persist with same tendency until they get their choice of jobs.
Sustainability is a challenge to the human resource in nowadays; however, the human
resource department can act strategically to counter the challenge (Muqaj, 2016). Some
useful strategies have been discussed below, which might help the HRM to control the rising
challenge of sustainability (Buller & McEvoy, 2012):
 Flexible policies- This is very necessary as to some personal matters are more
important. This will include various such as flexible shift time, part time shifts,
holidays on certain occasions and relaxation of leaves to new parents.
 Information related policies- There should be internet facilities available to the
staffs. Intranet would be the highly recommended. Relocation facilities should also be
there when needed.
 Money based policies- This is very critical indeed, as many companies fail to live on
the expectations generated at the time of interview. This would include many such as
work life flexibility, childcare vouchers, leave with pay etc. These factors are very
important along with the basic pay and rewards.
 Direct provision policies- This is also very important as it includes many important
things, which are an integral part of a common people. Services such as backup to
emergency care, arranging dinner programs occasionally, health related services at the
workplace etc.
 Manager training- Managers need to be trained, as there exist conflicting thoughts in
between them and the workforce. The global human resource management needs to
plan a development program for managers as well, which would train the managers on
how to deal with the employees. Managers and employees have different
perspectives. Managers work according to the company’s policies whereas employees
have their own thought process. There is a communication gap in between the global
managers and the employees. This gives birth to conflicts, which might also cause the
loss of workforce. Conflicting thoughts can be viewed as one of the potential reasons
behind the incrementing attrition (Block, 2016).

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Conclusion
The ageing population of global workplace and a wide range of demands of
Millennial have collectively challenged the sustainability of organisation. There is a need of
flexible thinking, which could bring adjustability in the operational system. The future
workplace needs a more flexible system, which has values for the changing demands.
Flexibility in the system with the changing pattern of demands is perhaps the potential option
for a sustained business.

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References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Block, P. (2016). The empowered manager: Positive political skills at work. John Wiley &
Sons.
Buller, P. F., & McEvoy, G. M. (2012). Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, 22(1),
43-56.
Chelladurai, P., & Kerwin, S. (2017). Human resource management in sport and recreation.
Human Kinetics.
Guest, D. E., Paauwe, J., & Wright, P. (Eds.). (2012). HRM and performance: Achievements
and challenges. John Wiley & Sons.
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Muqaj, M. (2016). Strategic Human Resources Management. Academic Journal Of Business,
Administration, Law & Social Sciences, 2(2), 271-277.
Reiche, B. S., Mendenhall, M. E., & Stahl, G. K. (Eds.). (2016). Readings and cases in
international human resource management. Taylor & Francis.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.