Human Resource Management Report: UK Labour Market Analysis

This report on Human Resource Management (HRM) delves into the core functions of HRM, including recruitment, training, and performance monitoring. It emphasizes the strategic importance of HRM in organizational success, focusing on the resource-based view as a key approach to achieving competitive advantage. The report explores the resource-based view, discussing tangible and intangible resources, and how they contribute to business capabilities. It examines the VRIO framework (Value, Rarity, Inimitability, Organization) for assessing competitive advantages, supported by examples from Google and Amazon's HR policies. Furthermore, the report identifies and analyzes two significant threats facing organizations in the UK labour market: poor productivity and a shortage of skilled labour, attributing these challenges to factors like Brexit and technological advancements. The report provides a comprehensive overview of HRM principles and their practical application in addressing contemporary business challenges.

MANAGING
HUMAN
RESOURCE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource management is performing essential function within organization such
as recruitment, training, selection and monitor performance of the staff. The HR department of
any company plays many role and findings to approaches to motivate to people for work with
them in effective manner. Managing human resource consists of administrating and developing
programs which are designed to effectiveness of the business (Managing human resource. 2019).
There are including manage job recruitment, selection and promotion. Processing and overseeing
employee benefits and wellness program. There are promoting to employee regarding to their
career development and job training. The above report based on the theories and processes of
human resource management as a strategic activity. In the report focused on review based view
which is adapted by human resource management in the reference to supply competitive
advantages as well as provide examples of good practices. In addition, examine two leading
threats that is facing by organisation in the subject to labour market.
TASK 1
The Resource based view is a way of viewing the firm and in turn of approaching
strategy. The particular approach has been followed by an organisation as bundle of resources.
The particular approach is depended on the concept which is related to several types of tangible
and non tangible resources such as assets, skills, information, processes and knowledge etc. these
resources are helping to to develop business capabilities. Also, resources based view
concentrates upon manager attention towards its internal resources instead of external one this
aids them to find out that key performing assets, abilities as well as competency for delivering
competitive advantage. It is important for the firm regarding to resources, products or services
which in turn are derived from resources only. As per the point of view of resources, these are
helping to getting competitive advantage and performance in the reference of the firm. Firstly
resource based theory was identified by Birger Wernerfelt in the article of “A Resource Based
View Of The Firm” in the year 1984 to carry into consideration the importance of the resources
in firm as well as in management also. The resource based view of the business can represent a
inflection shift in the reference of the strategic human resource management. There are mainly
focusing on the internal resources rather than to outsider performance (Bahn, 2015). To gain
competitive advantage regarding to firm to apply heterogeneity resources. In highly competitive
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economic context there are identified different segments in the reference to organization such as
changing customer demands and increasing product market and increasing product market
competition. To gain competitive success in the market need to involve different type of thinking
about employment relationship. Resource based view suggest the process where firm should use
their resources that aids them to build competitive advantage. For ascertaining the abilities of the
company to gain competitive advantage two assumptions are considered resource diversity as
well as resource immobility (Brem, Borchardt and Thérin, 2014). Resource diversity are the
resources that firm possess should be heterogeneous this means that organisation have same
resources than it not known as the heterogeneous resources as well as will not capable to
facilitate competitive advantage for firm. Resources immobility considered as a resources that
are precious and this is not possible by rivals for adapting the same resources depending upon the
cost of acquisition of that particular resources, improvement cost so that firm utilising that
resources will gain competitive advantage over another rivals.
These resources are based on the different theory and resources to analysing all available
resources in the reference of the firm. In silent manner it is connected to business capabilities and
carry out different results on the basis of theories. There are companioned with value factor and
the profitability in the business. This theory mainly based on the competitive advantages of an
organization can properly utilise their resources so they can gain competitive advantage. So
company has able to utilize their resources in different and valuable manner in the reference to
their competitors (Brewster, Mayrhofer. and Farndale, 2018). With the help of this theory clarify
the business about the superior capability that is based on extraordinary and non substitutable
slot of resources that are available for firm. These are carried out too much success to emerging
economy of the world. In the other words, resource based theory related to organisational process
which is related to internal strategy and these are mainly centred on the different methods and
collect various resources from various ways.
There are mainly two factors which are related to inter dependent terms like capability
and resources. There are broadly defined these two resources, Resources are the inputs without
which the production process will end up to a limit. On the basis of present situation there are
identified major resources which are applied an organization regarding to technology capacity,
human resource, loyalty and financial supports. Along with the particular brands and patents can
also be considered important resources. Second resource, capabilities which is depended on the
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available resources with the firm and techniques through tasks of the firm. These both factors are
important for competitive advantage because they can help to take effective decision on the basis
of these resources. The role of the resource based of view depended on the resources of the
organization that are divided into tangible and intangible and both are important for efficient
functioning of the organization. The particular theory is concluded that it is one of the substantial
theories of strategic management. This is developed the blue print and consequently the utilize of
all types resources which are planned in each capability of the firm. To understand the resource
based view support different type of theory's role in the reference of an organization.
The particular theory can support to value of those resources is valuable then it can act as
a source of competitive advantage for a business. Mostly firm operates with two elements that
are resources and goods or services (Chelladurai and Kerwin, 2018). So, generally organisation
evaluate their performance and competitive advantage into the company that can be ascertained
through their resources. This is based on two assumptions first one is heterogeneity of
organisational resources that is utilise by firm and it develops operative capabilities of company
heterogeneous that outcomes in competitive advantage. Another one is heterogeneity of
resources that usage into manufacturing of products is persistent in firm as their strategies are not
ambulant. Resources based view facilitates economic fundamental into the evaluation of human
resources department role that is handling their workers as well as assisting company to attain
sustainable competitive advantage. For the implications of operative HR strategy, this facilitates
a analysis tool in VRIO and also concentrates upon role of Human resource executive as
strategic partner into organisational sustainability and improvement.
VRIO framework is considered as a techniques that is applied through strategists to aids
firm for protecting as well as showing their resources and abilities that may provide them a
competitive advantage for longer term. VRIO includes four things that aids firm to gain
competitive advantages Value, rarity, Inimitable and organised. Company have to value their
human resources as this is the essential assets. For minimising the cost firm avoid their human
resources and introduces flexible work practices (Conley and Smith, 2013). This is crucial of
company to find out the significance of their human resources as it assist them to enhance it
effectiveness as well as the firm's revenue with clients sections, referral and retention as this
shows HR contribution affects into company and also by maximising customer added value and
services. Another one is rarity, this explains that this is the responsibility of HR sections to
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find,improve and exploit the characteristics that are rare in their personnel for obtaining
competitive advantages and develop their stability. For assuring horizontal combination, firm s
required to motivate their staff by facilitating more incentives as per compensation system so that
their workers accomplish the requirements of the consumers with full potential. Next one is
Inimitable, this describes that in case HR add value to their company and has a rare quality than
they can gain competitive advantage over other for short term (Evans and Lindsay, 2013). But if
characteristics controlled by their staff that can not be copied through another competitive
company. It also explain that form should concentrates more upon group work improvement so
that their potential synergy can improved their performances that outcomes in obtaining
competitive advantage for long term. Features like healthy relation, trust and so on results into
company particular assets that are rare but facilitates a value as well as tough to be copied by
rivals. For gaining competitive advantage and sustainability into firm, they required to assure
that frame work comply by company are appropriately organised to capitalise the value
enhancement, rarity and inhabitability. Therefore, according to this model this is essential for
firm to monitor that policies and practices are to be comply effectively in company and not
contradicted through HR functional area. Fro attaining competitive advantage and success of
long time so this is crucial for company that HR functions required to be check whether
personnel who work in firm must facilitates value, rare and are tough to copy. Also, it has an
effective HR system as well as practices to provide on these workers characteristics.
Applications of resources based view of HRM is that in case firms wish to obtain
competitive advantage as well as sustainability into marketplace than they have to concentrate
upon their HR policies as this is considered as a core in facilitating it as this assists firms to
create and develop core competency and abilities that aids them to gain effective competitive
advantage over their rivals (Gunasekaran, Jabbour and Jabbour, 2014). So, to know about the
usage, an example is provided in context of Google HR policy. Google comply different
innovative techniques to keep their workers encouraged and retain its rare features. Also it obey
compensation policy that is more rewarding. This involves incentives, salary and so on that it
facilitates to their staff on regular basis this enhances motivation of their workers and
maximising efficiency towards its task. Also, it try to retain their staff for longer periods as much
as possible with the assistance of many policies in favour of workers. As staff are considered as a
strength of company and outcomes in more profit maximisation. This is essential for firm to find
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out the requirements of their staffs also assists the to accomplish its personal objectives with the
goals of the organisations. The second example is Amazon HR policy, firm recruits more
proficient professionals so that they can obtain effective as well as talented workers and its core
characteristics for attaining the position into market place. It also utilise a pay to leave policy that
aids Amazon to retain their staff members it offer approx 2500 bonus in case any workers wants
or decides to leave the company according to their wish.
TASK 2
The two essential threats that are recently faced through company that operates in UK
labour market are poor productivity as well as shortage of proficient labour. With the technology
enhancement firm are tackling a proficient employees shortage (Hughes and Byrd, 2017). It
happen because of two reasons first one is impact of Brexit and second is technology
advancement in all work area. Because of Brexit impact, various labours that are working into
firm are from developing nations where there is less shortage of proficient workers. Presently
organisations are facing issues of less skilled employees, Brexit is considered as a main reasons
of this that is existing of UK from EU. It had outcomes in shifting of migrants from Britain to
another nations that outcomes in less proficient staff into firm and also this results in not
effective productivity. When number of skilled employees will reduced this will effects the
organisation's position. Also, because of this labour are not capable to facilitates expected
product quality so that profit margin get minimised and reduced the value of brand into
marketplace. There are different company that are operating in UK labour market who comply
techniques of labour intensive into products manufacturing, there are get affected because of
proficient workers shortage as it need skilled employees to accomplish their work as well as
facilitates quality products.
The issues of proficient labour shortage is faced through Barratt Homes which a brand
under Barrat Development PLC that deals in building houses within London. The essential
problems that outcomes in poor performance of firm was because of less proficient employees in
construction organisation. Also, due to technology enhancement, workers are not capable to
perform with advance technology into construction industry. So, skilled labour shortage rates rise
as minimising migration from EU. According to the ONS report it is observed that desired long
term movement from European 27 for 2018 was reported at 74000 (The labour market. 2019).
inability to identify workers with need set of skills can effect firms operations into labour market
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of UK in various manner. This enhances workers cost with available set of skills. The proficient
labour cost with key skill are tend to be enhances more than desired organisational growth that
are supported through the facts of the UK. Employees wages working in firm are tend to raise by
3.5% by previous years. The another effects that company face while operating into labour
market is because of lack of proficient labour, firm are not capable to innovate their new
technologies immediately. As per this they will decided whether to invest in training of unskilled
employees and invest more into automation events. Spending more into automation programme,
organisation will be building new roles and change others.
The similar issues are faced by Tesco PLC. As firm efforts to identify proficient
personnel as young generations are not interested to continue their schools and gain appropriate
knowledge. According to the recent report, most of the children leave its schools approx in year
13 necessary education so it do not obtain basic knowledge about how to hold the job. Without
basic knowledge, this increase the number of less skilled labour into Europe that will outcomes
to provide jobs to another developing nations people. The another issues that is tackle by
company into labour market of UK is poor productivity, the personnel that does not has well
qualified knowledge as well as skills regarding manufacturing process will outcomes in poor
productivity of firm. With the shortage of proficient personnel the organisations are becoming
dependable upon technologies and employees performing in company do not has effective set of
knowledge and skills regarding machinery that enhance manufacturing cost for organisations
(Surujlal, 2016). For providing training to their workers on that new machines that outcomes in
more price charged through firm in order to facilitates products. Firm have to enhance their
techniques and efforts into training events of their workers. There are various sectors that works
on employees intensive techniques as well as needs regardless of technology enhancements. For
improving their productivity, organisations have to bring new technology and outsources its
work from another nations. After Brexit, firm who operates in London have move its business
because of lack of proficient workers and migrants from UK various nations such as Honda will
obviate their enterprise from UK to another places so that they can maintain low manufacturing
cost with standard quality.
Therefore, to know about outcomes of productivity faced by firm into labour market of
UK, so Barratt Homes is considered as an example. It faces loss of ineffective manufacturing
that outcomes into low organisational profit. According to the reports that are issued through
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PWD, GDP is anticipated to increase in 2020 approx 11 to 13 percentage from construction
industry (Construction industry forecasts. 2018). The issues that are tackled through firm is their
employees performance level, labours productivity. So to overcome from the issue of low
productivity firm's manager has to execute effective strategies in order to identify problems and
its solutions. Because of lack of proficient employees as well as technology enhancements staff
is lacking in the knowledge to understand working capabilities on advance machines as this
outcomes into late delivery which reduce the firm's performance and is not capable to survive in
marketplace. Without appropriate knowledge organisation will has to incur more charges on
training of their staff to perform on advance machines that are brought through firm to develop
their productivity.
Tesco PLC have been facing the problems of productivity in present years because of two
reasons. First is regarding competition growth in their business environment which have
outcomes in concentrating more upon profitability enhancement instead of wealth development.
Apart from this the more effecting factors is related to labour market. From the view point of
HR, UK labour market is declining in context of demand and supply. Its outcomes of developing
dependability on artificial intelligence. Market of proficient and unskilled labour have become
large. Tesco Plc effort to goes on with increasing demand as well as expanded activities so that
they can retain their positions into retail sectors (Taylor, Doherty and McGraw, 2015). Thus,
human capital have been provided as a secondary priority and profitability enhancement have
become predominant significance.
CONCLUSION
As per the above report it have been ascertained that managing HR is essential part of
company. This mainly deals with overall internal functions which involves selection cycle,
resource allocation and assist company to overcome from challenges. Among whole resources
human are the important for firm as it aids to accomplish short and long term goals. Therefore,
HR manager assure that it influence its workforce in a way that they keep encouraged to attain
business targets. Also, being labour as an crucial resources market of UK experiences more
issues about proficient labour at low rates. In this case, the HR manager accountability is to
trained labour so that their skills as well as knowledge enhances.
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REFERENCES
Books and Journals
Bahn, S., 2015. Managing the well-being of temporary skilled migrants. The International
Journal of Human Resource Management. 26(16). pp.2102-2120.
Brem, A., Borchardt, J. and Thérin, F., 2014. Technology entrepreneurship, innovation and
intrapreneurship–managing entrepreneurial activities in technologyintensive
environments. Handbook of Research on Techno-entrepreneurship, pp.17-38.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Conley, V. M. and Smith, K. J., 2013. Effectively managing human resources in 21st-century
colleges and universities. Organization and administration in higher education. pp.204-
223.
Evans, J. R. and Lindsay, W. M., 2013. Managing for quality and performance excellence.
Cengage Learning.
Gunasekaran, A., Jabbour, C. J. C. and Jabbour, A. B. L. D. S., 2014. Managing organizations
for sustainable development in emerging countries: an introduction. International
Journal of Sustainable Development & World Ecology. 21(3). pp.195-197.
Hughes, C. and Byrd, M., 2017. Managing human resource development programs: Current
issues and evolving trends. Springer.
Surujlal, J., 2016. Managing human resources in sport: issues, challenges and possible remedies.
African Journal for Physical Activity and Health Sciences (AJPHES). 22(Issue-31).
pp.760-776.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Online
Managing human resource. 2019. [Online]. Available through:
<https://www.humanresourcesedu.org/what-is-human-resources/>
Construction industry forecasts. 2018. [Online]. Available through <https://www.euf-
federation.com/wp-content/uploads/2018/05/CPA-Construction-Forecasts-Spring-
2018.pdf>
The labour market. 2019. [Online]. Available through
<https://www.pwc.co.uk/issues/connected-intelligence/skills-shortages-could-threaten-
future-uk-growth.html>
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