MGT2HRX: Strategic HRM Practices and Challenges at AMP Limited

This report provides an analysis of Human Resource Management (HRM) strategies and practices at AMP Limited, an Australian company dealing in investment products, financial advice, and banking products. It begins with an environmental scan of the organization using the PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting AMP Limited's operations. The report then discusses the company's existing HR strategies, including selective hiring, employee security, skills training, fair compensation, and information accessibility, and how these strategies address challenges and opportunities. Finally, it offers recommendations for resolving HRM challenges, such as improving communication, monitoring employee performance, providing targeted training, and implementing rewards and recognition programs. The report concludes that effective HRM strategies are crucial for managing employees, adapting to external changes, and achieving organizational goals.

Human Resource
Management
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Environmental scanning of the organisation..........................................................................3
Discuss the organisation’s existing HR strategies and practices to meet the challenges and
opportunities...........................................................................................................................4
Present recommendations to resolve the challenges..............................................................5
CONCLUSION................................................................................................................................6
REFERENCES:...............................................................................................................................7
Books and Journals.................................................................................................................7
2

INTRODUCTION
Human resource management is the effective approach to efficient management of people
in the organisation. This helps the business to attain competitive advantage and enhance
maximum employee performance for the accomplishment of organisational goals and objectives
(Stone, Cox and Gavin, 2020). This report is based on AMP Limited. The company has its
headquarters in Sydney, Australia and deals in investment products, financial advice, and
banking products. The company has founded in 1849 by Debra Hazeltona and Alexis George.
The use of external analysis is done in order to know about the changes external environment
and their impact on HRM practices of the company. The HRM actions taken by the company in
order to meet the changes. The recommendations to overcome the strategic issues are mentioned
in the end of this report are mentioned.
MAIN BODY
Environmental scanning of the organisation
There is key role of understanding the changes in environmental factors and their impact on
the business operations. The use of PESTLE Analysis is done in regard to AMP Limited.
Political factors: The political factors include tax rate, trade policy, political condition of
the nation etc. There is political stability in Australia that assist AMP Limited to operate
smoothly but they have political risk as the company has operations in various parts of the world.
Economic Factors: It includes the economic condition of the nation by measuring GDP,
employment rate, interest rate, inflation rate etc (Shtal and et.al., 2018). There is negative impact
of pandemic on the economic condition of the nation. The buying power of consumers has
showed a negative graph and due to this reason AMP Limited has faced losses.
Social factors: The trends and lifestyle of people come under this factor. The company
satisfies the customers by providing effective financial advice to the customers. AMP Limited
provides the services as per the requirement of the customers and are able to attain a good image
in market.
Technological factors: There is regular updates in the technology and that causes problems
for the employees of AMP Limited. There is skill gap being faced by the employees of AMP
Limited. The employees are unable to use the technology in effective manner and major
problems take place because of this situation.
3

Legal factors: There are certain laws that are applicable on financial service industry and
AMP Limited follows them for the smooth functioning. They get benefits of laws such as
Insurance Contract Amendment Bill (Samusenko, Plaskova, and Prodanova, 2020). At the same
time, all the laws for benefits of employees are followed by the company.
Environmental factors: The business gets all the resources from environment and it’s their
duty to take care of the environmental standards. AMP Limited follows the principles of
sustainability so that they have good brand image in market.
In order to attain effective competitive position, there is need of taking suitable actions in
regard to all the external factors. The management team must provide best to the employees so
that they are able to manage their working in most suitable manner (Riyadi and Munizu, 2022).
The employees are working asset of the company and if they work properly then business is able
to attain goals and objectives effectively. AMP Limited has to work on their strengths so that
they are able to gain lead over the competition present in the market.
Discuss the organisation’s existing HR strategies and practices to meet the challenges and
opportunities
There is key role of analysing the external environment so that the company is able to work
as per the changes in market. It is seen that, HR of the organisation follow some strategies and
practices that helps them to meet the changes in external environment. The HR strategies and
practices followed in AMP Limited are as follows:
Selective hiring: It is one of the most important strategy that helps to hire only right people
in the company. There are regular changes in the technology and the individual who have
capability and skill of using the technology must be hired by the company (Mousa and Othman,
2020). In regard to AMP Limited, the business has proper process of recruitment and selection
that helps them to select the best candidate.
Providing security to employees: AMP Limited provides financial and job security to the
employees so that they are motivated and are able to carry on the work effectively. The company
provided job safety to employees at the time of pandemic as well. AMP Limited provided remote
working facility to the employees at the time of pandemic and this helps them to satisfy their
needs and wants.
Training in relevant skills: There is need of providing regular training to the employees.
AMP Limited has practice of providing training to the employees when they use a new
4

technology. More trainings in the company are related to technical skills so that the employees
are able to use technology effectively.
Fair and performance-based compensation: The employees need fair compensation and
thus helps them to work for longer duration of time in the company (Saeed and et.al., 2019).
AMP Limited works to provide them timely salary and extra benefits for the good work done by
the employees. This motivates the employees and retain them in the company. Despite of the
challenges, employees are able to work with motivation if they get good salary in the
organisation.
Making information easily accessible: The important information related to internal and
external environment of the company is being communicated to the employees of organisation
(Emeagwal and Ogbonmwan, 2018). This helps AMP Limited to take all the decisions in
effective manner and achieve the goals and objectives in appropriate manner and better than
competitors.
All these practices of AMP Limited help them to manage their working and grab the
opportunities that are present in the market. These strategies also help the company to get ready
for the threat and overcome the same in suitable manner.
Present recommendations to resolve the challenges
The recommendations for AMP Limited to resolve the challenges in HR strategies are as
follows:
 AMP Limited must be included in regular communication with the employees and must
take true feedback from them. This will help the company to know about the problems
faced by the employees and using best technique to overcome them. This will motivate
the employees and let them work in best suitable manner for benefit of the company.
 The company must regularly monitor the performance of the employees. This will help to
know about the skills and capabilities of the employees. AMP Limited should provide
regular training to the employees as per their requirements. They must be provided with
training of their day to day work and updates in technology as well. This enhances the
confidence level of the employees and they are able to perform their best.
 Motivation plays a major role in helping the employees to work to their level best. AMP
Limited should give rewards and recognition to the employees for the good work done by
them so that they are able to carry on the operations in best suitable manner.
5

CONCLUSION
From the above report, it has been analysed that HR strategies helps the business to manage
the employees and their working effectively. There is evaluation related to the external
environment and its impact on the firm’s operations. There is also analysis regarding the
strategies used by the company. At the same time recommendations to overcome all the strategic
HRM challenges are mentioned.
6

REFERENCES:
Books and Journals
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of
Strategic Management Journal, 17(2), pp.1-19.
Mousa, S. K. and Othman, M., 2020. The impact of green human resource management practices
on sustainable performance in healthcare organisations: A conceptual
framework. Journal of Cleaner Production, 243, p.118595.
Riyadi, S. and Munizu, M., 2022. The external environment dynamics analysis towards
competitive advantage and company performance: the case of manufacture industry
in Indonesia. International Journal of Productivity and Quality Management, 35(2),
pp.143-156.
Saeed and et.al., 2019. Promoting employee's proenvironmental behavior through green human
resource management practices. Corporate Social Responsibility and
Environmental Management, 26(2), pp.424-438.
Samusenko, A. S., Plaskova, N. S. and Prodanova, N. A., 2020. The analysis of the external
environment to determine the practical focus of applied research and development
in the framework of innovation. In Complex Systems: Innovation and Sustainability
in the Digital Age (pp. 245-255). Springer, Cham.
Shtal and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista espacios, 39(12).
Stone, R. J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
7