Organisational HR Analysis Report: Newcrest Mining - Lihir

This report provides an analysis of the human resource strategies employed by Newcrest Mining Limited - Lihir Operation in Papua New Guinea. The report begins with an overview of the organization, its operations, and its IT department's role in supporting the gold mining process. It then delves into the organizational strategy of the IT department, highlighting the use of technology to enhance operational efficiency, particularly in identifying gold-rich regions. The human resource strategy, including the best fit model and multiple vendor approaches, is examined in detail, followed by a gap analysis that identifies areas where the current strategies can be improved. The analysis considers five pillars for developing HR strategies: legal requirements, employee engagement, career advancement, corporate image, and performance management. The report concludes by discussing the effectiveness of the strategies and suggesting potential improvements, emphasizing the importance of aligning HR practices with overall organizational goals and market dynamics.

Organisational HR Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Overview of the Organisation.....................................................................................................1
Organisational Strategy...............................................................................................................2
Human Resource Strategy...........................................................................................................3
Analysis of Gap Between Strategies and Discussion/Theory and Practice................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human resource analytics is referred to as an area or field of analytics which helps
company in applying analytic processes to the department of human resource with the hope of
improving the performance of employees so that better results can be gained. Newcrest Mining
Limited-Lihir Operation in Papua New Guinea, and it is a gold mining company that recover
gold with process of conventional leach process. I am working as an IT support officer, so my
relationship with the company will be explained below in this assignment (Alfalla-Luque, Marin-
Garcia and Medina-Lopez, 2015). For instance, I monitor the entire process of working by
maintaining a networks of computer system. Other than this, I perform the act of resolving
technical problems and software faults. Main reason of choosing this organisation is because of
its growth level in a specific period of interval. Apart from this, my curiosity of knowing the
underground activity is one of the reason of selecting this company.
Main Body
Overview of the Organisation
Newcrest Mining Limited - Lihir Operation in Papua New Guinea, is situated on Aniolam
Island near New Ireland provision. Company was discovered in the year around 1982, and Lihir
is owned and operated by LGL, which is a 100 percent owned subsidiary firm in Newcrest.
According to a study it has been analysed that by the end of the financial year i.e. 30th June, 2016
company has produced around 900,034 ounces of gold and since the firm has been established
the site has produced approximately more than 10 million ounces of gold. Local communities
residing in Papua New Guineas, for them company is creating economic values and direct
revenues which are generated are furthermore invested in public infrastructure and services. In
this firm, around 4,500 people are employed and approximately 90 percent of workers are from
Papua New Guineans (Newcrest Mining Limited, 2018).
Newcrest has its own process of refractory of gold and in their process plant firm has
established various latest tools and technologies such as new crushing facility and it has assisted
company in increasing their efficiency operating task flexibly. In addition to this, it has lowered
down the fixed cost per tonne. Lihir, supports the activities which are based on PNG-based
suppliers and contribute to the local economy by collaborating and making an agreement with
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government and landowners. Thus, the firm is providing services like medical health facilities,
public infrastructure, water and electrical power supply etc.,
therefore, the company is working with the motive of delivering and getting superiors
returns by finding, discovering and operating gold/copper mines in a safe and efficient manner.
Organisational Strategy
An organisational strategy constitutes a certain set of action with the purpose of getting
long term goals and objectives. Thus, with the help of this company try to make strategic plan
which they can follow in order to achieve set targets (Coetzee, Mitonga-Monga, Swart, 2014). In
terms of this company different departments have various strategy for accomplishing their
objectives.
Organisational Strategy for IT Department
In relation with the IT department of this organisation i.e. Newcrest Mining Limited-Lihir
Operation in Papua New Guinea they have an effective IT strategy that gives them a blueprint of
how latest technologies will help them in performing business objectives. In relation with this
company IT department helps in installing and configure computer hardware so that proper
working can be executed for example: connecting with the devices which are used for scanning
the underground elements. As a result, it will provide company with effective details about from
where they can get maximum number of gold. Some of the strategies are explained below:
 This department is valuing their customers and providing roles and responsibilities
according to their capabilities so that they can get superior results in return.
 Moreover, company is installing latest tools and technologies so that audacious technical
breakthrough can be resolved. Other than this, it will assist firm in knowing the gold
regions from where large ounces of gold can be extracted (Wang, Liu and Mingers,
2015).
Therefore, in Newcrest Mining Limited-Lihir Operation in Papua New Guinea, they are
following some strategies which are:
Meta-model of IT technology strategy: This helps firm in developing their vision and
so that traceable links can be identified according to the system required so that company can
achieve their set targets and objectives.
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Framework of IT technology strategy: This kind of strategy is assisting firm in
simplifying and fragmenting IT service management so that works can be done in a proper
manner.
Moreover, in order to make these strategies there are typical structure for formulating
technology strategy and this includes executive summary in which main purpose of achieving the
goals are included so as to provide high level organisational benefits, project objective and
scope. Therefore, technology strategy should be flexible so that changes can be made according
to the current market situations.
Human Resource Strategy
HR strategy is formulated for achieving long term plan that is developed in order to attain
objectives that are related to the field of human resource and human capital management. As a
result, with the help of this, company can develop their organisation and sustain a better position
at market area. Human resource strategy includes practice like direct behaviour and action of
employees in accordance with the needs and wants of company for example: effective
requirements of staff and provide them with appropriate training (Katou and Budhwar, 2015).
Basically, human resource strategy follows the action plan that are globally acclaimed and
involved specific goals. Therefore, companies while formulating these strategies it is crucial that
company go through SWOT analysis, VRIO analysis and PESTLE analysis. Thus, in this rapid
growing world where business is transforming in a rapid speed most of the companies are
focussing on making plans and strategies so that task can be accomplished in limited time frame.
Best Fit model Strategy:
In relations with Newcrest Mining Limited - Lihir Operation in Papua New Guinea, they
are using best fit model which emphasis on both HR and organisational strategies. This model
makes sure that effective plan are developed which are suitable according to the different
circumstances. Therefore, with the help of best fit model company can focus on needs and wants
of its employees and organisation. Although it is effective but have some limitations as well like
HR manager can sometimes find difficult in handling new challenges because of multiple
alternative contingency thus, this can hamper the performance of company.
Multiple vendor approach or model:
Under which firm hire professionals who handle the entire activities for fulfilling HR
needs. Thus, organisation no longer have to handle administrative tasks and moreover, there is
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no need of paying high salaries to an in-house employee. But it has some limitations as in order
to manage activities HR may find it difficult in managing multiple activities in limited time
frame. Therefore, it can be time consuming and confusing as well.
Henceforth, both the HR strategies are very effective in providing appropriate results to
an organisation as it assists them in performing the activities in a better and effective manner.
Analysis of Gap Between Strategies and Discussion/Theory and Practice
Gap analysis is determined as a method which assist a company in analysing gap between
performance, information system and software applications. This is done to evaluate whether all
the requirements of business are fulfilled and if it not so than what steps can be taken in order to
meet all the necessary items or elements (Sheehan and et. al., 2016). Therefore, it provides
company with the foundation for measuring time invested along with money and human
resources. Basically, in order to develop Human resource strategy, it is necessary that company
follows five pillars.
Five Pillars for developing HR strategies:
Legal requirements: when a company is hiring an employee it is crucial that they follow
and fulfil all the legal requirements so that business can be protected. For example: Newcrest
Mining Limited-Lihir Operation in Papua New Guinea, while on-boarding an employee,
candidate must fill out the form IRS W-4 and I-9 Form.
Employee engagement: this is an important factor if a company wants to gain success
and firm should engage all workers so that they can provide a productive outcome for their
business.
Career advancement programmes: Employees are the most precious and important
elements of a company so it is necessary that firm invest some amount of money for providing
effective training to their workers. Thus, Newcrest Mining Limited-Lihir Operation in Papua
New Guinea, is providing appropriate training to their workers so that they can work properly
and provide maximum benefits to the organisation.
Corporate Image: According to the current market area there are many companies who
are coming up with their business. Thus, amongst them maintaining a strong image is very
important. Here, department of Human Resource and its role is very critical as they focus on
branding techniques and other activities. As Newcrest Mining Limited-Lihir Operation in Papua
New Guinea, is a renowned organisation that dwell and extract gold or coal from underground.
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Performance management system: It is one of the important element that plays a
crucial role because without an advance performance management system, workers cannot
measure their progress whether they are doing their activities in a better manner or not.
Gap analysis of strategies Individually:
Best Fit model:
In relation with Newcrest Mining Limited-Lihir Operation in Papua New Guinea, they
are following two human resource strategies and these are Best Fit strategy and multiple vendor
approach or model.
Henceforth this part of assignment is being done in order to know the gap analysis in the
strategies which firm are following. In terms of Best Fit approach that emphasis on both HR
and organisational strategies. Mainly, this approach incorporates three model and these are The
life Cycle Model, Best Fit and Competitive Strategy and Strategic configuration. But company is
following and has implemented Best Fit and Competitive strategy for operating their business in
an effective manner (Dastmalchian and et. al., 2015). Thus, in order to know the different factors
under this, company take help of Porter's Five Competitive strategies and this provide firms with
“Fit” strategies which best fit with those Competitive Strategies. Therefore, these provides
human resource department with benefits which are explained below:
Overall low cost providers: as in this, with the help of short term results firm try to give
performance appraisal and in addition to this, it assist firm in close monitoring of market pay
levels so that HR manager can make appropriate decision for performance appraisal.
Broad differentiation: In this, relatively fixed and explicit description is provided to
candidates who are opting for a specific job. Furthermore, broad differentiation look out for
extensive and continuous training and development programmes to employees so that they can
be better and give their 100 percent in accomplishing their business activities.
Although, company with the help of Best Fit and Competitive strategy, company are
getting benefits but a gap has been analysed. Firm is not following other two models of Best Fit
Approach and these are The Life Cycle Model and Strategic Configuration. Former will assist
Newcrest Mining Limited-Lihir Operation in Papua New Guinea, in measuring the growth rate
of the company whether they are moving forward or lacking behind. This will help company in
fulfilling the gap and moreover, firm will get more benefits.
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Multiple Vendors approach or model:
This is an another strategy which was being followed by this organisation as a strategy
was multiple vendors approach or model. Although it is an effective approach for e-commerce
and company who wants to establish their business online. In order to make this work, it is
crucial that firm has a web platform which can not only promote their working but also assist
firm in establishing a healthy communication with clients. Newcrest Mining Limited-Lihir
Operation in Papua New Guinea, is using this approach in order to fulfil short-term requirements
as it enable company in providing different support for different purposes.
In addition to this, on the basis of both the HR Strategy, analysis and identify the degree
of match between two strategy i.e. Best Fit and Multiple Vendors is being done and detailed
explanation is given below:
Both the strategies are different as Best Fit is an traditional approach and other multiple
vendor is from modern approach. Thus, its role and area of implementation is different. But there
are some match under on the basis of which analysis can be done for instance in Best Fit: culture,
structure, technology and process are taken into consideration so that action plan can be made
according to different situations and circumstances (Taylor, Doherty and McGraw, 2015).
Likewise, in Multiple Vendors approach it provides different support for different purpose like in
Newcrest Mining Limited-Lihir Operation in Papua New Guinea, there are various departments
who has to prefer with separate vendors thus, this approach assist company in overlapping
common platforms so that technologies or other activities can be deployed. Both Best Fit and
Multiple Vendors approach are less expensive and formulate strategies which can fit into the
strategy of organisation and further these are flexible and there is not need of maintaining
inventory.
CONCLUSION
From the above report, it has been evaluated that, HR strategies are very crucial in order
to run a business in an effective manner without any complications. With the help of this
assignment, it has been analysed that Newcrest Mining Limited-Lihir Operation in Papua New
Guinea, is a gold mining company and approximately 4,500 workers work there. As a senior IT
Support Officer I am managing all computer system, software and hardware so that all functions
can be performed in a better manner. Other than this, company has organisational and Human
Resource strategy which is helping firm in operating their business in an effective way.
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Moreover, Newcrest Mining Limited-Lihir Operation in Papua New Guinea, is using two human
resources strategy one is Best Fit and other one is Multiple Vendors approach although, both the
strategies are different but they are providing better results to the organisation and firm is one of
the leading company in gold mining industry in Australia.
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REFERENCES
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Heizmann, H., & Fox, S. (2017). O Partner, Where Art Thou? A critical discursive analysis of
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Online
Newcrest Mining Limited. 2018. [Online]. Available Through:
<http://www.newcrest.com.au/our-business/operations/lihir/>.
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