Strategic Human Resource Management Report: Opodo Case Study

This report provides a comprehensive analysis of Opodo's strategic human resource management (HRM). It begins by examining current trends and developments influencing Opodo's HR strategy, such as advancements in technology, employee engagement, and smarter recruitment practices, highlighting both positive and negative impacts. The report then presents internal and external factors affecting HR strategy, including economic, technological, social, and governmental influences, as well as marketing, organizational culture, and financial strategies. It explores HRM theories and concepts, such as organizational learning theory, role behavior theory, human capital theory, and transaction cost theory, to understand their contributions to Opodo's growth. Furthermore, the report discusses how change management models, specifically Kotter's model, have supported HR strategies in adapting to technological advancements. Finally, it evaluates how effective HR management and development contribute to sustainable performance and organizational growth, offering insights into the measurement of HR outcomes and their impact on Opodo's success. The report offers a detailed overview of the factors that influence HR strategies, their implementation, and their impact on organizational performance.

Strategic Human Resource Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Examining the key current trend and development that influence the OPODO HR strategy 3
P2 Presenting the internal and external factor that influence the HR strategy and practice........4
LO2..................................................................................................................................................6
P3 Theories and concept related to HRM....................................................................................6
LO3..................................................................................................................................................7
P4 The way change management model have supported HR strategy........................................7
LO4..................................................................................................................................................9
P5 The way HR outcome can be monitored and measure...........................................................9
P6 Evaluation of effective HR management and development that support sustainable
performance and growth of organisation...................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human resources manager is responsible for planning, organising, controlling and
monitoring performance and productivity of employees so that firm can gain competitive
advantages. In another word, it hires, recruit highly right individuals at right time, plan for its
growth and development and find strategies so that they can be retained within organisation for
longer time frame. Current trends and development has huge impact on HR strategies of firm so
they need to be consider this impact while taking any decision for benefit of organisation. Hr
makes several policies and used different practices in order to motivate and manage diverse
individuals within organisation. Such as health and safety policy, sexual harassment policy, leave
and break period policy and non discriminative policy are implemented by HR. This report is
about Opodo that is online travel agency in United Kingdom which offers attractive deals in
hotels, charter flights, car rental and holiday packages. It contains information related to
influence of external and internal development on HR strategy, theories and concept of HRM to
understand growth and development. It also included change management model in order to
understand relationship between HR strategies or its positive and negative consequences. At last
it contains information related to contribution of HR management and development in
sustainable business performance.
LO1
P1 Examining the key current trend and development that influence the OPODO HR
strategy
HR strategy of OPODO is unique such that it keep attracting many candidate because it
complies with different laws and legislations. HR always tries to provide best employee
experience to their employees which in turn directly affect the business performance (Bücker and
et.al., 2020). Hence, with the changing era, there are many changes which have been adopted by
the company’s HR but some of them are affected in negative manner as well, these are as
mention below:
Advance technology: In this modern era, it is the new development which affected the
company’s overall performance along with HR strategy. Such that HR market of OPODOtries to
implement entire process complying with advance technology. That is why, they uses AI which
assist to minimize the problem of human resources and complete the work quickly. On the other
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side, company’s HR tries to provide digitized rewards and recognition that assist to improve the
working performance.
Engagement of an employee: It is another trend that affect the entire strategy, such that it
is quite important for the company’s HR to make sure that employees are satisfied and develop
strategy in order to engage them for long within company (Kyriy,Liubicheva and Moskavtsova,
2017). But due to high competition, employees easily leave the firm where they do not get any
growth options. In the same way, in OpodoHR should also make sure that they recruit qualified
employees which in turn improve the results and it will be easy for the company as well.
Smarter recruitment: In this trend, HR of OPODO should make sure that they uses
advance tool for recruitment. It is so because in the era of pandemic, it is not easy to conduct
face to face meeting and that is why, online application should be introduce which in turn assist
to solve the process of recruitment. In addition to this, the market for recruitment tools is
fluctuate with innovation and hence, HR should find out the tools that assist to select best talent
pool for the company and this in possible with automated recruitment, improved assessment of
recruitment.
Intelligent application and analytics: Machine learning HR application is changing the
nature of work and structure of a workplace. Hence, application for attracting the talent and
worker performance analysis are also enhancing the better decision making for HR (Yuan,
2018). Thus, there is a need to keep complying with different application which in turn used to
keep the business at further level of success.
P2 Presenting the internal and external factor that influence the HR strategy and practice
External factors: By considering the Pestle analysis, it is analyzed that there are some factors
who contribute or affected the HR strategy and this are as mention below: Economic factors: It does not only affect the financial performance of the company but it
also affect the talent pool along with an ability to hire people. Thus, if there is any
recession within a country, then it affect the strategies, policy and procedure of a
company in negative manner. That is why, there is a need to make action by HR of
Opodo. On the other side, this factor also creates positive impact such that during
inflation, HR offer services in low price which in turn creates a direct impact upon
financial performance of a business.
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 Technological factor: Another external factor that also influence the strategy of HR such
that when a new technology are introduce by HR then they always think to downside and
also look for the ways that assist to save money (External factor that affect HR strategy,
2020). Hence, in this modern era, every company looking to invest in the advance
technology and this in turn helps in internal cost saving way. However, on the critically
size, it is analyzed that privacy and losing confidentiality while implement any software
is consider the biggest issue for HR.
 Social factor: The perception of a worker keep changing with the changing lifestyle.
Such that there is a growing number of single person households is increasing demand
and this in turn develop a flexible working option. Hence, this method affect the HR
strategy and as a result, they have to make decision which in turn assist to retain the
employees towards a firm. While on the other side, implementing this facilities within a
company also assist to retain employees and develop positive relationship.
 Government regulation: Every organization should comply with different laws in order
to smooth functioning of a business. That is why, these types of regulations influence
every process of a HR department such that hiring, training and compensation etc. It is so
because without adhering to law, company fined extensively which in turn affect the
results of the company in negative manner (Andalib, Darun and Azizan, 2019). On the
other side, adhering the law means company will run in better manner.
Internal factors: Marketing strategies: Company keep introducing new strategy in order to offer new
products to their customers and that is why, HR of the firm should hire new employees
that will assist to improve the results. On the other side, if the firm do not have effective
employees who assist to increase the sales, then HR should develop different strategy that
assist to cope up with challenge.
 Organizational culture: The culture is a sum of total shared values, beliefs of a firm and
it also depicts the personality of organization. That is why, HR of the firm should adjust
positively to the culture of a firm in order to meet the define aim. Thus, there is a need to
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have a positive working culture which in turn creates a direct impact upon business
performance and this in turn increase the employee retention as well.
 Financial strategies: It is another internal strategy that affect the business in negative
manner. Such that financial department of Opodo also make sure that company must have
effective employees who assist to meet the define aim (Zeebaree,Shukur and Hussan,
2019). Also, a decision to reduce cost by outsourcing training would also results in
changes to a training program. That is why, HR of the firm should keep aware of such
things otherwise it will affect the results.
LO2
P3 Theories and concept related to HRM
Human resources manager of Opodo have followed several theories and concept while
performing its task so that best and better outcome can be yield. There are several theories of
HRM that could be used to understand the way they have contributed in growth and development
of organisation. Such as:
Organisation Learning theory: With increased competition level and globalisation manager of
Opodo have make use of organisation learning theory to manage various individuals. So, HR
manager have informed or communicate employees about organisational objectives or long term
vision and mission statement. It have provided definite organisation structure, illustrated
employees about their respective task, responsibilities thus it have reduce confusion and
contributed in effective function (Veling and et.al., 2018). Employees are free to share their
innovative and creative ideas within organisation thus it helps in increasing learning, teamwork
and more productivity in Opoda.
Role behaviour theory: It is another theory of HR that explain behaviour of team or several
individuals that are working in organisation for achievement of common objectives. Thus role
behaviour theory assists manager about several strategies or key steps that they could use to
manage diverse individuals. Such as HR manager of Opoda have ensure health and safety
measure, provide friendly, supportive environment so that they can easily complete particular
task within limited time frame and mistake or error (Bokovitz, 2016). Rewards and recognition is
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also one of the methods that is used by HR manager to influenced behaviour of employees so
that company can gain competitive advantages.
Human capital theory: Human are most important resources of organisation as they contribute
high in grow and expansion of enterprise so HR manager needs to take care of them for success
of firm. Opodo HR manager have invested capital of company in training and development
program so that staff or employees can be educated the way particular task need to be performed
or best outcome can be gained (Eser, 2017). Thus, training and development of employees have
resulted in increasing performance and productivity thereby growth of firm.
Transaction cost theory: This theory of HR illustrates that less cost need to be incurred by
organisation to conduct its several operations of firm. Opodo HR manager have set standard
process, procedure and rules that need to be abide to all individuals so that firm can deliver
qualitative services to client across worldwide. Systematic procedure have reduce confusion and
chance of mistakes thus helps in work done in less cost and getting maximum return thereby
enhancing overall profitability of firm.
Thus, it can be evaluated that there are many organisation that have not invested in
training and development of employees as they think it is wastage of money so rather they prefer
to have experienced individuals. There are many enterprise that have strict rules, regulation, no
systematic approach regarding communication that create hinders in team work or ineffective
coordination of individuals towards common objectives (Bokovitz, 2016). So, HR manger of
Opoda by encouraging employees to share their innovative ideas has created feeling of
belongingness and enhances their overall performance.
LO3
P4 The way change management model have supported HR strategy
HR manager of Opoda by analysing changes, updatation and development in technology
have decided to promote employees to make use of innovative technologies to deliver best
services to customers. So, Kotter Change management model will be used to illustrate the way
this model has supported organisation to accept changes and grow, expand its business operation
across worldwide. Like:
Increase urgency: HR manger of Opoda have explained employees that its is crucial for
organisation to adapt to new technology in order to retained and sustain business operation in
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dynamic global environment. So, manager by creating urgency have influenced large number of
individuals to work hard or accept new method (Korzhova, 2020).
Build team: It is another step that have been taken by Opoda HR manager to influence
employees to accept change that it have decided people that will work in particular group. It have
set right skills and personalities that will be required to make use of innovative technology so
that effective services can be given to customers in minimum cost. This strategy has support HR
to coordinate and cooperate several employees to work as a team rather than individuals for
accomplishment of common goals.
Get vision correct: In order to adapt to external changes and trends, HR manger have make
changes in vision of firm by adding project objectives and employees emotions so that they are
motivated to put their best. Thus, most of the employees of Opoda feel inspired to be part of
organisation that provide more importance and value to their view points and emotions while
setting goals.
Communication: HR manger have effectively communicate or share information to each and
every individual about change that company want to bring in order to grow in travel and tourism
industry. It has held meeting to communicate information to team members to whom new
technologies need to be used so that company goals can be achieved (Kathula, 2017). Therefore,
continuous and transparent flow of information has contributed in completion of task in best
possible manner or positive outcome of HR strategy.
Get thing moving: HR manager needs to ensure that all task are smoothly operating so it has
continuously monitor steps taken by each individuals to find roadblocks and barrier in attaining
particular goals. Opoda HR manger have taken feedback from employees to find key issue that
there are facing while adopting change so that better solutions can be founded and desired goals
can be attained.
Focus on short term goals: Employees feel happy and satisfied by achieving small objectives so
HR manager have set small goals that they have to achieved in order to gain specific benefits like
incentives.
Incorporate change: It is a stage at which employees of Opoda are ready to accept several
changes of external environment as they have provided supportive environment and several
resources that they are required to complete particular task (Delery and Gupta, 2016).
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Don’t give up: HRM have ensured that employees does not give up by continuously motivating
and inspiring them that changes is good for themselves as well as organisation. So, overall
change management model have support HR strategy of Opoda.
In order to implement the change within company it is suggested to uses Kottler 8 stages
which in turn assist the firm to communicate the vision within other employees and this in turn
improve the results in better manner. Further, organizational learning theory also support HR
because employees learn from each other and this in turn assist the company to improve the
overall performance and minimize the burden of HR too. However, on the critically note, it is
analyzed that the change model is only applicable for larger project and also let HR understand
that they should not treat the employees as a machine. Hence, with the help of role behavioral
theory that assist HR to assign the roles as per the ability of employees and this in turn assist to
improve the overall performance of a company and employees.
Therefore, it is analyzed that before implementing any model, Opodo should first
determine the positive and negative things, otherwise this in turn affect the results of the
company in opposite manner. Also, HR of the firm should also determine the pros and cons of
change management theory in order to get solution of its negative outcome.
LO4
P5 The way HR outcome can be monitored and measure
Various strategies of HR manager of Opoda has resulted in increasing in performance of
employees, productivity and profitability of organisation. There are different ways in which HR
outcome can be measured and monitored so some of them are discussed below as such:
Employee’s satisfaction index: It is one of the possible methods that can be used to monitor and
measure success of strategies that are used by HR manager to manage large number of
individuals within firm (Zabihi and et.al., 2018). It specific numbers of employees that are
highly satisfied and happy with company operations like maximum number of individuals in
Opoda are happy with operation of business. Thus, they are always ready and motivate to give
their best so that firm can easily grow and expand its operation in external environment.
Employee productivity rate: Another method that can be used to measure performance of HR
manager is employee productivity rate. Due to implementation of effective HR strategy overall
performance and productivity of organisation increased thus it help in measuring the outcome.
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Absenteeism rate: HR performance can also be measure by analysing index rate of absenteeism
within organisation as it illustrates that number of employees that are happy to work with firm.
High absenteeism rate shows that people are not satisfied thus they are less interested to come to
office (Pius, Alharahsheh and Sanyang, 2020). Opoda absenteeism rate is low so it stated that
HR manager have satisfied their needs in best possible manner.
Turnover rate of employees: HR strategy is successful when company is able to retained highly
talented, skilled and qualified employees within organisation for longer time frame. Turnover
rate of employee is low in Opoda that clearly show that HR strategy have yield outcome in
retaining most valuable resources of organisation for its growth and success.
Techniques that could be used to measure and monitor performance of HR
Information technology: It is best technique to maintained or store, preserve data related to
several outcomes that have been achieved by HR manager of firm. Analysis of data can helps in
identifying strategies that were fruitful and ineffective thus alternative solution can be find out to
improve strategies for benefit of organisation.
P6 Evaluation of effective HR management and development that support sustainable
performance and growth of organisation
Human resource management and development helps in better management of wide
range of individuals that are working in enterprise for achievement of common objectives. HR
recruit right individuals at right time, plan techniques that could be used to motivate people,
resolve conflict and coordinate them to work in team. It is crucial for every organisation to
develop HRM so that employees can be easily managed and task can be completed in most
effective way (Taneva, 2017). The way HR development and management have contributed in
sustainable performance of Opoda is illustrated as follows:
Organisation culture: Good organisational culture attract large number of people to be part of
firm thus contribute in delivering qualitative experienced to customers. HR manager of Opoda
by promoting value, ethics and principles is able to influenced individuals to work co-ordinately
for common objectives rather than fighting with each other. Strong work ethics, respect to each
individuals have contribute in building strong brand image thus support sustainable performance
and growth of organisation.
Planning for change: HR manager of Opoda continuously conduct market survey and research
in order to several external changes that can act as opportunity and threat for business. Opoda Hr
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manager have continuously plan the way change can be adopted and best method can help in
yielding more outcome.
Management of conflict: There are number of conflict within organisation between employees
due to difference in their thinking, point of view etc. HR management and development helps in
eradicating all such issues or finding alternative way in which problem can be resolved and
overall objectives can be meet. So, HR manager of Opoda by effectively managing conflict
between several employees have contributed in enhancement of productivity and profitability of
enterprise.
Recruitment and retention: HR manager by formulating several strategies is able to retained
satisfaction level of highly talented, skilled and knowledgeable employees. It also regularly hires
individuals that are necessary for performing specific task so that services are delivered to
customers within limited time frame (Arora, 2016). Thus in this way performing different task
and activities related to retention and recruitment it has contributed towards sustainable and
growth of organisation.
Critical reflect on monitoring and measuring HRM technique
It can be critically stated that HRM monitoring and measuring techniques helps in
finding outcome that have been gained from particular strategy. But use of such techniques
required investment of capital, time, money and efforts so that HR outcome can be measured and
monitored for growth of firm.
Recommendation of development technique
It can be suggested from above analysis that Opoda in order to develop skills and
knowledge of human resources can use of different techniques such as arranging seminars,
meeting, job rotation or arranging training and development program so that they can learn new
skills (Wood and Kispál-Vitai, 2017). The best suitable options that could be used by company is
performance appraisal method and career planning in order to enhance existing skills and
knowledge of several individuals.
CONCLUSION
By summing up above report it has been concluded that the trend and development keep
affecting the HR strategy such that due to technological impact, HR strategy are affect. Further
study concluded that there are some external factors (laws, social, political and economic) and
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internal (organizational culture, strategy, marketing) which also affect the HR strategy in
negative manner. Also, the report concluded that by using organizational learning, Role
behavioural and Human capital theory will assist to increase the development of Strategic HRM
within Opodo. Further, by using the Kottler 8 stages model, HR of the company tries to
implement the change in successful manner.
In addition to this, study also concluded that by using employee satisfaction, the HR of
quoted firm tries to measure the outcomes and they also make sure that it will be monitored
within every week and then quarterly. Hence, the study clearly reflected that with the help of
effective HR strategy, company should increase their overall performance within a market.
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