Strategic HRM Report: Analysis of Auto Trader Group Plc and Motorpoint

This report provides a comprehensive analysis of strategic human resource management (HRM), focusing on two organizations: Auto Trader Group Plc and Motorpoint. The report begins by examining HR policies and practices within these organizations, exploring concepts such as employment security, selective hiring, and extensive training. It then delves into the impact of external forces, including government regulations, workforce demographics, economic conditions, and technological advancements, on HR decision-making. Furthermore, the report analyzes the organizational structure of the HR function, utilizing Ulrich's Model to evaluate the roles of HR business partners, change agents, administrative experts, and employee champions. The report also discusses the roles and challenges of line managers in delivering HRM, providing a holistic view of strategic HRM in practice.

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Analysing the HR policies and practices within the organisation......................................1
2. Analysing the specific external forces and the effect of these forces in HR strategic
decisions.................................................................................................................................3
3. Analysing how the HR function organised and how HR policies and practices are delivered.
................................................................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Strategic management is the process of formulating, implementing and evaluating
business strategies to achieve organisational objectives. Strategic plan or strategies helps to deal
with many issues and problems of the company. Present study will be based on strategic human
resource management under which report will be analysing two organisations Auto Trader Group
Plc and Motorpoint which is a car retailer company. Further, study explains HR policies and
practices within the organisations against selected theoretical framework. Also, it explains some
external factors that HR decision making process.
MAIN BODY
1. Analysing the HR policies and practices within the organisation.
Human Resource Practices
HR best practices take better action for the company growth in order to adopt best
employment security measures, selective hiring, contingent compensation, extensive training,
reduction of status difference, information sharing etc (Angrave and et.al., 2016).
HR practices
Employment Security: Employment security is the best practice of HR, in which
company aim at creating contract with employees for fulfilling the legal requirements. Auto
Trader Group Plc adopt this practice for managing employee retention for long term basis.
Employee security is the best approach to gain employee sustainability or motivation in the
context of job security. In addition to that, HCM support this employee behaviour and enhance
their performance as well.
Selective hiring: The main purpose of the HR is to hire potential employees to enhance
the company work culture and make productive team (Bailey and et.al., 2018). Motorpoint needs
to recruit potential employees as per the company requirement or needs.
Extensive Training : This is another good HR practice which states that, company has
to invest good amount on employees training. Auto Trader Group Plc invest good amount on
employees training in order to meet out the company standards. This practice of HR improves
the employee work ability that encourage employee interest towards work. This concept generate
high commitment management that gives positive environment within company.
Human resource Policies
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HR policies are made for the development of human resource within the organisation. HR
strategies full fill the employee needs as well as organisation needs (Bratton and Gold, 2017).
There are three approaches or concept that summarized HR policies and
Hourly Employee Attendance Policy: HR is responsible to record information
regarding employees leaves, absenteeism etc. HR must need to adopt all such policies to ensure
effective working or relationship between all departments and goals. In which employee can
take maximum 2.15 hours of emergency leave per day and 56 hours on annual basis.
Leave Policy : HR responsible to manage employee leaves such as maternity leaves,
parental leaves adoptive leaves etc. Policies are the essential practices of HR manager which
must be obey. By applying this policy Auto Trader Group Plc enhance the high commitment
management or create positive employee force.
Concept of High commitment management
HRM is the high commitment management that enhance mutual commitment from
employees. Auto Trader Group Plc and Motorpoint both are the leading company in UK that also
committed towards their employees benefits as well (Trullen and et.al., 2016). The greatest thing
about high commitment management is they easily adopt changes and aligned all tasks together
in an efficient manner. Auto Trader Group Plc always adopt disciplinary code of conduct that
helps company to maintained good work culture.
The main concept behind High commitment management is to reduce employee turnover,
improvise employee behaviour, high quality performance, or improve customer service for both
Auto Trader Group Plc and Motorpoint. In order to that, company should need to adopt this
concept to improvise organisation work culture.
In contrast, Motorpoint HR manager is most productive and efficient to tackle things in
an more appropriate manner. That helps to keep maintained enthusiasm between work. By
adopting best HR practices and policies (Bryson, 2018). Company can create high commitments
for future as well. Auto Trader Group Plc can get high level of functional flexibility and high
commitment by applying HR practices. HCM minimize the hierarchy and communication gap
between employees as well. Efficient working environment automatically encourage employees
towards the high commitment goals. There are given some key aspects of HC HRM that gives
more detailed information.
Hard and Soft HRM
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Soft HRM : Soft HRM defines how company treat their employees in which manner.
Auto Trader Group Plc adopts Soft HRM system in order to keep employees happy and satisfied.
Soft HRM reflect that company treat employees as an asset rather than machine.
Key Features of Soft HRM
 Auto Trader Group Plc maintained the Work life balance of employees.
 Adopt good and employee productive HR practices and fair policies.
 Auto Trader Group Plc invest on the employee training development programme.
 Adopt extension training and learning development needs.
 Adopt higher wages policies to full fill the needs of employees.
Hard HRM : In Hard HRM practices company treat their employees as a Building or
machine. It consists strict regulations and practices adopted by the company. In which HRM only
focused on the HRM practices or functions in order to full fill the company set objectives (Guest,
2017). Motorpoint are very strict in the functional task, company having the strong link with
corporate business planning that makes employees pressurised.
Key Practices of Hard HRM
 Motorpoint having communication gap between employees.
 Adopt minimum wages system and retain enough staff within the company.
 Motorpoint adopt autocratic leadership style where company only focuses on policies,
procedures and try to achieve the set objectives.
2. Analysing the specific external forces and the effect of these forces in HR strategic decisions.
Human resource management involves different factors that affect the decision-making
process of HR manager (Malik, 2018). External factors affect HR management function in day to
day operations. There are some factors that highly affect the HR strategic decision-making
process such as given below:
Government Regulations: Government regulations has always been the complex for the
companies. To safe workplace regulations government has been introduced different regulations
that helps to keep the environment safe and secure. But on the other hand, sometimes these
workplace regulations affect or restrict the functions of HR. This factor influence HR functions
like, recruitment, selection, training, termination etc.
likewise, Auto Trader Group Plc and Motorpoint both needs to adopt vehicle policies or
law imposed by UK government. Without applying employment regulations, Auto Trader Group
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Plc and Motorpoint could not run their businesses in a proper manner (Marchington and et.al.,
2016). This factor affects the decision-making process of HR due to which company HR
department face distinct changes.
This factor influence HR strategic decision making process by changing policies of
government regulations. This external force affect the company regular functions.
Workforce Demographic: This is other factors that affect HR department and their
decision-making approach. In order to meet out the goals and different target performance in
order to meet out the best outcome results and growth. For example: Due to changes in trade
union act or policies can affect the HR strategic decision making approach. This workforce
demographic change can enhance the negative thoughts between employees due to which
company might be faced lack of dis connectivity between management and employees.
Workforce the human resources department must look for ways to attract this new set of
candidates. Auto Trader Group Plc and Motorpoint needs to adopt the effective leading and
developing changes. It is the full responsibility of HR functions to ensure all changes adopted by
the company (Nankervis, Baird, Coffey and Shields, 2016). HR also need to follows external
changes due to which company needs to adopt practices accordingly. It is another form of
effective developing results.
Economic conditions: Economic factor is the most challenging factor for human
resource department due to which HR needs to modify policies and structure. According to the
current economy Auto Trader Group Plc and Motorpoint needs to make changes in their policies
(4 external factors that affect HRM. 2013). For example: Labour market trend can affect the
economic conditions which can be positive or negative for the company. Due to this change or
trend it increases the pressure for HR manager to deal with employment trends. The main task of
HR is to know each and every information or changes in economic conditions in order to make
the effective strategic decision-making approach. It affects the overall situation of the company.
In order to overcome from this challenge, HR manager needs to know about what's happening in
the world and always be prepared to adopt the economic challenges.
Technological Advancement: New innovation or technology helps to make productive
environment for employees that also create interest among them. A job that used to take 2-4
people could be cut to one by a single employee. For example: This force directly affect high
skilled or low skilled employees which creates competition among employees because
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technological advancement are threat for low skilled employees due to which there employee
morale get down. This creates the complex situation for HR managers to deal with. Auto Trader
Group Plc get benefited by adopting technological changes. It enhances the productivity and
work efficiency level of employees (Ostroff and Bowen, 2016). In order to meet out the
company set objectives and goals, HR department should contribute great efforts to maximise the
productivity level of employee performance by adopting new techniques and ways to perform a
particular task. In order to meet out the effective challenge and goals.
3. Analysing how the HR function organised and how HR policies and practices are delivered.
The major function of HR department is recruitment or selection, Orientation,
maintaining good working conditions and managing employee’s relations.
Ulrich's Model
This model given by David Ulrich who think that large scale organisations cannot run
without HR functions (Managing HR Roles : David Ulrich's Model, 2018). Here, HR functions
has divided into four segments are strategic partner, change agent, Administrative Expert,
Employee Champion.
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HR Business partner: This function performs a task where HR partner with line
manager for delivering information to internal clients or with internal buyers to just connect them
into the business which includes, customers, employees, creditors, and more. In other words, HR
partner gives feedbacks to those clients about the quality performance of the client. This function
helps to attract new fresh talent, and promote productivity at workplace in both Auto Trader
Group Plc and Motorpoint. It increases the chances of adaptability of new policies and practices
taken by HR manager.
Change Agent: This change agent introduces the new changes happened within the
organisations to internally (Ramdhani, Ramdhani and Ainissyifa, 2017). That helps HR manager
to create new policies and practices for the better employability. Another benefit of this terms
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Illustration 1: Ulrich Model
(Source: Managing HR Roles: David Ulrich's Model, 2018)

Administrative Expert: Administrative expert is responsible for different role and
responsibilities. This expert focuses on current legislation, regulations, occupational and health
and safety rules. On the other hand, Administrative expert is responsible to keep maintained the
employee information and their records as well.
Employee Advocate/Employee Champion: Employee advocate is the responsible
person who needs to make sure about the employee protection, safety needs, ensuring employees
are satisfied, or happy with the working environment with the company. Employer advocate
leads to improve motivation or employee morale (Shields and et.al., 2015). Employee motivation
is the main purpose of human resource management. It helps to keep the motivation level of the
employees up and satisfied. Manager contribution in this process is to adopt all these
measurements to ensure employees safety. It helps employees to keep motivated and ready to
take challenges.
Role and challenges of Line managers in the delivery of HRM
A line manager is a person who directly manages the other employees and operations of a
business while reporting to a higher-ranking manager. The main role of Line manager is to
communicate employees about new policies into day to day activities. It helps to maintained the
consistency level and understanding between all employees or on the same time it helps to
tailoring new approaches to individual and team members as well.
Roles:
 Line manager is responsible to recruit and hire talented employees and goals in an
efficient manner to maintained the work accuracy at the workplace.
 Provides employee training and support to new employees in order to deliver HRM
practices.
 Review the performance of employees and introduces new changes within the
organisation in order to deliver HRM functions and activities.
Challenges
 Line manager needs to invest long hours in the business functions.
 Constant pressure to minimize expenses and maximise output.
 Burden of the responsibilities of different operational functions (Trullen and et.al., 2016).
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CONCLUSION
As per the above following explanation it has been summarized that, how much strategic
HRM is essential for the company better environment. Present study discussed different HR
policies and practices, such as HR liable to hire employees, training & development of new
employees, keeping records of workers, motivation, etc. HR also responsible to adopt different
policies and laws as well. Report has discussed about the Soft or Hard Department needs.
Further, study also explained about the external factors which affect the policies of HR
departments.
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REFERENCES
Books & Journals
Angrave, D. and et.al., 2016. HR and analytics: why HR is set to fail the big data
challenge. Human Resource Management Journal. 26(1). pp.1-11.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Bryson, J. M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Guest, D. E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal. 27(1). pp.22-38.
Malik, A., 2018. Strategic Performance and Commitment Management. In Strategic Human
Resource Management and Employment Relations (pp. 85-91). Springer, Singapore.
Marchington, M. and et.al., 2016. Human resource management at work. Kogan Page
Publishers.
Nankervis, A. R., Baird, M., Coffey, J. and Shields, J., 2016. Human resource management:
strategy and practice. Cengage AU.
Ostroff, C. and Bowen, D. E., 2016. Reflections on the 2014 decade award: Is there strength in
the construct of HR system strength?. Academy of Management Review. 41(2). pp.196-214.
Ramdhani, A., Ramdhani, M. A. and Ainissyifa, H., 2017. Conceptual Framework of Corporate
Culture Influenced on Employees Commitment to Organization. International Business
Management. 11(3). pp.826-830.
Shields, J. and et.al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Trullen, J. and et.al., 2016. The HR department's contribution to line managers' effective
implementation of HR practices. Human Resource Management Journal. 26(4). pp.449-
470.
Online
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4 external factors that affect HRM. 2013. [Online]. Available
through :<https://workology.com/4-external-factors-that-affect-human-resource-
management/>.
Managing HR Roles : David Ulrich's Model. 2018. [Online]. Available
through :<https://blog.mettl.com/talent-hub/managing-hr-roles-david-ulrich-model>.
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