Strategic HRM: Analysis of TNT's HR Strategy, Theories, and Evaluation

This report provides a comprehensive analysis of strategic human resource management (SHRM) in the context of TNT, a transportation company. It begins by identifying current trends and developments influencing HR strategy, such as globalization, workforce diversity, changing skill requirements, continuous improvement, and productivity enhancement. The report then analyzes internal and external factors impacting HR practices, including governmental policies, demographics, technological advancements, economic conditions, employee relations, and new entrants. It further explores relevant theories and concepts related to SHRM, specifically the David Ulrich model and the High Impact HR operating model, detailing their key aspects. The report also evaluates how change management models can support HR strategy, providing organizational examples, and explains how HR outcomes can be measured and monitored. Finally, it discusses how effective HR management can support sustainable performance and growth to achieve organizational objectives for TNT.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine current trends and developments that influences HR strategy of an organisation
.....................................................................................................................................................1
P2 Analysis of how internal and external factors influences HR strategy & practices...............2
TASK 2............................................................................................................................................4
P3 Relevant theories and concepts related with development of strategic HRM.......................4
TASK 3............................................................................................................................................5
P4 Evaluate how change management models will support HR strategy by specifying
organisational examples..............................................................................................................5
TASK 4............................................................................................................................................9
P5 Explain how HR outcomes can be measured and monitored to a specific organisational
situation.......................................................................................................................................9
P6 Discuss and evaluate how HR management can support sustainable performance and
growth to achieve organisational objectives.............................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic human resource management is a tactic to attract, develop, reward and retain
workers so that both organisation and employees can be benefited as a whole. HR department of
a company never perform SHRM in isolation. They perform strategic human resource activities
while coordinating with other departments so that formulated strategies can easily align with
business objectives (Arunprasad, 2017). This assignment is written in context with TNT which is
a transportation company, headquartered in Hoofddorp, Netherlands. This report covers current
developments and trends which impacts the HR strategy of a firm. Also, analysis of internal and
external factors influencing HR strategy is carried out. Different theories and concepts related
with growth and development of SHRM are discussed. Beside this, evaluation of change
management model and ways to monitor & measure HR outcomes are discussed. At last, the
manner in which effective HR development and management can leads to sustainable growth
and performance is specified.
TASK 1
P1 Determine current trends and developments that influences HR strategy of an organisation
HR department within an organisation is responsible to formulate and implement
different human resource strategies which will allow the firm to work in an effective and
efficient manner. But there are some developments and trends which possess a big influence on
these strategies. In context with TNT, these current developments and trends which are based on
contemporary theory are mentioned below:
 Impact of globalisation: Globalisation is a procedure by which a firm or enterprise
formulate its international influence on international scale. Globalisation results in
enhanced competition due to which HR strategies of TNT must be changed on a regular
time period. Changed strategies will benefit company in hiring more capable and
dedicated staff which will be able to perform in difficult situations. TNT operates
globally, hence only effective strategies will add value to the company. If company will
not implement new HR strategies, it will be difficult for them to successfully operate at
global level.

 Workforce diversity: It is related with the differences and similarities between
workforce of an organisation in context of their cultural background, gender, age, sexual
orientation and religion. This diversity within workplace makes workforce heterogeneous
due to which their opinions also change. Hence, HR department in TNT needs to initiate
those strategies which considers welfare of different workforce. otherwise, workforce
will feel partiality and not able to give their best performance (Bailey and et. al., 2018).
 Changing skill requirements: Skills of employees decides whether a firm will gain
competitive advantage over rival firms or not. Change in skill requirements takes place
due to market or customer's perspective change. HR department in TNT needs to initiate
development and training program so that required skills can be incorporated in
employees. Otherwise, company will fall behind and no profitability will be achieved.
 Continuous improvement: HR strategy of TNT got considerably impacted due to the
need for continuous improvements. To sustain a firm position in market, HR department
of company needs to improve their tactics and strategies by adding programs like short
term sessions, seminars so that employees can improve their working potential. Not
improving can results in business failure.
 Productivity improving process: Main work of HR department is to hire skilled and
capable employees with the help of some interviews and tests. As competition in market
is enhancing, TNT needs to improve its overall productivity. For this, HR department of
company need to introduce new processes like weekly training, regular meetings so that
overall productivity of firm can enhance (Bondarouk, Harms and Lepak, 2017). In case,
if firm will avoid improving process, sales of TNT will reduce.
P2 Analysis of how internal and external factors influences HR strategy & practices
Below are mentioned key external factors which have a big influence on the HR practices
and strategies of TNT:
 Governmental policies: This factor involves different rules and regulations which are
formulated by UK government, so that all organisations can perform their operations in a
unified manner. If policies of government changes, it will be important for HR
department to change their strategies and eliminate those which do not comply with
governmental norms so that overall productivity can be enhanced. In case company avoid

these policies, they may have to face heavy revenues and work productivity of company
will also decrease.
 Demographics: Reward and compensation package for senior and new staff will be
different. Hence, HR department in TNT needs to revise their packages according to the
experience and performance of employees. This will enhance working morale of
employees and overall productivity of company will increase. If packages will be same
for all, no employee will generate efforts to differentiate itself form other workers.
 Technological advancements: To incorporate new technology, along with budget an
organisation also requires technologically skilled work-force which is able to get
advantage of technology. For this, HR department of TNT needs to train and guide
employees so that they can properly use technology. In case failing in technology will
results in heavy loss for firm (Bondarouk, Parry and Furtmueller, 2017).
 Economic conditions: Instability in financial and economic conditions will restrict
company to hire new employees on regular basis. Hence, HR department needs to hire
only those workers which adds value to the organisation so that economic condition of
company can be stabilised. If economical state of company is not stable, then it will
become difficult for company to perform business activities smoothly.
There are some internal factors also which possess impact on HR strategics and practices
of a company. Some of them are mentioned below:
 Employee relation: To achieve business success, it is important for a company to
improve its internal working environment. This means HR department of TNT needs to
adopt those strategies which will motivate employees to work in a unified way.
According to the behaviour and response of workers, HR strategies of TNT will be
changed. If strategies will not be changed then, employees will feel isolated and working
productivity will deteriorate.
 New entrants: An industry develops due to the entry of new entrants. These new
companies pay attractive salaries to the staff due to which existing companies face issues
like employee turnover. It is very essential for HR department in TNT to monitor new
entrants and rival companies properly, so that effective strategies can be formulated to
retain employees. If HR department will not do that then company will face loss of

employees due to which overall productivity of firm will decrease. These different HRM
strategies will help the company in resolving problems like worker’s turnover,
organisational conflicts etc. To perform business operations desirably, TNT needs to hire
skilled and capable employees which can perform different organisational duties by
desired means. These strategies assist employees in attaining working potential which
helps them in developing their future career.
The impact of HR policies and procedures have its positive influence on different sectors
like private, voluntary and public sector. All these three varies in structure but role and duty of
HR department remains same (Boon and et. al., 2018). The main objective of HR policies is
worker retention. Since, public sectors comprise of public funds, the value of HR increases as
inefficiency of workers can results in company loss and in complex conditions, it can even
wound up. Therefore, HR policies needs to be implemented to reduce the worker turnover and
formulating comfortable workplace. In private sector, HR policies helps in maintaining an
appropriate working environment as HR department takes care of the requirement and needs of
employees by listening their issues and grievances. In case of voluntary sector, HR policies helps
the firms in properly coordinating with other charitable organisations and firms in a desired
manner.
TASK 2
P3 Relevant theories and concepts related with development of strategic HRM
Strategic HRM is defined as a general approach associated with strategic management of
human resources. These are based in accordance with the intentions of company to sustain a firm
future. There are different theories and concepts which are associated with the development of
strategic human resource management. In context with TNT, David Ulrich model will be best
suitable and properly specify workers and their specific roles at different positions. Main aspects
related with this model are mentioned below:
 HR business partner: These individuals are given the task to communicate with internal
customers. Internal customers involve shareholders, creditors, stakeholders, employees
etc. HR business partner contact and interact with these customers so that firm can
achieve its objectives desirably. They collect feedbacks to improve work quality within

organisation along with searching skilled employees, filling job vacancies, setting HR
goals, enhancing productivity for TNT. In accordance with the feedbacks collected,
effective strategies will be formulated which will help the firm in solving issues and
grievances of clients in a desired manner.
 Change agent: At the time of business expansion, responsibilities of HR department also
increases. In this respect, HR department circulate all required information within the
company. Appropriate training programs also get initiated so that employees can deliver
their best performance. TNT can acquire its objectives by providing training to workers
about changes and advancements (Delery and Roumpi, 2017). For this, HR department
can initiate different policies and procedures under which required training will be given
to employees to perform business activities appropriately.
 Administration expert: This aspect of model is associated with different kinds of
organisational goals. In this respect, HR department of company needs to consider
procedures related with regulation, legislation, safety and health standards, labour or
trade laws etc. for smooth organisational working. For this, TNT can take help of
information software and systems so that regular monitoring, updating and securing of
information will takes place.
 Employee advocate: It is the main role of HRM department within a company to
understand and assess the welfare of workers. In this regard, HR team in TNT needs to
initiate activities which will enhances the satisfaction and working morale of employees.
This will help in sustaining a positive working environment within the firm. For this, HR
department of company can initiate programs which will resolve customer grievances so
that a positive work environment can be sustained.
High impact HR model is a new operating model associated with HR functions so that
innovative and expertise level can be driven up while performing business activities. Main
aspects related with High Impact HR operating model are mentioned below:
HR as a strategic function: To attain high impact HR, transformation form traditional
model to new approach is required. This will be achieved by shifting from rationalisation to
optimization of HR functions. This model will benefits HR persons of TNT to turn into advisors
and consultants by which skills & capabilities of HR will attain a new height.

High impact HR operating model: In relation with present context, operating models
associated with HR have shifted from being an operation unit to service organisation. This will
benefits TNT in moving towards strategic alignment rather can considering transactional
elements. As per this model, those products which are advantageous, easily adopted and add
significant value to organisation & end user are given preference. Tools and products which will
deliver desired outputs by considering faster data retrieval, appropriate information will be
considered as integral part of this model.
Different principles associated with high-impact HR operating model are stated beneath:
 It is majorly focused on business and its related concepts.
 To achieve high business performance in an efficient manner coordination, agility and
flexibility is needed throughout workplace.
But TNT has implemented strict human resource policies which assists in flexible and
versatile working, 540 degree appraisals, performance appraisal and e-recruitment. Flexible
working will allow workforce to work according to their interest and different appraisal
techniques will assists them in delivering their best performance. All these aspects possess
positive impact on the working of TNT. Other organisations such as David Watson transport
company, uses performance appraisal technique to motivate its employees so that they can
perform their duties desirably. If they will implement other aspects like e-recruitment then they
can hire an efficient staff which will allow them to gain competitive advantage easily. Due to
these theories, issues like employee turnover can be solved desirably which will denote the
willingness of workers to working within firm (Farndale and Sanders, 2017).
TASK 3
P4 Evaluate how change management models will support HR strategy by specifying
organisational examples
There are different change management models which can be applied successfully in
context with TNT. Some of them are Lewin's three step change, Nudge theory, Kotter model of
change etc. Details of these models are mentioned beneath:
Lewin's three step change: This model was developed by Kurt Lewin and include three
steps which are unfreezing, refreezing and changing. This model will help in acknowledging

change process within TNT. Before implementing a change, HR department in TNT needs to
pass an initial step i.e. unfreezing. This will help in creating an awareness about hindrances and
current level of company within marketplace. As people working in company passed unfrozen
stage, HR department of TNT needs to transits towards changing step where required changes
will be implemented (Noe and et. al., 2017). Final stage of this model is refreezing stage which
symbolizes solidifying, stabilizing and reinforcing the new stage. This new stage formulated due
to the change carried out by HR team. This model will allow the employees in TNT to accept
change with positive attitude. As workers will accept change willingly, it will become easy for
HR department to initiate policies according to market demand and consumer’s preference.
Advantage: Main advantage of this analysis is that it will offer a visual presentation of
different factors which supports and opposes a specific idea in accordance with the data which
have been gathered in a single graph. Also, it will enhances the evaluation beyond information so
that manager in TNT can look at different qualitative factors so that right decisions can be taken.
This will helps in maintaining effective working environment.
Disadvantage: This model is goal oriented and rational in nature. In general, the changes
associated with it will seems beneficial but when applied it practically it lacks experience which
can have a negative impact on the working atmosphere of TNT.

Illustration 1. Lewin's Three Step model
Source: (Lewin three step model, 2019)

Illustration 1. Nudge theory
Source: (Nudge theory, 2019)
Nudge theory: This theory is associated with political aspects, behavioural economic and
science which reinforces the impacts of decision making procedure of company. This theory will
assist the employees of TNT to take those decisions that will align with their self-interest. This
concept will drive a positive change in the behaviour of employees working in TNT due to which
overall work productivity of firm will enhance (Paauwe and Boon, 2018). As employees will
positively react to the changes it will became easy for HR department in TNT to formulate
effective strategies like regular training, seminars to enhance the working capabilities of
employees.
Advantages: This theory will motivate employees in TNT to deliver their best
performance as along with organisational goals their personal interest will also get satisfied. Due
to this, working productivity will increase and company will able to sustain a positive work
environment within workplace.
Disadvantage: This theory can results disadvantageous for an organisation in situation
where employees will give more interest to their personal benefits rather than accomplishing
aims and desires of company. This will results in loss of revenue and income.