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, ...Read More

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.

Kotter model of change: This model was introduced by John Kotter so that ability of
organisation to implement change can improve. This will enhance the success rate for company.
This model specifies change success factor for a firm. Workers within a firm can experience
changes as a positive or negative aspect. Employees plays an important role in implementing
change in a desired manner. According to theory given by Kotter, first three steps are related
with formulating appropriate environment for change. Next three steps are associated with
linking the required changes with TNT. Last two steps aim at consolidation and implementation
of change. This model will allow the HR department in TNT to sustain a positive working
environment by incorporating required changes and according to the requirements HR
department in TNT will implement these changes.
Illustration 3: Kotter's 8 steps of change
Source: (Kotter eight step of change, 2019)
Advantage: Major advantage is that this theory will emphasize on gaining buy-in form
the potential workers so that organisational success can be attained. Along with this, it will be
well suitable with the organisational structure of TNT due to which an productive working
environment will be formulated.

Disadvantage: It is a top down model due to which advantageous opportunities can be
missed as entire working staff will not be included in vision's co-creation. This model can lead to
resistance due to which employees can deny the orders of their seniors. This can results in
reduced working potential of employees that can have negative impact on the revenues of TNT if
not considered properly.
By implementing these theories, TNT can achieve positive growth and success which
will leads company towards higher revenue and profitability. In case of Lewin's three step
change, TNT can use this model easily as it follows a step by step procedure. Another advantage
to company will be that it doesn't emphasize on change but focuses on preparedness and
acceptance for change which will help TNT in achieving an easy transition. Nudge theory will
assist the HR department of company to influence the behaviour of workforce in a positive
manner (Rees and Smith, 2017). Due to this, effective working environment will be formulated
that will enhance the overall productivity and profitability of the company. Kotter model of
change is an effective theory to implement change within an organisation. TNT can adopt this
theory to enhance its efficiency of providing deliveries. HR department of company can use this
theory to aware employees regarding changes and need for changes.
TASK 4
P5 Explain how HR outcomes can be measured and monitored to a specific organisational
situation
There are different techniques which will benefits TNT to monitor and measure their
performance in a desired manner. Some of these techniques are benchmarking, 10-c checklist of
HRM, key performance indicators etc. In respect with concerned company, HR department of
TNT can implement benchmarking technique to acknowledge the performance of company
within marketplace.
Benchmarking: It is a practice to measure performance metrics and business processes
of other companies. Dimensions which are measured in this technique are time, cost and quality.
This method is required to measure the performance with the help of indicators and after that
result is compared with the results of other organisation. Benchmarking is of two kinds i.e.

internal and external benchmarking. In context of TNT, HR manager of company can recruit
workers that are capable to work appropriately in all area and global network (Saridakis, Lai and
Cooper, 2017). This will help in acknowledging HR strategies which will be formulated by rival
companies. By this, they can effectively use the strategies of rivals against them to gain
competitive advantage. For this, TNT needs to identify best organisation within market which
possess the similar process. This will help in comparing in a desirable manner.
Key performance indicators: company can use key performance indicators to measure
HR outcomes. Major objectives of such indicators is to provide base for a specific condition or
situation so that organisational goals can be achieved. To evaluate performance, TNT can adopt
following aspects:
 Average time for recruitment: This will specify if HR department in TNT is capable to
complete entire recruitment processes within a specific time period.
 Retention of talent: By this, company will get to know the average number of workers
which are retaining willingly within the firm.
 Training: it will include the time which is taken by company to train and develop their
work-force in a desirable manner so that they can perform their activities by efficient
means (Shipton and et. al., 2017).
Check list of TNT: Check-list of TNT will include factors such as competence, change and
creativity.
 Change: Basic role of strategic human resource management is to formulate and
implement required changes in an appropriate manner so that continuous development
and improvement can take place desirably.
 Creativity: Unique HR strategies will benefit company in gaining competitive advantage
over rival companies. Hence, it is must for HR department in TNT to be creative so that
new strategies can be formulated effectively.
P6 Discuss and evaluate how HR management can support sustainable performance and growth
to achieve organisational objectives
Every firm wishes to achieve sustainable growth and development by achieving its
targeted goals and objectives. To evaluate it, company can take advantage of resource based
view and best fit. In respect with TNT, these aspects are mentioned benaeath:

 Resource based view: This approach emerged in late 90's. It is a managerial framework
which is required to determine strategic resources that will benefit TNT in gaining
competitive advantage over rivals. By optimally utilizing available resources, external
opportunities can easily to attained by the company. To improve the quality of HRM,
concerned company which is TNT can use updates in the existing systems. This will
benefit the company in maintaining appropriate coordination between the requirements of
customers and the material possess by company to satisfy customers. If resources will be
used in an optimal manner, wastage will decease due to which costs and expenses of firm
will be managed. These all aspects will lead the company towards sustainable
development.
 Best fit and competitive advantage: It is a suitable approach in SHRM which identifies
close relation between human resource management and strategic management with the
help of vertical integration (Wood, 2018). For this, an analysis can be carried out which
will help in acknowledging the level of competition within market. Different strategies
can be formulated and implemented by HR department in TNT so that employees can be
retained within firm and achieving goals can become an easier process. It will decrease
cost, define distinction among roles of workers which will enhances their efficiency.
Also, it will enhance brand image of TNT when strategies will be implemented
effectively. This will assist the company in gaining competitive advantage in a simplified
manner.
From above carried out discussion I have observed that 'best fit approach' is best suitable
in case of TNT. This is because this approach supports sustainable performance. In my opinion,
sustainable performance will results in achieving high revenues and profitability that will
benefits TNT in sustaining a strong presence within marketplace. In resource based view
approach I can benefits the company in gaining competitive advantage over rival organisations
by using resources in an efficient and optimal manner. In other approach i.e. best fit approach I
will use different ways by which workers within TNT will be retained for a longer time period.
This approach will helps me in managing expanses and accomplishing work in a desired manner.
Hence, I will prefer to use best fit view approach for sustainable growth and accomplishment of
organisational objectives.

CONCLUSION
From above mentioned report, it can be concluded that current trends and developments
can influence the working atmosphere of a firm in a positive or negative way. This depends on
the efficiency of HR department of an organisation to implement strategies. Different internal
and external factors influence the revenues and productivity of firm. Different theories concepts
and model such as Nudge theory, performance appraisal, Lewin three step change enhances
overall productivity within an organisation. Different HR outcomes possess a great impact on the
sustainable growth and performance of company and help them to achieve their outcomes.

REFERENCES
Books and Journals
Arunprasad, P., 2017. Inevitable knowledge strategy: A paradigm shift in strategic HRM
practices to augment firm’s performance. Employee Relations.
Bailey, C.,and et. al., 2018. Strategic human resource management. Oxford University Press.
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International Journal of Human Resource Management. 28(9). pp.1332-1362.
Bondarouk, T., Parry, E. and Furtmueller, E., 2017. Electronic HRM: four decades of research
on adoption and consequences. The InTernaTIonal Journal of human resource
managemenT. 28(1). pp.98-131.
Boon, C.and et. al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1).
pp.34-67.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Farndale, E. and Sanders, K., 2017. Conceptualizing HRM system strength through a cross-
cultural lens. The International Journal of Human Resource Management. 28(1).
pp.132-148.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Paauwe, J. and Boon, C., 2018. Strategic HRM: A critical review. In Human Resource
Management (pp. 49-73). Routledge.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Saridakis, G., Lai, Y. and Cooper, C. L., 2017. Exploring the relationship between HRM and
firm performance: A meta-analysis of longitudinal studies. Human resource
management review, 27(1). pp.87-96.
Shipton, H.and et. al., 2017. HRM and innovation: looking across levels. Human Resource
Management Journal. 27(2). pp.246-263.
Wood, S., 2018. HRM and organizational performance. In Human Resource Management (pp.
74-97). Routledge.
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