Strategic HRM and Organizational Culture at Debt Busters UK: A Report

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Table of Contents
Introduction......................................................................................................................................3
LO 2:................................................................................................................................................4
The high-commitment model..........................................................................................................4
The high-performance management model.....................................................................................4
The high-involvement model...........................................................................................................5
Human resource philosophy....................................................................................................6
Human resource policies..........................................................................................................7
Human resource practices........................................................................................................7
Human resource programs.......................................................................................................8
Human resource processes.......................................................................................................8
LO 3:................................................................................................................................................9
Analysis of employee relations targets:.......................................................................................9
Gap identification of employee relations activities:..................................................................10
Analysis of reward management activities................................................................................11
Gap analysis of high performance work system gap.................................................................12
LO 4:..............................................................................................................................................13
Interpretation of corporate culture model: Deal and Kennedy's Cultural Model......................13
Understanding of corporate culture of DEBT BUSTERS UK by using Deal and Kennedy's
Cultural Model...........................................................................................................................14
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Introduction
This assessment aims to understand the impact of effective strategic practices by analyzing
strategic human resource management theories and models in the context of DEBT BUSTERS
UK that has helped the company to overcome the challenges and attain sustainable growth. In
this detailed discussion, effective implication of Human Resource Management practices in the
organizational behavior has been analyzed with relevant data. The UK-based Company, DEBT
BUSTERS deals in financial services like debt purchase, monetary schemes and policies, loans,
mortgage etc.
From the case study it can be understood that DEBT BUSTERS has been started with the
entrepreneurial spirit of Antony Brown and financial analyst John Cromwell. The small
enterprise has become enabled to flourish as multi-site organization and gain popularity as a
private, customer–centric company that offers debt purchase services and financial advices
across the UK. In the case study, it was mentioned that company has been facing some serious
operational challenges, leadership issues and organizational behavioural issues that has hindered
that productivity rate of the private company. The way the company managed to achieve
organizational goals by implicating best strategies in relation to the organizational structure,
internal communication and business environment are mentioned in this assignment. In fact fast
paced growth prospects of DEBT BUSTERS UK had attracted many employees of General
Electric to join the organization. Moreover it can be interpreted from the study that the
authoritarian leadership style has been solely responsible for lowering the productivity rate
and motivation of the existing employees toward work.
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LO 2:
Real life implementation of strategic human resource management models and related theories
influence the leadership styles and practices of that organization and helps the leader to take
initiatives to attain organizational success. Strategic human resource management models help
the authority to make strategic policies in relation to better human capital managing. Elevated
performance level can be attained by strategic analysis of the skills and performance by utilizing
these SHRM models in the workplace. Strategic human resource management can be divided
into the high commitment model, the high-performance management model, and the high
involvement model.
The high-commitment model
The objective of this model is based on self-regulated behaviour of workers as well as
employees. The workers are free from external pressure and are self-controlled. In such scenario
trust upon the employees is of profound importance. This model entails high-trust, commitment
and value identification by the organization (Xu and Meyer, 2013). Leadership skills and
progressive vision aids a leader to transcend his thoughts among others, motivate employees to
achieve professional growth and fulfill organizational objectives. Effective communication
between the top-level management and the workers is essential for this model. It has been seen
that employees’ knowledge, skills, trainability and reduction of hierarchical operation are major
parts of effective organizational behavior.
DEBT BUSTERS UK could have provided training sessions for employees regardless of their
job roles. The senior manger to the lower level employee could be part of the training classes as
these classes would help them to introspect and identify their strengths and weaknesses.
The high-performance management model
This model of high- performance aims to utilize human capital in performance improvement in
terms of better productivity, better customer satisfaction, better market expansion and elevated
market capitalization ratio (Noe et al. 2017). As employees or manpower of the organization is
the sole factor of this model, recruitment drive is regarded as the critical job for enhancing the
productivity rate of the operational procedures (Bratton and Gold, 2017). The human resource
(HR) manger of an organization is responsible for looking into the recruitment process and
retaining the existing niche employees into the workforce. Leadership and visionary skills are
very important for judging one’s professional qualifications and understanding the kind of skills
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are needed in the workplace. The leader understands the importance of training sessions for
developing the knowledge base of employees (Shields et al. 2015). Additionally the performance
appraisal system, reward, promotion, increment etc. are some useful tools that are used for
motivating the employees toward job and attaining organizational growth. Increased
participation level, clear job strategy and effective recruitment drive are three key elements of
this high performance model (Alfes et al. 2013).
The high-performance model can be of great essence to DEBT BUSTERS UK. In the context of
DEBT BUSTERS UK, the company with “do it quick now” motto initially had great growth
prospects and potential that help them to flourish and gain popularity among employees of other
organizations like General Electronic. Later on the organization failed to understand the
difference between the organizational cultures of two companies. DEBT BUSTERS UK could
have take initiatives like to involve all the employees in business meetings.
The high-involvement model
This high-involvement framework is based on more focus on participation level of major
stakeholders of an organization. Many organizations have adopted this model as a means of
democratizing power and extending the decision-making authority down to the employees
(Verbeke and Tung, 2013). By empowering the lower level employees and workers, the firm
would make better decisions and overall performance would improve. As mentioned by
(Albrecht et al. 2015) in case of private sector high-involvement framework confirms the
importance of better communication and skills for improving organizational performance. The
employees must be valued in terms of their expertise, skills, experience and knowledge and must
have access to take decisions in the areas of recruitment drive, financial budget and work
processes. Knowledge, rewards and information are three critical bases of this framework
(Armstrong and Taylor, 2014). Knowledge enables employees to attain better results and the
organization gain edge over its competitors. Additionally data related to production like annual
sales, marketing costs, revenues, cost structure, profits and other external issues like intensity of
market competition, customer satisfaction index are part of information system. Lastly the
rewards justify the net performance of an employee in terms of increment, promotion etc. such
that performance-based compensation structure is based on knowledge and skills needed in the
work environment.
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Figure: Graphical representation of Strategic human resource management model
DEBT BUSTERS UK could have implicated this framework into the workflow for meeting the
requirements of changing environment. The exiting managers of the organization could organize
the recruitment drive by focusing on the professional as well as personal values of an individual.
5-P model of strategic needs
Internal conflict and tensions that were created by the employees could have been resolved by
performance appraisal and work flow management (Jackson, Schuler and Jiang, 2014). As
mentioned by Hoque, (2013) 5-p model is an effective tool for understanding human resource
activities that are systematically linked with strategic needs of a business.
Figure: Types of Organizational strategy based on characteristics
Strategic human resource management practices are largely dependent on creativity, innovation
and integration of adaptation. HR policies are implicated upon the hierarchy of business
management such that each individual have to follow and adapt HR practices as part of its
business culture (Nyberg and Ployhart, 2013).
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Figure: Strategic activities of 5-P business needs model
Human resource philosophy: This element helps to understand and implement philosophical HR
policies that are based on effective reciprocation among the major stakeholders (Rosemann and
vom Brocke, 2015). High standards of integrity, operational tactics and business ethics are
practiced in an ethical and philosophical organizational context. Collaborative and cooperative
partnership like teamwork, secure, well-maintained and clean work culture is main essence of
any workflow. Leadership skills in people can also be reflected through this human resource
philosophy.
In case of DEBT BUSTERS UK the miscommunication and lack of collaboration lowered the
efficiency rate of the organization. Better understanding would be helpful for reconstructing the
inter-relationship between the employees and management.
Human resource policies: Motivational approaches include promotions, increment and elevated
job role DEBT BUSTERS UK promised higher growth prospects and rewards through equity
shares (Marler and Fisher, 2013). People related issues can impact the organization immediately.
Internal conflict among the employees, lack of visionary skills of the leaders and lack of interest
regarding strategic goals fluctuate operational effectiveness of an organization. In the
organizational hierarchy each individual are holding places based on his expertise, knowledge
and productivity rate. Skilled and adaptable workforce helps an organization in terms of revenue
growth, market capitalization and employee satisfaction.
DEBT BUSTERS UK faced critical issues as the organization failed to renovate its human
resource management policies. Culturally diverse workforce, flexible working conditions and
effective reciprocation are critical part of HRM policies. Misunderstanding among the employees
can be strategically resolved with the implementation of HRM policies.
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Human resource practices: The HR management must ensure safety and security issues of the
employees as well as the consumers (Kianto et al. 2014. Human resource practices are essential
for motivating the individuals who are responsible for conducting leadership, managerial and
operational practices in a workplace (Zott and Amit, 2013). Human resource practices include
flexible job roles, managerial roles and leadership roles (Wilton, 2016)
As per the leadership roles include factors like demonstration of ethical behaviour and moral
values in transactional system, less wastage of resources and implication of motivating practices
to inspire others. Another element of human capital management practices includes elements of
managerial roles. Clearly mentioned objectives, communication with major stakeholders of a
business, developmental performance feedback, encouragement toward creativity and innovation
can be used for generating the positive business environment across the globe.
Moreover operational roles help an individual to perform his routine activities in consistent ways
that are parallel with the quality standards.
Lastly the flexible job roles are important for formulating strategic objectives among the
employees and implement first-line supervision over the production and manufacturing unit.
By proper aligning and motivating employees toward higher production rate effective manpower
management practices can be established in a workforce (Guest, 2017). DEBT BUSTERS UK
faced serious issues with the ex-employees of General Electronic. The whole managerial
structure of the organization can be better handled by two-tier management system. The
managers and supervisors would be responsible for looking into critical issues.
Human resource programs: As stated by Truss et al.(2013) human resource programs are
important for facilitating the necessary strategic changes that are interrelated with the major
human-resource related business implications (Chelladurai and Kerwin, 2018).
Human resource management system adhere these specific job roles that are affected by the
strategic changes-
 Recruitment Planning
 Training and Development
 Staffing
 Better customer service
 Performance appraisal
Human resource processes: Human resource management includes several processes such as
recruitment and selection processes (Hill, Jones and Schilling, 2014). In order to implement
effective recruitment and selection process, the HR manager needs to set up interview framework
for selecting the most eligible candidates (Purce, 2014). Strategic human resources management
practices are made up of systematic and analytical approaches toward human capital
management (Muller, 2017).
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.
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LO 3:
Any business organization is solely dependent on effective human resource management such
that they are regarded as assets in terms of their value in the company (Geisler and
Wickramasinghe, 2015). Formulation of strategic HRM policies can be further divided into
human capital management strategy, high performance strategy, corporate social responsibility
strategy, organization development strategy, employee engagement strategy, knowledge
management strategy, employee resourcing strategy, talent management strategy, learning
strategy and employee reward strategy (Armstrong and Taylor, 2014). Moreover these strategies
and tools can influence the business to better utilization of its human capital and support the
organizational strategy for conducting strategic review of human resource management practices
(Thunnissen, Boselie and Fruytier, 2013). The strategic human resource management toolkit is
essential for interpreting and understanding the best HR practices that can elevate the operational
effectiveness of the organization. Strategic tools like ‘Best-practice’ analysis, overall strategic
HRM gap analysis, commitment levels and engagement survey etc. (Clegg, Kornberger and
Pitsis, 2015).
In case of DEBT BUSTERS UK, the organization needs to focus on employee relations,
employee reward and talent management strategy.
Analysis of employee relations targets:
Employee relations targets Effectiveness Importance
To set up co-operative
relationship with the employees
The COO and CEO of DEBT
BUSTERS UK were the key
persons who run the strategic part
of the business. Involvement of
other employees would help the
firm to resolve the difficulties
through several procedures.
Collaborative relationship
between the employees and
employers is beneficiary for
transcending the future objectives
of the management in the
workflow.
To involve the employees in
business meetings
Ex-employees of General
Electric who were recruited in
managerial posts in DEBT
BUSTERS UK could have
suggested better solutions to re-
develop the business (Brewster et
al. 2016).
The involvement of the
employees would them to know
about future ventures of the
company and critical challenges
that the company is currently
facing.
To achieve employee
engagement goals by effective
reciprocation between
management and employees
The organization follows
authoritative leadership style that
does not allow participative
business communication between
the management and employees.
Effective business
communication between the
employees and employer helps to
resolute internal conflicts
regarding wage issues,
promotion, increment etc.
To lower the internal conflicts
among employees
DEBT BUSTERS UK faced
critical business politics in terms
Verbal and non-verbal
communication can lower the
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of lack of complaint escalation
and poor performance assessment
system.
internal conflicts in the
workplace (Nankervis et al.
2016).
To intricate mutual high-
commitment approach
The employees had no freedom
in terms of participating in
business meetings. Participation
would help DEBT BUSTERS
UK to understand potentiality of
the employees.
Mutual commitment between the
management and the employees
is important for organizational
effectiveness (Arend, 2013).
To implicate effective
negotiation structure in the
workflow
The HR managers of DEBT
BUSTERS UK could
communicate with the employees
and note the issues that they are
bargaining for.
Negotiation regarding the cost
structure, salary increment,
promotion can navigate the
employees toward perfection and
attentiveness to the work.
These employee relations targets can be further valued using the scale of 0 to 10.
Gap identification of employee relations activities:
Employee relations
activities
What they are doing? What should they do? How should they fill
the internal gap?
Development of strong
relationship
Conflicts among the
employees of DEBT
BUSTERS UK are
lowering the growth.
They should organize
weekly business
meetings to listen to the
issues.
Effective weekly
meetings between the
management and
employees.
Effective industrial
business relations
Industrial business
relations are getting
affected as they are s
The HR manager of the
organization must
resolve the internal
issues as that can affect
industrial business
relations with other
organization.
Effective verbal and
non-verbal
communication with the
leaders.
Effective involvement
and participation
Employees cannot
participate in critical
business meetings.
Effective participation
of the employees as well
as employers would
help to communicate in
a friendlier manner.
Annual, semi-annual
and quarterly basis
reward ceremony could
have been initiated for
appreciating the
performance level of the
workers (Akter et al.
2016).
Conflict management Having internal
conflicts among the
employees.
The management of
DEBT BUSTERS UK
must intricate strategic
human resource
management policies to
resolve the internal
problems (Smith, 2016).
Implementation of
transformational
leadership style would
help the company to
fulfill the internal gap
(Huxham and Vangen,
2013).
Terms and conditions
negotiation
Terms and conditions
are obeyed by in the
workforce.
Terms and conditions
regarding wages,
working environment
etc. need to be escalated
The employees and
employers must be
informed regarding the
terms and conditions of
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by the top-level
management.
the organization.
Communication Lack of communication
between the company
executives and
employees.
Top level management
must reciprocate with
the lower and mid level
management.
Feedback from the
employees regarding the
business strategies and
procedure can mend the
communicational gap.
Analysis of reward management activities
Reward management goals Effectiveness Importance
Reinforcement of
organizational goals
The organizational goals of a
company are decided by the
leaders of the organization.
The reinforcement of
organizational targets is
important for attaining
professional as well as
organizational growth.
Staff retention The staff retention policies are
beneficiary for retaining the best
business professionals in the
workforce. Expertise knowledge
holder professional can implicate
and suggest better solutions to
attain the sustainable growth.
Staff retention is severely
important for any organization as
these people help the
organization to gain edge over
the competitors.
Staff mobility issues The organization can implement
staff mobility issues that can help
the organization to retain its
employees with flexible work
schedule.
Working environment flexibility
is critical part of any
organization.
Cost effectiveness The performance based wage
system would motivate the
employees of the organization to
thrive for perfection and would
make them more attentive
towards growth.
Cost effectiveness deals in
performance and expertise based
wage system. The self-esteem of
the employees would get valued
through this factor.
Strong co-ordination between
wage and performance
Collaboration between the wage
and performance is important for
encouraging the employees
towards perfection.
Based on the leaning outcome
and operational effectiveness the
HR management must increment
the salary scale and promote the
employees.
Collaboration between the
management and employees
The senior managers must listen
to the grievances and issues so
that they can resolute the issues
and achieve sustainable growth.
The physiological needs of the
employees must be satisfied
before going for the self-
actualization needs. The
management must be aware of
the critical factors like demands,
needs of the employees and take
necessary steps to resolve those
issues.
Effective management
practices by the employers
Employers of DEBT BUSTERS
UK must practice effective
Effective operational practices
must be looked upon by the
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