HRM Report: Strategic HRM Analysis for The European Club

This report analyzes the HRM practices of the European Club, a non-profit organization in Central London, focusing on its leadership, organizational structure, and strategic recommendations. The report begins with an executive summary and introduction, outlining the club's mission, vision, and operational challenges. It then delves into the impact of management and leadership theories on organizational strategy, discussing theories like scientific management, systems management, and contingency management, as well as leadership styles such as autocratic, democratic, and transformational leadership. The report further examines the impact of organizational strategies, structures, and culture on HR management, analyzing the current HRM scenario of the European Club, including employee satisfaction, training, and engagement. The report identifies issues within the club's HR department, such as employee dissatisfaction and lack of development opportunities, and proposes strategies for improvement. The report concludes with a discussion of the impact of the existing culture and organizational structure on the club's success and staff motivation, and suggests recommendations for a more effective HRM approach. The report is based on the assignment brief provided by the professor to address the issues in the European Club.

RUNNING HEAD: REPORT FOR HRM
REPORT FOR HRM
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Author’s Note:

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Executive summary
The European Club, formed in 1900, is situated in Central London. The vision and mission
statement of this non-profit making charity can be represented as high-quality hospitality at
affordable prices. This organisation offers scholarships for gifted children from poorer countries
the opportunity to study in the UK. Revenue of this club for the charity comes from the operation
of The Fox and Hound Bar and several bedrooms for the club member. However, there are
certain issues in this club for which the new CEO of the charity is interested to bring some
changes. That is the reason, the CEO of this company approached an HR consultancy service.
After analysing the entire scenario, the HR consultancy services has suggested that the
Democratic leadership strategy must be followed and SHRM must be implemented to monitor
the activities of the HR department.

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Table of Contents
Introduction:....................................................................................................................................3
Impact of management and leadership theories on organisational strategy and structure:.............3
Impact of management theories:..................................................................................................3
Impact of leadership theories:......................................................................................................5
Impact of organisational strategies, structures and culture on the management of HR...................5
Present scenario of the European Club:...........................................................................................7
The impact of the existing culture and organisation structure:........................................................8
Proposed strategy and its implementation:......................................................................................9
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11

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Introduction:
The European Club, formed in 1900, is situated in Central London. The vision and
mission statement of this non-profit making charity can be represented as high-quality hospitality
at affordable prices. This organisation offers scholarships for gifted children from poorer
countries the opportunity to study in the UK. Revenue of this club for the charity comes from the
operation of The Fox and Hound Bar and several bedrooms for the club member. However, there
are certain issues in this club for which the new CEO of the charity is interested to bring some
changes. An HR Consultancy Services is approached by the CEO to develop a strategic human
resource management plan for the club and Eid and the architectural firm is hired for the
refurbishment of the Fox and Hound bar. This report aims to develop a leadership strategy which
will support the organisational mission, vision, objectives and values of the European Club. In
this report, the impact of leadership theories on organisational strategy, the impact of
organisational strategy and structure on the management of HR will be analysed. The present
HRM strategy of this club will be analysed and linked with leadership, HRM, and management.
The impact of the present organisational structure of The European Club on the organisational
performance will be analysed.
Impact of management and leadership theories on organisational strategy and
structure:
Impact of management theories:
In this part, the impact of management theories on the organisational structure and
organisational strategies will be discussed. There are certain management theories which are
used widely by several organisations. Scientific management theory, systems management

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theory, contingency management theory, theory X and theory Y. Scientific management theory,
developed by Frederick Taylor, analyses and synthesizes workflows. This management theory
helps an organisation to boost economic efficiency level of production (Shafritz, Ott and Jang
2015). This management theory is the earliest attempt to align science with the management
procedure (Lynch 2014). System Management Theory states that a system is the collection of
parts brought together to achieve the objectives. Same as employees are part of a company. This
theory helps a company to align its parts, which are employees, to achieve the business
objectives (Knights and Willmott 2016). Contingency Management Theory, formed by Fred
Fielder, refers that one management approach cannot be suitable for every business organisation
(Hall 2016). Management approach of an organisation can be affected by three variables. There
is no common management strategy to manage different organisations (McAdam, Miller and
McSorley 2019). Leaders must have the ability to identify management theories which is suitable
for the company. The leader should be flexible to manage the changing environment. Theory X
and Theory Y, formed by Douglas McGregor, analyse the employee work enthusiasm and
management. Theory X is a pessimistic aspect of employees, which portrays that without
incentives employees cannot work (Singh 2016). Theory Y, an optimistic of employees, portrays
that by creating a collaborative and trustworthy relationship between employees and manager,
the business objectives of a company can be accomplished (Gürbüz, Şahin and Köksal 2014).
By using management theories, an organisation can get several benefits. To develop an
organisational strategy, management theory is necessary. Management theory simplifies the
decision making procedure for a company. Based on the organisation size, and industry in which
the organisation is operating, services and goal, the management team of an organisation has to
choose specific management theories.

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Impact of leadership theories:
There are certain widely used leadership theories which can influence the organisational
structure and organisational strategies. Trait Theory of leadership emphasises certain features
which are empathy, likeability, decision-making, integrity, critical thinking, and assertiveness
(Sethuraman and Suresh 2014). In the Autocratic leadership, while making important decisions
the leader does not consult with subordinates (De Hoogh, Greer and Den Hartog 2015). In the
Democratic leadership, the leader asks every subordinate's opinion while making a decision
(Beerbohm 2015). In the Laissez-Faire leadership, the leader allows the subordinate to take their
own decisions and act according to the decision (Sethuraman and Suresh 2014). In the
Transformational leadership, leader motivates the subordinates to achieve the biggest goals and
execute the plan to achieve the organisational objectives (Sethuraman and Suresh 2014). In the
Transactional leadership, the leader provides rewards to the best employees and punish those
employees, who you do not perform (Sethuraman and Suresh 2014).
Leadership theories can affect organisational structure and organisational strategies. An
effective leader can influence the subordinates and guide them to achieve the business objectives
of an organisation. An effective leader can develop an organisational strategy to achieve the goal
of the company. An effective leader can influence the entire member of the organisation and
motivate them to cooperate to achieve the business objectives.
Impact of organisational strategies, structures and culture on the
management of HR
In this part, the impact of organizational strategies on HR management will be discussed.
Organisational strategies can help a company to evolve its business over time. To achieve the

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business objectives HR management helps a business organisation by improving the human
resource of the company (Heffernan et al. 2016). HR management of a business organisation has
the responsibility to support the business organisation to achieve the goals. According to the
business strategy, the HR department of a company has to prepare its training and development
plan for the employee. The activities of the HR department are influenced by organisational
strategies. The connection between organisational Strategies and management of a company can
help a business organisation to enhance profitability, manage obstructions, and ensure workplace
mandates (Heffernan et al. 2016).
The organisational structure can create an impact on the HRM. To accomplish
organisational goals, the business organisation has to depend on the employees. An efficient and
engaged workforce can help the business organisation to fulfil its objectives (Purce 2014). The
HRM develops a plan to create the most efficient and engaged workforce. Effectiveness of an
organisation depends on the organisational structure. Employee engagement is influenced by the
organisation structure. Also, the organisational structure can extract a certain group of employee
(Purce 2014). So it can be said that the organisational structure influences the HRM of a
company. Being influenced by the organisational structure, the HRM develops the HR policy.
Organisational culture influences the HRM of a company. Recruitment, retention, and
retirement are the primary three aspects of HRM. Organisational culture influences all of these
aspects. Based on the organisational culture, the HR department of a company choose candidates
for recruitment (Halim et al. 2014). Organisational culture influences the retention policy, which
is developed by the HR department, of a company. To retain the efficient employees, HRM
offers certain benefits and opportunity. Retirement policy of a company is influenced by the
organisational structure of that company. To boost employee engagement, HRM of a company

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takes several initiatives (Halim et al. 2014). So it can be said that the organisational structure of a
business organisation creates an impact on the HRM.
Present scenario of the European Club:
In this part, the effectiveness of the current Club HRM will be identified. The link
between the leadership, management and HRM of the European Club will be discussed.
At present, the HRM of The European Club is in bad shape. There are certain issues
which portray the present scenario of the HRM of this club.
 Human resources of this club are not in good condition.
 Employees of this organisation are not satisfied. Training and development program is
not offered by this organisation.
 According to the employees of this organisation, there is a lack of opportunity.
 This organisation is not successful to retain the best employee and hire the best candidate
as employees.
 The vision and mission of this club are not implemented appropriately.
 Employee engagement is not in good shape.
 At present, to generate revenue this organisation has to use advanced technology for
reservation and payment system.
 Employees are not encouraged for innovative ideas by the company.
So it can be said that the HRM of The European Club is not that effective. The HR policy of
this organisation is not able to manage the workforce. The HR policy of this company is not
successful to enhance employee engagement and employee satisfaction. So that is the reason for
which a modification of the HR policy of this company is necessary.

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In this part, the link between the leadership, management and the HRM of this club will be
discussed. The charity of the European Club is controlled by the Board of Trustees, who are the
member of the Board of Director. The CEO sits on the Board of Directors. Club secretary and
General Manager provide details and report to the CEO. Hierarchy system is followed in this
organisation. However, the previous CEO was busy with Charity 30 years and left the
responsibility of the management of the club to be General Manager, who has retired in this year.
The present CEO of this organisation believes that this organisation is inefficient and
underperforming. The present scenario of this organisational reflects that the leadership of this
organisation is not appropriate. The HRM of this organisation and management does not work
appropriately. The success of an organisation depends on the relationship of leadership,
management and HRM. If these three pillars of an organisation work together then it can be said
that an organisation will be successful to achieve its objectives. So there is a lack between the
leadership, management and HRM department of the European Club.
The impact of the existing culture and organisation structure:
In this part, the impact of the existing culture and organizational structure of the
European Club on the success of the club project and the motivation of staff will be discussed.
Board of directors of this organisation is part of the Board of Trustees. General Manager and
Club Secretary report to the new CEO of this organisation. The Club Secretary of this
organisation has the responsibility to manage the bar and restaurant, functions, events and
Executive Chef. It can be said that the characteristic of the organisational structure of this
organisation is very much hierarchy. The organisational culture is not in good shape. There is a
lack of opportunity for the employees, employee engagement initiatives and employee
satisfaction. This organisation does not offer any training and development for the employee,

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which can boost the efficiency of the employee. The Innovative ideas of the employees are not
prioritised by the management of this organisation. Employees of this organisation are not
rewarded when they perform their best. Employees of this organisation are not happy with the
manager. The Vision and Mission of this organisation are not implemented appropriately. The
former CEO was busy with charity, who had the responsibility to control the management.
During the tenure of former CEO, the general manager controlled the management of this
organisation. So it can be said that the present organizational structure and culture will be an
obstacle for the club project. It is difficult to convince the member of this club for the
refurbishment of the Fox and Hound bar. To do that, the members need to pay more for the
services. It is not possible to shut down the club completely for the Club project. That is the
reason it can be said that the present organisational culture and structure will be an obstacle for
the project.
Proposed strategy and its implementation:
In this part, a leadership strategy will be recommended and the way this strategy can be
developed, monitored and evaluated will be analysed. It can be recommended that the
Democratic Leadership strategy will help this organisation to enhance employee engagement.
While making any decision from the subordinate employee will help this company to collect
innovative ideas from the employees. This initiative will deliver a feeling of importance to the
employees. According to the present CEO of this organisation, this organisation is inefficient and
underperforming. An approach of Strategic Human Resource Management will be applied in this
organisation, which we monitor and evaluate the major policy of this organisation (Bailey et al.
2018). SHRM will align the organisational mission with the goal of the employees. To create an
efficient workforce, the HR department of this organisation will offer training and development

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program to its employees (Delery and Roumpi 2017). Innovative ideas of the employees will be
emphasized by the management team. The HR department of this organisation will offer extra
opportunities for the employee. An appropriate strategy will be developed which will help this
company to retain the best employees and recruit the best candidates as employees. Performance
measurement for the employee will be started. Based on the result of performance measurement
employees will be rewarded.
Conclusion:
Thus it can be concluded that the present situation of the European Club must be
changed. The Democratic Leadership strategy should be followed. The approach of SHRM must
be implemented to improve the HR department of this organisation. It will align the goals of the
employee and the objectives of this organisation. By providing training and development and
other opportunities, the HR department can help this company to make an efficient workforce,
who will be Interested to achieve the objectives of the European Club.

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