Strategic Human Resource Management Report for TNT Express

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This report offers a comprehensive analysis of Strategic Human Resource Management (SHRM) within the context of TNT Express, a courier service company. It begins by identifying key current trends and developments influencing HR strategy, such as workforce diversity, process improvement, and globalization's impact. The report then examines both external factors (market trends, laws) and internal factors (funding, corporate culture) affecting HR practices. It delves into various theories and concepts, including the Key Fit and Resource-Based strategies, and explores Ulrich's Model, highlighting the roles of change agents, administrative experts, and HR business partners. Furthermore, the report discusses change management models supporting HR strategy and methods for monitoring and measuring HR outcomes. It concludes by assessing the effectiveness of HR management and development in fostering sustainable performance and growth within the organization. The report emphasizes the importance of aligning HR practices with business objectives to achieve organizational success, including flexible work arrangements, performance management, and e-recruitment.
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Strategic Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key current trends and developments that influence an organisation’s HR strategy............3
P2 External and internal factors influence HR strategy and practice..........................................4
TASK 2............................................................................................................................................6
P3 Theories and concepts for growth and development in an organisation................................6
TASK 3............................................................................................................................................8
P4 Change management models support HR strategy................................................................8
TASK 4..........................................................................................................................................10
P5 Method by which HR outcomes can be monitored and measured.......................................10
P6 Effectiveness HR management and development for sustainable performance and growth
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic Human Resource Management is the way of developing, retaining, attracting,
and rewarding for benefits of employees, individual and organisation. It is the responsibilities of
business to make strategic plan for all activities (Aladwan, Bhanugopan and Fish, 2014.). This
helps in achievement of goals and objectives by increasing productivity and sustainability. HR
Strategies helps in better planning of organisation, mobility of workforce and employee
engagement for achieving better outcome. The given report is based on TNT which was founded
in 1946 in Australia by Ken Thomas. It is business to business (B2B) which deals in courier
services that delivers parcels, documents, freights among business using air or road transport. In
this report will discuss about analyses of key external and contextual development that influence
HR strategy. Also change management support HR strategy along with evaluation of
contribution of HR management and development to sustainable business performance and
growth.
TASK 1
P1 Key current trends and developments that influence an organisation’s HR strategy
In today's aspect each and every business concern designs certain effective functions so
as to meet trends prevailing in management along with strategic objectives. These factors further
help in enhancing overall performance of employees. In context of TNT it has been noted that
business can potentially achieve its overall goals and objectives if they function in a virtuous
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way (Albrecht and et. al., 2015.). It is quite important that an organisation frames certain
strategies so that they can serve the needs of their employees and also motivate them. Various
trends that have an impact on HR strategies have been stated as under:
Workforce diversity: Maintaining an effective balance in workforce diversity is quite
essential. HR managers of TNT group are mainly assigned job where their aim is to recruit and
select employees based on their skills. Recruiting new and innovative talent in business will help
in bringing about new and innovative ideas of carrying out business activities. This will further
be quite helpful in enhancing TNT's brand image in competitive market of UK.
Process for improving productivity: It is a quite important and successful trend which
has been adopted by almost all business concerns nowadays. In present context, it is prime
responsibility of managers of TNT to provide all relative and necessary information to their
customers regarding their newly launched products and services. This will further help in
enhancing customer base of TNT. For bringing innovations in products and services HR
managers of TNT will have to further motivate and train their employees thereby leading to an
enhancement in their area of expertise.
Continuous improvement: Continuous improvement is an ongoing process which which
is used by business concerns when they wish to focus on overall development of their employees
(Armstrong and Taylor, 2014). In present scenario, it is seen that whenever a company brings
about about any innovations or modifications then there may be situations such as reduction in
sales, fluctuating profit rates etc. Hence it is quite important that managers of TNT examine
performance of employees on a continuous basis and also monitor their overall decision making
which will further lead to a stable market position of company. This will also help in achieving
goals and objectives within a specified time frame.
Changing skills requirements: Employee retention plays a quite important role in every
business concern whether it be small, medium or large. HR managers of TNT adopt a strategy
where they select most efficient and effective candidates and further team them in a formative
team which will further help them in fulfilling and achieving their organisational goals and
objectives. Team formation will further help in timely completing their operations in a specified
time frame. It has also been analysed that workers who perform in team are more motivated and
work with greater efficiency as compared to people working individually. Training programmes
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conducted by HR managers of TNT express can benefit them to gain more competitive
advantage in marketplace.
Impact of globalisation: Globalisation is a vital concept that plays an important role in
filling vacant positions in an organisation (Bailey and et. al., 2018). It is the basic responsibility
of HR managers of TNT express to effectively integrate their available workforce and then
recruit candidates. Managers are required to get aware about cultural awareness and have proper
knowledge of diversity management . This will help them to manage their employees effectively
and deal efficiently in complex activity.
P2 External and internal factors influence HR strategy and practice
External factors
Factors that affect business from outside its area of operations are referred to as external
factors. External factors may be legal, technological, competition, social factors etc. Major
external factors that affect organisational functioning have been stated as under:
Market Trends: Changing market trends are an uncontrollable factor that affect business
operations (Bonache, Trullen and Sanchez, 2012.). Factors included in market trend involve
change in technology, consumer perception etc. All these factors have an effect on performance
of a company. Also it has been noted that products and services get outdated if no new
innovations and modifications are brought ion them. Hence it is necessary that HR managers
should implement effective strategies in this context.
Laws: Laws or legislations are an important factor that affect business functionality.
This factor cannot be controlled as there is no certainty about when state or central government
will impose any new law. Hence it is important for managers of TNT to abide by all laws that
apply to their business to ensure growth.
Internal factors
Factors that are present inside the control of business are referred to as internal factors.
Various factors in context of TNT have been stated as under:
Available funding: Funds are basic needs of every business concern hence it is essential
that HR managers frame strategies as per organisational budgets. In context of TNT, it is
important that HR managers adjust their budgets and in an effective manner and also search for
ways that ensure cost effectiveness. Shortage of funds can many a times hamper performance of
a business and also reduce their overall productivity as well.
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Corporate Culture: Corporate or working culture refers ort ways in which businesses
carry out their operations (Brewster, 2017). It is quite essential that managers maintain a healthy
working culture in their company, this will further help in motivating their employees and raising
their overall productivity as well. Negative culture of working on the other hand can hamper
performance of employees and also deteriorate image of business in competitive market.
Therefore, it is essential for TNT HR managers to make effective strategies that provide a
healthy working culture.
HR issues in public, private and third sector
Recruitment: In this context it is essential that managers hire candidates who are skilled
and can effectively fulfill their job requirements. Hiring unskilled employees hampers
performance of a business hence it is important that managers of TNT recruit effective and
skilled employees.
Retention: Retaining employees is a major issue which affects business functionality
(Budhwar and Varma, 2013). This factor many a times even hampers quality of production.
Hence it is important that managers provide satisfactory benefits to their employees which
minimises the issue.
Discipline: Discipline is an important factor which can even decrease profitability of a
company hence it is important that managers of TNT maintain a disciplined working
environment in their organisation to promote growth. This will further help in generating
effective growth and profits as well.
TASK 2
P3 Theories and concepts for growth and development in an organisation
In order to survive in market and get success, various theories and models has been
developed by TNT. This models helps in achievement of goal and objectives. There are some
methodologies which can be adopted by TNT for fulfilment of objectives which are described
below:
Key Fit- This theory was formulated in 1992 by McMahan and Wright. With the help of
this model, TNT can find effective capabilities and assets for achieving assigned goals and
targets of business. Through this business which assets are best fit to organisation.
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Resource based Strategies- It is managerial tool that is used for examining strategic
resources having goal for providing competitive advantage to business (Buller and McEvoy,
2012). With help of this strategy, organisation can utilise inner assets for recognising capability
and abilities. Such strategy can help in achieving office and administrative objectives. TNT
express should use resources strategy for differentiating and evaluating their most variables
resources in order to achieve goal and objectives.
Ulrich's Model has been introduced for focusing on role of board of directors, employees
and others. The different roles which helps HR manager for formulating procedures and roles are
described below:
Change Agent- The responsibilities of every HR change with change or expand of TNT
business in market. In order to cope up with such situation, manager of TNT need to evaluate
their internal skills and capabilities and focus on improving it for achievement of predetermined
targets. In this regard, they should modify job description where change roles and responsibilities
are denoted and work accordingly.
Administrative Experts- The roles and responsibilities of administration are managed by
HR manager such as labour trade, health and safety, legislation. In order to achieve competitive
advantage by TNT, they need to manage all activities more effectively and efficiently. The
administrative secure all relevant data and information of workers and share only those
information with them which they required.
HR Business Partners- The HR business partner need to maintain flow of
communication with their consumer, clients and others (Collings, Wood and Szamosi, 2018).
They should check and ensure whether employees, organisation, shareholders and creditors are
effectively connected or not. The HR manager should take feedbacks from consumers on regular
basis, helping them for position vacant, identification of talents and sharing of goal and
objectives of company. The manager of TNT should check that policies are implemented in each
sections and departments which benefits for strengthening sustainability.
The HR practices followed by TNT are described below
Flexible Work Arrangement- In order to maximize employee and increase job
satisfaction, organisation need to improve working conditions (Cooke, Saini and Wang, 2014).
The HR manager of TNT should begin work on appropriate time frames and finish within given
period or same flexible hours. Also, TNT can practices of giving work from home to their staffs
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for developing flexibility in work culture which provide benefits to organisation in maximizing
loyalty of employees.
Performance Management- It is model used for checking and monitoring performance
of employees. TNT use such model in order to achieve their goals, aims and objectives easily. As
TNT is huge organisation having multiple task to be performed which need to be checked and
monitored. This helps in knowing status of task and their employees and making future strategic
of HRM.
E- Recruitment- It is the procedure through which hiring of candidates is done through
using of electronic medium. The HR manager of TNT can use online portals and websites for
recruitment process in order to save time and cost of organisation. This provide benefits in bring
diverse talents that increases productivity.
540 Performance Appraisals- It is procedure of appreciation where staff are reviewed on
the basis of work performed or done. Such review are given by manager, superiors and self
assessment. This leads organisation to judge performance of their staffs. This practices has been
adopted by TNT in order to evaluate or judge their employees for giving rewards.
TASK 3
P4 Change management models support HR strategy
There are different changes which took place in organisation on regular basis which need
to be adopted by firm for sustainability and growth. Here, change model are use by business for
identification of various properties of changes which are going to be implemented in
organisation (Drucker, 2012). Such modes denotes both positive as well as negative aspects of
changes in entity. The change models used by TNT are described below:
Lewin Three Step Change Model
This model has been developed by Kurt Lewin which consists of three important steps
which are described below:
Unfreeze Stage- It is the first step of change model. TNT need to introduce concept of
change in organisation so that every employees working their became aware and conscious about
change in business. The organisation should be prepared enough in order to adopt change which
can took place in future. According to change it need to change in their operations functions.
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Change Stage- Such stage come after uncertainty of unfreeze. In this step, individual of
TNT solve uncertainty and find an alternatives and new ways of working. The employees of
TNT start working in organisation and supporting for behave in change towards new and
different directions. All the changes need to be adopted by management for better outcomes.
Refreeze Stage- It is the last stage of Lewin Model where TNT apply all those change in
organisation for better running of business (Greenhaus and Callanan, 2012). It is essential for
enterprise to adopt refreeze stage in order to give shape to different situations. Here, TNT
refreeze situation when organisation is going to take shape with change.
Advantages and Disadvantages of Lewin's Change Model
This model helps organisation for measuring afradiness of employees of company in
change situation. This model provide benefits to organisation on adopting various changes
whereas it does not focus on particular aspects in which mission and vision are included and
evaluated.
Kotter's 8 Step Change Model
This model was given in 1995 by John Kotler. There are eight steps in this model that
describes change and ways an organisation implement changes for better outcomes (Hollenbeck
and Jamieson, 2015). This model can be described as follows:
Create Urgency- It is first step of model that identifies change is essential or not and
whether whole organisation need to adopt it or not. Here, TNT need to create urgency in
organisation for change and adopt only those necessary required change in business.
Form a Powerful Coalition- In this step, organisation make sure that everyone is
adopting change in business. TNT need to communicate about changes and which are very much
needed in business for effectiveness.
Create Vision for Change- It is next step where vision is prepared for change. The
various ideas comes in mind when think about changes in organisation. Therefore, TNT should
make clear aim and vision for change in organisation so that all things can run effectively.
Communicate the Vision- After completion of aims and objectives, it is necessary to
communicate it to others. It is important for TNT to communicate with their employees
regarding vision so that every one could suggest and advice.
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Remove Obstacles- If any changes occur in business then it should be changed
effectively for better outcomes. Here, TNT need to remove obstacles which arise in business due
to change. If it won't change then it leads to difficulty in organisation to run it successfully.
Create Short Terms Wins- Before achieving big targets, organisation need to make short
and small goals for achievement. While achieving those short terms goals they can achieve big
and high goals. Thus, TNT should focus on making small targets and achieve them effectively
and efficiently.
Build on the Change- When one change is implemented in organisation successfully and
accepted by people then entity should not focus on celebrating it. As they are initial stage for
achievement of goals and objectives. TNT should focus on high level and then celebrate success.
Anchor the Change to Corporate Sector- It is last stage of model which denotes that if
any changes are made permanent, then organisation need to make it part of daily routine
(Jackson, Schuler and Jiang, 2014). It is not that change is accepted for one time but it should be
implemented and use in daily work by TNT.
TASK 4
P5 Method by which HR outcomes can be monitored and measured
In today's context there are different techniques and approaches that are used by
organisation for monitoring outcomes of human resource practice which are determined below:
The best fit approaches: The best fit approach is used by many organisation as this help
in monitoring an effective outcomes of human resource practices and strategies. This approach
help an respective organisation in tracking live status of operations that are being performed
within an organisation. Additionally, it has been determined that human resource have to adopt
appropriate and useful practices which are required at a specific period of time. Herein, TNT is
suffering from various crises as they do not have a good finical conditions. For such instance the
human resource manager need to make effective strategies that help them to recover barriers that
are being faced by them. Thus, for this purpose a huge amount need to be invested which they
do not have right now for such purpose.
Resource based view: Resource based view is used by many organisation as this
approach help human resource manager in taking effective results that help them to solve
problems (Kramar, 2014). This approach is termed as managerial framework which help an
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organisation in evaluating strategic resources that help them in attaining competitive advantage
in marketplace. Herein, TNT is facing problems such as employees behaviour. For this purpose
the need to develop resources and strategies in solving such problems. Additionally, they are
adopting training and development, seminars and sessions which is one of the best solution
within an organisation. It will also help in improving quality force that will help an respective
organisation to attain sustainability in competitive marketplace.
P6 Effectiveness HR management and development for sustainable performance and growth
Different approaches can be used by HR management and development which will aid
them to provide sustainable performance and this will also help to attain organisational
objectives (Mahesh and Crow, 2012). These approaches are mentioned below:
Key performance indicator (KPI)
A model which can be used by organisations to measure and determine performance of
particular task or process is referred to as key performance indicator (Michailova, Heraty and
Morley, 2016). This have different characteristics which help organisation to enhance their
capability. These characteristics are shown below:
Concrete- It must be a tangible unit. Apart from this it must have a particular goal
depending upon which performance can be analysed.
Measurable- It should be measurable. If key performance indicator is not measurable
then it means it is not KPI. As this indicator indicates that performance can be measured.
Reachable- Key performance indicator must be defined in realistic conditions then it will
be effortless to accomplish them.
Relevant- As per this characteristic, elements which are essential and relevant are
monitored. Focus is only on this elements rather then on those which do not have any role or
effective role within organisation.
10-C model of HRM
Alike TNT, this model plays an important role within organisation. This model is known
as 10-C model of HRM due to aggregation of 10C's. Below these C's are discussed:
Comprehensiveness- This C includes different aspects which are related with
management of people (Paillé and et. al., 2014).
Credibility- Strategies are build by top management. Employees trust their top
management and effectively work on those strategies.
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Communication- Organisation makes sure that effective communication occurs between
employees and management. For this they have created open culture within organisation. This
motivates employees to give their opinions on different matters.
Cost Effectiveness- Organisation have formulated different promotional and reward
system depending upon performance of employees.
Creativity- To gain competitive vantage organisation tends to formulate different
strategies by which they can enhance their services.
Coherence- HRM initiatives and activities must be meaningful and logical.
Competence- Strategies are build by management. They build strategies in such a way
that they can meet organisational goals.
Change- Organisation needs to adopt to latest developments, technology and tools for
long lasting survival within market.
Commitment- In this perspective, organisation needs to motivate their employees so that
they can work till their complete potential to achieve goals of organisation.
CONCLUSION
From the above discussion it has been concluded that Human Resource practices are an
essential in an organisation as it is effective in making collaboration with other factors that help
in achieving future goals for longer period of time. The human resource strategies of TNT can
be influence with the current and future trends as well as development that take an effective
place in competitive marketplace such as globalisation and work force diversity. Moreover, there
are several appraisals such as external and internal factors that basically effect the strategies of
human resource practices. Additionally, TNT need to use 540 performance appraisal along with
e-recruitment process policies that help them in developing strategies that is beneficial for human
resource management. Furthermore, they need to adopt certain models that help HR in having
effective outcomes along with practices that help in achieving goals and objectives of an
organisation in an effective manner.
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