Strategic Human Resource Management Analysis for TNT Express

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This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) at TNT Express. It begins with an introduction to SHRM and its importance, followed by an examination of current trends and developments influencing HR strategy, including continuous improvement, workforce diversity, and the impact of globalization. The report then delves into external and internal factors affecting HR practices, such as market trends, laws, available funding, and employee relations. It further explores key theories and concepts for the growth and development of SHRM, including performance management, e-recruitment, and performance appraisals. The report also evaluates how change management models support HR strategy and discusses methods for monitoring HR outcomes and assessing the effectiveness of HR management for sustainable performance and growth, concluding with a synthesis of findings and recommendations for TNT Express.
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Strategic Human
Resource Management
Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
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P1 Current trend and developments that influence organisation's HR strategy..........................3
P2 External and internal factor that influence HR strategy and practice....................................5
TASK 2 ...........................................................................................................................................7
P3 Theories and concepts for growth and development of strategic HRM................................7
TASK 3............................................................................................................................................8
P4 Evaluate how change management models support HR strategy..........................................8
P5 Methods with the help of which HR outcomes can be monitored.........................................9
P6 Effectiveness of HR management and development for sustainable performance and
growth.......................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic Human Resource management is a systematic process of linking functions of
human resource management with objectives of organisation. In this process a formative set of
actions are developed to utilize human resources of company in effective manner as to increase
their efficiencies and performance of management (Performance management. 2018). HR
department is responsible to take advantage of various HR techniques such as, recruiting,
compensating, employee relation and provide training to employees in order to create strong
organisation culture. Present case study has been conducted on TNT Express which was founded
in the year 1946 and a market leader of business-to-business express delivery. In this project
discussions have been made of current trend and developments that impact on company HR
strategy and external and internal factors that influence HR strategy. In addition to this, theories
and concepts that are related to strategic HRM growth and development and model that support
HR strategy are also covered in this report.
TASK 1
P1 Current trend and developments that influence organisation's HR strategy
In this modern dynamic world, where everything is continuously changing it is essential
for an organisation to become adaptable and keeps on evolving their strategies and policies in
order to maximise their overall efficiencies. In relation with TNT express it has been stated that
company is listed in Britain Top Employers as they provide first-class care to their employees
and effective working conditions. In order to overcome current changing trends and retain the
best employees TNT express need to provide interesting career opportunities to their workers.
Mentioned below there are some trends that impact on HR strategies:
Continuous Improvement:
Continuous improvement is a formative strategy which is mainly focused on improving
things that are done on day-to-day basic. It is necessary for TNT express to improve regular
performance level of their employees which will benefit them to achieve their large process
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improvements. With the developing technology when company implement certain modifications
and innovations in their structure that results in lowering down of organisation overall sales and
profit margin. Therefore it is necessary for TNT express managers to regularly evaluate
performance level of their workers and guide then effectively to strength their stability (Albrecht,
2015). This will benefit company to improve their productivity and profitability margin.
Workforce Diversity:
Workforce diversity enables different varieties of people in one place. In order to
improve their efficiencies and gain more competitive advantage it is essential for an organisation
to include diverse workforce in their organisation. TNT express HR managers by diversifying
their recruitment and hiring process can hire people from different ethnicity, age, ability, culture
and religion. It will benefit them to broaden their skill base and have more innovative and
competitive environment which automatically lead towards high growth.
Process for improving productivity:
In order to improve their Targeted productivity performance, it is important for an
organisation to analyse their current operation process and examine those areas which need to be
improved. This will help them to save their time and complete their targets in proper time frame.
In this present case study where TNT express deliver more than 3.5 million items in every week
it is essential for company managers to maximise their productivity and increase their profit
margin. For this they are required to inform their customers about newly launched services and
take regular feedbacks form them as to satisfy their every need and wants. This will help
company to effectively improve their productivity and strength their position in global market.
Impact of globalisation:
Globalisation is key essential aspect that aid an organisation to diverse their internal
environment of organisational structure and simultaneously improve their profitability (Storey,
2014). TNT express HR managers by taking advantage of globalisation concept in their working
structure can integrate their human resource with more innovate ideas and measures that will not
only help workers to improve their efficiencies but also benefit company to have cultural
diversifications in their working environment.
Changing Skill requirements:
It is important for every organisation be it small, large and medium to maintain a healthy
and positive relationship with their employees so to strengthen overall working conditions in
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organisational structure. It is essential for TNT express managers to modify their training and
development courses and use more innovative measures to improve performance of their
employees. TNT express by motivating their workers to be more adaptive and make them
skilled so that they see any kind of situation from many different angles. This will help them to
deal effectively even in complex situations and bring more innovations in organisational
structure. This benefits TNT express to offer wide range of unique services to their customers
and generate more profitability.
P2 External and internal factor that influence HR strategy and practice
External Factors:
External factors contain those elements that affect functions of business externally. Some
of these factors include legal and technological changes, social factors and economic and
political environment. All these factors directly or indirectly impact on business activities in
order to their objectives and goals. Mentioned below there are some external elements that affect
functioning of organisations:
Market Trends: It is an uncontrollable factor that impact on operations of business. Some
of these changing market trends include customer perceptions, change in technology and more.
All these factors directly or indirectly affect functioning of business and their operations. Change
in technology make a product or a service outdated that may result in decrease in overall sales
margin of company (Kramar, 2014). Therefore, it is essential for TNT express managers to
modify their strategies and implement more innovation in their organisational structure to
strengthen their position in global market and gain more competitive advantages against their
competitors.
Laws: Government rules and legislations impact functioning of an organisation in all
ways whether it be their strategies relating to formation of policies or overall production process.
There are various federal and state legislation that impact on a business activity. As per
according to law of UK it is necessary for all companies operating their functions in country to
record and secure personal data of their employees. Therefore, it is essential for TNT express to
abide this rules as to perform their functions in smooth way. It is essential of company to abide
all legal laws run their business activities in effective manner and strengthen their organisation
structure.
Internal Factors:
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Factors that affect functioning of business internally are known as internal factors.
Mentioned below there are some factors that affect internal activities of TNT express:
Available Funding: Funds are first and foremost necessity of an organisation to conduct
their business activities in formative way (Tyson, 2014). Funds make formation of strategies and
policies in developmental manner. In relation with TNT express their managers by evaluating
effective source of fund and allocating then in correct way can perform their day-to-day business
functions in proper way. As shortage of monetary budget can create numerous obstacles. So by
utilizing organisation funds in proper way TNT express can ensure their cost effectiveness and
run their activities in systematic manner.
Employee relation: It is essential for an organisation to formulate healthy employee
relation in their organisational structure to facilitate effective growth. TNT express HR managers
by taking use of innovative measures in their training and development programmes can make
their employee eligible to grab many benefits that by provided by company. Mangers of TNT
express can provide various benefits related to worker’s compensations and other non-monetary
benefits can increase efficiencies of their employees and maintain positive relation with them.
This will benefit TNT express to maximise their overall level of production.
HR issues in public, private and third sector
Recruitment: Employees are lifeblood of every organisation whether they perform in
public sector, private sector or third sector (Hollenbeck and Jamieson, 2015). So it is essential for
TNT express manager to recruit candidates as per according to their actual requirements. This
will benefit them to save their necessary cost on selecting and recruiting process. By hiring those
candidates who are according to company job TNT express managers can effectively train them
and maximise their job performance for future purpose.
Retention: It is major issue that affect brand image and overall functioning of business
organisations. TNT express managers by modifying their employee retention strategies can
increase their level of labour retention. Company can amend their policies and offer more
benefits and facilities to their employees so to increase their productivity which automatically
result in more income generation of business organisation.
Discipline: It is important for an organisation to maintain a healthy disciplined structure
in their work environment to increase efficiencies of their employees and maximise overall result
of company. It is important for TNT express HR managers to create a positive disciplinary
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environment in their workplace to promote effective growth. This will benefit them to strengthen
their position in market and generate more productivity.
TASK 2
P3 Theories and concepts for growth and development of strategic HRM
There are numerous concepts and theories that helps an organisation to develop and
maximise their process of strategic HRM (Collings and Szamosi, 2018). TNT express provide
their services all over the world so in order to increase their efficiency and fulfil their goals and
objectives with better effectiveness. Mentioned below there are some methodologies that can aid
company to achieve their predetermined goals in formative way:
Performance Management:
It is a process of developing, supporting, directing and improving performance if an
individual and a team in order to achieve objectives of organisation in formative way. It helps a
company to evaluate whether they are achieving their day-to-day activities or not. TNT express
by implementing this model in their workplace can functionally achieve their goals and
objectives. For example, TNT express is express delivery service provider and offer their
services worldwide. So to observe performance level of their employee’s manager of company
can maintain record and monitor each and every performance of their workers in proper and
systematic way. This will aid them to examine status of their worker’s performances and make
formative strategies to improve them. This will benefit TNT express to maximise their overall
productivity margin and simultaneously increase efficiencies of their employees.
E-Recruitment:
It is form of online recruitment in which organisation take advantages of technology to
hire potential candidates for their organisation. It is a most effective and common method to
recruit candidates form different geographical locations. For example, TNT offer courier
delivery services around the globe. And management of company wants to recruit potential
candidates from all over the world as to bring cultural diversity in their workplace. To fulfil this
objective TNT express managers can take advantage of E-Recruitment to hire skilled and
potential individual form all over world. This will benefit company to bring more innovative
ideas in their organisational structure and strengthen their brand image in global market.
540 Performance Appraisals:
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It is a systematic process in which staff members get reviewed by their work done. They
are reviewed by their peers, self-assessment, subordinates and superiors (Bailey, 2018). In 540
Performance Appraisals consumers can also give their review to individual on the basis of their
performance. This will benefit company to evaluate performance level of their employees. In
context with TNT express, which is engaged in the services to provide express delivery services
can develop a systematic structure in which their employees can get reviewed by customers as
per according to their delivered services (Brewster, 2017). This will benefit TNT express to
evaluate every individual performance and offer them rewards and benefits. This will aid
company to make strategies for underperformed employees and develop formative measures so
to increase their performance. This will result in high productivity of TNT express and
strengthen their workforce environment simultaneously.
TASK 3
P4 Evaluate how change management models support HR strategy
There is different type of change model that can be utilize by a company to identify the
basic properties of change which is needed to be implemented in organisation. This model can
benefit company to know about positive and negative impacts of that change. Mentioned below
there are some change model that can be utilize by TNT:
Lewin Three Step Model: This model was developed by Kurt Lewin which contains certain
steps that is briefly described below:
Unfreeze Stage: It is a first and foremost stage in which it is required for TNT express to
implement a change concept in their organisation. For this they are needed to make every
individual working in their company to be aware about that change. It is necessary for TNT to be
effectively prepared as to adopt that change in smooth manner.
Change Stage: It is a second step of change in which it is required for TNT express to
solve any kind of uncertainty and evaluate numerous ways to work. It is essential for them to
find determined ways to support that change.
Refreeze Stage: It is a last stage in which TNT express can adopt and apply that change in
their company. In this situation TNT can take advantage of refreeze stage when organisation is
reshaping themselves with that change.
Kotter's 8- Step Change Model:
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Create Urgency: It is an initial stage in which urgency of change is created. TNT express
need to determine whether the change is necessary for organisation.
Form a powerful coalition: In this stage, TNT express are required to make a powerful
coalition and tell every individual in organisation that a change is needed for their and
organisation development
Create vision for change: To implement change there are different set of ideas that may
arise in the process of change. In order to achieve objectives effectively it is required for TNT
express to create a clear aim.
Communicate the vision: It is a formative step, as in this it is essential for TNT express to
communicate their vision and aim with every individual.
Remove obstacles: This stage is very important in this model, as per according to this to
attain effective growth TNT express is required to erase any kind of obstacles form that idea of
change.
Create short term wins: TNT express are not requiring to achieve big objectives at very
initial stage. Managers of TNT need to first achieve short term objectives as to fulfil high goals
in effective manner.
Build on the change: After the successful achievement of one change organisation are not
required focus on celebrating that as it is initial stage for accomplishment of objectives. TNT
express need to focus on fulfilling high-level objectives and then can celebrate its achievement.
Anchor the change to corporate sector: It is a last stage, which states that to make a
change permanent in nature, it is required for TNT express to adopt that particular change in day-
to-day activities of organisation.
One of the major drawback of this model is that it is important for an individual to flow
all steps included in this model in step by step manner. As if a person miss any one of that step in
then whole project can lead towards complete failure. In addition to this, in order to implement
changes a lot of time is required to invest which can results in frustration.
P5 Methods with the help of which HR outcomes can be monitored
There are numerous types of approaches and techniques that can be use by an
organisation in order to monitor the outcome of HR practices. Mentioned below there are some
techniques described below in brief:
The Best fit approach:
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Best fir approach is use by organisations to monitor their outcomes of strategies and
human resource practices. This will benefit a company to systematically monitor their status of
performance and keep live tracking on it. As per according to this approach it is essential for HR
to implement proper and effective strategies in a specific time (Wright and Moliterno, 2014). For
example, TNT express currently suffering from financial crises, as to cope up with this situation
HR managers of company are required to adopt certain strategies rather than to focus on
developing policies related to development of employees (Collings and Szamosi, 2018). To
accomplish this objective there is a need of huge investment of funds, which company is not
having in this present time.
Resource based view:
This approach is utilized by organisation to decide best possible resource that can have
to resolve a particular issue or problem. Resource based view is a managerial framework which
benefits an organisation to determine strategic resources that can aid them to gain more
competitive advancements. For example, TNT express recently facing a problem that is related
to behaviour of their employees, in this situation they are require to find those resources that can
benefit them to resolve this problem. In order to cope up with situation, company is required to
adopt effective training and development secessions and seminars. This will benefit TNT express
to maximise their quality of their forces that will aid them to gain more competitive advantages
and strengthen their image in global market.
P6 Effectiveness of HR management and development for sustainable performance and growth
There are different types of approaches that are used by HR management which will
benefit them to deliver effective performance and fulfil objectives of company in sustainable
way. Mentioned below there are some approaches:
Key Performance Indicator ( KPI): It is a formative model that is utilized by an organisation
to determine and examine their task or process. In key performance model there are different
types of characteristics which is briefly described below:
Concrete: KPI is needed to be in tangible form and have particular objectives or goal.
HR managers of TNT express is required to analyses their day-to-day process in formative
manner which is essential to be in tangible form.
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Measurable: Key performance indicator required to be measurable, if it's not then it is
not an KPI. It is essential for TNT express to measure their performed activities as to bring out
more effective outcomes.
Reachable: KPI needed to be define in realistic way so to achieve them on effortless
manner. It is essential for HR management of TNT express to carry out monitor their
performances on regular basis to ensure feasible growth.
Relevant: In this step, it is required to monitor only those factors which is necessary and
do not waste unnecessary time on irrelevant things. It is important for TNT express to focus and
measure only those factors which are relevant for their activities. As this will benefit them to
offer more appropriate services to their customers.
10-C Model of HRM: It is systematic model which can benefit TNT express functions in many
different ways. This model is mainly known as 10C's. That is described below in descriptive
manner:
Comprehensiveness: In this perspective, there is overall aspect of management is
included.
Credibility: Workers need to have trust on top management and their policies and
strategies (Armstrong and Taylor, 2014).
Communication: Organisation need to ensure that there is formative channel of
communication adopted in their culture. It is necessary to have open culture in their working
environment.
Cost Effectiveness: Require to have fair promotional and reward culture.
Creativity: In order to gain more competitive advantage organisations are required to
develop different strategies.
Coherence: HRM strategies and activities needed to be local and meaningful.
Competence: Strategies are required to formulated in a manner to achieve company
goals.
Change: In order to sustain for long term, it is required for an organisation to adopt
innovate technology and tools in continuous manner.
Commitment: In this section, it is essential for an organisation to motivate their workers
in order to maximise their proficiencies and achieve overall organisation objectives in effective
way.
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CONCLUSION
As per the above mentioned report, it has been concluded that Strategic human resource
management is a formative process which is linked to functions of human resource. In this
effective training and development strategies have been made to increase proficiencies of
employees and take company towards growth path. In this project, different advantages of
models like 540 performance appraisals and Kotter's 8 Step Change Model have been given to
identify workforce diversity. In addition to this, there are certain external and internal factors that
affect functions of business organisation. With the help of e-recruitment company can hire
candidates from different geographical locations and increase their productivity. Lastly, with the
help of various models organisation can achieve their overall goals and objectives in effective
manner.
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