Strategic Human Resource Management Report - MBA Unit 10

This report delves into the realm of Strategic Human Resource Management (SHRM), emphasizing its pivotal role in aligning HR practices with organizational strategies, objectives, and culture. The report commences with an executive summary highlighting the importance of SHRM in clarifying job roles, motivating employees, and enhancing productivity. The introduction defines SHRM as an organizational management strategy that links the HR wing with a company's goals and culture. The report then explores the importance and functions of SHRM, including its role in ensuring staff management aligns with organizational interests, planning for human resource development, and distinguishing the organization from competitors. It also provides a case study of Rimus Riley, a small Maltese company, offering recommendations for improvement. The report further analyzes how SHRM contributes to achieving organizational objectives, such as customer satisfaction, product quality improvement, and stakeholder relations. It also examines the business factors underpinning human resource planning, including employee numbers, skill identification, and employee placement. Finally, the report addresses human resource requirements, emphasizing the development programs that enable employees to take on more challenging roles and contribute to the organization's long-term needs.

RUNNING HEAD: STRATEGIC HUMAN MANAGEMENT
Title: Strategic Human Resource Management’
Name of Student:
Name of University:
Author’s Note:

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Executive Summary:
Aligning the strategy of the company with the HR practices is a necessary element for all
companies in order to clarify the job roles to the employees as well as defining their own vision. The
Strategic HRM thus primarily aim at the function of the HR management in an organisation to
incorporate the strategies of the company with the organisational activities and culture. This evidently
gives the company a momentum and the employees the required motivation to grow in the hierarchy.
Moreover, the proper knowledge about the strategies will help the employees in working effectively and i
turn increase the productivity. The following discussion takes in to account the various aspects of the
Strategic Human Resource Management and relates the relevance of those strategies in the organisation
of Rimus Riley, a well known company in Malta.

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Introduction:
Strategic human resource management is an organisational management strategy that seeks to set
up a connection between the human resource wing of a company and its objective, strategies, visions and
goals. The Strategic Human Resource Management aims at creating a flexible and innovative work
environment so that the employees become more competent for the purpose of the organisation and fit for
the organisational culture (Melo 2014). The strategic Human Management, thus, aims at an overall
improved performance in the business. The current discourse deals with the importance and functions of
the strategic human resource management in an organisation. It also takes into account the organisational
set up of a company and analyses the human resource management of the previously mentioned company
so that the condition is improved. The present report takes into account the Rimus Riley Company of
Malta and assuming the role of a Human Resource Manager, it provides recommendation for the
improvement of condition (Holenbeck 2017).
Rimus Riley Company is a small sized company that is situated in Malta that offers a range of
snacks and biscuits. The number of employee in the organisation is 25. However, the company has no
active HR wing that can manage the human resource. The General Manager, who naturally has a detailed
knowledge or expertise in the matter, carries out the task of human resource management.
Importance and Function of Strategic Human Resource Management:
In order to set up an effective Strategic Human Resource policy, the managerial department of the
company must analyze the importance and function of SHRM so that the policies can be properly fitted
into the organisational structure.
Importance:
Because of the increase in some of the key socio economic factors like government regulations,
globalization, changing roles of the labour union or the rising challenges of the matching of the employee
expectations with the competitive demand, Strategic Human Resource Management has evolved as one of
the most important functionality of the HR wing. It is necessary for any organisation to ensure that the
workings of the staff management or Human Resource management are going in accordance with the
interests or vision of the organisation (Harrison 2014). Thus, the proper utilization and investment in
SHRM will ensure a cost effective engagement of the labours since, the organisation are planning
beforehand about the job design, man specification or skill specification required to fit in the

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organisational vision. It is also important to note that the strategies of the company need to be changed in
accordance with the changing needs. An effective SHRM will be able to make the employees focus on the
direction and plan the organisational changes according to the changing needs. The incorporation of
strategies in the HR management will also help the organisation to plan effectively for the human
resource development by developing managing and sustaining the skills and knowledge.
Purpose:
The most essential purpose of the strategic Human Resource Management is to formulate the
strategies and actions that will help the organisation to distinguish it from its competitors. The SHRM of
an organisation is also functional in providing ideas for the allocation of resources according to the
suitability and competency of the employees (Cania 2014). In doing this, this wing of HR management
also looks at the risks or down turns in the organisation. Another important functionality of the SHRM
wing is to monitor the design of the organisational strategies so that it is the most efficient for the
business and the organisational culture or structure. The SHRM takes part in the process of Recruitment,
hiring or training process and creates a strategic plan for the HRM so that each employee and the
strategies are properly assessed. By integrating the workflow and aligning the workforce of the
employees, the SHRM also manages the codes and public crash of the organisation.
Since the Rimus Riley is an organisation where there is no particular SHRM, it may be
problematic for the organisation to understand the changes in the internal and external environment and
strategies the company vision according to the market need. The General Manager is competent in his
own field of knowledge, which may not be enough for the managing of the total strategies of the Human
Resource. Moreover, he may not have that much time to asses every candidate and recruit according to
the need. Moreover, the general manager can manage his team where he will be looking the employees as
the tool where he can manipulate them according to the core competence. An incorporation of the
Strategic Human Resource Balance will on the other hand can promote a sense of mutuality of
responsibilities for the enhancement of the organisational development as a whole. the General Manager
has to remain preoccupied with the routine function in the organisation and hence cannot focus much on
the strategic functions. Again, there is less scope for the employees to have a direct communication with
the General Manager. On the other hand, the sole purpose of SHRM is to make a direct communication
with the employees and the development of the same (Jackson 2014). Thus, analysing the context of the
Company, I will suggest that the Company has to incorporate a separate Human Resource Management
Wing that will recruit the employees only after testing the competencies by means of definite testing

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instruments. This will help the organisation to be staff with effective employees and thus will guarantee
more productivity.
Contribution of SHRM in fulfilling Organisational Objective:
Strategic Human Resource Management is the tool to incorporate the organisational tools within
the company that creates an alignment with the employee performance and the organisational strategies.
Thus, the SHRM strives at the improvement of the business performance by means of managing people.
In order to achieve the desired objective, the management focuses on the improvement and management
of the performance of the employees. Thus, it integrates the HR strategies that are incorporated vertically
with the strategies of the business and horizontally with one another. The strategies are concerned with
the all encompassing plans and considerations of the organisations including its goal and the effectiveness
of the measures to reach the goal such as learning and developing, resources, rewards as well as the
employee relations. Strategic HRM has its fundamental focus on the implementation of the strategic
changes and on the development of the skills and knowledge. It promotes the development of the human
capital so that their goals are aligned with the organisational goals. Thus, strategies of the HR wing
suggest the strategic choices that are in any form formally planned. It is an inevitable fact that the
objectives of any farm would be a planned and structured one that has to be developed over years
(Daley,2012).
The organisational objectives of the Rimus Riley Company are:
1. A strong satisfied customer base
2. Improvement of product quality and commodity portfolio
3. Maintaining competitive and fair price of the quality products.
4. Maintenance of good relationships with the shareholders and customers.
An effective incorporation of the Strategic HRM would ensure that these objectives are met by
means of incorporating the effective strategies. A proper knowledge in the SHRM will make the company
understand the need of the trainings required for the employees to become more efficient in the
manufacturing. The strategic human resource management can also detect the supply chain and
promotional policies that will yield a maximum result in reaching the product to the customers. At the
beginning the employees will be made acquainted with the company’s vision and they will be clarified

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about their job roles and the expectations of the company from them. This will help them to align their
own goals with the company goals.
Business Factors that Underpins Human Resource Planning:
In an organisation, the Human Resource Planning is traditionally implemented in order to ensure
that the right person is in the right job in the right time. Previously when the business environments were
comparatively certain and stable, the Human Resource Planning focused only on the short term outputs
and the line managers dictated the planning to a large extent. However, with the increase in the instability
in the recent business environment, the shift in the demographical areas and the recent technological
changes has changed the need and purpose of Human Resource Planning in the organisations. The
organisation must develop a long term as well as a short term plans in order to address the concerns of the
Human Resource planning effectively. An effective Human Resource Planning can help the organisation
in achieving the maximum usage of the human resource within a stipulated period. The four main
business factors that underpin the human resource planning are:
1. The number of employees needed in the organisation.
2. The identification of the particular skills, knowledge and abilities required.
3. The places where the employees are required
4. The right place and the right time of the requirement of an employee (Daley, 2015).
Thus, the human resource planning is mainly concerned with the task of the assessment and
anticipation of skills and also planning for the fulfillment of the required initiations or actions. If any
wing f the organisation is not performing as per the benchmark, the company will have to focus upon the
redeploying o the employees. The undertaking of such decisions needs proper strategic management.
In case of Rimus Riley, the company needs to understand how many workers are needed all
together to manage the whole system of the workforce. There must be separate specialization of those
who will be in charge of taste, nutritious value, packaging etc. The company must identify the man power
requirements in the company. The company must also focus on identifying the projected base of customer
by searching the historical data or analyzing the feedbacks from the market, analyses the expenses
required for fulfilling the initiation plan as well as the objective. The business must also focus on the
staffing of the employees in the suitable places for the suitable jobs. As far my understanding, the
Company can face problems in need of emergency since they do not have a proper HR planning whereb y

6STRATEGIC HUMAN RESOURCE MANAGEMENT
they can gauge future needs of human resolurce or future requirements of trainings. This can negatively
hamper the company’s productivity.
Human Resource Requirements:
The term Human Resource is referred to the human capital of any organisation that carry out the
work force of the organisation. Thus, the management of this resource is the implementation of the
strategies that will add up to the management of the individual. The human resource development
programs enable an individual in the organisation to undertake higher and more challenging jobs. This
will help them to do their job more effectible and to take up new responsibilities. Thus, the human
resource development first focuses at the training of the employees and then developing the competencies
so that the employees can satisfy the long-term needs of the organisation and also pursue their career
goals effectively.
The human resource management strategy will also need to focus on the return of investment in
the human capital of the organisation and reduce the financial risks. This is to be done by the organisation
by the proper alignment of the skilled and knowledgeable employees and the capabilities of the current t
workforce. For the right determination of the selection of the candidates, the HR wing of the company
needs to analyze the job and prepare a suitable job description for the specific requirements.
The human resource management also requires complying with the existing federal and labour
laws and regulations, business practices and the net cost with the aim of motivating the employees and
improving the productivity (Casico 2014).
Rimus Riley, being a food company needs to analyze the man specifications for the suitable jobs.
Apart from the labours required for the manufacturing of biscuits, the company must also hire the
professionals who will know about the nutrition value of the snacks and those who can make innovative
food item ideas in order to increase the variations in products. They must ensure uniformity in the
availability of the employees and proper machinery guiding. Personal protective equipments and
managing the temperature extremes in the factories must also be ensured. The main requirements
that the company needs for the effective functioning are:
a. Training and development Program: Trainings must be given to the labours for the proper
handling of the advanced machineries and how to take care about the health and hygiene factors.
The HR must also require the tools that will ensure employee safety

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b. Performance appraisals: The performance appraisal system will give the employees an idea
of how they are performing. Thus, the Rimus Riley will be benefited when the employees
are aware of their faults or strengths.
c. Taking the feedbacks of the employees as to what extent they are feeling comfortable in
using the machineries or is there any risk factor associated that they fear.
d. Selection of candidates by the HR wing must be done effectively depending on the
candidates’ ability to handle machine and knowledge of baking.
e. To determine whether the employees are willing to modify themselves with the changing
trends. If not incorporate the scope of growth and employee engagements.
Developing the human resource plan for the organization:
The human resource management has their key functionalities in various important sectors of an
organisation including the management of the staffing, employee relations, benefits, compensation and
trainings. The HR manager needs to be consulting with the strategic leaders regarding the hiring and
keeping the key talents for an organisation, increasing the quality and quantity of productivity and
managing the ROI for the company (Avianti and Pitaloka 2015). Taking into account the necessary state,
federal or labour laws, the HR manager needs to shape the company. The human resource plan for the
organisation will thus include,
Staffing: the proper recruitment and retention of the key employees in the organisation is one of the
major responsibilities of the HR manager. The HR department will have to take the responsibilities of
every step in staffing that starts from the recruitment, creating awareness about the recruitment through
advertising, networking, promoting internally or contacting agencies, screening the candidates, carrying
out a pre-employment testing and interviewing. The HR will need to maintain the resume and coordinate
with the line managers for creating the written job description.
Benefit Management: Another core function of the HR wing is to manage the aspects of the benefits of
the employees that include the health insurance, retirement plan, leave or absence, paid time off, disability
and others. It is the responsibilities of the HR to manage the events that will be maximising the employee
benefits and administer the benefits, employee communication, vendor relationships and the process for
enrolment. The HR in an organisation must also look after the work compensation, compensations
on ground of unemployment or family medical leaves. In the company the HR wing must look

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atthe4 safety of the employees who are working with machines or in high temperature zone. The
retirement benefits or the compensation benefits needs to be strengthened.
Performance management and compensation management: the compensation plans for the employees in
the organisation includes the salary and basic wages of the employees, the bonus or incentive plans and
stock option of the employees. The HR wing of the company analyses the competitive salaries and then
shapes the pay structure of the company. The HR management also takes up the performance
management reviews by conducting appraisals, training programmes, management reviewing and the
documentation of the managers in order to evaluate the task.
In case of the Rimus Riley, the company must plan the labor requirements for a long term basis
depending on the sections of the business that needs to be assessed. The company can divide the period
into years and dedicate the time to see the requirements for each year. The trainings can be imparted to
the newly hired employees in the handling of machines, knowing about their own safeties and the
company’s policies. The discussions with the employees has revealed that initially they had faced
problems regarding the handling of machines and in the understanding of their job roles. Often they have
felt that training in some aspects can help in better performance. However, they did not have any access
to any of the administrative wings where they can vent out their grievances. Thus the organisation will
have to plan the course of action in the following manner:
Selection of potential candidates through screening
Recruiting the suitable ones and staffing them according to the need
Look after the safety and security of the employees and plan for benefit management
Listen to the feedbacks of the employees if they are facing any problem
Give necessary trainings
Evaluate the performances.
Contribution of the planning:
The strategic human resource planning is directly related with the strategic plan of the
organisation. The strategic plan of the organisation guides the HR team to formulate the decisions that
would support the future direction s in the organisation. The strategic human resource planning also

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contributes in the effective budgetary planning of the organisation, the recruitment cost, the training
coasts and other organisational costs.
Keeping in line with expanding the business scale of the organisation, the management of Rimus
Riley management focus on the performance level of the employees so that it runs in the same pace with
the organisational vision. The company can make a proper review about the requirement of the successive
year and make plans for the manpower requirements in the organisation. The HR policies formulated
must be flexible enough to change according to the changing demands. In case of the employees
responsible for the manufacturing of the products, we should keep a note on the prior experience of the
employees. In order to select the proper pay structure and the compensation plans, the company can
divide the pay scale into different subparts based on the experience and expertise of the employees. Upon
the completion of one year, the best manufacturers can be chosen and sent for further trainings so that
they learn to produce new varieties of biscuits and snacks and fresh bakery experts can be hired in order
to replace the experienced ones. This will ensure the company a better and more competent workforce
that can manage all types of manufacturing and machine handling. The analysis of the budget wll also
enables the company to understand the competitive pay structure of other companies.
Purpose of Human Resource Management Policies:
The effective HR policies of the organisation take into account the consideration that every
employee working is treated consistently and fairly. The proper recognition and appraisal of the
contributions of the employees are also the responsibilities of the HR sector of the organisation. The
human resource management must also make the employees aware about the organisational policies both
in written and verbal terms and must convey effectively the expectations of the organisation from the
employee. The policies of the human resource must also summarise the responsibilities of the employee
as well as the responsibilities of the organisation towards the employees. An effective and clear policy of
the HR management will consists of the procedures that the organisation will intake in the fields of job
descriptions, wage description, man specifications and others. The absence of a proper HR policy may
lead the organisation to face the legal challenges, lawsuits, grievances of the employees and in turn the
inconsistency of productions or mass resignation. Preparing an effective HR policy and the successful
implementation of the same ensure the consistent and transparent climate of the organisation so that it can
deal with any kind of internal or external issues. The fairness and transparency in dealing with the
employee related issues is also leveraged by the HR policies. The transparent HR policies of an
organisation also helps in building a trustworthy relationship among the employer and the employees that

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supports productivity and employee engagement. The policies also clarifies the benefits that the
employees are supposed to get in the organisation that also acts as a motivating factor for them.
Impacts of the regulatory requirements:
The HR department has to abide by the various regulatory laws, safety laws and financial laws so
that it can prevent any kind of lawsuits against the organisation. It must also follow the rules and
regulations of the labour department and the other related laws of the country. The laws generally comes
about with some regulations that can give the employees assurance that they cannot be mistreated or fired
at the will of the company only. The HR department is also responsible for the keeping of the required
records and the implementation of the required policies (Melo, 2014).
Impact of Organisational Structure on Management:
The major impacts that the organisational structure has on the HRM are:
1. The organisational structure determines the operational process within the organisation. If the
organisation is a hierarchical one, there will be one clean supervisor who has another supervisor as well.
Thus, the management has to decide the job description accordingly as who will have to report to wgom.
2. The recruitment process also is impacted by the organisational structure. For example, in a matrix
structure, the manager has to recruit employees from other departments since it is a bonding pf both
product and functional departmentation.
3. Leadership styles also varies according to the structure. While in a hierarchical structure generally a
authoritative leadership is followed, while in a flat organisation employees are free to decide by
themselves how they will utilise their working days.
Rimus Riley apparently follows the Centralised structure where the General Manager is
responsible for the decision making. It can shift to a proper HR management. Since it is a mass
production company with a small structure it can effectively incorporate the centralised style. A good fit
between the structure and management will help the company to maximise productivity since they are
maximising the performance level (Noe, Hollenbeck, 2017). An integrated structure where the
members will know whom to report for their jobs and whom to inform in any case will make the
whole process to e done quickly. Moreover, the transparency in the structure will foster a positive
climate within the organisation.

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Impact of the organisational Culture on Management:
The organisational culture of an organisation is the common perception of the employees that
gives them an equal identity
The manager of an organization straightforwardly impact corporate culture through administration,
correspondence and appointment. They can reinforce the business culture by guaranteeing that their
activities and words are parallel to the qualities and vision of the organisation. Administrators need to set
a genuine model for their group to empower the selection of the way of life (Jono 2016). Administrators
can easily improve their chances of better communications when correspondence channels are promptly
accessible. The supervisor's authority style ought to be molded by the way of organizational culture. If
there are hints that the organization stresses a positive work-life parity and cooperating, at that point the
supervisors should show that through their activities. The group needs a positive good example to turn up
to their management and imitate. In this condition, administrators should work sensible hours and work
together with different groups as a method for bringing these qualities into their initiative
aptitudes. Recruitment additionally assumes a job in social support. The directors enable colleagues with
duties fit for demonstrating them a major picture perspective on their work. They have responsibility for
obligation and see how it fits into the organization's arrangement. Their activity is not detached from the
vision. Actually, it's a necessary piece of it. Powerful assignment gives the management more opportunity
to stress the association's qualities and constructs trust inside the group. Poor correspondence and
execution of hierarchical culture can contrarily affect the organizational culture. Management unfit to
converse with their group can cause numerous issues. Undertakings fall bogged down when
representatives have no proper policies to follow (Elzaahham 2015).
Monitoring of the effectiveness of HRM:
The setting of specific goals ensure a better performance and the efforts put in it are more
effective. A proactive HR policy focuses on areas like recruitment employee management, employee
relations and the most cost effective ways. The effectiveness of the HRM is better monitored by:
1. Quality of the new hires- The best way to monitor the effectiveness of the strategies undertaken
by the HR wing is to examine the quality of the employees that are newly recruited. Charting the
amount of the fulfillment of the functional needs by the new employees allows the company to
determine whether the position has been occupied by the right people in the right time.
2. Productivity of the employees- The position given to each employee have a target contribution to
the company measuring the productivity of the employees by creating a detail job description for