Strategic Human Resources Management: Thomas Cook's HR Report

This report provides a detailed analysis of Strategic Human Resources Management (SHRM) within the context of Thomas Cook, a leading hospitality organization. It begins by examining current trends and developments impacting HR strategy, including globalization, workforce diversity, and technological advancements. The report then explores the influence of both internal and external factors, such as government regulations and economic conditions, on HR practices. It delves into various HRM theories, including motivation theories like Maslow's Hierarchy of Needs and decision-making theories like Rensis Likert’s Participative Decision Making Theory, and how these are applied to enhance employee and organizational development. Furthermore, the report addresses the concept of change management, outlining different models and strategies to facilitate smooth transitions within the organization. Finally, it evaluates methods for monitoring and measuring HR outcomes and explores the critical role of effective HR in driving sustainable business performance and growth. The report concludes by summarizing key findings and recommendations for the strategic management of human resources at Thomas Cook.

STRATEGIC HUMAN
RESOURCES
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Current trends and development that influence on HR strategy..................................................3
Internal and external factors influence on HR strategy and Practices.........................................4
LO 2.................................................................................................................................................6
HRM theories for organization development and Strategic planning:........................................6
LO 3.................................................................................................................................................7
Concept of Change management.................................................................................................7
Models of change management...................................................................................................8
Strategies of change management................................................................................................9
LO 4.................................................................................................................................................9
Monitoring and measuring the outcomes of the HR....................................................................9
Role of effective HR in sustainable performance and growth...................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Human Research development in the organization play significant role in the growth of
workforce as well as organization. Thomas cook is one of the leading hospitality organization, it
follows number of HR strategy and changes as discussed below to smooth run of the company.
The report highlight Strategic Human Resources Management benefits in the organization and
how successfully it can be implemented in the organization as listed below. HR forms different
strategy according to changing world and implement in the organization to increase quality, and
productivity of the employee and hence helps in the growth of organization. Below report also
explain various current trends which influence forming strategy in organization like
Globalization, Workforce diversity, changing skills requirements and technological
development. Number of theories use by HR in forming their strategy for an example becoming
a strategic partner, developing employee competence, identifying strategic functions etc. Report
also describe To support HR strategy in the organization changes models has to be adopted.
Human Resource strategy output has to check and analyse before applying in the organization so
that better performance of employee can be generated and on the other hand HR management
and development helps in constant increasing performance to meet the targets of organization.
LO 1
Current trends and development that influence on HR strategy
With the changing world and technological advancement affecting strategy adopted by
Thomas cook HR, and they have to adopt a policy according to the market affecting factors like
globalization, workforce diversity, technological advancement etc. Change in strategy helps in
increasing growth of the organization (Bakker and Albrecht, 2018).
Globalization:
In present world companies are not limited to one country or one region rather than they
are expanding everywhere and hence for company development and growth proper growth and
strategy has to be adopted for an example if the company is expanding in UK, then it has to form
strategy according to taste and trend. Thomas cook expand its business from United Kingdom
and because of country's diverse population travelling habits it has form HR strategy which
focused more on customer taste and trends and hence manage to gain large market share of UK
(Kabrtova, 2018).

Workforce Diversity:
UK consists of diverse people and hence it becomes important for organization to adopt a
strategy according cultural, traditional and demographic background so that better work out can
be possible. Thomas cook Human resource development has to focus on training and
development program of workforce as per diverse environment and create rules and regulation
according to it so that efficiency of employee increases with productivity, quality, creativity and
team spirit.
Changing Skills requirement:
In the technological advance world, it becomes necessary company to provide proper
skills that has to be implemented in organization for better output. It is one of important issue
faced by organization to defeat competitors and increase in productivity, quality of the workforce
as well managing skills of the leaders and managers. HR has to check and analyse different sets
of skills used by various company to increase the output and select the right one for the
organization with proper strategy.
Technological advancement:
Adopting new technology to improve the efficiency of organization is another big task as
in the advance country like UK every week a new technology occurs in the market and it became
financial burden for the company to give training for it. HRM has to form the strategy by
analysing speed of workforce and try to adopt one of the technology which can work for long
time without affecting quality and productivity of products.
Continuous improvement programs:
For the changing world continuous improvement programs implementation by HRM
become necessary to achieve higher goals for the organization. HRM has to form the strategy
according to personal growth of employee as well as the organization to take advantage over
competitors in different scenario.
Internal and external factors influence on HR strategy and Practices
There are different internals as well as external factors which influence forming Tomas
cook HR strategies and implementing in the organization for an example government regulation,

Economic conditions, Workforce demographic, Available labour pool, compensation and
employee relation. For better performance of organization has to form strategy according to it.
External Factors
Government Regulations:
Organization has to follow the laws and regulation formed by government for smooth run
of business. Human resource development with the knowledge of laws and regulation can form
strategy in terms of hiring, training, compensation, termination, etc. so that company can't be
unqualified in terms of disobeying laws and increase its good will in front of customer as well as
employee (Vrchota and Řehoř, 2019).
Economic Conditions:
Economic policy and condition of any country influence the growth of organization. In
the country if the unemployment rate decrease than employee has number of option for the
company Thomas Cook selection on the other hand hiring skilled workers becomes difficult for
HRM as because of competitive price and expectation of workforce. HRM can form the strategy
that show company is better workplace as well as for the growth of employee hence large
number of talent will work with the company and hence increase the growth of organization
(Mariappanadar, 2019).
Internal Factors
Workforce Demographic:
Generation gap become another disadvantage of the organization. HRM has to follow the
strategy and attract young talent to the organization and on the other hand also mentor them with
old generation experience so that company can easily win over competitor.
Available Labour Pool:
In the organization workforce planning plays a significant role in the growth of the
organization. Thomas cook HRM has to focus on the strategy to hire more and more talent in the
organization and also time to time training and development of the old workforce to increase the
efficiency, productivity and quality of the organization.

LO 2
HRM theories for organization development and Strategic planning:
Human Resource Management theories is used for increase the growth of employee as
well as Organization. There are various theories of HRM for an example theory of performance,
theory of motivation etc. which is used by HR to improve the efficiency of employee as well as
company.
Motivation Theory:
Motivation theory is used to increase the motivation of employee and to deviate from
isolation and hence to increase the performance of the organization.
Abraham Maslow’s Hierarchy of Needs:
According to Maslow describe five different needs that influence employee to remain
motivated towards organization. In the first stage Physiological needs which is related food,
shelter and water for personal growth or this is the basic need of any human being for the growth
and by providing this they remain physiological motivated. Second stage is of safety needs
which explain the security of employee related to job, environments etc. so HR used
Physiological need consideration before forming strategies in the organization. According to
Maslow, employee wants security where it works and hence by providing proper security
increase employee motivation for an example if the employee aware that his job is secure so
remain motivated to increase efficiency for gaining more opportunities so HRM department play
significant role in fulfilling safety needs of the employee in the third stages' employee love,
affection and belonging needs to be considered. Maslow described if employee has better work
retention and satisfaction it increases loyalty and trust towards organization and on the other
hand isolated and discrimination create a gap between relationship of employee as well
organization. In the fourth place Esteem need which is one of the important need of worker to
take opportunities for recognition, award, reward and promotion in the organization. As per
Maslow theory for better motivation employee need personal growth in terms of promotion,
incentives, recognition etc. Lastly self-actualization need is one the desirable need for motivation
in the organization. Maslow define that increase potential by giving more and more opportunities
increase the motivation which helps in the growth of organization (Hassan, 2016). Thomas cook

HR teams considered above points to encourage and motivate employee for better performance
in the organization.
For example HRM of Thomas cook can apply theory to enhance the motivation among
the employee in order to see a rapid growth in the company along with maximum number of
motivated employees.
Decision Making theory:
Employee involvement in making decision increase their capacity, productivity and
quality and hence increase growth of the organization (Bratton and Gold, 2017).
Rensis Likert’s Participative Decision Making Theory:
According to Rensis for the effective management and development of the organisation,
employee need to be equally treated and take their suggestion in organisation decision making so
that it increase participative nature as well as loyalty towards organisation. Rensis four different
style used by HRM. First system describes Explosive authority, in this managers does not trust
employee and also not involve in decision making and because of this employee do not feel part
of the organisation and work for self-interest rather than for organisation goals. Second system is
of Benevolent Authoritative, In this all decision are taken by management and employee has to
dictate according to them and this is also master-servant kind style. Communication and
subordination become and any other job related issue employee cannot discuss with management
and in this employ motivation to comply with managerial dictates is done through a system of
rewards. Third system is of Consultative, in this manager has less confidence in capabilities of
employee decision-making but still give chances but the final implementation is in hand of the
seniors. This is kind of pseudo-consultative practice and ultimate decision remain in the hand of
seniors. Lastly Participative system comes, in this management has confidence in employee
decision-making and implementation and managers keep encourage workforce in decision-
making and hence gain their loyalty and trust (Farndale and Sanders, 2017). From the above
Thomas cook HRM department can select participative system as it benefits in gaining employee
loyalty as well as increase motivation towards achieving organization goals, it built team spirit
among employee and give chances of creativity and innovation which ultimately helps in
organization growth.

For example HRM of Thomas Cook must use above mention theory to increase the decision-
making skills of the employees which help them to make them quick decision which can be
useful in development of the organization.
LO 3
Concept of Change management
Change is the constant in an individual life as well as for an organisation. There are
external and internal factors that affects the change in an organisation. The Role of the HR is to
implement the changes smoothly (Weiner, 2020). The factors always affects the activities of the
market. It also affects the employees and HR of the Thomas cook. Resisting changes is the basic
nature of an individual. In fact, the success of an organization also depends upon the way of
adopting the changes in Thomas cook. The HR of the company should plan and then implement
the changes in the Thomas cook for the smooth working and also efficiency in the company.
Models of change management
Lewin's model of change management helps Human resources of Thomas cook in many
ways. There are different steps in this model. The steps are as follows:
STEP 1 :- Unfreezing : this step is one of the most critical step in this model as it includes
improving the employees' willingness for the change. It helps HR in convincing the employees
about the need of the change and also motivates the employees for implementing and accepting
the new ways for the efficiency in the company. In this particular step, communication plays an
effective role in convincing the employees and getting proper support from them.
STEP 2 :- Change: this step includes the acceptance of the new change. In this step, employees
are now unfrozen and the change has been implemented. In this step, planning, communicating
and encouraging employees for the involvement is very important (Cummings, 2016). For the
HR of the companies, it is not easy to implement the change, as employees and other members
have fear of any uncertainties. Because the uncertainties are nor predictable, but the HR should
be confident and prepared for the different situations during implementation of the change. HR
confidence helps the employees in motivating them.
STEP 3 :- Refreezing: this is a stage in which, people have crossed the step of change, and
accepted the new change and implemented in their lifestyle. This step in the state of equilibrium.

After accepting the changes, employees started establishing new relationships. For strengthening
the new change, employees should be motivated by the HR. It helps HR in taking the best out
from the employee, and it this way the employees can be more productive. This spread the
positive and healthy environment in the Thomas cook.
Therefore, this model of change plays an important role for HR, for smooth functioning
of the employees.
Strategies of change management
For the successful lead of the company, Thomas cook must follow the basic strategies.
The primary strategies of the change management are as follows:
Overcome resistance: the company should focus on the resistance of the employees by
communicating about the change and its implementation clearly (AlManei, 2018). The
employees must be aware of ned of the change in the company and their effect. The Thomas
cook should make the team for implementing the changes and also appoint a deserving leader,
who can convey the positive message in the team.
Engaging employees: Engaging employees in the activities is a important part, as it implements
the change and also ensures the positive outcomes. The employees can be engaged by
developing the team approach, asks employees for their views and ideas for the task. Employees
should be assigned proper rules and responsibility for smooth working. The employees can also
engaged by different activities.
Implementation of change: For implementing the changes the company, the planning should be
done first, it helps in smooth implementing of change in the company. The change can be
implemented by the three phases. They are, preparing, managing and reinforcing the change.
Communicating: the employees should be communicated well in advance about the strategies of
change (Hayes, 2018). Communication is an integral part of the change management process.
The strategies of communication can be, clear and consistent with the employees, also use
emails, internet, voice mails etc. for communicating with the employees.

LO 4
Monitoring and measuring the outcomes of the HR
HR of the Thomas cook plays an important role in managing and developing in the
company. There are many ways of monitoring and measuring the performance of the HR
(Barrow, 2017). The different ways are as follows:
Absent rate: the absent rate refers to the days in which employees is absent. The HR looks
towards the attendance of the employees, because maximum absent leads to the loss of the
company. The HR outcomes can be defined by the number of employees present in the company.
More the number of employees are present, it means the HR is efficient.
Employee productivity rate: calculating the productive rate is quite difficult (Skogland, 2017).
But it can be evaluated by the capacity of growth in the production of the capital. As the more
productive employees, the more efficiency in the role of HR.
Employee engagement: Employees engagement can be calculated and evaluated by their
behaviours and attitude. Where there is high engagement of employees, there will be higher
productivity, customers satisfaction, lower turnover and positive outcomes in the Thomas Cook.
As more number of employes are engaging in the activities of the company, it seems to be HR is
more effective.
Employee innovation rate: The innovation of the employees can be calculated by their
behaviour, attitude and engagement survey. Innovation in Thomas cook is one of the important
part for making the business more successful (Kayl and et.al, 2017). The HR helps the
employees in enabling the innovations.
Internal promotion rate: the HR of Thomas cook, focuses on the number of seniors and
numbers of senior positions are filled. HR also looks towards the fast speed, reducing the risk of
the bad hire and staying longer in the job.
Quality of hire: the appointment of the employees should be effective and efficient. HR must
select the deserving candidate for the company, and which stays for the longer person in the
company. The quality hiring helps in recognizing whether the HR is effective in recruiting or
not. The HR maintains the high quality of hires, which further results in achieving the
organizational goals efficiently and effectively.
90 days quit rate: in these outcomes, the employees leave the company in three months or in a
year. This laid a very bad impact on the performance of the company. It is the job of the HR to

recruit the correct person for the job. Failing in the job may leads to the direct loss of the Thomas
cook.
Role of effective HR in sustainable performance and growth
An effective HR plays an important role in the activities like, recruiting, rewarding and
training the employees for the success of organization (Boon and et.al, 2019). HR also plays an
important role in sustainable growth and performance of the Thomas cook. They are as follows:
Hiring values and invest: Hiring values are an old concept and essential for the company's
growth and performance. Whether the top values are communication or innovation etc., it is very
important to hire the appropriate candidates for the company. The employees hiring by HR
should fit in their norms and values. The employees must be capable enough to become a leader
in the future. After hiring the candidates, invest and focus on their professional development.
Investing in the employees is beneficial for the company, as they become a potential leader in
near future.
Promoting from within: promoting from within is an important part as, the individual working
in the company for long time, knows all the strengths and weaknesses of the company. HR
should invest in their training and works on their profession development (Makedon and et.al,
2019). So that, these candidates might become the CEO of the company in the future.
Creating long term leadership: Creating long term leadership by the HR helps in supporting the
sustainability of the performance and growth (Chams, 2019). Creating long term leadership
ensures that there are many people in the organizations are highly talented and have more skills
and creativity. The people with in the organization should be given chances.
Therefore, the effective HR management and development plays an efficient role in the
performance and growth of the Thomas Cook.
CONCLUSION
It has been concluded that, the external and contextual development influences a HR
strategies, recent trends and developments influences an HR strategy, theoretical and practical
knowledge of HR department. It is also discussed the appropriate change management models
support HR strategies and the contribution of HR management and development to sustainable
business performance and growth. It has been also concluded about the techniques of measuring
and monitoring the outcomes of the HR and the role of effective HR in sustainable performance

and growth of the company. The emphasis was laid on the applications of change management
strategies, models and concepts and their effectiveness on the Thomas Cook.