Pearson BTEC Level 7 Strategic Human Resource Management Report

This report analyzes the strategic human resource management (SHRM) practices of the Ajman Free Zone Company. It begins by highlighting the importance of SHRM in achieving organizational objectives, emphasizing its role in linking business strategies with human resources. The report then assesses the purpose of SHRM activities, including employee retention, recruitment, and human capital management, and how these activities contribute to employee productivity. Furthermore, the report evaluates the contribution of SHRM to the achievement of the organization's objectives, focusing on staffing, customer care, market growth, increased revenues, organizational development, and teamwork. The report uses the Ajman Free Zone as a case study to provide practical examples and demonstrate the impact of SHRM on various aspects of the business, including employee motivation, loyalty, and overall organizational success.

Student Assignment Covering Form
Course/Unit Information
Course Pearson BTEC Level 7 Extended Diploma in Strategic
Management & Leadership
Unit No. Unit 10
Unit Name Strategic Human Resource Management
Unit code D/602/2326
Batch SFM3-SHRM-Ashima-1811
Instructor Information
Name Ashima Keluskar
Phone [phone]
Email [e-mail]
Assignment Information
Full/ Part Assignment FULL ASSIGNMENT
Date Assignment Issued 16.11.2018
Date Assignment Due 13.12.2018
Turnitin Class ID 19651375
Turnitin Enrolment Key 1811
Student Information
(To be filled by the student prior submitting the assignment)
Name
Email
Date of Submission
All the submissions to be done through LMS, no email or another format will be accepted.
Student Assignment covering form is an integral part of the assignment document and should be
submitted along with all submissions.

Student Declaration
I Eissa Al-Sheebani hereby confirm that this assignment is my own work and not copied
or plagiarized. It has not previously been submitted as part of any assessment for this
qualification. All the sources, from which information has been obtained for this
assignment, have been referenced as per Harvard Referencing format. I further confirm
that I have read and understood the Westford School of Management rules and
regulations about plagiarism and copying and agree to be bound by them.
Students Signature: Eissa Al-Sheebani (signed)
Student Name: Eissa Al-Sheebani
Date: 13/12/2018

Learning Outcomes and Assessment Feedback
Name of the Assessor Ashima Keluskar
Learning Outcomes Assessment Criteria (AC) Assessor
Feedback
LO 1
Understand how the
strategic
management of
human resources
contributes to the
achievement of
organizational
objectives
1.1 Explain the importance of strategic human
resource management in organizations AC MET
1.2 Assess the purpose of strategic human resource
management activities in an organization
1.3 Evaluate the contribution of strategic human
resource management to the achievement of an
organization’s objectives
AC MET
LO 2
Be able to develop
human resource
plans for an
organization
2.1 Analyse the business factors that underpin human
resource planning in an organization AC MET
2.2 Assess the human resource requirements in a
given situation AC MET
2.3 Develop a human resources plan for an
organization AC MET
2.4 Critically evaluate how a human resources plan
can contribute to meeting an organization’s
objectives
AC MET
LO3
Understand human
resources policy
requirements in an
organization
3.1 Explain the purpose of human resource
management policies in organizations.
3.2 Analyse the impact of regulatory requirements
on human resource policies in an organization
LO4
Be able to examine
human resources
management in an
organization
4.1 Analyse the impact of an organizational structure
on the management of human resources
4.2 Analyse the impact of an organizational culture
on the management of human resources
4.3 Examine how the effectiveness of human
resources management is monitored in an
organization
4.4 Make justified recommendations to improve the AC MET

effectiveness of human resources management in an
organization
Internal Verification Report
Internal Verification Done By Date
Assignment Brief
Assessors Decision
Introduction
The main purpose of strategic human resource management (SHRM) is the
implementation of modern human resource strategies. The most successful organizations
are known for integrating their business strategies for future planning and effective
operations. According to Chen and Huang (2009 p.104), Strategic human resource
management is as a way of linking organizational strategic goal and objectives with the
human resource in order to develop effective business culture and perform duties with
innovative and flexible. In an organizational context, strategic human resource
management means implementing organizational strategies through rewarding, training,
recruiting, selecting and involving all human resource functions (Taylor, Doherty and
McGraw 2015 p.1). In order for an organization to achieve its objectives, it must utilize
Over All
Result/Grade PASS/REDO Date:
Summative Feedback:
Overall Feedback on
current work with an
emphasis on how the
student can further
improve in future.

the available human resource through the implementation of human resource
management strategies. Therefore, the report seeks to examine the strategic human
resource management of the Ajman Free Zone Company.
Background information on the Organization
Ajman Free Zone Company (AFZ) is a free trade zone that is strategically suited
at Ajman, United Arab Emirates (UAE). The company was established in 1988 and is
currently named as a sole regulatory agency for the free zone in UAE (Ajman Free Zone
2018). The agency is strategically positioned to serve both western and Eastern markets
to set up businesses. The main goal of Ajman free zone is to provide a global opportunity
for foreign investments with a suitable platform for trade, investment and business
establishment. In addition, the organizational objective is to provide entrepreneurs with
cost-saving benefits as compared to other free zones in the United Arab Emirates. The
company’s mission is to provide excellent infrastructure and resources in order to give
companies an opportunity to realize their potentials and explore all opportunities.
Task 1
1.1 Importance of strategic human resource management (SHRM) in the
organization
Ajman free zone Authority has employed many people all over the world. In order
to maintain a large number of workforce, strategic human resource management is
important for Ajman free zone to think about long-term objectives by focusing on SHRM
rather than just internal Human resource (HRM). Furthermore, Strategic human resource

management is also important in the organization as it solves problems and all
management related issues from a global perspective. In addition, SHRM improves
employee’s skills and experiences by focusing on organizational problems and
opportunities happening outside human resources. For example, in Ajman Free Zone
Company, Strategic human resource management has solved problems such as
employees demotivation and dissatisfactions that can have negative impacts on the
human resource. In addition, SHRM has further guided the company to identify long-time
goals, objective, targets and retained experienced, skilled and talented staff.
1.2 Assess the purpose of strategic human resource management activities in the
organization
According to Shen, Chanda, D'netto and Monga (2009 p.235), Companies
formulates robust Human resource policies to maintain skillful employees. Ajman free
zone strategic human resource management (SHRM) has several activities pertaining to
employee retention, recruitment, management of important human capital resources,
training, selecting and rewarding personnel. Each activity plays a significant goal to
increase employee productivity and the identification of significant human resource areas
where the strategies can be implemented.
Employee retention involves activities that take place in the company in order to
retain skilled and experienced employees. In Ajman Company, retention activities that
take the places to retain employees include employee compensations, mentorship
program, work-life balances, mentorship programs, onboarding and orientation. For
example, Ajman Company offers career development programs, bonuses, shopping

vouchers and team building activities for their employees to feel as part of the company.
All these employee retentions activities are important as they support the company in the
management of employee turnover, boosting of employees morale and motivation,
enhancement of effective recruitment and prevention of talents and ideas.
Recruitment and selection activities that are involved in Ajman Company include
interviewing candidates, hiring and job advertisements. The recruitment and selection
activities are important as they enable the company to hire a number of employees who
are skilled and productive. In addition, recruitment activities help the company to
determined future and present organizational requirements with consideration of job
analysis activities and personnel planning. Importantly, recruitment activities also help
the organization to meet the social and legal obligations of maintaining its workforce
composition.
SHRM is also essential in the management of human capital activities including
knowledge, skills and experience of employees. In Ajman Company, human capital
management is important in the management of a knowledge-based department that
depends on high-level skills, information and knowledge. Additionally, the company also
uses human capital activities in specialization and division of labor and bringing
creativity and innovation. Through, specialization and division of labor, the employee are
able to concentrate on specific tasks that improve skills and experience in their career.
1.3 The contribution of strategic human resource management to the achievement of
an organization’s objectives
According to Lengnick-Hall, Beck, and Lengnick-Hall (2011 p.243), human
resource management provides assistance in the development of important sectors of the

organization through planning, staffing, directing, controlling and organizing a company
to achieve objectives. Therefore, the contribution of SHRM to Ajman free zone is
understood through the implementation of appropriate different human resource management
functions. Having strategic human resource management in place, Ajman free zone has
been able to offer effective customer care delivery and differentiate itself from the
competitors globally.
SHRM has contributed to effective staffing in Ajman Free zone by providing the
company with experienced and skilled employees. In addition, the employees have been able to
provide effective skills at the right time and in the right place. The company assigns the work as
per employee’s skills.
With the assistance of SHRM activities and motivation, the company has been able to
achieve goal and target because of appropriate planning and employee involvement. SHRM has
addresses the key issues that exist in the organization including labor relationships, safety, health
issues and compensations. Human resource development has also strengthened the employee’s
abilities to face challenging tasks. Safety and health issues have increased employees confidence
in the organization. Compensations and labor relations have facilitated to motivation and
retention of the employees.
Strategic human resource management has contributed to market growth of
Ajman free zone. The Company has been able to expand and improve through
employee’s motivations and development programs. Therefore, less labor turnover has
facilitated the employees to be loyal to their job and customers. Therefore, the company
has been able to hit the target and reach set time frames with a lot of enthusiasm leading
to the expansion.

Strategic human resource management has also contributed to increased revenues.
Recently, Ajman free zone has experienced high revenues because of deep understanding
of the internal and external environment. The environmental understanding has made the
company come up with HRM strategies that explore opportunities for generating higher
income and market share. In addition, the company’s employee-friendly policies have
resulted in a low turnover rate because employees have developed high dedication spirit.
The loyalty to these employees has led to high productivity that in turn has raised
revenues and customer satisfaction leading to the good reputation of the company.
SHRM has also contributed to organizational development and teamwork.
According to Bolden (2016 p.143), organizational development tends to improve the
effectiveness of employees which in turn improves the different process in the
organization such as implementation and formulation of strategy and transformation of
the company to be recognized globally. Ajman free zone SHRM strategies have led to
employees believe in teamwork and “one entity” approach. In addition, the employee's
motivation has led to the organization believing in the simple formula of less customer
complains, high productivity, low absents, high innovation and low turnover. Therefore,
through this human resource practices, the company has developed SHRM for some time
and served as a benchmark for other companies.
2.1 Analyze the business factors that underpin human resource planning in an
organization
A business plan is affected by numerous internal and external environment.
According to Elias (2009 p.37) internal and external factors determines the relationship

between employer and employees, organizational environment, salary regulation
organizational culture labor rules and reward systems.
Different factors that underpin human resource in Ajman Free Zone Company are
classified as either internal or external factors. Internal factors include organizational
needs and workforce profile and skills. External factors include the supply of labor,
workforce skills. Labor costs, labor market competition, government policy, changes in
working conditions, employee’s expectations, demand for products and services and
automation impacts.
Internal factors
In the organizational needs, business growth and technology has influenced the
internal working conditions. The organization has adapted to changes by training its
employees accordingly.
In skills and workforce profile, Ajman Free Zone Company has automated its
Human resource systems leading to the creation of an effective online database that
accesses the current labor force in terms of experience, present or future requirements and
skills. In addition, the database monitors all categories of employees include those
working in part-time, shifts, permanent and contract for the company. Therefore, all
internal factors assist in the fulfillment of legislation and future planning. Additionally,
profiling the training and labor force makes the organization to utilize special skills from
a talented pool of experts.
External Factors:
Labour supply and costs impact the organizational planning. Increase in
unemployment results to increase in skills but with low income (Helpman, Itskhoki and

Redding 2010 p.1239). The nature of the organization is labor intensive and therefore the
skills needed by the organization are accessible and available. Furthermore, the
company’s labor costs are governed by national minimum wages and therefore it has
been a key consideration in the planning of salary structures.
In an enhancement of workforce and labor market condition, the company uses
published statistics and surveys to plan and see the desired skills available in the domain.
According to Santos-Vijande, López-Sánchez and Trespalacios (2012 p.1079)
organization must consider future requirements of competitors for the attraction of the
right employees with effective capabilities.
The external factors also make the company offer the experts with opportunities
to work in a conducive environment with consideration of changes in education policies
and government policy.
The changing in normal working conditions and employee expectations also
underpin the plan of the company. Flexible working conditions and part-time working
have created a flexible schedule for the organization with employees who cannot work
fulltime being granted an opportunity to work under their own schedule.
The hierarchical organizational structure has allowed promotion with the
implementation of online application providing suitable candidates an opportunity of
applying for jobs that fit their requirements. With constant change and development in
technology, the organization must plan for technology compatibility (Leonardi and
Barley 2008 p.159). In Ajman free zone company’s emails and internet, customers have
entered their details online and employee access the data they need outside and within the
organization.

2.2 Assess the human resource requirements in a given situation
Human resource requirements on a given situation basis come through personal
requirements. The personal requirements include experience, skills, government policies,
demand for labor and qualifications where knowledge and skills for the job are identified.
In a given situation, qualifications provide knowledge about a particular subject in
a confidential and timely manner. Personal skills make people confident for an
opportunity. The skills come from different ways like workshops, community
involvement and study.
In a given situation, Ajman Free Zone Company classifies human resource requirements
by occupation, organizational demography, aptitudes, skills level, demography,
department, ethnicity, level of service, qualifications, gender, age and job history. The
company conducts an annual program to get a holistic picture of managerial and
leadership skills of managers and business function as perceived by employees. In
addition, recruitment and selection are conducted concerning the current situation. For
example, if the company needs short-term employees, the recruitment portal is opened
with requirements suitable for employees available within the time.
The key skills that are required for Ajman free zone to succeed in any situation
include planning and organizing, problem-solving, communication, knowledge, self-
management, teamwork, counseling, knowledge of technology and learning.
Government policies are also another HRM key requirement. Human resource
management is still a government policy as it makes a system for developing human
resource plan, policies and legal issues. In addition, things like labor market competition,
education, training and employment are under government policies.