Strategic Human Resource Management Analysis: Report

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM), focusing on the practices of two toy industry organizations: The Entertainer and Build-A-Bear Workshop. The report begins with an introduction to SHRM and its significance in addressing business challenges and achieving long-term objectives. The main body of the report explores HR policies and practices within each organization, including training, team working, and compensation strategies. It examines the impact of external forces such as stakeholders, unionized labor, and government regulations on HR decisions. The report also analyzes how the organizations structure and deliver their HR functions, including the Ulrich Model and the roles of line managers. Challenges faced by line managers, such as lack of knowledge and insufficient training, are also discussed. Overall, the report provides a detailed overview of SHRM principles and their practical application in the context of the toy industry.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Analysis of HR policies and practices within the organisation...............................................3
2. External forces and effect of these forces on HR strategic decisions.....................................5
3. Analysis of organisational function organised and policies are practised and delivered........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic Human Resource Management is an approach to the practice of human
resources that addresses business challenges and makes a direct contribution to long-term
objects. It is termed as practice of attracting, developing, rewarding and retaining employees for
mutual benefit of company and individual. This report is based on two organisations one is The
Entertainer founded by Donna Benton in the year 2001. It is situated in Dubai and performs
functions with team of 180 employees. Build-A-Bear Workshop is another organisation situated
in Missouri, US and works in toys from 1997 (Bailey and et.al., 2018). In this report information
regarding HR policies and practices in the organisation, external factors force that effect HR
decision is mentioned. Together with this description of methods used to deliver human resource
policies and practices are mentioned.
MAIN BODY
1. Analysis of HR policies and practices within the organisation
Build-A-Bear Workshop works in toy industry. It operates at large scale with huge
human resource team of approx 6000 employees. Large and efficient team of the organisation
helps them to achieve organisational objective. Policies of the organisations must be effective in
order to have productive results. Practices and policies of the human resource in Build-A-Bear
Workshop are focused on improving contribute towards organisational performance. This HR
polices of firm are mainly used to increase labour turnover, reduce absenteeism, improve
employee’s behaviour and attitude, improve quality and consumer service (Armstrong and
Taylor, 2014). There are set of HR practices which can increase the productivity and
organisational performance.
However, High Commitment HRM focuses on extensive training, learning and
development where training and learning makes employees of the organisation more productive
and capable to perform multiple activities. Build-A-Bear Workshop is dealing in toys sector and
possess emphasis more on quality and consumer services after sales. Providing training to the
employees helps organisation to turn the workforce as best and highly productive. Training gives
competitive advantage to the company as employees are ready to take challenges in the day-to-
day activities. Training helps to boost morale of the employees and set them for new challenges
and turn it as opportunity. Different training programs should be designed for staff members and
3

trained on the basis of skills that is already existed in them. As Build-A-Bear Workshop directly
deals with its consumers so staff members must have communication that is important to
communicate with consumers (Taylor, Doherty and McGraw, 2015).
Team working: It is defined as a fundamental component of organisation success. When
employees in the organisation performs various activities in a team then it will lead to better
decision making and achievement of more creative solutions. Spirit of a team is always high then
individual to achieve set goals. It is seen then over the last decade team working is provided with
more and more importance. Team working in Build-A-Bear Workshop is termed as pooling ideas
and improving work process in response to competition. While performing in a team strengths
and weakness of individuals are identifies and turned in best productive manner for the
organisation.
High compensation contingent on performance: There are two elements in the practice
one is higher then average compensation and other one is performance related rewards. As per
this practice employees in the organisation must be awarded for their superior contributions.
Motivation is termed as key of productive results and it comes from rewards. Employees in
Build-A-Bear Workshop needs to be rewarded for their performance and hand work. This will
make them more enthusiastic towards work. Awarding employees for their good performance
helps to retain and attract qualified workforce in the organisation.
The Entertainer which is operating in toy industry is a smaller organisation with approx
200 employees. Level of operations to manage human resource are not high and practices Hard
and Soft HRM technique to have effective results. This is described as follows-
There are variety of ways to approach the management of HR in a business. There are
two broad approaches to HRM termed as hard and soft HRM. These two approached are totally
different from each other. As hard HRM treats employees as a resource of the business-like other
resources such as machines and buildings. Resources have huge contribution in business
planning regarding what resources are required and how (Hollenbeck and Jamieson, 2015). In
this HRM retention of employees in the organisation is for short duration. Minimum
communication takes place from top to bottom.
Soft HRM treats employees as the most important resource in business and a source of
competitive advantage. Each employee is treated as individual and their needs are planned
accordingly. Organisation focuses on roles, rewards, motivation of the employees. Soft HRM
4

must be followed by The Entertainer as retention of employees for long term is important for
success of the organisation (Storey, 2014).
2. External forces and effect of these forces on HR strategic decisions
External factors influence a business that leads a business towards success or failure.
Both the organisations are working in toy sector and external factors are affecting operations of
the organisation. These external factors include stakeholders who are individuals that affects or
get affected by the organisation's actions, policies and objectives. As both of the organisations
are operating in toy industry where the HR may have to face various type of issues while
formulating strategies. In this sector low skilled employees are required who can be hired by the
HR whenever the organisation requires. (Collings, Wood and Szamosi, 2018). All such types of
employees are the part of unionised labour where there is a leader who controls the union and all
the members follow the instructions of that leader. These are the forces that highly effects the
HR decisions. All the effects are described below:
 Low level of trust: In both the organisations low skilled workforce is required that are
the low level workers. HR of the companies have to face issues because there is lack of
trust as it is not possible for HR to trust all the employees. Workers also don't trust the
management as they are unionised they follow the instruction of their leader. It also
results in strikes that are done by the employees in order to show their aggression against
management. The HR have to change the judgements that are made earlier due to
demands of the workforce.
 Repetitive work: When employees have to perform same activities daily then it is
considered as repetitive work. In manufacturing companies like The Entertainer and
Build A Beer the workers have to repeat their work daily which results in decreased
interest of them in their jobs. It is very difficult for the HR to deal with this problem
because it is not possible for the manger to change their job profile due to lack of
activities there. It affects the HR while formulating strategic decisions as the main
responsibility of the manager is to enhance work quality of the employees.
 Lack of employee involvement: When employees are not much involved in the work it
means they are not taking interest in the job. It is a huge issue for the Human resource
manager because it will affect the organisation's performance as well as the market image
(Brewster, Mayrhofer and Morley, 2016). It affects the decision making process of HR
5

because new strategies are required to motivate employees to work hard and put higher
efforts to complete all the tasks related to their jobs.
Government or legal factors- Policies that are designed by government for business affects the
HR decisions because the changes are required to be made according to those regulations.
Policies designed by law must be followed by both the organisations to have smooth business
operations and reduce government intervention. HRM of the organisation helps businesses to
cope up with the changes in legal system. Effect of BREXIT on Build-A-Bear Workshop was
more in comparison to The Entertainer as it operates in more countries. It has resulted in higher
salary related issues of employees because company has started to reduce their salaries and
terminate them. It has affected the HR decisions because the HR have to deal with all the
workforce related problems.
3. Analysis of organisational function organised and policies are practised and delivered
Ulrich Model is meant specifically to organise human resource functions. It suggested
that in large-scale businesses and giant organisations, HR functions should be compartmentalized
into four segments such as strategic partner, change agent, administration expert, employee
champion. As HR is responsible for keeping employees happy, hard working to an organisation
that helps to achieve long term objectives. Build-A-Bear Workshop is large organisation and
follows this model to practice and deliver organisational functions. This model is not suitable for
The Entertainer as its operations are not scattered and giant and other source is used to practice
and deliver HRM policies and strategies (Albrecht and et.al., 2015).
Build-A-Bear Workshop is a large business organisation that follows vertical method to
organise its HR functions. As hierarchy is very important for giant organisations to have smooth
flow of various operations. Following this system will make managers at each level to
concentrate on particular activities to provide effective results.
Level of operations of The Entertainer is small and follows horizontal system to manage
HR functions. This leaves power to make decisions in certain hands. As small organisation do
not have skilled employees at all level then this method will termed as most productive for the
company.
To deliver HR policies and practices shared service is used by Build-A-Bear Workshop
through which activities are available to number of parties. This model reduces cost and avoid
duplication of efforts and allows a greater focus on HR strategy. On the other hand business
6

partner model is used by The Entertainer which is responsible for aligning business objectives
with employees and management. This helps to serve as a consultant to management on human
resource and related issues.
Role of line managers in the delivery of HRM
Line manager is a person who directly manages other employees and operations of a
business while reporting to a higher-ranking manager. Line manager can be considered as direct
manager. Role of Line manager in both the organisation is to helps in recruitment and hiring new
talents. Provide training and support to new hires, ensures cross training and job rotation.
Communicating departmental goals and monitoring individual and team performance. Ensuring
quality standards for all processes and reviewing team performance. Role of line manager are not
different in both the organisations (Strategic HRM, 2019).
Challenges of line managers in the delivery of HRM:
Challenges differs of both the organisations as Build-A-Bear Workshop is large
organisation and demands long hours on job that The Entertainer do not required. Responsibility
for overall operations will be more in Build-A-Bear Workshop organisation.
Lack of identification with management goals- When organisations goals are not
properly clear and elaborated to line managers this will create a hurdle to perform duties that
brings best productive results. As line manager coordinate between all the levels of management
lack of knowledge regarding organisational goal reduces power to motivate co-workers towards
common goal to achieve it. Line managers of both the organisation will face this challenge.
Lack of knowledge and skills- This is required at each level of operations and non
availability of skills in human resource at any level of management reduces chances to achieve
set organisational goals. As Build-A-Bear Workshop is huge organisation then can hire more
skilled labour for which The Entertainer may lake. Line manager of The Entertainer will face this
challenge more.
Insufficient training- Large business organisations provides training to their employees
on regular basis. This helps to enhance productivity of the employees. As The Entertainer is
small organisation and lacks in training programs and line manager of this organisation faces
more challenges for training then Build-A-Bear Workshop.
7

CONCLUSION
From the above report it is concluded that human resource is considered as one of the most
important resource that contribute towards success of the company. Strategic human resource
management helps to manage resources effectively in the organisation. Human resource policies
and practices should be analysed as per implication of model in order to achieve goals and
objective of the organisation. External factors must be studied well to minimise the its impact on
strategic decision taken by the organisations.. Line manager in the organisation have critical role
to manage HR of both the companies.
8

REFERENCES
Books and Journals:
Albrecht, S. L. and et.al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance. 2(1). pp.7-35.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Brewster, C., Mayrhofer, W. and Morley, M. eds., 2016. New challenges for European resource
management. Springer.
Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Hollenbeck, J. R. and Jamieson, B.B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of
management perspectives. 29(3). pp.370-385.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Online:
Strategic HRM. 2019. [Online]. Available through:
<https://www.hrzone.com/hr-glossary/what-is-strategic-hrm-0>