Unit 1 Assignment on Strategic Management

This report on Strategic Human Resource Management covers various tasks related to HR planning, policies, and the impact of organizational culture on effectiveness. It emphasizes the importance of aligning HR practices with strategic goals to enhance organizational performance. The report includes an analysis of internal and external factors affecting HR planning, the development of HR policies, and recommendations for improving HR effectiveness.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Analysing internal and external factors which affecting FP's HR planning ........................1
2.2 Assessing current and future human resource requirement .................................................3
2.3 Developing human resource plan .........................................................................................3
2.4 Human resource plan contributing in achieving organization objectives ............................4
TASK 3............................................................................................................................................5
3.1 Purpose of HRM policies .....................................................................................................5
3.2 Analysing employment law requirement .............................................................................5
TASK 4............................................................................................................................................6
4.1 Delayered organization structure impacting human resource ..............................................6
4.2 Impact of organization culture on human resource ..............................................................7
4.3 Effectiveness of HRM ..........................................................................................................7
4.4 Recommendations to improve effectiveness ........................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic human resource management is a process where top management of the
business venture emphasize on analyzing the potential opportunities and threats which is
generally present in the environment so that they can prepare their policies for a specific time
period (Baker and Sinkula, 2005). Further, strategic HR aiming to align with the HR practices in
order to develop some critical capabilities so that business enterprise can achieve their goals and
objectives efficiently. By taking the above topic into consideration, this present report is
prepared on Framlington Property Plc (FP) which is a property developing firm who buys and
develops land for both business and domestic use. This present study will focus on understanding
the internal and external factors which will affect organization human resource planning. Further,
it will also emphasize on designing human resource policies which will be beneficial for the
cited organization.
TASK 1
Covered in PPT
TASK 2
2.1 Analysing internal and external factors which affecting FP's HR planning
Human Resource Planning (HRP) is considered as an ongoing process where
organization concentrates on utilizing one of the most valuable asset of the business venture i.e.
human resource (Hair and et.al. 2012). Further, the main aim of HRP is to assure the best fit
between the employee's and jobs which will certainly avoid the manpower shortage. Further,
there exists internal and external factors which influence the HR planning of FP. Some of them
have been discussed down under:
Internal factors: Organization structure: HR manager have to significantly modify the HR structure if the
work in the mentioned organization is not been done with best of the efforts and
dedication. This is generally due to wrong supervision or miss-communication between
the supervisors and subordinates. Further, by revealing the case study, it is identified that
the cited firm follows tall organization structure where there exists different levels and
work are done according to different departments (Aleprete Jr and Hoffman, 2012).
1

However, if problem occurs, then Mendy has to make changes accordingly by
considering the same with James Hardy. Skilled employees: The efficiency of employees is getting distorted and cited firm ios
focussing on recruiting talented and skilled employees as it will reduce their training and
development cost and with less employees, more work will be done in a sound manner (5
Priorities HR Can’t Ignore in 2015. 2015). Further, as FP is planning to take their foot in
India, then to assess the environment, they have to recruit a local resident who will be
aware of the situation and the trend which is going on. By purchasing the right land at the
right place, organization will be able to earn more of the revenue and profits in future
time period.
 Productivity: At times, efficiency of the individuals get lost because organization is
unable to develop a proper working environment. Further, employee generally gets tired
in performing daily activities. This is because HR does not focus on wellness program,
morale- building activities, inter communication, etc.
External factors: Government Regulations – With the introduction of the workplace compliance within
UK, FP's human resource department is in tremendous pressure to stay within the law.
Further, these sort policies and regulations impact the different functioning of HR
department like recruiting, selecting, training, development, compensation, etc (Jiang and
et.al., 2012). By adhering the law, organization might be on the verge to get shut down. Technological Advancements – This is treated as an external impact when new
technology gets implemented within the cited organization and firms get more depended
on machines as compared to the human forces. This will certainly lead to recession in
coming time period.
 Economic Conditions – One of the major downturn in the organization is the shape of the
current economy. During the tough times, cited firm can utilize the reserves which is so
maintained over the years. If not so, then the performance of the firm will start getting
degraded.
2

2.2 Assessing current and future human resource requirement
Being a property dealing organization, firm has to recruit different types of employees
with respect to see the vacancies in the different departments. Further, for recruiting and
selecting skilled personnel, HR manager and the team so develop plays a significant role so that
efficiency and goodwill of the firm is maintained or raised (Sheth, 2011). Further, the HR
director is also responsible for settling down the conflicts between the employers and employees.
Moreover, as the owner and the HR director is focusing on tapping the Indian market for
investment in property, they have to hire skilled workforce so that they can maintain the
efficiency of the firm. HR director will take the necessary steps: Recruitment: Recruitment is the technique where mentioned firm will focus on attracting
the individuals to fill the vacant positions in the organization. In order to successfully
imply that, manager will prepare the job description and specification statement in order
to recruit the talented personnel from the pool of hundreds. This recruitment process will
involve inviting application, screening and selecting the best candidate (Lee, Kim and
Park, 2012). Further, they can also use the internal and external methods for recruitment
in order to fill that vacant position.
 Training and development: T&D program plays important role as individual will be
trained to perform specific task in more accurate and perfect manner. Framlington
Property Plc have different department namely sales, marketing, operation, project and
finance. Therefore, HR manager always in need of employees because organization
business is extending day by day. Further, skills like orientation, productivity
enhancement will help individual to perform their current and future jobs.
2.3 Developing human resource plan
HR plan is formulated by HR manager. They adapt the environmental changes and
develop efficient plans and policies for better functioning of the business organization. Generally
the strategic HR process involves following components:
 Assessment of current HR capacity
 Forecasting requirement of HR
 Analysing the gap
 Developing strategies in order to support the HR strategies
3

Further, in the case scenario, it is clearly viewed that James Hardy is planning to relocate
50% of their business to abroad i.e. to India. HR manager have to make efficient and effective
plan for both the markets in order to increase the organization revenue and productivity.
Moreover, organization need to set SMART objectives in order to achieve their goals and
objectives on time (Craig and Campbell, 2012). After the recruitment and selection of suitable
employees, HR director core aim is to maintain the balance and deliver smooth functioning
within the business venture.
The smart objectives for FP is given down under: Specific: Here, HR manager have to target a specific area for improvement as they have
to decide that what specifically they want to achieve. Organization as taking their
footstep in India, they have to cover a market in order to increase their profits (Creating
S.M.A.R.T. Goals. 2016). Purchasing and investing in the Land's of India will give them a
huge profit in coming time period. Measurable: Investment in India will result in increase in 20% of the revenue at the end
of the year. Achievable: The target so set will be achieve only when the employees work with best of
their dedication and efficiency. Further, HR manager will play a crucial role in
developing relation with different organization as well as individuals. Realistic: The cost of land increases day by day and the investment which will be made
by FP will be realistic just because either they will rent that arena or sell in coming time
period with relevant profit margin (Kelliher and Henderson, 2006).
 Time-bound: Time period required to achieve the mentioned objectives is approximate 1
year.
2.4 Human resource plan contributing in achieving organization objectives
Human resource plan comprises gathering of information from both internal and external
sources and this information will help Mandy to make effective decision for the business
venture. Furthermore, when organization plans for their future, they generally develop the
business plan which will help them in achieving their short term and long term goals. However,
if organization feel like that particular employee not increasing the productivity and also
increasing the cost for the venture, HR will take decision to reduce the staff member. Further, the
4

approach to develop HR plan differ from one venture to the another and HR manager of the cited
firm will focus on following points:
 Setting up the direction
 Designing effective HRMS
 Planning the number of workforce
 Generating required human resource
 Investing more in employees development and performance
TASK 3
3.1 Purpose of HRM policies
HRM policies and procedures are framed by the HR manager because HR is the one who
is majorly responsible for the area which relates with the employment matters and different
others. Further, HR manager take care of the formal rules and guidelines before conducting
recruitment, training and different other activities (Uhrenfeldt and et. al., 2014). HR policy will
also allow Framlington Property Plc to clearly define the duties and work which employee have
to perform and also the individual whom he/she will report for particular task. Further, some HR
policies need to be clear on the following points:
 Organization expectations from employee's
 Employee's expectations from organization
 Equal employment opportunities policy
 Disciplinary policies
 Code of conduce
 Remuneration and payrolls
These HR policies also help in developing effective structure and culture within the
business organization.
3.2 Analysing employment law requirement
Employment law differs from country to country and HR manager of the cited
organization have to follow the laws and acts of UK and India respectively. Further, organization
have to give different kinds of benefit and facilities to the employee's in order to boost their
5

morale so that they can work with best of their potential to achieve the desired objectives (Motro
and Smets, 2012). HR manager have to follow given acts whenever they recruit employee's. National minimum wage act 1998- This includes right to the minimum wage to individual
so that a person can satisfy their needs and wants efficiently. If minimum wage is not
provided then organization will be in problem. Working time regulation act 1998- This act emphasize on giving 28 paid holidays at work
in order to limit out the excessive done work by employee's.
 Employment right act 1996- This act gives right to individual for child care leave and can
request the business organization to provide flexible working hour pattern so that
individual can manage both their personal and professional life (Meredith Belbin, 2011).
These acts generally protect the right of individuals at work and Mandy have to follow it.
However, if not so followed properly then it will result into loss of goodwill and profits as well.
TASK 4
4.1 Delayered organization structure impacting human resource
Organization structure is generally a follow of authority within business enterprise. It
determines the extent to which the roles, power and responsibility are delegated and coordinated.
Framlington Property Plc follows hierarchical organizational structure where employees are
working in different department in order to increase the efficiency and productivity in working.
Each and every employee has a reporting authority whom he/she has to response at the end of the
task. These department heads are also responsible for grooming of employee's and they act as a
mentor as well to guide them whenever they take some wrong step.
This structure also has a positive impact on the organization and as this encourage
employees to enhance their skills, knowledge and attitude (Werner and DeSimone, 2011).
Further, each department comprise talented and multi skilled employees who works with best of
their efficiency to achieve their individual as well as organizational goals and objectives.
However, at times this structure can impact the management because there exists autocratic style
where all the major decisions are taken by owner and employee's just follow them.
6

4.2 Impact of organization culture on human resource
Organization culture shows the behaviour of workforce within organization and it
consists of different values, norms, habits and benefits to the organization. Further, structure of
organization generally influence the culture of the venture and cited firm has to change their
structure if possible in order to make their culture more effective (Crook and et.al. 2011). The
impact of organization culture is:
 Increase in team cohesiveness
 Boost up employee morale
 Strong alignment of organization towards their set objectives
HR adopts more pragmatic approach and have flexible pattern in working along with
revised-employment. Further, the morale and motivational level among employees is much hire
as compared with that of their major competitors. The culture of cited firm is also good as
working is done in different departments which reduces miss-communication in working. With
opting the same culture in their future development, cited firm will be able to increase more of
the revenue and corporate image.
4.3 Effectiveness of HRM
The effectiveness of HR generally depends upon the method which is used to measure the
performance of the employee's. HR manager have to recruit right people at right position at right
time. It is also judged on the basis of contribution made in order to achieve the organizational
goals and objectives (Gregor and Hevner, 2013). Further, Mandy has to develop some
performance indicators which will help HR to set the incentive and appraisals on the basis of that
only. These performance indicators will include:
 Productivity of employee
 Output given by an individual
 Benchmarking
Cited firm have to effectively consider these points in order to specify the effectiveness in
their policies and regulations. In Framlington Property, individual is judged on the abovc
mentioned elements and with respect to it their incentive and appraisal is designed. How much
an employee is contributing to make enterprise successful. Further, the output given throughout
the year will help them in achieving their set standards and targets.
7

Apart from it, employees efficiency, their dedication towards work, punctuality are also
the important factors which will help in measuring the effectiveness of HRM.
4.4 Recommendations to improve effectiveness
HR manager main role is to develop effective superior-subordinate relationship which
will foster the organization performance and will help them in achieving their goals and
objectives (Wang, Chen and Chen, 2012). Further, organization have to focus on making the
working condition much more familiar so that workers feels that they are the part of Framlington
Property family and they are more than a employee to the venture. Further, to imprve the
motivational level among employee's, HR have to implement Herzberg or Abraham Mashlow's
motivational theory which will generally boost up their performance and they will be able to
work with besxt of their efficiency and productivity to achieve their individual as well as
organizational goals and objectives.
Organization should also make effective investment so that they should not bear any sort
of losses in their operational activities. Further, dismissing the employees who are not working
with their efficiency will also save administrative and other cost of the business venture.
CONCLUSION
From the above report it is clearly inferred that Framlington Property deals in property
business where their main aim is to purchase the land and sale at either higher cost or by taking
some constructional work under process. This report also showcase that the HR director of the
cited firm use varied methods to improve the motivational level of employees. Moreover, this
report also emphasize on recruiting and selecting best of the employees through different ways to
increase the revenue and profits of the firm.
8

REFERENCES
Journals and Books
Aleprete Jr, M. E. and Hoffman, A. M., 2012. The Strategic Development of Border Areas:
Explaining Variation in Interaction Opportunity Across Land Borders. International
Interactions. 38(1). pp. 1-28.
Angelo, H. and et.al. 2014. Strategic analysis of forest management in the Brazilian Amazon.
Floresta. 44(3). pp. 341-348.
Baker, W. E. and Sinkula, J. M., 2005. Environmental marketing strategy and firm performance,
effects on new product performance and Market share. Journal of the Academy of
Marketing Science. 33(5). pp. 461– 475.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Crook, T. R. and et.al. 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance. Journal of applied psychology. 96(3). pp.
443.
Gregor, S. and Hevner, A. R., 2013. Positioning and presenting design science research for
maximum impact. MIS quarterly. 37(2). pp. 337-356.
Hair, J. F. and et.al. 2012. An assessment of the use of partial least squares structural equation
modeling in marketing research. Journal of the Academy of Marketing Science. 40(3). pp.
414-433.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Jiang, K. and et.al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp. 1264-1294.
Kelliher, F. and Henderson, B. J., 2006. A learning framework for the small business
environment. Journal of European Industrial Training. 30(7). pp. 512-528.
Lee, H., Kim, M. S. and Park, Y., 2012. An analytic network process approach to
operationalization of five forces model. Applied Mathematical Modelling. 36(4). pp. 1783-
1795.
Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource
Management International Digest. pp. 19(3).
9

Motro, A. and Smets, P., 2012. Uncertainty management in information systems: from needs to
solutions. Springer Science & Business Media.
Sheth, J. N., 2011. Impact of emerging markets on marketing: Rethinking existing perspectives
and practices. Journal of Marketing. 75(4). pp. 166-182.
Uhrenfeldt, L. and et. al., 2014. Collaboration: a SWOT analysis of the process of conducting a
review of nursing workforce policies in five European countries. Journal of nursing
management. 22(4). 485-498.
Wang, C. H., Chen, K. Y. and Chen, S. C., 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management. 31(1). pp. 119-129.
Werner, J. M., and DeSimone, R. L. 2011. Human resource development. Cengage Learning.
Online
5 Priorities HR Can’t Ignore in 2015. 2015. [Online]. Available through:
<https://www.cebglobal.com/blogs/5-priorities-hr-cant-ignore-in-2015/>. [Accessed on
19th February 2016].
Creating S.M.A.R.T. Goals. 2016. [Online]. Available through:
<http://topachievement.com/smart.html>. [Accessed on 19th February 2016].
10