Unit 3 Strategic Change Management Report

This report analyzes the strategic human resource management practices at Framlington Property Plc, focusing on the internal and external factors affecting HR planning, the current and future requirements of human resources, and the impact of organizational culture on HR management. It also evaluates the effectiveness of HR functions and provides recommendations for improvement.

Strategic Human
Resource Management
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2 ..............................................................................................................................................3
(A) Analysis of external and internal factors affecting FP’s human resource planning..............3
(B) Current and future requirement of human resources in Framlington Property.....................4
(C) Human resource plan for both UK and Indian part of Framlington Property.......................4
(D) Critical evaluation of the developed human resource plan for Framlington Property..........6
Task 3 ..............................................................................................................................................6
(A)Purpose of at least three human resource management policies............................................6
(B) Employment law which is likely to apply on FP along with their impact ............................7
Task 4 ..............................................................................................................................................8
(A) Analysing impact of de-layered organization structure for FP ............................................8
(B) Impact of organizational culture on management of human resource in Framlington
Property .......................................................................................................................................8
(C) Performance indicator used monitor and evaluate performance of an HRM function..........9
(D) Recommendation with justified improvements to effectiveness of HR functions ...............9
Conclusion ....................................................................................................................................10
References......................................................................................................................................11
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Illustration Index
Illustration 1: Human resource management Plan ..........................................................................6
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INTRODUCTION
In present scenario, human resources are considered as one of the most important asset of
any business enterprise. Further, it can be also stated that it is an effective team of employees
which supports organizations to accomplish their aims and objectives in the best possible manner
(Daley, 2006). The present report is based on Framlington Property Plc. which is a UK based
property dealer company that buys and develop land for business use and other domestic
purposes. As per the provided case scenario, the organization witness good growth and sales
from year 2000 to 2007. Its main target audience includes people in higher income groups and
with senior management position in sectors such as medical, legal and financial. In the year
2008, Framlington Property Plc. started to experience low demand in the entire property market
of UK. The present report need of strategic human resource management (HRM) in medium and
long term. Other than this, it also covers various aspects of HRM about Framlington Property
Plc.
TASK 1
Covered In PPT
TASK 2
(A) Analysis of external and internal factors affecting FP’s human resource planning
Human resource planning can be termed as a process in which the current and future
requirements of employee are being identified by a business enterprise. Further, the plans and
strategies are developed to meet those identified needs (Schuler and Jackson, 2008). At the time
of human resource planning Framlington Property Plc. (FP) is required to take care of various
internal and external factors that can affect the plans. Budget of FP is one of the major internal
factors which can have direct impact on its HR planning. Low budget of staffing will result in
selection of ineffective and less skilled workers. On the other side of this, adequate budget will
help in getting the best and most desired candidate. Internal factors such as culture and structure
of the organization r will also have its impact on the plans. External factors such as economy and
social factors will also have impact on Framlington Property HR planning. In situations such as
economic downfall, the property developer may not seek for hiring new personnel as it is not
able to gain adequate profits and sales. Social factors such as education, income level, and
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availability of skilled people are also some factors which affects Framlington property’s human
resources planning. Along with this, external factors such as high degree of competition will also
create barriers in developing effective plans related to human resources for Framlington
Property.
(B) Current and future requirement of human resources in Framlington Property
Framlington Property has present as well future requirement of human resources in order
to operate effectively. Currently the organization needs personnel for all level of management
which are top, middle and low. It has also appointed Mandy Mews recently in the top level
management of the organization. Further, she is playing active role in activities of the
organization. This includes providing advice on HR matters, labour market trends and
determining skill required for construction sectors. Framlington Property also requires full-time
permanent receptionist and it is carrying out process of selection for the same. The organization
is also looking forward to entering one of the most potential markets that is of India. Therefore, it
will be requiring human resources for its expansion in the future. Most of the people in present
staff are comfortable in moving to new country if the package is good. If these employees are
being promoted to India then Framlington Property will be required to hire people for its
operations in UK. People will be required to fill the vacant position in the top, middle and lower
level of Framlington Property.
(C) Human resource plan for both UK and Indian part of Framlington Property
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The plan will consist of five major stages that are mentioned below. They are as follows: Manpower planning- In this stage, Framlington Property will identify requirements of
human resources in future for both UK and in India. Along with this, succession planning
will be also carried out by the organization to motivate workers. Recruitment- After developing manpower plan, the process of recruiting people for both
the location will begin. The best and most deserving candidate will be selected for the
vacant position in UK and for expansion in India. Performance management– The human resource plan will also consist of tools and
techniques of performance management. Framlington Property will provide appraisals to
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Illustration 1: Human

the employees who will perform outstanding and will also support them in their career
progression. Training and development- Framlington Property will identify the need of training
among worker and then will arrange training sessions to satisfy the same. This will also
create satisfaction among workers by enhancing their knowledge and skills.
 Staff relations- In human resource plan of the organization, ways to develop of good
relation among staff members are also taken into consideration. Framlington Property
will try to resolve disputes and addresses their quires in the best possible manner.
(D) Critical evaluation of the developed human resource plan for Framlington Property
The human resources plan developed by Framlington Property has its own set of
advantages and disadvantages which the organization needs to consider. The plan can be termed
as very effective one as it covers all the essential aspects associated with human resources of the
company. Appropriate planning of manpower will result in hiring the best and talented personnel
for future (Strategic-HRM, 2016). Along with this, training and development sessions will make
existing workers more productive by providing them new knowledge and skills. However, it can
be argued that such sessions should be arranged only on the basis of employees preferred
learning style. On the other hand, fair and transparent appraisals will create satisfaction among
workers. On contrary of this, it can be explained that it is not necessary that all workers become
satisfied with the appraisal policy. Sometime employees seeks for non-monetary rewards, which
is not a part of the entire human resource plan. Therefore, it can be stated that the plan developed
in context of managing human resource is effective but need some changes to get the best
possible outcome.
TASK 3
(A)Purpose of at least three human resource management policies
Human resources policies are developed with various kind of purpose by
businesses(Storey, 2007). Three main policies along with their purposes are mentioned below as: Workplace Policies- One of the core purpose of this policy is to provide proper structure
to the organization. This includes defining working hours, performance expectations,
safety measures and information related to the salary of employees (Lengnick-Hall and
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et.al., 2009.). Another purpose of workplace policy is to eliminate activities such as
harassment and discrimination from the entire workplace. Recruitment and selection Policy - The purpose of this policy is to make sure that
employer uses a fair and transparent process at the time of recruiting and selecting
employees. The policy encourages enterprise to provide each and every candidate with
equal opportunities for selection (Lepak and et.al., 2006). Along with this, the purpose of
this policy is to make organization available with skilled and most eligible candidate for
the vacant position.
 Compliance policy- Purpose of compliance policy is to make sure that the organization
has compliance with all the labour and employment related laws and practises. Every
business enterprise is required to follow these laws in order to operate smoothly in long
run (Armstrong and Taylor, 2014). Therefore, this policy aims at making sure that
business has followed to practises such as minimum wages, fair working hours, labour
standards etc.
(B) Employment law which is likely to apply on FP along with their impact
As per the provided case study, there are various kinds of issues and challenges that
people working in Framlington Property are facing. For example, employees, which are working
below middle level management, are being provided with a fixed salary that is not increased until
now. In addition to this, it is also 10% less than compared to average pay provided by the entire
industry. Other than this, Framlington Property also possess some sort of discrimination with
regards to age and race of workers. Lack of health and safety procedure at workplace has also
become a major issue for employee of FP. Laws such as fair pay, discrimination, health and
safety are required to be applied in Framlington Property. The impact of this will be that all the
employees will be provided with a fair pay on the basis of work done by them. Along with this,
its impact will be that it will result in eliminating discrimination from the workplace. After
applying health and safety Act the organization will be required to make proper arrangements for
wellbeing of workers. If these practises are not followed after applying employment, then fines
and penalties might get imposed on Framlington Property.
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TASK 4
(A) Analysing impact of de-layered organization structure for FP
Delayering organizational structure is one that have very less or no middle level
management (Chen and Huang, 2009). As per the provided case scenario, FP is not able to earn
adequate profits in UK market because of the economic downfall has has been witnessed after
the year 2007. If an organization adopts a delayered organization structure then it will be able to
lower down its cost of operations. The rationale behind this is that due to fewer layers of
management, Framlington Property will be required to pay fewer salaries. Along with this, rise
in salaries of workers and promotions will also get low if the organization adopts a delayered
organizational structure. On the other side of this, such type of structure may results in loose of
control as many employees have been assigned under one manager. This is one of the major
negative impact which Framlington Property can have. Its positive impact is that delayering
structure can provided the property developer with a fast and much effective communication
process because of few layers (Becker and Huselid, 2006). On the other hand, the organization
may not able to perform complex or difficult activities after adopting de-layered organization
structure.
(B) Impact of organizational culture on management of human resource in Framlington Property
Organizational culture have a direct impact on human resource management and practises
of a business enterprise. It can be also explained that, all the activities of people in an
organization is directly or indirectly affected by the kind of culture (Martín-Alcázar, Romero-
Fernandez and Sánchez-Gardey, 2005). The culture in Framlington Property is not an open
culture which has affected the performance of employee in negative terms. People working in
lower level management are not encouraged to give their views and opinions that can benefit the
entire organization. On the other hand, practises such as discrimination and inadequate pay are
also witnessed in Framlington Property. This has made a direct impact on the skilled and talented
workforce of the property developer. It has resulted in lowering down the morale of workers and
has affected their motivational level. Such kind of culture also have a negative impact on the
process of recruitment and selection. Framlington Property may not be able to find desired and
talented human resources. Along with this, organization culture with the help of training and
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development enhance human resources practises by making them aware about the changes in the
organization.
(C) Performance indicator used monitor and evaluate performance of an HRM function
The function of human resources are directly linked with the employees working for
Framlington Property. Therefore, one of the best way to evaluate effectiveness of human
resource management of any organization is by measuring performance of the workers
(CHUANG and Liao, 2010). As per the provided case scenario, lower and middle level workers
are not satisfied and performing very low. This means that the HR practises adopted by
Framlington Property is somewhat ineffective. Another indicator that can be used to measure
performance of HRM function in the organization is by identifying rate of employee turnover.
High rate of turnover means that employees are satisfied by the organization. If their morale and
motivation level is low; then business is not taking corrective measures to enhance them.
Framlington Property can easily identify effectiveness of its HRM functions with the help of
above stated indicators.
(D) Recommendation with justified improvements to effectiveness of HR functions
The recommendations to improve effectiveness of HR functions are given below as:
 It can be recommended that the human resource department of Framlington Property
should take corrective steps to eliminate issues such as discrimination and inadequate
pay. The reason behind this recommendation is that it will create satisfaction among the
workers and will provide the organization with skilled and talented base of employees.
 It can be recommended that Framlington Property should again increase its training
budget that had been lowered down to 90%. Further, motivation and morale of
employees is also very low. Training and motivation sessions are required to be
arranged in order to boost morale and productivity of the workers. This will support
Framlington Property in getting competitive advantage and operate effectively in long
run.
 It can be recommended that employees working in lower management should be
provided with adequate opportunities for growth and development. As per the provided
case scenario, not many efforts have been made for the development of employees in
lower management level.
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 In order to make its HR functions more effective, Framlington Property needs to follow
fair practises at the time of recruitment and selection of workers. It can be recommended
that the employees are willing to work in India so that should be promoted and they
should be hired for UK location.
All the above-mentioned recommendation will help the organization to achieve higher
profits and sales in the end.
CONCLUSION
From the above report, it can be concluded that strategic human resource management
play a very important role in the success of any organization. Framlington Property is dealing
with lot of issues related to its employees. It can be concluded that the idea of expanding
operations in market such as India is very good. This will provide organization with new
opportunities to increase sales and profitability. On the other hand, it can be also concluded that
Framlington Property needs to take some corrective actions in order to boost up the morale and
motivation level of workers specially the one that are in the lower level of management.
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REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Becker, B.E. and Huselid, M.A., 2006. Strategic human resources management: where do we go
from here?. Journal of management. 32(6). pp.898-925.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Chen, C.J. and Huang, J.W., 2009. Strategic human resource practices and innovation
performance—The mediating role of knowledge management capacity. Journal of
business research. 62(1). pp.104-114.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
Psychology. 63(1). pp.153-196.
Daley, D.M., 2006. Strategic human resource management. Public Personnel Management.
Current concerns, future challenges. 5. pp.120-134.
Lengnick-Hall and et.al., 2009. Strategic human resource management: The evolution of the
field. Human Resource Management Review. 19(2). pp.64-85.
Lepak, D.P. and et.al., 2006. A conceptual review of human resource management systems in
strategic human resource management research. Research in personnel and human
resources management. 25(1). pp.217-271.
Martín-Alcázar, F., Romero-Fernandez, P.M. and Sánchez-Gardey, G., 2005. Strategic human
resource management: integrating the universalistic, contingent, configurational and
contextual perspectives. The International Journal of Human Resource Management.
16(5). pp.633-659.
Schuler, R.S. and Jackson, S.E., 2008. Strategic human resource management. John Wiley &
Sons.
Storey, J., 2007. Human resource management: A critical text. Cengage Learning EMEA.
Online
Strategic-HRM. 2016. [Online]. Available through: <http://www.shrm.org/india/hr-topics-and-
strategy/strategic-hrm/pages/default.aspx>. [Accessed on 19th February 2016].
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