Human Resource Management at Vodafone: A Detailed Report

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This report provides a comprehensive analysis of Human Resource Management (HRM) at Vodafone. It begins with an introduction to HRM and its importance, followed by an overview of Vodafone's current environment, examined through the McKinsey 7-S model, and a description of the company's internal and external environment. The report delves into the purpose and function of HRM within Vodafone, exploring recruitment, training, and development. It includes a PESTLE and SWOT analysis to assess the company's external and internal factors. The report further examines effective HRM practices, linking motivational theory, rewards, and job design. It contrasts internal and external recruitment approaches, highlighting their pros and cons, and concludes with recommendations for improvement. The report emphasizes employee engagement and the alignment of HRM practices with Vodafone's goals.
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Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Current environment of the company and internal and external environment through model
................................................................................................................................................3
2) Purpose and function of the HRM and companies external and internal environment....6
3) Effective HRM practices run By the Vodafone company and link between Motivational
theory, rewards and job design...............................................................................................9
4) Recommendation and justification...................................................................................10
CONCLUSION..............................................................................................................................11
REFERANCESS............................................................................................................................12
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INTRODUCTION
Human resource management is one of the important part of the company which helps
to provide skillful employees to the company so they help companies to archive the goals and
their objectives (Alam., 2017). They recruit the employees who have job skills and qualification
to work in the company. Function of the HRM in the company is Recruitment, selection,
provide training top the employees and motivate employees through the Human resource
practices and rewards system polices.
This report will cover the case study of Vodafone company. It has headquartered is in Us
and one of the subsidy in the Germany (Al Shobaki And et.al., 2017). This report give
introduction of the Vodafone company models to understand the internal and external
environment of the company. This report will explain the purpose and the function of human
resources management and also provide the Pestle and Swot analyses of the company and it
will also conclude the pros and cons of the different approaches of the internal and external
methods of the recruitment. These report will effectiveness of the Human resources management
practices for the employees engagement and enable employees to achieve companies goals and
objectives. In the end of this report will provide recommendation for the improvement.
MAIN BODY
1) Current environment of the company and internal and external environment through model
Introduction of company
Vodafone is the multinational company who provides telecommunication in all over the
world. This has registered office location in the England and their global headquarter is in the
London m England UK (Armstrong and Taylor., 2020). This companies have market value of
the more than 100 billion. Vodafone company currently has the equality interested in the 25
countries and the Networks in the further 30 countries. The name Vodafone comes from Voice
data fone, chosen by the company to "reflect the provision of voice and data services over mobile
phones. Nick Read is the CEO of the company and their products are – mobile phones, IPTV,
Broadband, digital Television, internet Television, and other internet things. Currently more
than 100000 employees are working in this company and they are getting good salary.
Current environment of the Vodafone
Current environment of the Vodafone company is good for the employees because they
are maintained management and the strategic management at the workplace. Human resource
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management of the Vodafone company have good knowledge to make their workplace better
for the employees, so they can work properly (Berman And et.al., 2019). They behave good with
the employees and provide rewards to the employees, so they can maintain competitive
environment at the workplace. They formed a group of the employees, so they can work
together and increase the flow of communication at the workplace. Management of the
company and good working environment at the workplace is the responsibility of the HRM
because they recruit the employees who skills to archive the objectives, and they use their
management practices like group practices , training and other practices which helps this
company to create healthy environment for the employees.
Here is the tool which can help to provide the proper analysis of the Vodafone company -
Mckinsey's 7 Model
this model is a tool that analyzes firm’s organizational design by looking at 7 key
internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to
identify if they are effectively aligned and allow organization to achieve its objectives . IN this
model Human resource management of the Vodafone company have important role because
they are responsible to bring new employees at the workplace through their recruitment process
and their proper strategies.
Strategy
Vodafone company have proper and well manged strategy to achieve their goals in their
business. They provide their services to the people in the law prices which helps to gain them
competitive advantages in the market, and they can as how their presence in the market with
good emerging brand.
Structure
Vodafone company have simple structure which helps to increase flow of
communication I their workplace (ox, Pinfield, S. and Rutter., 2018). Employees of the
company can also talk directly to the superiors if they are facing any problem in their job. It
helps to create good culture in their workplace.
System
Systems are the activity and process of the Vodafone company , which reveal business’
daily activities and how decisions are made. (Apenko 2017). The Vodafone has followed
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formal procedure which govern the day to day activities. The marketing communication and the
MIS departments of this company analyze customer’s response by an easy going system.
Information technology is used in this company mostly because they provide services to their
customers related to the internet which is operated by the IT system.
To increase the skills of the company Human resource management of the Vodafone
company provide them training, so they can increase their skills and efficiency of the work.
During the change at the workplace , this practice is run by the HRM of the company, so they
can understand and learn the new task at the company.
Staff
Staff recruitment in the Vodafone company is done by the Human resource management
in which candidates have to clear the task which includes, interview, test, written test etc
(Chams and García-Blandón., 2019). after the selection of the candidate company provide them
training, so they can understand and learn the task they have to perform in the workplace.
Style
This is the way which shows how Vodafone company mage their top-level to lower level
of the managers (DeCenzo, Robbins and Verhulst., 2016). Managers of the Vodafone company
use democratic leadership style, and they also have good knowledge of a good deal of other
leadership theory which makes them control the activities, and they can encourage employees to
achieve the goals.
Shared Value
Shared Values are at the core of McKinsey 7s model. They are the norms and standards
that guide employee behavior and company actions and thus, are the foundation of every
organization (Goswami., 2018). shared vales are the norm, as to control the behavior of the
employees at the workplace. They use the management practices and group practices at their
workplace, so they can create good environment at the workplace and incurring employees to
give their best in their task. It is important for the Vodafone company to have good value among
the employees, so they can perform well in the task.
2) Purpose and function of the HRM and companies external and internal environment
Human resource management of the Vodafone Company plays important role to provide
skillful employees (Milliman and Clair., 2017). They are responsible to plan, organize, select and
recruitment for the companies workforce. Their main purpose is to make better and powerful
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labor force for the company through the development and training so Vodafone can achieve their
and show their presence in the market.. Human resource deppart5ment have their own function
which are –
Recruitment – Human resource management recruit candidates through the interviews and other
tests. They take their test and fined thee best candidates who can work for the Vodafone
company, they know which candidate can helps this company to lead towards the success.
Training and development – Harman resource management of the Vodafone company provide
training to the employees so they can increase their skills and ability to work for the company.
This also motivate they employees and they can help company to take competitive advantages
because training and development program improve the performance of the employees which
result in the increase in the product
Polices makers – they make polices which are related to the employees welfare so they can get
their rights and shifty at the workplace of the Vodafone company. they also take the decision
with the companies superiors and make decision with them.
Management – HRM of the company also manage the activities of the employees thorough their
management practices. They provide proper guidance to the employees so they can do their wok
properly and effectively.
Payroll function - one of the important function of the HRM which they calculate the salary and
wages of the employees according to their work and they also add extra incentives which is earn
by the employees in the Vodafone company.
Pestle analysis of Vodafone company
Political
Political factor affect the Vodafone company mostly because when government change in
the tax structure than it also affect on their companies profitability and employees income
(Donate, Peña and Sanchez de Pablo., 2016). It is essential for the HRM of the company to
implement those governments polices and inform about those changes o the employees.
Economical
Economic factors such as labor rates has huge impact on the Vodafone company because low
labor rates can be opportunity for them because people get ready to work of the company in low
prices so company can use money for the employees training and their development.
Social
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Vodafone company provide rewards to their employees after achieving their target which
create competitive environment at the workplace and employees give their best in the task. This
all reward polices are made by the Human resource management of the Vodafone company.
They make polices for the rewards to motivate their employees.
Technological
Technology is advantage of this company because this helps Vodafone to take
competitive advantages at the workplace. They should go with the trend so they can be stay in
the competition because competition at the global level is very high (Vanhala and Ritala., 2016).
After implementation of the new technology at the workplace this is necessary for the
companies HR managers to provide training to the employees at the operational level so they can
learn how to use new technology
Environmental
It is important for the Vodafone to look for the environment issues. Steps toward the
environment can helpful for the company to create good image amount the people and d their
employees as well
Legal
Company should provide Legal rights to their employees so they can work in the
company without any fear and if they facing any harassment then they can take legal action
against the person.
SWOT Analysis of Vodafone
Strength
Vodafone places heavy focus on marketing and customer convenience. The brand invests
heavily in marketing and uses several marketing channels for marketing and promotions
of its products and services.
Employees are well educated and they have strong knowledge of the markets
Weakness
They have strong position in the countries like Africa but Weak poison on some of the
markets such as US.
Despite the heavy focus of Vodafone on technological innovation and growth, the
company’s customer base in some key markets and particularly Europe has declined.
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Opportunities
It is important for the company to innovate their website and improve their customers services
(Yildiz, Fey and Zhou., 2018). Improve in the customers services can lead this company achieve
competitive advantages by gaining customer loyalty.
They can expand their business on the countries which are under development. They have
to chance to make strong hold.
Threats
Growing competition in the telecommunication industry is creating threat of the
Vodafone Company.
Governmental polices are becoming threat for the Vodafone company because they have
to pay high charges to the Government.
Internal and external approaches of recruitment
Internal
Internal approaches are method of the Hr in which they recruit employees from their
own existing workforce. This means if any high position at the workplace of the Vodafone left
than they give their job to the one of the employees from their own. There are some
advantages and disadvantages of the internal recruitment
Pros- this approached helps to promote the loyalty and can even improve employees moral and
motivate them as it services as the reward for the existing employees (Wickramasinghe and
Wickramasinghe., 2017). This method also saves the time and money both.
Cons – continually internal recruitment can result in a stagnant culture.
External
This is the approaches in which Hr managers of the Vodafone company recruit employee
from the outside of the company. Advantages and disadvantages of the external recruitment
method are –
Pro- This method bring new talent in the Vodafone company which can helps create good
opportunity for the company to increase their growth and take competitive advantages.
Cons – This method is costly and HR team of the company has to spend money on the
advertisement of the Job post etc.
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3) Effective HRM practices run By the Vodafone company and link between Motivational
theory, rewards and job design.
Vodafone company is using different different human resource management practices to
achieve their goals and objective. These practices help these companies’ employees to motivate
them so they can give their best in the task and achieve objectives and goals of the Vodafone
business and they can take competitive advantages. Here are some practices which are run by the
Human resource management of the Vodafone company-
Group task
HR managers of the Vodafone Company provide group task practices to the employees
so they work in the team and manage their work together (Florén, Rundquist and Fischer., 2016).
They also get experience from the employees who are working in the long times and also
increase the efficiency of the employees. One of the major reason to implement this practice at
the workplace of the Vodafone is to decrease the conflicts at the workplace.
Reward
They provide rewards to the employees for their motivation. This practices is run by the
HR managers of the Vodafone company. They provide rewards to employees when they reach
to the given target. This helps to create competitive environment at the workplace and company
can also motivate their employees. Employees give their best to achieve their task which lead
this company to achieve their business goals.
Job Design
HR management of the Vodafone Company designs the job when there is any vacancy.
They post the job on the different sources and post their job on those sources. They call the
candidates who are looking for the job and they take their interview. This all actives are run by
the HR manager of the Vodafone company and this also include their interview and various test
to recruit the employees who have skills.
Link between Motivational theory, rewards and Job design
This all practices are interlinked with the each other because it is important for the
Vodafone Company to motivate their employees, To motivate employees Hr manager of the
company they provide rewards to the employees which create motivation in the employees and
they give their best to achieve those rearwards. Providing rewards is also a part of the
motivational theory so company uses this method to motivate employees and increase their
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performance (Obeidat, Tawalbeh and Akour., 2019). Job design is also liked with the both
activities in which Hr manager of the Vodafone company design the job according to the
vacancies available at the company. To attract the candidates they also include the rewards
management details so candidates can join the job and they can be motivated from those police.
This is important for the company to use this all practices so they can achieve their goals and
their objectives.
4) Recommendation and justification
Vodafone company have strong Human resource management team but skill they need to
improve some areas which can help them to take competitive advantages. There are some
practices which can help this company to make their labor force more strong and they can
achieve high growth advantages in this competitive market. There are some Human resources
practices which can help them for the strong human force. One of the major prices they should
need the effective communication (Wickramasinghe and Wickramasinghe., 2017). It is important
for the Vodafone to implement this skills in their employees. Hr manager of the Vodafone
company should talk face to face with the employees and ask them if they are facing any
problems at the workplace. This will helps to create good relationship with the employees and
they will start trusting their superiors. Flow of communication at the workplace will also
increase the performance of the employees they can take competitive advantages.
Vodafone company provide their employees rewards for their work but they need some
improvement in their reward polices because the target set by the companies is creating
difficulty for the employees to reach to that target. It should be implement which can be possible
for the employees to reach to that target. Most of the employees are not trying to achieve the
rewards because its very hard for them to reach till the target set by the company. It is important
for the HRM of the Vodafone company to look for the improvement of the polices and they
should set the goals which can be possible for the employees to achieve those goals and every
employees give their best to archive those employees otherwise only some people who are
working from the long time will only able to achieve those goals. It will be hard for the other
employees to reach to those goals and they will not able to reach. They can set the target where
the new employees can also try to reach and this will motivate them and every employees who is
working in the Vodafone Company will give their best to achieve goals.
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CONCLUSION
From the above study it can be concluded that companies have to treat its employees well,
they have to develop their trust so that people retain in business for longer duration. Job
designing and reward management help companies in boosting moral of workers that aid
business unit in gaining more success and raising productivity of employees. SWOT and Pestle
analyse of company is helpful in knowing more about existing position of firm in internal and
external market that aids in making effective strategies through which business can get success
and cna gain competitive advantage.
As per the report has been covered the case study of Vodafone company, This report has
been explain the importance of the HR department in this company to their organizational
activities smoothly and perfectly so they can achieve their business goals. It has been explained
the current environment of the company and find the factors which are affecting their business
so they can take competitive advantages and show their presence in the market. This report has
been explain the activities run by the HRM and their purpose in the company .it has also
provided by Human resource practices such as Group task ,Reward, Job Design, Link between
Motivational theory, rewards and Job design. In the end of this report has been provided
recommendation for the improvement in the HRM practices and give suggestion to improve their
reward polices.
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REFERANCESS
Books and journal
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E. M. And et.al., 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Alam, P. A., 2017. Measuring Organizational Effectiveness through Performance Management
System and Mckinsey's 7 S Model. Asian Journal of Management.8(4). pp.1280-1286.
Cox, A. M., Pinfield, S. and Rutter, S., 2018. Extending McKinsey’s 7S model to understand
strategic alignment in academic libraries. Library Management.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Al Shobaki, M. J. And et.al., 2017. Importance Degree of eHRM and its Impact on Various
Administrative Levels in Palestinian Universities. International Journal of Engineering
and Information Systems (IJEAIS).1(7). pp.181-196.
Apenko, S., 2017. Human resource management of innovative projects in the context of business
strategy. Strategic Management.22(1). pp.3-6.
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources, Conservation
and Recycling.141. pp.109-122.
Goswami, A., 2018. Human resource management and its importance for today’s
organizations. Journal of Advances and Scholarly Researches in Allied Education.15(3).
pp.128-135.
Milliman, J. and Clair, J., 2017. Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Donate, M. J., Peña, I. and Sanchez de Pablo, J. D., 2016. HRM practices for human and social
capital development: effects on innovation capabilities. The International Journal of
Human Resource Management. 27(9). pp.928-953.
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