Strategic Human resource management is generally use to make sure that the organisational has well motivated, perfect in their work and committed staff to achieve their goals and objectives of the company. According to Boxall (1996) to improve the strategic human resource management SHRM for the senior managers you need to hire the more experienced qualified and developing their talent in the organisation through improve their basic skills by training and other courses,
There are two model of SHRM Ulrich model and Best Practice model.
Ulrich Model: Deve Ulrich is the real hero of the Ulrich model in 1997. Ulrich model of the business partnering is very popular in USA and UK and it has influential impact on these countries. Ulrich model is more aspiration for the upcoming HR professionals. He was the master of the human resource management and by using his model the most benefit was more responsible and flexible organisation in HR and it gives the opportunity to HR professional to become a real impressive business partner. (John Storey 2007)
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Strategic partner: Strategic partner is about of HR practices, activities and initiatives of the global business management and it is the task of HR management and the HR business partners. Strategic partners give the support to the organisation to expand their self in the world. There is example of Tesco who has their strategic partners in their company. Tesco is the biggest company in the UK and they expand their business and they had open their stores in the different countries in Thailand, China, Indonesia e.g. Simons Groups is the strategic partner for Tesco. Simon group is the construction company and they have £200M a turnover company. Simons group work as a strategic partner in Tesco and they work with the supermarket chain to plan and deliver a number of products in the next few year including the new big stores and extension in distribution. Simon works in Tesco as a accounts director. Ben Brewerton said it is fantastic to work with the biggest retailer in UK and they are looking to our offer line with in the Tesco (Construction of Tesco2009).
Change Agent: Change agent plays very important role in the organisation and the Ulrich model. Change agent means that making some changes and transaction of the business of the HR capital. The human resource management is the support for the changing activities in daily routine. Human resource management has to make sure that where the changes need to be done. According L. Bhat (2008) Apple become a change in the market in his all his business areas through his different kinds of invention like i-Pods, i-Phone, i-Macs, i-Pad and many more. They are change agent through his insight thinking and decision power of Steve Jobs who was the CEO of apple 1997 to 2009
Employ Champion: In the HR department the employs champion plays the vital role in the organisation. Employ champion means the leader of the all workers in the organisation. The employ champion needs to make sure that all the employees of the company are happy with their job; they feel secure in the company. The employ champion needs to take care of the employee’s interest and to protect them from the changes which are going in the organisation.
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Best Practice model: Best practice approach performed very well in each condition and by using the best practice approach it can lift the company in his performance and this model can lead the company as superior (Michel Armstrong 11th edition p.34). In best practice models there are some basic elements which will help the organisation to improve the organisational performance and these are.
Employs security.
Sophisticated selection.
Team working and decentralization.
High wages linked to organisational performance.
Extensive training.
Communications and involvement (Pferrer 1988 p.33).
There are seven which HR strategies which are formal training system, performance based compensation, internal career ladder, formal training system, employs job security, employee rights and clear structure of jobs these cane help to increase the organisational performance and the best practice model (Delery and Doty 1996 p.34).
Comparison: For the senior managers to ensure that they will choose the right models for the effective human resource management. As compare the two models Ulrich model and best practice model for senior managers the Ulrich model plays very important role in the effective human resource manager’s strategies. There are some drawbacks in the best practice model although this model can help the managers to increase its organisational performance. This model can cause the breakdown of momentum of teamwork, discipline, this model the best practice model create diversity between the employs and the management. In the best practice models they don’t have the unity in their HR strategy management. In this model they just ignore the employs need and they just look after the economic performance (Dr. Ernesto Dimaculangan 2006). So as my point of view the Ulrich model is the best choice for the senior manager for the effective human resource management. In the start the Ulrich model is also called four-role model. Basically many of the author said that the four-role model and the three step model is same. The main difference in these to model is three legged model is easy to understand and four-role model is difficult to understand. Ulrich had made his mind to change the model in the simplest form that people and organisation can understand and it is easy to understand (Transact HR 2009. Ken article 2011). Most of the scholar like the Ulrich and model and appreciate this model it is simpler to understand and it is very effective and result oriented but some of the scholar have objection on Ulrich model.
Reason for the importance of HRM in organisation: Human resource management plays very important role in the organisation. Organisation can’t run without the human resource management. Human resource management help the organisation to set the goals in organisation and tell the procedure to the company how to achieve that on time. According to Ruth Mayhew she describes in his article that there are 10 specific areas for the human resource management and those are (Ruth Mayhew on demand media).
Selection: Selection means choose the right person in the right place and the right time to the certain job accomplish. In the Vodafone Company the director of HR department using always the new approaches to managing the employees. The HR department give some responsibilities to their managers that they can select the some good employees for the achievement of the goals.
HR Development: HR development means give training, conference, academies, meeting to the employee company for the achievement of the goals. The Vodafone Company focuses more on the training to satisfy the customer need. Vodafone delivers a variety of training through e-tools and e-module on cr. Vodafone is setting a new indicator to identify the number of employees and they have also classroom for the training. They had given the training in all department of the company for the achievement of the goals.
Recruitment: It involves attracting the right standard of applicant to apply vacancies. Tesco advertise their vacancies in the different ways. Tesco always look at internal talent plan to fill the vacancies. In the internal talent plan they first look at the current employees within the company. If they didn’t get any suitable people talent plan or developing on internal management programme.
For the external vacancies they had advertise their vacancies through their own website and through their own store notice board. All the applications are made online for the managerial position. The chosen application has been interviewed followed by the attendance at on assessment centre for the final stage of the selection process. Sometime for the harder department they work hard to find the good applicant such as baker, pharmacist. Tesco advertise extremely through these things.
Through their own website.
Through offline media.
Through television.
Through radio
Through different magazine
Placing advertisement on Google.
Employees Satisfaction: HR department has made the god relation with the employees which will make them more effective and improve the performance of the employees to achieve their objectives.
Strategy: HR department help to improve the strategy of the organisation by using the different tool like strategic planning. HR improves the strategy for the growth of the business and for achieving the organisation goals.
Compensation: HR department has to compensate their employees by different methods like if the company is running out with the short of staff and HR need to give some overtime to their staff and compensate them with the extra wages and pick and drop services.
Benefits: HR department can give the benefits to the employees and by giving these benefits they can reduce their cost. HR can give the benefits in shape of increment, bounces and pension. If the HR will not give the benefits to the employees then the employees will de-motivate from this company and look for best offer which is offered from other company. Then the HR has to do recruitment again and it will increase in their expenses.
Safety: HR department have to make sure that all the safety measures should be active and maintain in all the time. For the staff the HR department must sure that the employees work in the safe condition and they have a good environment in the working place of the workers.
Liability: HR department has a liability to make sure that their employees are working in safe environment. HR department has made sure that their employees are not harassed and no discrimination in the working places. If these thing happen in then the employees will be de-motivate and then it is difficult to achieve their goals.
Compliance: HR department has to make sure that all the employees have right documentation of their work. HR department has to compliance with the international employment laws of the country.
Explanation and analyses of HRM:
The Human Resource Cycle:
Rewards
Selection Performance Appraisal
Training
Source: Fombrun Tichy et al (1984)
This framework helps the SHRM department to the weak point of the companies. By using this framework they have set their objectives in the companies. This framework has a cycle for HR department which they have to follow in the companies (Michel Armstrong 2003 9th edition P. 22) .
Selection: Selection means choose the right person in the right place and the right time to the certain job accomplish. In the Vodafone Company the director of HR department using always the new approaches to managing the employees. The HR department give some responsibilities to their managers that they can select the some good employees for the achievement of the goals.
HR Development: HR development means give training, conference, academies, meeting to the employee company for the achievement of the goals. The Vodafone Company focuses more on the training to satisfy the customer need. Vodafone delivers a variety of training through e-tools and e-module on cr. Vodafone is setting a new indicator to identify the number of employees and they have also classroom for the training. They had given the training in all department of the company for the achievement of the goals.
Appraisal: Appraisal means how well employees doing job. Vodafone employees are working very hard for the achievement of goals due to training, meeting with the employees, improve the skills of the employees and make them more productivity. Managers also deliver the presentation that’s why company built relationship between employees and manager.
Reward: Vodafone is using reward system in the company. They have the different bonuses in the company for the different category of workers. By using this reward system the company can go for success employs are more productive and they are more motivated toward their goals.
Performance: Performance means if the people work hard and the HR department, appraisal and reward going well the performance of company or people definitely affect all these factors, all of these factors are inter-related if any one effect all other factors will be effective.
Explanation of HRM process and how strategies are developed: The human resource process play very important role in the organisation and human resource management help to build a strategy. The human resource process has different method to use in the organisation to make the organisation successful and those are job analyses, job design, recruitment, selection, training, development, performance management, compensation and employ relation. These are the processes which will help the organisation to achieve his mission goals and objectives (Lee Ross and Pryce 2010).
1. Job analyses: According to Susan M. Heathfield job analyses is used to collect the information from the other resources about its responsibilities, necessary skills and outcomes. It evaluate that what are the requirement of the job and what is its description (Susan M. Heathfield about.com). In HR process job analyses tells the company what kind of job is needed in the company and what are the requirements
2. Job design: In HR process the job design is the next step after the job analyses. In this job design it indicates individual person responsibilities and the contents how he achieve the objective of the company in his job.
3. Recruitment: It involves attracting the right standard of applicant to apply vacancies. In HR process the recruitment department has to recruit that person who has a ability to achieve the company goals and
Selection
Training
Development
Performance management
Compensation
Employ relation
HR strategies: HR strategies plays very important role in organisation and HR strategies tell the organisation what to do with the organisation HR policies and procedures. According to Deer and Reeves says that
“Internally consistent bundles of human resource practices”
Richardson and Thompson (1999) says that HR strategies has two main key elements which are they must have their own strategic objectives and they have their action plans of the organisation (Michel Armstrong 10th edition 2006). HR strategies help to implement the program in the organisation and it help in the human resource department to make the decision to achieve the objective of the organisation. Human resource department use the HR strategies to set the objectives of the company and human resource strategies ideas how to achieve their objectives. As Grattan (2000) said the in this world there are no great strategies in this world there are only the great execution plans (Michel Armstrong 10th edition 2006). There are two main HR strategies and these are overarching strategies and specific strategies. Overarching HR Strategy: Overarching HR strategies are mostly use in the business and it is very successful hr strategy. Every company want to be at no 1 position by using this strategy. Overarching strategy tells the company what step the company has to taken for the organisation can attract and fulfil the need of the people and the company has to make sure that the employees are motivated committed and engaged for the achievement of their goals. According to Boxall and Purcell (2003) said that if the organisation choose the best employees with the best recruitment process then those employees will give the high performance work system and they will create a well disciplined and friendly environment for work which will help to increase their efficiency.
Specific HR Strategy: Specific strategies are used in some places of the organisation which are talent management and continuous management.
Talent management: Specific HR strategies use in the talent management and the talent management is looking for the great talent which will help them in make the improvement in required department where they need it.
Continuous management: It is usually used in many places of the organisation where the management think that some continuous improvement must be done in these areas. This continuous management help the organisation to improve its performance and make their to be at no. 1 position in the market.
Role of SHRM for senior managers:
The HR managers have keen role in the effective planning and implementation of the policies and decisions that in tune with the business changes. They should act as strategic partners and be proactive in their role than mere reactive, passive spectators. The HT managers should understand how far their decisions contribute to business surplus incorporating human competency and performance to the organisation. Strategic HR managers need a change in their outlook from seeing themselves as relationship managers to strategic resource managers. Kossek (1987, 1989) argues that major HRM innovations occur when senior management takes the lead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HR Department with the CEO and the line managers. Legge (1978) commenting on the actions of the personnel practitioner in the innovation process suggests that adoption of an innovation by an organization depends largely on HR practitioners’ credibility with information and resource providers. HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRM is the concepts of fit and flexibility. The degree of fit determines the human resource system’s integration with organization strategy. It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy.
Conclusion: In writing an article the success of your business is through the effective use of human resource management. There are Ulrich models best practice model, framework and the process of SHRM and the roles by using these tools the senior manager can use the effective human resource management.
Task 2 Case study
BA has a big problem from last few years with their staff relation problem especially in cabin crew dispute and they have done the strikes. According to Steve Turner unite national aviation officer said Day by day the cabin crew and the deck staff relationship is going worst. BA hired the 1000 volunteer flights attended although they had already strong staff. Willie Walsh is the chief executive of the BA he hired the volunteer air craft, rival airlines, flight attend and volunteer crew member who help the passengers to drop them on their destination. While the strikes are going on they didn’t reach to any decision and they had stop talking about this problem (Dan Milmo transport correspondent).
Task 2 A:
After dispute in the British airways staff and the crew member there are four HR strategies which will help to finish the dispute in cabin crew member.
Employees Engagement
Employees Retention
Employees Development
Employees Empowerment
Task 2: British Airways merged with Iberia in 2011. Analyse the impact of the merger on strategic HRM at British Airways.
There are some of the impacts of merger which are as under:
Reduction of Cost: With the merger of these two companies both are enjoying the reduction in cost of operations. It is quite obvious when there is no merger; both of them are incurring some of the fix and variable cost to achieve their objectives but after merger there is no need of duplication of costs. They both can share the resources of each others.
Better portfolio: With the help of merger the company has bigger and better portfolio with increase in the number of aeroplanes. Increase in aeroplanes ultimately means that more flights throughout the world. The coverage of flights has also become bigger as they now cover more than 200 destination worldwide and carry over 60 million passenger a year.
Improved customer service: In the event of merger the level of customer service increases as these both companies have altogether different cultural values. As a matter of fact the reason behind merger is to grow bigger and this is not possible with the improvement in customer care, therefore to get more business and attracting more customers is only possible with the improved customer service.
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Combined head abilities/skills: Before the merger both of them have got limited skills and expertise but after merger this goes bigger and they both can enjoy the expertise of each other. For example if the administrative services are better with British Airways than Spanish Airlines, than they can just rely on BA for administrative services. While on the other hand if the Spanish Airlines are better than BA in cabin crew members’ and technical team, then they will leave these sorts of services for SA and enjoy the specialised services.
There are some of the cultural differences which have the impact on the strategic HRM as under:
The organisations in UK have the flat hierarchical structure where the gap between managers and workers or employees is very small. Managers directly involve themselves to help out the employees or give direct coaching or supervision. On the other side Spanish companies have a hierarchical structure where the manger plays a parental role. Communication plays very important role in any organisation and communication styles differ from country to country which is very confusing for the other country. Such as British people use indirect language where the Spanish use direct language and express what exactly they are trying to say. It is well known in any trade that those who avail risk enjoy the success and in this merger both the nations have different views about taking risk. British are risk takers and the Spanish are risk aversive. It is very big cultural difference which some time creates big problems in making decisions. It is the precious element in any organisation. This is another cultural difference between the both nations. British respect the deadlines and stick to agendas whilst the counterparts reschedule their deadlines.
From the studies of both the cultures it is concluded that it is very important to know the demographic characteristics of both the countries before undertaking the mergers and acquisitions. More than 60% of the mergers and acquisitions become unsuccessful because of the lack of studies in cultural differences. Awareness about these characteristic is even more important than PESTEL analysis. To overcome this problem or to reduce the chances of failure cross-cultural training courses could be arranged before the merger to make it more successful.
Biblography:
Armstrong 2009 11th edition
http://monizaharie.files.wordpress.com/2009/12/armstrong_hrmpractice.pdf
CIPD Book Strategic HRM July 2012 (sited on 23/10/2012)
http://www.cipd.co.uk/hr-resources/factsheets/strategic-human-resource-management.aspx
John Storey 2007
http://books.google.co.uk/books?id=TmsExMtSWB8C&pg=PA30&dq=ulrich+model+of+Hrm&hl=en&sa=X&ei=_cqHUMWfLamr0AXXmIHYDA&ved=0CDYQ6AEwAQ#v=onepage&q=ulrich%20model%20of%20Hrm&f=false
HR Advice Website Sited on (23/10/12)
http://hrmadvice.com/hrmadvice/hr-role/ulrichs-hr-roles-model.html
Construction news for Tesco 2009 (sited on 23/10/2012)
http://constructionnew.blogspot.com/2009/02/simons-groups-named-partner-for-tesco.html
L. Bhat on his smoking apple article on 2008 (sited on 23/10/12)
http://smokingapples.com/opinion/apple-change-agent/
Transact HR 2009. Ken article 2011
http://www.articlesbase.com/book-reviews-articles/four-role-model-and-the-subsequent-three-legged-stool-version-4821456.html
Ruth Mayhew on demand media (sited on 28/10/2012)
http://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html
Michel Armstrong Human Resource Management Practice 2003 9th edition P. 22
http://books.google.co.uk/books?id=2AGbuhlTXV0C&pg=PA22&lpg=PA22&dq=fombrun+tichy+and+devanna+model+of+hrm&source=bl&ots=ZlPp0HsRH5&sig=a6hVwjt0Rdph1IKpypRLdgtPl10&hl=en&sa=X&ei=Ov6OUJ6LHKTD0QX0qIHICQ&ved=0CE8Q6AEwCQ#v=onepage&q=fombrun%20tichy%20and%20devanna%20model%20of%20hrm&f=false
Lee Ross and Pryce book Human resource and Tourism 2010
http://books.google.co.uk/books?id=Tkq4q9JXr8MC&pg=PA65&dq=explain+hrm+process&hl=en&sa=X&ei=_c6NUNKwGOKu0QXW3IGIBg&sqi=2&ved=0CDcQ6AEwAQ#v=onepage&q=explain%20hrm%20process&f=false
Susan M. Heathfield about.com (sited on 30/10/2012)
http://humanresources.about.com/od/jobdescriptions/g/job_analysis.htm
Michel Armstrong A handbook of human resource management practice 10th edition 2006
http://books.google.co.uk/books?id=D78K7QIdR3UC&pg=PA124&lpg=PA124&dq=hr+strategies+in+michal&source=bl&ots=ehMQNLQ8dU&sig=fOSTPIOek9lBHcTuBGmo2DS9tQ8&hl=en&sa=X&ei=rUeQULTVL6er0AW9l4Ew&sqi=2&ved=0CCIQ6AEwAA#v=onepage&q=hr%20strategies%20in%20michal&f=false
task 2
Dan Milmo transport correspondent publish on the Guardian march 2010 (sited on 10/11/2012)
http://www.guardian.co.uk/business/2010/mar/30/ba-strike-staff-relations-dispute
task 2 b
Communiciad Blog Sited on (15/11/2012)
http://www.communicaid.com/cross-cultural-training/blog/cross-cultural-training/british-airways-gains-a-new-wingman-by-merging-with-iberia-%E2%80%93-a-look-at-the-cultural-challenges-of-this-international-merger-and-acquisition/
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