Strategic HRM in Organisations


Human Resource Management (HRM) is one of the most importance function in virtually any organisation. The essential function of HRM is handling individuals, which in simple clarification is adding right people at right in right time. HRM includes the actions as recruitment and selection, training and development, compensation and performance appraisal etc. of an employee.

In this assignment, Care Quality Fee (CQC) will be taken as a chosen company. CQC is a authorities funded health care regulating body which is in charge of handling and monitoring of healthcare service providers to make certain they abide by the specifications and rules and regulations set by the federal government. Besides CQC is given authority to punish the companies in case they do not meet the specifications.

Task 1. 1. Definition of Strategic HRM in organisations:

Human Source of information Management (HRM) is one of the major functions within an organisation for taking care of people within company, concentrating on the systems and insurance policies of the organisation (Collings and Hardwood, 2009). HRM is mostly the systems and procedures of recruitment, selection, training and development, appraisals and rewarding of the employees (Paauwe and Boon, 2009). Strategic HRM in today's context, is a necessity for organisations which, corresponding to Wright and McMahan (1992) is a planned human reference deployment and activities that allow an organisation to go after its goals.

Various HRM models have been researched and proposed by different creators. Below is the talk on some of them.

Devanne et al's Matching Model of Strategic HRM

This model, suggested by Devanne et al (1984) is dependant on the beliefs of matching (or fit) of HR systems and organisational composition with the organisational strategy, where, HRM strategy and organisational framework follow and nourish upon each other and are influenced by environmental causes. The limitation of the theory is the fact it assumes that organisational controllers take action rationally. However, some theorists argue that tactical decisions need not necessarily based on rational computation. As argued by Boxall (1992), excessive installing can make a company inflexible and incapable of quickly adapting to external environment, failing to gain competitive gain.

Fig. 1 Devanne et al (1984)'s Matching Style of Strategic HRM

Hard/Soft Style of SHRM

HRM, as postulated by Storey (1992), can be divided into 'Hard' and ' Soft' HRM. The hard model is characterised by top-down procedure where employees have little liberty to act. It could be argued that 'hard' HRM targets resource component of HR, as hard HRM is instrumental and employees are considered as commodities. Within this model, the target is in the numerical management of employees so that labor force can be directly matched with the necessity. On the other hand, 'very soft' HRM deals with the human aspects and enhances determination and participation of the employees. Perhaps, more correctly it can be said that individuals are led, instead of being managed and people get excited about decision making process.

HR Strategies

HR Strategies describes what the company intends to do regarding HRM procedures and how they need to incorporate with business strategy. Dyer and Reeves refers HR strategies as 'internally steady human resource methods'. The purpose of HR strategies is to provide communication means to the intentions about how the human resources will be supervised. Many different strategies are prevalent depending on the organisation. However, broadly the HR strategies are categorized into Overarching HR strategies and Specific strategies. The Overarching HR strategies express the organisational intentions about how people should be were able to ensure organisation can form and retain its people so as to make them dedicated and engaged. The Specific HR strategies lay out the organisation's intentions in specific areas as talent management, constant improvement, knowledge management, resourcing, pay back and employee relations (Armstrong, 2006).

There are various methods to HR strategy that may be referred to as resourced based, achieving high performance management, proper fit, high determination management and high involvement management.

In CQC, it is seen that it mostly focuses on the development of its people through continuous training and development programs. The criteria and regulations that are modified in line with the need and situation initiates further knowledge improvement in the workforce that strengthens the efficiency of the staff. This gives the notion that CQC adopts the precise HR strategy.

Criteria for successful plan: The successful strategy is one which works with a sense in obtaining what it designs to achieve, focusing to gratify the needs of the business enterprise. The strategy need to be based on specific analysis, not merely mere thinking, and takes account the needs of employees and professionals as well as those of stakeholders. As argued by Boxall and Purcell (2003), HR planning should focus on needs of the stakeholders involved in people management and the company.

Task 1. 2 Importance of HRM in organisations

An organisation needs good recruiting to build a good team of workforce. The main function of HRM includes recruiting people, give training, appraisals and inspire them as well as place of work basic safety and communication. Huselid, Jackson and Schuler (1997) have a report on human capital of the HR office by contrasting technical vs. tactical HR manager features which resulted in the result that complex HRM effectiveness was not related to organisational performance. However, tactical efficiency was related to worker performance, cash flow, and market value. Studies on Strategic HRM have often considered contingent associations to attain a fit between HR activities with strategic outcomes. Miles and Snow (1984) proposed a strategy typology (later described as contingency methodology), that confirmed how commercial and business strategies could be matched up with HR practices. This point of view means that a set of HR practice would depend after the organisation's strategy. The need for HRM in enhancing organisational performance is paramount. The linking pin between vertical and horizontal positioning in strategic HRM is the person-environment fit. Moreover, Werbel and Demarie (2005) proposed vertical linking between HR systems with commercial strategies through organisational competencies and horizontal hyperlink with HRM tactics as means to improve organisational performance. Strategic HRM, hence web links HR methods with corporate and business strategy which is thought that the integration between business strategies and HRM reflects in effective management of recruiting, thus improving organisational performance.

Task 1. 3 Construction of strategic HRM

The discussion on the platform of proper HRM, here is done on the Harvard framework. Developed by Beer et al (1984), this model studies the solution for the problems of the employees management. The model of Harvard framework shows that HRM involves two characteristics: 1) line managers allows more tasks to ensure alignment between personnel plans and competitive strategy; 2) the staff plans govern how activities are developed and integrated that enhances encouragement. As supported by Boxall (1992), this model has the advantages of incorporating selection of stakeholders; acknowledges an array of situational factors; puts emphasis on strategic choice and includes the worker influence.

Fig. 2. Harvard Model of HRM (Ale et al, 1984)

The Harvard Platform describes four HR coverage areas: Employee affect; Human resource moves; Praise systems and Work systems. These, subsequently lead to 'four C's' (HR policies that need to be achieved; Commitment, Congruence, Competence and Cost efficiency. As argued by Ale et al (1984) the long term effects of benefits and HR guidelines must be evaluated at specific, organisational and societal level, which in turn must be analysed using these four C's. The Harvard model has considerable influence in the HRM practice, and the emphasis is specially on the fact that HRM is the action of management somewhat that the staff function, specifically.

Task 2. 1 Evaluation of the Individuals Resource Process

The human tool process fundamentally is the process of formulation, implementation and evaluation of the HR strategies.

Strategy Formulation

It is essential to consider the interactive marriage between HRM and business strategy while defining methods to formulation of HR strategies (Hendry and Pettigrew, 1990). The strategy formulation process is effected by various exterior and inside factors. As identified by Formbrun (1984) political, inexpensive, socio-cultural and technical environment are the exterior factors that impact the formulation process. The changes in these factors can be helped bring by changes in economic conditions in specific industries, better information handling, changes in workforce/demand forecasting and politics influences which benefit the options of strategic direction. Organisational culture, employees and management, HR section and its know-how are the inner factors as discovered by Truss and Gratton (1994).

Strategy Implementation

The success of strategy execution is dependent on the competencies of the human resources. The linkage of vertical and horizontal fit conceptualized by Graton, Hope-Hailey, Stiles and Truss (1999) seem to be to fit here. In vertical fit, HRM systems like performance management, recruitment and selection, training and development have to be aligned with the HR strategy, whereas, in horizontal fit the HR strategy aligns with the folks and the process. Evaluation is the final process of HR process that handles review and evaluation of the

Strategy Evaluation

HRM systems efficiency and the proper integration. The results of HRM systems in achieving strategic objectives is recognized as an important part of tactical HRM where, the position of HRM systems in attaining strategic targets should be assessed for determining the strategic integration of HRM (Tichy, Fombrun and Devanne, 1982). The info generated through evaluation process provide necessary elements for changes in implementation process and also, is important in the context of strategy formulation.

The strategic HR process can be grasped by the following flowchart produced by Bratton and Platinum (2007).

Fig. 3. Strategic HR Process (Bratton and Gold, 2007)

Task 2. 2 Analysis of the assignments in proper HRM

Different tier of labor force in an organisation has their definitive assignments in executing HR strategies. The role of the top management is providing visionary control and define worth and purposes to create direction. It grows the business enterprise strategies and offer directive suggestions in developing efficient strategies for businesses, finance, marketing, development, HR and customer service etc.

The front collection managers, as valued by Purcell et al (2003), will be the ones that 'bring HR procedures to life'. Purcell et al declare that front line managers have great amount of discretion as their aspect of work is interacting with people. It is improbable that the discretion to avoid putting HR ideas into practice will convert ideas into certainty. Hence, the reluctance in professionals to carry out ideas often effect into inability of performance management techniques.

Ulrich (1998) views that 'HR professionals, to be fully fledged strategic lovers with older management, should impel and guide serious conversation of the way the company should be sorted out to handle its strategy'. It's important that HR must place clear priorities of its work since, a HR personnel may be packed with various initiates around the corner like, global teamwork, payfor performance and learning development encounters. A strategic way of HRM will result in HR specialist in innovation where they create new strategies that can increase organisational performance. Ulrich (1998) recognizes four specific tactical roles of HR - business partner, innovator, change agent and implementer.

In CQC, The plank of Directors develop and formulate the strategies of the company which is the basis for the principle Executive to create the HR approaches for CQC. The Chief Inspectors and Heads of concerned departments are in charge of execution and implementation of the strategies. The regular conferences and feedbacks from the employees as well as service users are believed in the process of evaluating the HR strategies.

Task 2. 3 Analysis of the development and implementation of HR strategies

The procedure for growing HR strategy is a complex process. The HR innovator has to set eyesight and goals for the HR team, in so doing the HR team grows the HR strategy which is aligned with the organisation's competitive benefits. It really is of best importance that the new HR strategy does not abandon the prior strategies, however, there must be controllable changes and the execution should be measurable (Briscoe et al, 2012). The implementation plan is produced by HR team where all the employees and professionals monitor the improvement of the strategy and provide necessary feedbacks. The execution of any strategy is a hard part which must be approved from the top management and has to be been able by the dedicated team. As observed by Brewster et al (2011) top management do not expect for total change in the new strategy; they look for continuity with manageable changes. Economically the execution is expensive to operate. The very best management must be aware of the overall cost because the implementation can get disrupted if the financial part is not carefully supervised.

The development of the strategic HR plan is definitely in alignment with the organisation's business strategy. Often it is seen that the HR team take negligible account of the business enterprise strategies while developing HR strategy. This can result into lack of vision of the strategy and difficulty in the evaluation of the strategy (Golden and Ramanujam, 1985). The following chart represents the positioning and steps in growing HR plan.

Fig. 4 HR and Business Strategy

Task 3. 1 Identifying selection of HR strategies

The real human capital uniqueness and tactical value are considered as two important components in HR strategies. Organisations need to maintain different romance with different kinds of individuals and develop different HR strategies to manage people differentially. Below is the debate on different kinds of HR strategies as suggested by Lepak and Snell (1999).

Commitment HR strategy: The determination HR strategies are for the employees with high uniqueness and high strategic value. Such strategies concentrate on internal development and long-term relationships which produces employees to generate knowledge and skills that are of perfect value to the organisation.

Compliance HR strategy: This kind of strategy seems suitable for the employees with low proper value and low uniqueness where, to be able to lessen administrative bills, he freelancing strategies are used like peripheral functions, employees on leave preparations and use of short-term employees.

Collaborative HR strategy: Where in fact the employees have high uniqueness but low strategic value, the strategy targets producing potential value in the employees and preserve the unique skills of these employees. Both the employees and organisation collaborate in using the unique skills for a distributed outcome.

As discussed earlier, the number of strategies can be broadly differentiated into overarching HR strategies and specific HR strategies (Armstrong, 2006). The precise HR strategies focuses on developing the approaches for certain areas.

Learning and development management: In the area of learning and development management, CQC has the tactical goal of preserving and developing required skills though constant development programs and regular trainings on the useful skills of the employees and regularly updated governmental rules and regulations regarding health care policies.

Reward strategy: The purpose in developing pay back strategy is based on maintaining a high degree of motivation among the list of employees in CQC. The appreciation and acknowledgement of the employees on achievement of the expected final results has incredible positive effect on the CQC employees.

Employee connection strategy: The nature of the operative function of CQC requires it to truly have a well maintained inter marriage among employees across many departments. CQC organises consistent conferences and workshop programs on the list of employees from different departments to create higher level of collaboration and cooperation among the employees. The feedback system in CQC enables the employees for bringing up their voices in several areas of their job functions.

Task 3. 2 Examination of HR strategies and their software in organisation

As discussed earlier, there are different types of HR strategies which can be developed based on the widespread situations and areas that require to be resolved. It is not necessary that there surely is one most effective strategy that can be applied in every organisations or is applicable constantly in the same organisation. The development of the strategies change according to the necessity of the current situation that the business strategy directs. Another facet of HR strategy application can be in terms of Hierarchy of strategy where the HR strategies can be categorised as commercial, business and efficient degree of strategy (Bratton and Gold, 2007).

The success of the HR strategy can be assessed through the amount of achievements of the expected result. However, Bratton and Yellow metal (2007) argues that here's no clear give attention to test of HR strategies and performance website link; the several models and strategies tends to assume the alignment between HR strategy and business strategy that will improve organisational competiveness and performance.

As reviewed by Golden and Ramanujam (1985), there has to be alignment between HR strategy start of business or organisational strategy. As the perspective and culture of company directs the business strategy. the HR strategy should be compliant with the HR perspective and HR goal.

The HR strategy in CQC is generally focused on the development of employees in neuro-scientific job efficiency and knowledge on the regularly posts of governmental plans of the health care service and its own regulation. This is assumed that CQC by implementing specific HR strategy, it focuses on people oriented activities. However, CQC being truly a government funded company, it does hold the strategic way in building rigid work norms and ethics, which at times, appears to create problem in managing day to day problems of the employees like postponed distribution of inspection studies, lack of regular inspections of the companies etc.

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