Business

London West Vally College ATHE Level 6 Diploma in Management Unit Title: Human Resource Management Submitted by: Mohammad Nayeem Uddin Mazumder London West Vally College ATHE Level 6 Diploma in Management Unit Title: Human Resource Management Submitted by: Mohammad Nayeem Uddin Mazumder Table of Contents Introduction 2 1. Importance of human resource management (Task-1): 2 1.1 Definitions 2 1.2 Importance 3 1.3 Framework 3 2. Formulation and implementation of human resource strategies (Task-2) 5 2.1 Process: 5 2.2 Roles 5 2.3 Development and implementation 8 3. Range of HR strategies (Task-3) 9 3.1 Company Profile: 9 3.2 Company overview: 9 3.3 Range of strategies : 9 3.4 Application 10 4. Affects of strategic human resource management (Task-4): 12 4.1 Contemporary issues: 12 4.2 Challenges for strategic HR management: 12 Conclusion: 13 Bibliography: 14 Introduction Human resource Management is a managerial process which ensures the individual goals, organizational goals and societal goals through coordinated ways in order to increase productivity with low labor and cost. The main purpose of the HRM is to convert Human being to Human Capital. “HRM as the Policies and Practices involved in carrying out the “People” or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising”(Dessler.2007). 1. Importance of human resource management (Task-1): 1.1 Definitions * Strategic Human resource management is an approach that refers how the aims of the organization will be acquired through people by means of human resource strategies and combined human resource practices and policies. Strategic Human resource management is also based with viewing the people of the organization as a strategic element for the acquirement of competitive benefit. * According to (Roth, 2002) the macro organizational approach to look the function and role of human resource management in the big organization is termed as Strategic human resource management. Models of strategic HR management: * Contingency model: Contingency model is a class of behavioral Contingency model that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. * Best practice model: A Best practice model is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark. * Ulrich’s model: Dave Ulrich’s professional focus has addressed questions on how organizations add value to customers and investors through both leadership and strategic human resource practices. * Control based model: Control based model is a list of permissions attached to an object. * Resources based: Resource -based practice (RBP) is an interdisciplinary approach gaining ground after 1992. 1.2 Importance Strategic Management and HRM: Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization. Aiming to enable the organization to achieve its strategic goals by attracting, retaining and developing employees, HRM functions as the link between the organization and the employees. HRM is very crucial for the whole function of an organization because it assists the organization to create loyal employees, who are ready to offer their best. Importance of HRM for Organizational Success: The practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. The main goals / responsibilities of HRM are: * To retain low employee turnover rate by inspiring people to work for the company. * To attract new employees. * To contribute to employee development. To achieve these goals, Human Resources Management trains and motivates the employees by communicating ethical policies and socially responsible behavior to them. In doing so, it plays a significant role in clarifying the organization's problems and providing solutions, while making employees working more efficiently. 1.3 Framework Here discuss about the framework (Harvard): Stakeholder interests: * Shareholders, * Managers * Employees, * Employee organizations * Government Situational factors: * Characteristics of workforce. * Business strategy. * Organizational culture. * Labor market. * Social context. HR policy choices: * Work systems * Reward systems * Employee influence * Commitment * Congruence * Competence * Cost effectiveness The Harvard model outlines four HR policy areas: 1. Human resource flows - recruitment, selection, placement, promotion, appraisal and assessment, promotion, termination, 2. Reward systems - pay systems, motivation, 3. Employee influence - delegated levels of authority, responsibility, power. 4. Work systems - definition/design of work and alignment of people. 2. Formulation and implementation of human resource strategies (Task-2) 2.1 Process: Human resources planning are a process that identifies current and future human resources needs for an organization to achieve its goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. The objective of strategic HRM is the development of an HRM system that enhances an organization's efficiency, quality, innovation, and responsiveness to customers. Strategic human resource planning (SHRP) involves four distinct stages: 1. Situational analysis/environmental scanning. 2. Forecasting demand for human resources. 3. Analyzing the supply of human resources. 4. Developing action plans to close any gap between human resource demand and supply. The First stage of HR planning is the point at which HRM and strategic planning interact. Environmental scanning helps HR planners identify and anticipate sources of threats and opportunities and should drive the organization's strategic planning. The Second stage, forecasting demand, requires estimating not only how many but also what kinds of employees will be needed by the organization. The demand for employees should be closely tied to the strategic direction of the organization. Forecasting yields advance estimates of the organization's staffing requirements. The Third phase involves analyzing the number and types of current employees in terms of the skills and training necessary for the future and also the supply of qualified workers in the external labor market. The skills inventory is a major tool used to assess the internal supply of employees. After the HR planning system has analyzed both the supply of and the demand for future workers, the two forecasts are compared to determine what, if any, actions are necessary. If a discrepancy exists between the two estimates, the organization needs to choose an appropriate course of action designed to eliminate the gap. 2.2 Roles Strategic Role of top management: * HRM should be strategic business partner of an organization * Should support business strategies * In addition to internally representing the employees (people dimension), should also have external focus * Forward thinking and proactive * Assist the organization in creating and maintaining competitive edge * Should try to work as profit center and economize its operations * Should add value to the organization Functions of HRM: 1. Staffing: * Human resource planning- * Job analysis: competency matrix. * Job description/Position description. * Job evaluation. * Determination of actual number of employees needed for various jobs. Recruitment and selection of people- * Attracting talent * Selection process * Motivating the talent to join the organization 2. Training and Development: Induction- * Acclimatization process for new employees Training- * Competency mapping and gap analysis * Appraisal * Training need assessment * Training process Development- * Potential assessment * Development process * Career planning * Fast track (talent management) * Normal career path management 3. Motivation: Appraisal- * Appropriate appraisal system * Appraisal process  Compensation and benefits- * Determination of salary and benefit packages  Rewards- * Recognition motivation * Monetary motivation 4. Maintenance: Communication- * Installing and maintaining two way communication  Health- * Design/Selection and implementation of health schemes Safety- * Awareness creation * System for safe working conditions * Employee relations * Establishing fairness  * Designing and implementing employee relations policies and procedures Legalities- * Dispute * Grievances * Employment related legalities * Unions * Health and safety related legalities 2.3 Development and implementation Effective planning is the key to success of any organization and an important role for HR is to be a strategic partner in order to align HR objectives to support the achievement of the organizational vision, values and strategies. Here discuss about implementation and development stages of firm: Implementation and development stages: The following implementation stages are suggested for mid to large organizations. Stage 1: * Identify the infrastructure and system requirements to support full implementation (Human Resources Information Management System; other on-line software tools needed to support various CBM applications). * Develop the competency profiles. * Implement the competency profiles in a staged-way to demonstrate benefits and create buy-in (as soon as profiles for a group are developed, implement quickly within a low-risk high-benefit planned application for the group). * Communicate success stories as competency profiles are implemented. * Good for organization. Stage 2: * Develop, revise/update competency profiles to meet changing demands. * Monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs/plans, as needed, to meet evolving needs. Approach promotes the implementation of solutions from inside out via empowering internal resources and effective knowledge transfer. Trademark HR Strategic Planning Program will help organization understand, design, implement, review and adjust solutions that are right for organization.  . 3. Range of HR strategies (Task-3) 3.1 Company Profile: To meet the requirements, the researchers are required to study a certain corporation to get proper information. The researchers choose British Airways, UK for this case study. 3.2 Company overview: British Airways was formed in 1974 from its predecessors merging. Theses airlines were the former BOAC and BEA. British Airways was known as the ‘flag carrier’ airline for the UK, meaning it was the national airline and owned by the state. The airline is still the UK’s largest scheduled airline. British Airways handles both passenger and freight business, flying to more than 400 destinations worldwide. Many routes are offered in partnership with other airlines using codeshare arrangements. A target reduction of £400 million over 5 years was set, some of which would come from reduced labour costs. The merger had implications for training with 9000 BA staff and 4000 Iberia staff to be trained in the new business model. 3.3 Range of strategies: Strategies for improving organizational performance: Performance improvement is the concept of measuring the output of a particular process or procedure, then modifying the process or procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. The concept of performance improvement can be applied to either individual performance such as an athlete or organizational performance such as a racing team or a commercial enterprise. Talent management and succession planning resourcing strategies: Talent management refers to the anticipation of required human capital the organization needs at the time then setting a plan to meet those needs. The term "talent management" means different things to different organizations. To some it is about the management of high-worth individuals or the talented whilst to others it is about how talent is managed generally on the assumption that all people have talent which should be identified and liberated. Succession planning can be broadly defined as identifying future potential leaders to fill key positions. Wendy Hirsh defines succession planning as 'a process by which one or more successors are identified for key posts and career moves or development activities are planned for these successors. Learning and development strategies: A learning and development Strategy is a plan designed to align advancement and training needs within an organization and establish a strategy to deliver education to cover those needs. The underlying principles for a business Learning & Development strategy: * To become a Learning Organization. * Create a variety of Learning & Development opportunities * Increase business capacity * Strengthen the leadership and Management approach * Engage with Stakeholders in the development of this strategy * To ensure the needs of the workforce are met in line with organizational need  Performance management strategy: Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Reward strategy: Extensive research and studies on reward strategy has shown that people are complicated and motivation is a complex process. These ways to consider the necessary components of rewarding people is to view them as individuals. ‘Total reward’ addresses this complexity in bringing together financial aspects of reward of basic pay, any bonuses and additional financial benefits with the non-financial benefits at the personal and organizational level. Employee relations strategy: An Employee relation means the management relations towards the workers. The relations should be in accordance with the company policy, rules and of regulations. 3.4 Application How strategies apply in different organizations: * Motivational leadership - concentrates on achieving sustained performance through personal growth, values-based leadership and planning that recognizes human dynamics. * Turning strategy into action - entails a phased approach, linking identified performance factors with strategic initiatives and projects designed to develop and optimize departmental and individual activities. * Performance management - involving the construction of organizational processes and capabilities necessary to achieve performance through people delivering results. Measures of Success: Measures of success are the criteria that we believe show the impact of our work. The measures may be quantifiable or qualitative, but they are observable in some way. Without data on what is being accomplished by our deliberate actions, Measures of success should tell us the following about whether organizational goals: * Achieved the results we expected. * Produced results we didn’t want or expect * Should be changed * Should continue (or not) * Should be measured in other ways The measures themselves should reflect the purpose, mission, and hopes of the unit or department. Establishing measures of success is hypothesis testing. We assume there is a cause-and-effect relationship. 4. Affects of strategic human resource management (Task-4): 4.1 Contemporary issues: HRM departments within organizations, just as the organizations themselves, do not exist in a vacuum. Events outside of work environments have far-reaching effects on HRM practices. The following paragraphs describe some of these events and indicate how they influence HRM practices. As mentioned previously, the enactment of federal, state, and local laws regulating workplace behavior has changed nearly all HRM practices. Consider, for instance, the impact of anti-discrimination laws on firms' hiring practices. Prior to the passage of these laws, many firms hired people based on reasons that were not job-related. Today, such practices could result in charges of discrimination. These events include: * An expanding cultural diversity at the work-place * The emergence of work and family issues * The growing use of part-time and temporary employees * An increased emphasis on quality and team-work * The occurrence of mergers and takeovers * The occurrence of downsizing and layoffs * The rapid advancement of technology * An emphasis on continuous quality improvement * A high rate of workforce illiteracy These events influence HRM practices in numerous ways. Such as: * Some firms are attempting to accommodate the needs of families by offering benefit options like maternity leave, child care, flextime, and job sharing. * Some firms are attempting to accommodate the needs of older workers through skill upgrading and training designed to facilitate the acceptance of new techniques. * Some firms are educating their employees in basic reading, writing, and mathematical skills so that they can keep up with rapidly advancing technologies. Unions often influence a firm's HRM practices. Unionized companies must adhere to written contracts negotiated between each company and its union. Union contracts regulate many HRM practices, such as discipline, promotion, grievance procedures, and overtime allocations. 4.2 Challenges for strategic HR management: Internationalism and challenges for strategic HR management: Considering how the work processes as well as people management & development has to be dealt with not only within an organization but also outside it, outside the country and with all possible types of people, International Human Resource Management could be posed with challenges more often than as they occur within an organization which is content to manage its staff only. Some of the common problems encountered are- Managing Diversity-An international organization deals with diversity not only increase of people but also social systems, legal requirements, remuneration. Managing Effective Communication-Clear communication is a valuable tool for employee involvement & motivation. Nothing beats face-to-face communication- not even the most sophisticated electronic mediums- which might not always be possible very often in a global organization Managing Effective Resourcing-With a worldwide reach, it becomes even more imperative for an organization to attract & retain staff of a high caliber to manage international operations so as to maintain a competitive edge. Maintaining Uniformity & Fairness-Employment practices & remuneration are often the soft targets of unfairness amidst the workforce of a global organization. This gets more mixed up especially in case of a joint venture or strategic alliance leading to divided loyalties among workers of the parent company, host country nationals, third country nationals and consultants. Diversity management and equal opportunities: Diversity management: Diversity management is when managers create an environment that helps employees feel comfortable with others of different races, cultures, religions or backgrounds. Equal opportunities: Equal opportunity is a stipulation that all people should be treated similarly, unhampered by artificial barriers or prejudices or preferences, except when particular distinctions can be explicitly justified. Conclusion: Human Resource Management is a broader concept that directly linked with the key success factor of any organization’s target. An organization should have the gesture to make an effective Human Resource Management and the work out plan to maintain to that helps to the corporate objective of any organization. Bibliography: Books: Dessler Gary “Human Resource Management”10th Edition. John.M. Warner & Rendy.I. Desimone “Human Resource Development” Journal articles: Janice A. Miller, SPHR and Diana M. Osinski, SPHR, ‘TRAINING NEEDS ASSESSMENT’’ February 1996 Reviewed July 2002 Website 1. http://www.guardian.co.uk 2. http://www.personneltoday.com. 3. http://www.prweek.com. 4. http://employeebenefits.co.uk. 5. www.britishairways.com. 6.http://www.emerald.com 7.www.jstore.com.