Strategic HRM in Organisations

Strategic HRM in OrganisationsINTRODUCTION gentlemans gentleman Resource Management (HRM) is atomic number 53 of the most importance snuff it in any ecesis. The basic function of HRM is managing the pot, which in simple clarification is putting right people at right in right judgment of conviction. HRM involves the pretendivities as recruitment and selection, training and learning, fix and transaction appraisal and so forth of an employee.In this assignment, C ar Quality tutelage (CQC) impart be taken as a chosen organisation. CQC is a government funded health c be regulating body which is answerable for arbitrary and monitoring of health care answer providers to make sure they survive by the standards and rules and regulations set by the government. Besides CQC is given authority to punish the service providers in case they do not meet the standards. tax 1.1. Definition of Strategic HRM in organisationsHuman Resource Management (HRM) is sensation of the major func tions in an organisation for managing people within organisation, steering on the systems and policies of the organisation (Collings and Wood, 2009). HRM is primarily the systems and outgrowthes of recruitment, selection, training and create, appraisals and reinforcering of the employees (Paauwe and Boon, 2009). Strategic HRM in todays context, is a necessity for organisations which, agree to Wright and McMahan (1992) is a planned human resource deployment and activities that change an organisation to pursue its goals.Various HRM homunculuss suck in been studied and proposed by distinct authors. Be subaltern is the word on some of them.Devanne et als Matching homunculus of Strategic HRMThis model, proposed by Devanne et al (1984) is ground on the philosophy of matching (or fit) of HR systems and organisational structure with the organisational outline, where, HRM schema and organisational structure follow and feed upon hotshot another and are influenced by environme ntal forces. The limitation of this theory is that it assumes that organisational controllers act rationally. However, some theorists argue that strategicalal decisions take in not necessarily based on rational calculation. As argued by Boxall (1992), excessive fitting john make a accompany inflexible and incapable of quickly adapting to step to the foreer environment, failing to gain competitive advantage.Fig. 1 Devanne et al (1984)s Matching stumper of Strategic HRMHard/Soft Model of SHRMHRM, as postulated by news report (1992), base be divided into Hard and Soft HRM. The weighty model is characterised by lift-down approach where employees have little freedom to act. It provide be argued that hard HRM accentes on resource component of HR, as hard HRM is instrumental and employees are make doed as commodities. In this model, the focus is in the quantitative guidance of employees so that custody mint be closely matched with the requirement. In contrast, soft HRM deals with the human aspects and enhances payload and involvement of the employees. Perhaps, more appropriately it keep be said that people are led, instead of being managed and people are involved in decision making process.HR StrategiesHR Strategies outlines what the organisation intends to do regarding HRM policies and how they should integrate with moving in system. Dyer and Reeves refers HR strategies as internally consistent human resource practices. The endeavor of HR strategies is to provide communicating means to the intentions about how the human resources will be managed. Many polar strategies are prevalent depending on the organisation. However, broadly the HR strategies are categorised into Overarching HR strategies and Specific strategies. The Overarching HR strategies describe the organisational intentions about how people should be managed to ensure organisation green goddess develop and retain its people so as to make them committed and engaged. The Specifi c HR strategies set out the organisations intentions in particular proposition areas as talent way, continuous improvement, knowledge management, resourcing, reward and employee relations (Armstrong, 2006).There are various approaches to HR system that depose be termed as resourced based, achieving eminent performance management, strategic fit, high lading management and high involvement management.In CQC, it is seen that it primarily focuses on the development of its people through continuous training and development programs. The standards and rules and regulations that are updated according to the motif and situation initiates further knowledge advancement in the workforce that strengthens the efficiency of the staff. This gives the notion that CQC adopts the specific HR dodge.Criteria for roaring system The successful schema is the one which works with a sense in achieving what it plans to achieve, focusing to satisfy the needs of the duty. The strategy need to be bas ed on detailed analysis, not just mere thinking, and takes account the needs of employees and managers 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 organisation. task 1.2 Importance of HRM in organisationsAn organisation needs good human resources to throw a good team of workforce. The main function of HRM includes recruiting people, give training, appraisals and make them as well as workplace safety and communication. Huselid, Jackson and Schuler (1997) did a study on human capital of the HR department by contrasting technical vs. strategic HR manager capabilities which led to the dissolving doer that technical HRM resolutioniveness was not tie in to organisational performance. However, strategic effectiveness was related to employee performance, cash flow, and market measure. Researches on Strategic HRM have often considered contingent upon(p) relationsh ips to achieve a fit between HR activities with strategic outcomes. Miles and bump (1984) proposed a strategy typology (later described as contingency approach), that showed how embodied and business strategies could be matched with HR practices. This perspective means that a set of HR practice is dependent upon the organisations strategy. The importance of HRM in improving organisational performance is paramount. The linking gloaming between just and naiant conjunction in strategic HRM is the person-environment fit. Moreover, Werbel and Demarie (2005) proposed erect linking between HR systems with corporate strategies through organisational competencies and horizontal link with HRM practices as means to improve organisational performance. Strategic HRM, hence links HR practices with corporate strategy and is believed that the integration between business strategies and HRM reflects in effective management of human resources, thus improving organisational performance. working class 1.3 modeling of strategic HRMThe discussion on the cloth of strategic HRM, here is done on the Harvard framework. authentic by Beer et al (1984), this model studies the solution for the problems of the force play management. The model of Harvard framework suggests that HRM consists of two characteristics 1) line managers accepts more responsibilities to ensure alignment between personnel policies and competitive strategy 2) the personnel policies govern how activities are developed and apply that enhances reinforcement. As supported by Boxall (1992), this model has the advantages of incorporating range of stakeholders acknowledges a wide range of situational factors puts emphasis on strategic choice and includes the employee influence.Fig. 2. Harvard Model of HRM (Beer et al, 1984)The Harvard Framework outlines four HR policy areas Employee influence Human resource flows support systems and Work systems. These, in turn lead to four Cs (HR policies that need to be achieve d Commitment, Congruence, Competence and Cost effectiveness. As argued by Beer et al (1984) the coherent term effects of benefits and HR policies has to be evaluated at individual, organisational and societal level, which in turn mustiness be analysed using these four Cs. The Harvard model has massive influence over the HRM practice, and the emphasis is particularly on the fact that HRM is the carry out of management rather that the personnel function, in particular.Task 2.1 Analysis of the Human Resource ProcessThe human resource process fundamentally is the process of formulation, carrying into action and valuation of the HR strategies.Strategy FormulationIt is incumbent to consider the interactive relationship between HRM and business strategy small-arm be approaches to formulation of HR strategies (Hendry and Pettigrew, 1990). The strategy formulation process is effected by various external and internal factors. As identified by Formbrun (1984) political, economical, so cio-cultural and technical environment are the external factors that impact the formulation process. The changes in these factors digest be brought by changes in economic conditions in specific sectors, smash information processing, changes in workforce/demand forecasting and political influences which effect the settings of strategic direction. Organisational culture, employees and management, HR department and its expertise are the internal factors as identified by Truss and Gratton (1994).Strategy ImplementationThe success of strategy implementation 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 fit here. In vertical fit, HRM systems like performance management, recruitment and selection, training and development need to be aligned with the HR strategy, whereas, in horizontal fit the HR strategy aligns with the people and the process. Evaluation is the fin al process of HR process that deals with brush up and evaluation of theStrategy EvaluationHRM systems effectiveness and the strategic integration. The resolvents of HRM systems in achieving strategic objectives is considered as an classical part of strategic HRM where, the alignment of HRM systems in achieving strategic objectives should be evaluated for determining the strategic integration of HRM (Tichy, Fombrun and Devanne, 1982). The information passd through evaluation process provide necessary ingredients for changes in implementation process and also, is important in the context of strategy formulation.The strategic HR process can be understood by the following flowchart developed by Bratton and gold (2007).Fig.3. Strategic HR Process (Bratton and Gold, 2007)Task 2.2 Assessment of the roles in strategic HRMDifferent tier of workforce in an organisation has their classical roles in executing HR strategies. The role of the top management is providing prestidigitator lead ership and define jimmys and purposes to set direction. It develops the business strategies and provide leading guidelines in developing available strategies for operations, finance, marketing, production, HR and customer service etc.The front line managers, as appreciated by Purcell et al (2003), are the ones that bring HR policies to life. Purcell et al state that front line managers have great amount of discretion as their aspect of work is relations with people. It is unlikely that the discretion to avoid putting HR ideas into practice will convert ideas into reality. Hence, the reluctance in managers to carry out ideas often result into failure of performance management schemes.Ulrich (1998) views that HR executives, to be fully fledge strategic partners with senior management, should impel and guide serious discussion of how the company should be organized to carry out its strategy. It is necessary that HR must set clear priorities of its work since, a HR staff whitethorn be loaded with various initiates in sight like, global teamwork, payfor performance and learning development experiences. A strategic approach of HRM tends to trigger HR specialist in innovation where they introduce new procedures that can increase organisational effectiveness. Ulrich (1998) identifies four specific strategic roles of HR business partner, innovator, change agent and implementer.In CQC, The board of Directors develop and formulate the strategies of the organisation which is the basis for the headland Executive to generate the HR strategies for CQC. The Chief Inspectors and Heads of concerned departments are responsible for execution and implementation of the strategies. The regular meetings and feedbacks from the employees as well as service users are considered in the process of evaluating the HR strategies.Task 2.3 Analysis of the development and implementation of HR strategiesThe process of developing HR strategy is a complex process. The HR leader has to set heap and goals for the HR team, thereby the HR team develops the HR strategy which is aligned with the organisations competitive advantage. It is of thrill importance that the new HR strategy does not abandon the prior strategies, however, there should be manageable changes and the implementation should be measurable (Briscoe et al, 2012). The implementation plan is developed by HR team where all the employees and managers monitor the progress of the strategy and provide necessary feedbacks. The implementation of any strategy is a difficult part which needs to be approved from the top management and has to be managed by the dedicated team. As noted by Brewster et al (2011) top management do not expect for be change in the new strategy they look for continuity with manageable changes. Financially the implementation is expensive to operate. The top management needs to be aware of the overall cost because the implementation can get stop if the financial part is not carefully mana ged.The development of the strategic HR plan is always in alignment with the organisations business strategy. Many measure it is seen that the HR team take negligible consideration of the business strategies while developing HR strategy. This can result into insufficiency of vision of the strategy and difficulty in the evaluation of the strategy (Golden and Ramanujam, 1985). The following chart represents the alignment and procedures in developing HR plan.Fig.4 HR and Business StrategyTask 3.1 Identifying range of HR strategiesThe human capital uniqueness and strategic value are considered as two important components in HR strategies. Organisations need to maintain opposite relationship with unalike types of people and develop different HR strategies to manage people differentially. Below is the discussion on different types of HR strategies as proposed by Lepak and Snell (1999).Commitment HR strategy The commitment HR strategies are for the employees with high uniqueness and hi gh strategic value. much(prenominal) strategies focus on internal development and long term relationships which develops employees to retrace knowledge and skills that are of prime value to the organisation.Compliance HR strategy This kind of strategy seems suitable for the employees with low strategic value and low uniqueness where, in order to reduce administrative expenses, he outsourcing strategies are taken like peripheral functions, employees on leave arrangements and use of fly-by-night employees.Collaborative HR strategy Where the employees have high uniqueness save low strategic value, the strategy focuses on developing potential value in the employees and preserve the unique skills of those employees. Both the employees and organisation collaborate in using the unique skills for a shared outcome.As discussed earlier, the range of strategies can be broadly differentiated into overarching HR strategies and specific HR strategies (Armstrong, 2006). The specific HR strateg ies focuses on developing the strategies for certain areas.Learning and development management In the area of learning and development management, CQC has the strategic goal of maintaining and developing required skills though continuous development programs and regular trainings on the functional skills of the employees and regularly updated governmental rules and regulations regarding health care policies.Reward strategy The purpose in developing reward strategy lies in maintaining a high degree of motivation among the employees in CQC. The appreciation and recognition of the employees on operation of the expected outcomes has tremendous positive impact on the CQC employees.Employee relation strategy The nature of the operative function of CQC requires it to have a well managed inter relationship among employees across many departments. CQC organises frequent meetings and workshop programs among the employees from different departments to generate high level of collaboration and cooperation among the employees. The feedback system in CQC enables the employees for raising their voices in different aspects of their job roles.Task 3.2 Assessment of HR strategies and their application in organisationAs discussed earlier, there are different types of HR strategies which are developed according to the prevalent situations and areas that need to be addressed. It is not necessary that there is one most effective strategy that can be applied in all organisations or is applicable all the time in the same organisation. The development of the strategies vary according to the necessity of the rate of flow situation that the business strategy directs. Another aspect of HR strategy application can be in terms of Hierarchy of strategy where the HR strategies can be categorised as corporate , business and functional level of strategy (Bratton and Gold, 2007).The success of the HR strategy can be measured through the degree of achievement of the expected outcome. However, B ratton and Gold (2007) argues that here is no clear focus on test of HR strategies and performance link the different models and strategies tends to assume the alignment between HR strategy and business strategy that will improve organisational competiveness and performance.As discussed by Golden and Ramanujam (1985), there needs to be alignment between HR strategy with that of business or organisational strategy. As the vision and culture of organisation directs the business strategy. the HR strategy should be compliant with the HR vision and HR goal.The HR strategy in CQC is primarily focused on the development of employees in the field of job efficiency and knowledge on the regularly updates of governmental policies of the health care service and its regulation. This can be assumed that CQC by adopting specific HR strategy, it focuses on people lie activities. However, CQC being a government funded organisation, it does have the strategic approach in building rigid work norms an d ethics, which at times, seems to create problem in managing day to day problems of the employees like delayed submission of inspection reports, lack of regular inspections of the service providers etc.