Human Resource Management and Strategic Planning - Literature review Example

Human Resource Management and Strategic Planning Student’s Name Institution Course Tutor Date Human Resource Management and Strategic Planning Introduction Strategic human resource management (HRM) is considered and essential part of an organisation. It is regarded as the process of managing the available human resources of the organisation to provide a framework towards the improved performance as well as achievement of the company’s objectives. HRM focuses on the strategies and planning that meets the requirements of the employees in an organisation based on their number, competencies, skills, talents, and abilities, as well as the appropriate remunerations. Dewan (2016) highlights that HRM of a company is involves with activities such as hiring and training of the employees. On the same basis, HRM also entails administering the employees and even relieving them off their duties when deemed necessary. Therefore, HRM monitors all the inputs of human resources and their output as well on the basis of the company’s objectives. This paper seeks to explore the Unilever Company and its HRM in attempts to answer the questions about HRM and strategic planning. Unilever is one of the largest multinational companies that have a long history of development and expansion. The company started as a corporate business between the soap maker of Britain, Lever Brothers, and margarine producer of Netherlands/Dutch origin, Unie (Reference for Business n.d.). Presently, the company features amongst the prominent business organizations globally, such as Nestle and Procter and Gamble. The HRM of the company records employee strength of over 170,000 employees in all the countries in which the company operates (Dewan 2016). Through its HRM and strategic planning, the company has remained one of the most popular and respected company, which has resulted in high performance and development over the past years. Question 1: Function of HRM in the strategic management of an organisation towards optimum business performance The recent studies to determine the link between the HRM of a company and its optimum performance have demonstrated that HRM policies play major roles in the organisation’s business performance. However, to achieve the intended performance in the organisation, the human resource management that a firm adopts should employ the concepts of strategic synergy, fit and integration whilst undertaking the management practices. Amongst the fits that need to be included in the HRM strategy include: the HRM practices should be related and complementary to each other; the practices should demonstrate a fit between the HRM strategies and the organisational practices and systems, the HRM practices should be compatible with its operating environment, and the HRM strategy should also be in line with the business strategies or organisational plans (Baird & Meshoulam 1998). Therefore, through the integration of HRM strategies and the organisational strategic planning, HRM impacts the business performance of an organisation. The key functions of HRM in an organisation towards the improved business performance of the company include project management and enhancement of collaboration in the organisation. Through integration of HRM strategies and the strategic plans of the company, the HR managers work together with the other managerial departments to provide advice supports on how to assign different employees to different employment positions and tasks (Sluijs & Kluymans n.d.). This aspect of contribution enables the company to adapt to its environment, both the internal and external, towards the optimum performance. Also, HRM promotes commitment and capacity building in the organisation. Through the plans and processes of employee acquisition, training and development that match employees to their appropriate positions in the company, HRM promotes commitment of the employees to their assigned roles (Sluijs, E & Kluymans,). Further, HRM helps an organisation to understand its competition environment and develop a responsive competitive advantage (Baird & Meshoulam 1998). Therefore, through effective integration of the HRM strategies in line with the company’s objectives, the firm can understand is environment and develop intervention measures towards achieving the desired goals. Question 2: How HRM helps an organisation to achieve its objectives As discussed earlier, the ability of an organisation to develop and expand to the level at which Unilever is, the HR department must actively execute their strategies and plans in line with the business objectives of the company. Activities as employee recruitment or acquisition, training and development of the workers, project management, and compliance management, as well as cost and quality control in the organization, the HRM enable the company move towards it objectives. One of the ways through which HRM helps the organisation achieve its objectives by structuring the company through training and policies amongst others is increasing the employee skill and abilities. Upon determining the areas that need human resources in the company, the HR department assess the competency and skills that are required for a specific goal or objective to be achieved in the company (Cooke 2000; Chimoriya 2016). Through interview process and other related employee acquisition formalities and training of the acquired employee, the HRM increase the employee’s skills and abilities that facilitate efficiency in achieving the business outcome that is in line with the objectives. Further, the HR department in a company is responsible for remunerations and setting of policies that monitor and guide the worker in the company whilst undertaking their tasks. Best practices in achieving workforce diversity (n.d) and Chimoriya (2016) explains that through appropriate policies and rewards plan, HRM motivates the employees and promote positive attitude towards the best efforts and performance of the workers. As a result, the company can achieve its objectives through the efforts and performance of well-motivated employees. Moreover, for Unilever to effectively and efficiently achieve its goals, the employees need to make full use of their skills and abilities. It is the function of the HR department in the organisation to evaluate the skills and abilities of the workers and assign them expanded responsibilities matching their competencies (Cooke 2000). Therefore, the HRM department can help the company achieve its goals through expanding the responsibilities given to the employees to match the business intents of the organisation. Question 3: Application of the organisation’s philosophies, structures and strategies in the workplace through appropriate recruitment and induction programs Employee acquisition process marks the aspect of introducing new people into the workforce. The introduction of new employees in the workplace implies new efforts, attitude, emotions, and ideas. Through best induction processes, the new recruits can add value to the pursuit of company’s intents. Therefore, for the new employees to fit in to the system and carry along with the company’s philosophies, structures and strategies, it is imperative that the three perspectives should be considered and applied appropriately rough the recruitment and induction programs. One of the ways of applying the organisation’s philosophies in the workplace through recruitment and induction programs is by observing and making use of the philosophies or policy statements during recruitment and induction. The entire process, alongside the activities and persons involved, should demonstrate integrity and fairness in the selection and acquisition of the potential employees. The programs should promote and enhance the policies of the company (Cotton 2007). Also, the programs should demonstrate, with much clarity, the structures of the company during jobs and positions description advertisement. The descriptions should effectively outline the roles and tasks involved as well as the persons below and above it. On the same basis, the induction program should demonstrate the structure and policies involved in a practicable way. Concerning the strategies of the company, the recruitment and induction programs should depict the requirements and qualifications to match the position to be filled (Sluijs & Kluymans n.d). Also, during induction of the new recruit, it is imperative that the involved practices demonstrate the commitment of the company towards achieving its objectives through clear outline of the policies that guide its activities. Therefore, the appropriate application of the organisation’s philosophies, structures and strategies in the workplace happen through their close observation and effective communication to the intended recruits. Question 4: Assessment and development of training needs and identification of future management potentials The concept of management development in HRM involves selecting various people for managerial responsibilities through different techniques. During employee acquisition, various positions are filled. However, some of the recruits may not be efficient to match the exact job specifications and requirements. Also, since the organisation experiences changes in its structure, objectives, level of technology, and working procedures, amongst many others, it is essential that the efforts and inputs from the managers and other employees match the necessities for the changes. The effective adaptation of company to the changing environments and factors requires that the employees, as well as managers, uplift and update their skills, knowledge and capabilities. Therefore, the identification of the future management potentials is done through research and survey that are oriented towards the anticipated future changes. The management development programs are required to hold various characteristics, processes, objectives, and methods. As characteristics, the management development programs in HRM should be growth oriented, future development oriented, focused to managerial employees, involving educational process, enhancing self-motivation amongst the managerial employees, influential to behavioural changes, continuous. The management development programs focus on increasing the managerial capabilities in the organisation, enhancing the managerial potential, providing personal growth amongst employees, improving decision making, providing capabilities of cope to changes, and resulting in change in behaviour, as well as fostering team work and promoting job satisfaction in the organisation (Gupta & Shaw 2014; Chartered Management Institute 2003). However, the process commence with assessing the development or training needs amongst the employees. Dries (2013) explains that the training and development needs assessment techniques include the direct observation of performance, records and report studies, organisational analyses results, work or task analysis study, conducting performance analyses, and establishing checklist for training needs analysis that is based on standards and objectives of the company. Question 5: Appraising, evaluating, enhancing, and managing employee’s performance Performance management is a goal oriented practice that ensures that the company’s operation processes are in line with the set objectives and that the outcome anticipated matches the intents of the organisation. Therefore, it involves evaluation of the performance of the employees and managing them accordingly. Organisations such as Unilever employ different appraisal and evaluation methods to determine the level of performance of the employees. Methods such as graphic rating scales and checklist scale are some of ways through which organisations can assess and evaluate the performance of their employees. The graphic rating scale tends to objectivity concerning the task that the employee undertakes. According to Cooke (2000), the method focuses on the relationship between the employee and the co-workers, such as elements of interpersonal issues, initiatives that the employee takes, the quality of work outcome that he or she always turns in, and how he or she relates to issues of the task deadline. On the other hand, the checklist scale; as a method of appraising and evaluating the performance of the employee; tend to focus more on the subjectivity through a set of questions to which the employee responds yes or no. The performance appraisal is used in HR planning, recruitment and selection, training and development, compensation plans and programs, assessment of employee potentials, and career planning and development, which are some of methods of managing and enhancing performance in a workplace. Jacobs et al. (2014) suggests that the appraisal and evaluation process, as well as the performance management and enhancement, should make use of the ethical procedures and methods to promote commitment, improvement, and satisfaction. The performance appraisal process makes use of few instances of procedures. To effectively appraise and evaluate the performance of an employee, the company should first identify specific performance appraisal goals upon which the entire process intends to achieve. The goals should be in line with the company’s objectives concerning workplace and business performance (Best practices in achieving workforce diversity n.d). The second step involves establishing the performance criteria and communication them to the employees. Creating awareness about the intents and methods to be used during the process is one of the ethical practices that the organisation’s performance management should observe (Dries 2013). Upon letting the employees know the criteria to be used, the HRM should then examine the work performance using the methods identified and communicated methods. The appraisal of the performance and its discussion with the employee marks the final activities of the process. Whilst appraising and evaluating the work performance, the HRM should observe traits, behaviours, competencies, goal achievement, and improvement potentials as some of the criteria (Cooke 2000). The appraisal of employees work can occur in different perspectives. The immediate supervisor, subordinates, peers and team members, and customers can appraise the performance (Sluijs & Kluymans n.d.). Also, the employee can also conduct self-appraisal. Therefore, the management and enhancement of the performance would involve compensation programs, career development through training, and care planning, amongst the many others that have been mentioned earlier in this section. Question 6: HR workplace issue that affect an organisation’s strategic goals, how to address it and the outcome of the method used Unilever is a company that has demonstrated various phases of evolution since it stated decades ago. Considering the ever changing business environment, such as technology, competition, political and economic factors, amongst others, the workplace also needs to change to adapt and cope with the contemporary trends. Therefore, some of the HR workplace issues that can impact Unilever include the ability to attract top talents and provide workplace flexibility. Hagginbottom (2016) reports that attracting high competencies and skills has remained the potential HR issue in the workplace since the desire to maintain experience against competition is what most companies consider; retaining employees is regarded over the recruitment of fresh skills who may lack experiences. Therefore, Unilever can also consider experience over new talents, which is the trending HR issue in the workplace in most of the multinational firms. Conclusion In this era of globalisation, completion, amongst many hindrances, has been the biggest challenge even at the international markets. Through effective and strategic HRM and organisational planning, Unilever has remained one of the most competitive companies globally. HRM play various key roles in the performance of a company and the achievement of its goals. Acquisition of employees, proportion of commitment and collaboration, and enabling job satisfaction are some of the functions of HRM is accompany, which are realised though training and other developmental programs. The need for training and management development is obtained through various analyses such as task outcome analysis. The appraisal of the work performance takes different perspectives such as customer or self-appraisal though methods such as graphic scale rating. The management and enhancement of the work performance entails measures such as appropriate compensation amongst others. However, attracting new talents is one of the major HR work issue that affect multinational firms such as Unilever since they prefer retaining experience instead of acquiring the new skills that may lack adequate experience. References Baird, L & Meshoulam, I 1998, Managing two fits of strategic human resource management, Academy of Management Review, Vol. 13, No. 1, pp. 116-128. Best practices in achieving workforce diversity n.d., U.S. Department of Commerce and Vice Presidential Al Gore’s National Partnership for Reinventing Government, Benchmarking Study Chartered Management Institute 2003, Training needs analysis. Available from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiVtq2_77XTAhWnLcAKHffHD3IQFggtMAE&url=http%3A%2F%2Fwww.london.ac.uk%2Ffileadmin%2Fdocuments%2Fstaff%2Fstaff_development%2Ftna.pdf&usg=AFQjCNEKcDZSW8IE-p2RnUfLpI2XWwNYCw&sig2=jrnISgJxoVvJKwD2JFaM4w [April 2017] Chimoriya, B 2016, Management development: characteristics, objectives, methods. Available from www.wisenepali.com/2016/02/management-development-characteristics.html [April 21, 2017] Cooke, FL 2000, Human resource strategy to improve organisational performance: a route for British firms? ESRC Future of Work Programme, Working Paper 9. Cotton, A 2007, Seven steps of effective workforce planning, Human Capital Management Series Dewa, A 2016, Case study: how Unilever made 410 promotions in 2 years, Human Resources. Available from http://www.humanresourcesonline.net/case-study-unilever-made-410-promotions-2-years/ [April 2017] Dries, N 2013, The psychology of talent management: a review and research agenda, Human Resource Management Review, Vol. 23, pp. 272-285. Gupta, N & Shaw, JD 2014, Employee compensation: the neglected area of HRM research, Human Resource Management Review, Vol. 24, pp. 1-4. Hagginbottom, K 2016, Top challenges facing HR directors of global forms in 2017. Available from https://www.forbes.com/sites/karenhigginbottom/2016/12/28/challenges-facing-hr-directors-of-global-firms-in-2017/#38b51a944f95 [April 2017] Jacobs, G, Belschak, FD & Hartog, DND 2014, (Un) Ethical behaviour and performance appraisal: the role of affect, support and organisational justice, Journal of Business Ethics, Vol. 121, pp. 63-76. Reference for Business n.d., Company profile, information, business description, history, background information on Unilever. Available from http://www.referenceforbusiness.com/history2/19/Unilever.html [April 21, 2017] Sluijs, E & Kluymans, F n.d. Business strategy and human resource management: setting the scene, Business Strategy and Human Resource Management Read More