Human resource management is determined as one of the crucial element in an organisation that plays an important role in assisting company for executing their plans in an effective manner. Human resource strategy comes under this and this department make long term plans so that objectives can be achieved in a speculated time frame. Other than this, HRM strategy unifies and direct behaviour and action of people considering overall development within the organisation. TNT, is a company which is taken in this assignment and it is one of the market leader in field of express delivery system.
This report will focus on external and contextual developments that influence HR strategy. Every aspect has a theoretical perspective thus, practical knowledge of HR development have also elaborated. Other than this, appropriate change management model that supports HR strategy are mentioned in this assignment. Lastly, evaluation of the contribution of HR management and HR development in order to sustainable business performance and growth is included in this report.
P1 Current trends and developments that influence an organisation's HR strategy
Strategic human resource management is very important for an organisation in order to achieve certain objective and targets in a given period of time (Anderson, 2013). Company requires an effective team with the help of which they can attain set goals thus, Strategic HRM conduct an analysis so as to determine what all things and actions are required to improve the productivity of the firm. Moreover, it is crucial that TNT on a regular basis consider current trends that can put an impact or influence organisational HR strategies. Some of them are mentioned below for better understanding:
Impact of globalisation: Globalisation is determined as a process through which integration and interaction of companies, people and culture have been made possible. Thus, it can be said that globalisation has put an impact on the business operations of company. With the help of this, TNT can advance its transport and communication technologies because of which company is providing effective delivering system.
Workplace Diversity: In an organisation workplace diversity plays both as a positive or negative factor. This can aid company in delivering best services and facilities or it can create problem in maintaining better working environment (Aswathappa, 2013). In terms of TNT Express Services, they have to consider this current trend because it can hamper the decision making of the company. For example: While taking any kind of decision if managers of TNT Express Services entertain any one section of the company than it can hamper the working environment of the company.
Changing skills and Requirements: With the change in course of time requirements of the company has changed earlier cost of delivering system use to be costlier but in current scenario, because of technologies available the same has become easier (Bondarouk and Ruël, 2013). For example: TNT company can now do most of the work through internet like documentation process, customer services and facilities etc.,
Continuous improvement and process of improving productivity: From past few decades, companies have focussed more on productivity and for this, firms are recruiting eligible candidates who can perform their task in an effective manner. For example: TNT Express Services is hiring new IT specialist who can look after the documentation and filling process that are important in delivery system.
Apart from this, company is providing appropriate training and development programmes so that they can enhance their existing knowledge and skills. Moreover, TNT can implement HR Strategic model such as Dave Ulrich HR model, which is an integral function that influence strategies made by HR department and companies at highest level.
This includes four factors like strategic partner, change agent, employee champion and admin expert. Therefore, this will aid TNT Express Service in executing their activities in an effective manner. As a result, with the help of this company can sustain a better position at the market area.
P2 External and internal factors influence HR strategy and practice
While performing the activities there are several factors which can have an impact on the business operations that are done daily. External and internal are the two basic elements that are required to be considered and both of them are explained below for better understandings:
External Factors: Government Regulations: With the advancement of business operations, regulatory bodies are compliancing workplace standards and for this they are formulating rules and regulations on a regular basis (Brewster and Hegewisch, 2017). In relation with TNT Express Services, it is required to follow all the laws and legislations in order to run their business in an effective manner without any kind of complications and issues.
Economic Conditions: This is determined as one of the important external factor which is to be looked after because sudden change in economic policies can effect activities within the organisation. TNT Express Services, must have biggest way for preparing themselves for different economic conditions so that this issue can be eliminated.
Technological Advancement: With the change in course of time, technology has advanced and it is providing benefits to the organisation. TNT Express Services, has also been benefited from the same as they are not required to maintained a record in thick books. For instance: work that required the assistance of two to three person now it can be easily done with the help of technology (Cascio and Boudreau, 2010). Therefore, it is crucial that TNT Express Services consider the changes on a regular basis so that better advantages can be gained from the market environment.
Policies: This factor work as a guidance provides a direction to the organisation, policies tell employees about the things which they can do and activities they cannot perform. Some of the policies can encourage employees and workers if these are according to their potential. For example: Policies made regarding compensation can boost the morale of employees if it is appropriate but on the same time it can decrease the confidence level.
Organisational Culture: Every company have its own organisational culture which depends upon the shared values, beliefs and other factors. Therefore, in order to understand organisational culture, it is important that HR policies and strategies are formulated and practices so that attitudes of employees can be understood.
Organisational Conflicts: There can be a possibility that people of different culture are working in a company. This can be considered as an important internal factor which is to be considered because this can ultimately put an impact on business operations. For example: attitudes of employees towards other individual (Chang, Chiang and Han, 2012).
Organisational Structure: Generally, there are two types of organisational structure which can be followed by a company i.e. tall and flat. TNT Express Services is using Flat structure as company have advanced technology and educated employees as well. An effective organisational structure determines the capabilities of a firm. But there are some instances because of which HR manager have to adjust the same so that better outcomes can be gained. In relation with TNT Express Services, they have an effective organisational culture which is enabling firm in delivering best services to its customers.
P3 Relevant theories and concepts relating to the growth and development of strategic HRM
Growth in business can only be possible if company is showing efforts for providing training to employees and applying effective strategies as well (Chelladurai and Kerwin, 2017). This will not only help company in executing their plans in an effective manner but it will aid them in delivering best services and facilities to its customers. In relation with TNT Express Services, considering different factors firm can get improve its sales and profitability.
Universalistic Theory: This theory is mainly concerned with relationship among internal resources (employees), business performance and strategy. It concerns on promotion of sustained competitive advancement through human development. Thus, in context with TNT Express Services, the main beneficial part of Universalistic theory is that - it provides a simple framework related to selection, appraisal, reward and development.
Contingency Theory: It suggests a situational viewpoint that enables an organisation to face any challenging role as well as acquired opportunities. As per this theory, there is no universally accepted practices for managing human resource. Henceforth, it assists managers of TNT Express to act as per situation which created due to internal and external environmental factors. So, some of the factors are mentioned below along with a comparison how other organisation would have worked for getting appropriate results.
Flexible work arrangements: This is the prime factor for which most of the employees look after. There should be a flexible working hours under which they can do their work and provides benefit to the organisation. Therefore, in relation with TNT Express, for their workers they have flexible working hours which is 8 to 9 hours a day. As a result, it is assisting them in performing their task in a relaxed mind. But if compared DHL are not at all concern about the issues and problems of employees because they don’t have a flexible working hours. Company in order to gain benefits from the market area pressurize its employees because of which their employee’s turnover is high (CHUANG and Liao, 2010).
Performance management: It is performance on the basis of which company gains better results and outcomes. Thus, the role of performance management is to make sure that goal and objectives are achieved in an effective and efficient manner. So, it can be said that there is a direct relationship between performance management and excellent organisational results. Therefore, in relation with TNT Express Services their managers are systematic procedure through which they first identify the skills and knowledge and then assign the task so that it can be accomplished in an effective manner.
Other than then this their leaders and managers guide their employees if they have any kind of problem in doing any kind of task and operations. Thus, through proper performance management company can enable themselves in achieving their objectives and goals (Costea, Amiridis and Crump, 2012). Whereas, if compared DHL doesn’t manage its activities because of which their performance management is not appropriate. As a result, company is finding difficulty in accomplishing their targets and set objectives.
E-recruitment: This is an online procedure of selecting eligible candidates for the job and for the positions that are vacant. For this, company uses electronic resources mainly internet. Some of the companies hire recruiting companies who help respecting company for hiring suitable employees. Therefore, TNT Express Service is using this process and on the other hand DHL is using traditional form of recruitment and selection process which is costing them higher than usual. Thus, E-recruitment is providing TNT Express Service better result and outcomes and due to this firm is having better employees who are providing effective services and facilities to its customers (Daley, 2012).
P4 Appropriate change management models support HR strategy
Change is a constant activity which is performed by a company so that benefits can be achieved and attained. As the world is changing so it is required that company also makes changes quickly and on a regular basis as well because this will aid them in running their business according to the current market scenario. In order to understand this in a better manner some of the models and theory are explained below for better understanding:
Kotter's 8 step change model: This model was developed by John Kotter who was a renowned professor of Harvard Business School and he has introduced 8 step model of change and it is being explained below:
Increase urgency: This is a powerful tool through which an individual can continue to move faster but provides a clear guidance and insight of the reality (Ehrnrooth and Björkman, 2012). With the help of this one can easily identify the potential threats and issues that can hamper business activities. Other than this, it helps in examining the opportunities that are present in the market environment. Therefore, through increase in urgency TNT Express Service can enable themselves in taking appropriate decisions for their organisation.
Build Guiding Team: In order to run a business in a successful manner it is important that an effective team is developed by an organisation. So, managers of TNT can guide all individuals related to the work and task they have to perform. Therefore, on the basis of this teams are developed in which individual having same point of view are included (Kotter’s 8-Step Change Model, 2018).
Develop the Vision: Company can gain benefits and better outcomes if they have a specific vision and in accordance to it policies and strategies are developed. Therefore, it is crucial for TNT Express Services, to consider all the core values that are important for making vision and strategies because it will assist firm in realising a change which can provide benefits to the organisation (Fulton and et. al., 2011).
Communicating the vision: This is an effective process that should be very appropriate because any kind of barrier can hamper the flow and process of executing the plans in an effective manner. In relation with TNT Express Service they are using effective communication process in order to convey message appropriately. For example: managers of the company are using appropriate tool in order to interact or convey information in a better manner so that the same can be done appropriately.
Removing Obstacles: While performing the task there is a possibility that various issues and problems are being faced by a company. So under this stage, issues are identified so as to formulate appropriate strategies for overcoming the same. Other than this, TNT Express Service on a regular basis can check for barriers that can have an impact on employees so that obstacles can be eliminated (Ganopoulos and et. al., 2013).
Create Short Term Wins: With the help of this, company can encourage its team members as by achieving the same one can feel victorious which will ultimately boost the morale of workers. Therefore, with the help of this, TNT Express Services can attain the goals and objectives in a speculated time frame.
Don't Let up: It is not possible that all the targets provide success to the company there can be some failures but because of this one cannot get disappointed. For example: If TNT Express Services is not getting better demands than they should not get disappointed and must work for the same so that better outcomes and results can be gained.
Make Change Stick: Company should not stick to a single process in order to attain goals and objectives in an effective manner. In order to increase the credibility, it is crucial that company have improved systems and structures so that with the help of new methods company can attain goals and objectives.
Nudge Theory: This theory is basically depends upon the concept of behavioural science so as to analyse positive reinforcement with the help of which positive behaviour can be influenced. As a result, it will aid company in taking effective decision for operating business in an effective manner. In relation with TNT Express Services, with the help of this they can filter best out of best strategies so that better outcomes can be gained by the firm.
P5 How HR outcomes can be monitored and measured and apply this to a specific organisational situation
Monitoring activities is very important so as to have an analysis regarding the things which are going good and activities that requires to be taken care off. Different circumstances have various requirements so that performance of the company can be improved. Thus, monitoring process helps organisation in evaluating different kinds of changes and developments that are present in the market environment so that benefits can be gained. Therefore, based on this concept some of the elements through which HR outcomes can be monitored and measured are given below for better understanding:
P6 Evaluation of effective HR management and development which can support sustainable performance
HR management plays a crucial role in an organisation and with the effective HR management and development company can give better performance and sustain in the market area for longer period of time. Therefore, some of the points related to the same are mentioned below for better understanding:
Benchmarking: This is a business processes that provides a performance metrics as compared with other firms who are dealing in the same sector. As a result, it will give an overview related to how a company is performing and what is their position in the market area. There are basically two types of benchmarking one is internal in which organisation monitor their own performance as a whole and other one is external benchmarking in which comparison is done between different organisation on the basis of what other company is doing, what kind of strategies they are following etc., Therefore, TNT Express Service can think of this and set their priorities in order to give better services and facilities to its customers.
Key performance Indicators (KPI): This is determined as an indicator through which progress of a company is measured towards how intended they are for achieving goals and objectives. Thus, it can be said that Key Performance Indicators provides with guidance that act as an analytical basis following which TNT Express Service can improve their operational movement. KPI includes setting targets, tracking them and managing the same for better outcomes. Therefore, this can be used by TNT Express Services in situations when they want to their sales are decreasing and to overcome this company can set objectives and targets so that it can be achieved.
10-C checklist of HRM: This is regarded as a pragmatic model that includes 10 basic elements which are required to be considered so that company can gain better results from the same, this includes Comprehensiveness, credibility, communication, cost effectiveness, creativity, coherence, competence, control, change and commitment. Therefore, by following all these, TNT Express Services can provide better services and facilities to its customers so as to sustain a better position at the market environment. Therefore, on the basis of the above mentioned model, company can overcome with different situations so that issues and problems can be eliminated.
From the above report, it has been concluded that strategic human resource management is one of the crucial factors that is very important for companies to manage because through this firm can achieve their set goals and objectives in a speculated time frame. Thus, with the help of this assignment researcher got to know about the current trends that are required to be considered so that firm can perform well at the market area such as impact of globalisation, workplace diversity etc. this can both foster and hamper the performance of the company. Other than this through relevant theories and concept like Kotter’s 8 step model and Nudge Theory for having better understanding of the same and understanding how it can out some impact on strategic human resource management. Lastly, evaluation of effective HR management and development is mentioned which will assist in understanding the factors through which performance of company can be improved.
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Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human Resource Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Cascio, W. and Boudreau, J., 2010. Investing in people: Financial impact of human resource initiatives. Ft Press.
Chang, A., Chiang, H. H. and Han, T. S., 2012. A multilevel investigation of relationships among brand-centered HRM, brand psychological ownership, brand citizenship behaviors, and customer satisfaction. European Journal of Marketing.
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CHUANG, C. H. and Liao, H. U. I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers. Personnel psychology.
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Ganopoulos and et. al., 2013. Barcode DNA high‐resolution melting (Bar‐HRM) analysis as a novel close‐tubed and accurate tool for olive oil forensic use. Journal of the Science of Food and Agriculture.
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